Market Trends of Brazil C4ISR Industry
This section covers the major market trends shaping the Brazil C4ISR Market according to our research experts:
Increasing Military Spending is Expected to Drive the Market Growth During the Forecasts Period
Brazil is the second-largest military spending region in both the Americas. According to Stockholm International Peace Research Institute (SIPRI), Brazil's defense expenditure fell by 4.3% in 2021, to USD 19.2 billion still the country remained the largest military spender in the subregion. Despite the cut in defense expenditure, the country was able to make the planned payments for its strategic armament programs that include the procurement of 36 Gripen combat aircraft from Sweden.
Brazil was the 17th largest defense spender in the world in 2021. The market is expected to be benefitted from such a high level of military spending by Brazil. As a result of higher military budgets over the years, the country has witnessed several military fleet and equipment modernization activities in the last five years. However, Brazil's economy was experiencing a slowdown even before the arrival of the COVID-19 crisis, and the advent of the pandemic and the subsequent shutdowns have further affected the country's economy. This may lead the government to reduce defense budgets in the coming years.
For instance, in August 2022, the United States Defence Security Cooperation Agency (DSCA) notified Congress of a foreign military sale (FMS) of Javelin missiles and associated equipment to Brazil. As a part of the sale, the Brazilian Government requested a purchase of up to 33 Javelin command launch units (CLU) and 222 FGM-148 Javelin anti-tank missiles. The value of the contract was nearly USD 74 million. Thus, growing procurement of advanced weapon systems and C4ISR systems for enhancing military capabilities drive market growth across the country.
Air Segment is Projected to Dominate the Market During the Forecast Period
The air segment will showcase remarkable growth during the forecast period. The growth is attributed to the growing procurement of aerial vehicles and related C4ISR systems. Also, the country's modernization plans for unmanned aerial vehicles, combat aircraft, and helicopters are expected to propel the market demand. Also, technological advancements in C4ISR systems and the demand for multi-functional systems are propelling the investments made by manufacturers in the research and development of cost-effective solutions.
With the integration of advanced technologies into airborne platforms, the mission readiness of armed forces on the battlefield will be enhanced greatly. For instance, in March 2022, the Brazilian Army started receiving the Nauru 1000C unmanned aerial vehicles (UAVs) which the country ordered for intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) missions. The Nauru 1000C is a fixed-wing vertical take-off and landing (VTOL) drone capable of operating in all-weather daylight and night-capable multi-missions. Such contracts are expected to propel the market prospects of the segment during the forecast period.
