Brazil is an active player in the global aerospace and defence space, popularly known for Embraer SA, the aerospace heavyweight based in Sao Paulo.
Aerospace and defense facts
The country has experienced multiple transactions regarding the purchase and manufacture of different defense and aerospace equipment. In 2014, Brazil manufactured a 15,000 kg aircraft via Embraer and during the same year, the Brazilian Air Force purchased Gripen aircraft from SAAB, making the country the 10th largest in military expenditure in the world.
Private and public security have been a major concern in the country.
It also the base for a major aerospace and defense cluster, the Sao Jose Dos Campos, which is also the home to Embraer, the third largest jet manufacturer in the world.
Besides Embraer, there are also other relevant aerospace and defense companies that are actively producing in the country. These are Helibras, Avibras, Odebrecht, Andrade Gutierrez, CBC, Taurus, Imbel, and Iveco. These companies are called Strategic Defense Companies (EED).
Another sector of companies called Defense Company (ED) consists of Ael Sistemas, Ares, Avio, CodeCiphers, Columbus, Data Com, Dsg Defence, Omnisys, Rockwell Collins, and Stefanini. ED’s are different from EED’s but can be considered EED’s, as long as they conform to certain standards.
Opportunities in aerospace and defense
Due to its excellent reputation as a quality aircraft provider, many top companies are involved in the manufacturing process in this sector. High quality equipment is offered to the sector at affordable prices.The suppliers of defense and aerospace equipment tend to attract much investment from large companies.
In fact, the Brazilian Armed Forces and the Ministry of Defense are expected to invest 410 BBRL until 2031 boosting the Brazilian Army, Navy and Air Force to emerge as the leading nation in large aeronautic and defence projects.
A lot of developments are still in the process for the betterment of the sector. Submarines with nuclear propulsion are being used in the country and are expected to continue until 2031. The country also continues to purchase new ships to support its equipment modernization.
More large projects are expected to be announced in the next 15 years and this will definitely open up more opportunities in the country despite short-term government acts.
Brazil is undoubtedly a highly competent country when it comes to its aerospace and defense sector. To ensure success of their ambitious projects by playing a role in this booming sector, by way of investment, one would require detailed market research. The data will assist interested foreign players to identify the opportunities and assess challenges accurately.