Future of the Chilean Defense Industry Attractiveness ... - SP.pdfFuture of the Chilean Defense...

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Report Price: US$ 1250 (Single User) Future of the Chilean Defense Industry Market Attractiveness, Competitive Landscape and Forecasts to 2020

Transcript of Future of the Chilean Defense Industry Attractiveness ... - SP.pdfFuture of the Chilean Defense...

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Report Price: US$ 1250 (Single User)

Future of the Chilean Defense Industry – Market

Attractiveness, Competitive Landscape and

Forecasts to 2020

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Summary

“Future of the Chilean Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to

2020” report offers the reader detailed analysis of the defense budget over the next five years. Alongside it

offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original

equipment manufacturers) to gain a market share in the Chilean defense industry.

The report provides detailed analysis of the current industry size and growth expectations during 2016–

2020, including highlights of the key growth stimulators. It also benchmarks the industry against key global

markets and provides detailed understanding of emerging opportunities in specific areas.

Key Findings

The Chilean defense budget stands at US$XX billion in 2015, registering a CAGR of -XX% during the

historic period. However, an increase is anticipated over the forecast period, at a CAGR of XX% to value

US$XX billion in 2020. The country’s defense budget will largely be driven by the country’s strained

relationship with Peru and Bolivia, military modernization, and participation in peacekeeping operations. In

addition, capital expenditure is expected to increase at a CAGR of XX% during the forecast period to value

US$XX million in 2020. On a cumulative basis, the country is estimated to spend US$XX billion over the

forecast period on the procurement of multi-role aircraft, transport aircraft, electronic warfare systems, and

military helicopters. The majority of the defense budget will go towards revenue expenditure, which

includes personnel salaries, operational expenses, training, and development.

Key Features and Benefits

The report provides detailed analysis of the Chilean defense industry during 2011–2020, including the

factors that influence the military expenditure. It provides detailed expectations of growth rates and

projected total expenditure.

It provides the manufacturers with insights on market opportunities along with industry structure and

dynamics prevalent in the country. In addition, the report focuses on the regulations governing the Chilean

defense industry and the potential market entry strategies with an expert analysis of the competitive

structure.

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1. Market Attractiveness and Emerging Opportunities

1.1. Defense Market Size Historical and Forecast

1.1.1. Chilean defense expenditure expected to register a CAGR of XX% over the forecast period

The Chilean government allocated US$XX billion to its defense budget in 2015, recording a CAGR of -XX%

during the historic period. The decline in the budget is due to the transfer of the Carabineros de Chile and

Investigations Police of Chile to the Ministry of Interior and Public Security (MoIPS) in 2011. However, the

country’s defense budget is anticipated to register a CAGR of XX% over the forecast period to value US$XX

billion in 2020. This increase is primarily due to the country’s modernization initiatives, border disputes, and

participation in peacekeeping missions.

The following table and figure show the Chilean defense expenditure during the historic period:

Table 1: Chilean Defense Expenditure ( US$ Billion), 2011–2015

Year Defense expenditure (US$ bn)

Defense growth percentage

2011

2012

2013

2014

2015

CAGR 2011–2015

Source: Ministry of Defense and SDI analysis © SDI

Figure 1: Chilean Defense Expenditure (US$ Billion), 2011–2015

Source: Ministry of Defense and SDI analysis © SDI

-5%

0%

5%

10%

15%

20%

25%

30%

35%

0

1

2

3

4

5

6

2011 2012 2013 2014 2015

Gro

wth

rate

(%)

Def

ense

exp

end

itu

re (U

S$

Bill

ion

)

Defense expenditure (US$ bn) Defense growth percentage

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The following table and figure show projected defense expenditure of the Chilean over the forecast period:

Table 2: Chilean Defense Expenditure (US$ Billion), 2016–2020

Year Defense expenditure (US$ bn)

Defense growth percentage

2016

2017

2018

2019

2020

CAGR 2016–2020

Source: Ministry of Defense and SDI analysis © SDI

Figure 2: Chilean Defense Expenditure (US$ Billion), 2016–2020

Source: Ministry of Defense and SDI analysis © SDI

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

1

2

3

4

5

6

7

2016 2017 2018 2019 2020G

row

th r

ate

(%

)

De

fen

se

ex

pe

nd

itu

re (

US

$ B

illi

on

)

Defense expenditure (US$ bn) Defense growth percentage

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1.2. Analysis of Defense Budget Allocation

1.2.1. Share of capital expenditure expected to increase over forecast period

During 2011–2015, an average of XX% of the country’s total defense budget was allocated to capital

expenditure, while an average of XX% was reserved for revenue expenditure. Capital expenditure is

projected to increase at an average of XX% during the forecast period. This is primarily due to the country’s

plans to replace its obsolete military equipment. The remaining defense budget is allocated to revenue

expenditure, which includes personnel salaries, and the operation and maintenance costs of equipment and

defense facilities.

The following table and chart display the Chilean defense budget share of capital and revenue expenditure

during the historic period:

Table 3: Chilean Defense Budget Split Between Capital and Revenue Expenditure (%), 2011–2015

Year Capital Expenditure Share Revenue Expenditure Share

2011

2012

2013

2014

2015

Source: Ministry of Defense, Chile and SDI analysis © SDI

Figure 3: Chilean Defense Budget Split Between Capital and Revenue Expenditure (%), 2011–2015

Source: Ministry of Defense and SDI analysis © SDI

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015

Def

ense

Bud

get

Spl

it (%

)

Capital Expenditure Share Revenue Expenditure Share

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The following table and chart display the Chilean defense budget share of capital and revenue expenditure

over the forecast period:

Table 4: Chilean Defense Budget Split Between Capital and Revenue Expenditure (%), 2016–2020

Year Capital Expenditure Share Revenue Expenditure Share

2016

2017

2018

2019

2020

Source: Ministry of Defense, Chile and SDI analysis © SDI

Figure 4: Chilean Defense Budget Split Between Capital and Revenue Expenditure (%), 2016–2020

Source: Ministry of Defense and SDI analysis © SDI

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

Defe

nse B

ud

get

Sp

lit

(%)

Capital Expenditure Share Revenue Expenditure Share

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2. Industry Dynamics - Porter’s Five Forces Analysis

Figure 4: Industry Dynamics – Porter’s Five Forces Analysis

Source: SDI analysis © SDI

Intensity of Rivalry Bargaining Power of Supplier

Bargaining Power of Buyer

Barrier to Entry

Threat of Substitute

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Report Methodology

SDI’s dedicated research and analysis teams consist of experienced professionals with a background in

industry research and consulting in the defense sector. The following research methodology is followed for all

databases and reports:

Secondary Research

The research process begins with exhaustive secondary research to source reliable qualitative and

quantitative information related to the defense market. The secondary research sources that are typically

referred to include, but are not limited to:

Industry associations

National government documents and statistical databases

Company websites, annual reports, financial reports, broker reports, investor presentations

Industry trade journals and other literature

Internal and external proprietary databases

News articles, press releases, and webcasts specific to the companies operating in the market

Primary Research

SDI conducts hundreds of primary interviews a year with industry participants and commentators in order to

validate its data and analysis. A typical research interview fulfills the following functions:

Provides first-hand information on market size, market trends, growth trends, competitive landscape,

and future outlook

Helps to validate and strengthen secondary research findings

Further develops the analysis team’s expertise and market understanding

Primary research involves e-mail interactions, telephone interviews, and face-to-face interviews for

each market category, division, and sub-division across geographies

The participants who typically take part in such a process include, but are not limited to:

Industry participants: CEOs, VPs, business development managers, market intelligence managers,

and national sales managers

External experts: investment bankers, valuation experts, research analysts, and key opinion leaders

specializing in defense markets

Conventions

Currency conversions are performed on the basis of average annual conversion rate format

calculations

All the values in tables, with the exception of compounded annual growth rate (CAGR) and

compounded annual rate of change (CARC), are displayed to one decimal place; therefore, due to

this rounding method, growth rates may appear inconsistent with absolute values

The forecasted values are projected on the basis of nominal values; the inflation was not taken into account

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TABLE OF CONTENTS

1. Introduction ........................................................................................................................... 9

1.1. What is this Report About? ........................................................................................................... 9

1.2. Definitions ...................................................................................................................................... 9

1.3. Summary Methodology .................................................................................................................10

1.4. SDI Terrorism Index ......................................................................................................................12

1.5. About Strategic Defence Intelligence ..........................................................................................12

2. Executive Summary ............................................................................................................ 13

3. Market Attractiveness and Emerging Opportunities ........................................................ 15

3.1. Defense Market Size Historical and Forecast..............................................................................16

3.1.1. Chilean defense expenditure to be US$XX billion over the forecast period ............................................. 16

3.1.2. Border disputes and military modernization to drive defense expenditure ............................................... 20

3.1.3. Defense expenditure as a percentage of GDP is anticipated to decline over the forecast period ........... 22

3.2. Analysis of Defense Budget Allocations .....................................................................................24

3.2.1. Capital expenditure allocation expected to increase over the forecast period ......................................... 24

3.2.2. Army and navy expenditure accounts for the majority of the Chilean defense budget ............................ 26

3.2.3. Capital expenditure expected to increase over the forecast period ......................................................... 28

3.2.4. Army expenditure to increase over the forecast period ............................................................................ 32

3.2.5. Navy capital expenditure will increase in the forecast period ................................................................... 36

3.2.6. Air force expenditure expected to increase over the forecast period ....................................................... 40

3.2.7. Per-capita defense expenditure expected to increase over the forecast period ...................................... 44

3.3. Homeland Security Market Size and Forecast ............................................................................46

3.3.1. Homeland security budget projected to grow over the forecast period .................................................... 46

3.3.2. Drug trafficking, natural disasters, and threats from the Mapuche community to drive homeland

security budget ...................................................................................................................................................... 51

3.3.3. The Chile considered at ‘some risk’ of terrorist attack .............................................................................. 52

3.3.4. Chile experienced low terror activity during the historic period ................................................................ 54

3.4. Benchmarking with Key Global Markets .....................................................................................56

3.4.1. Chilean defense budget expected to register consistent growth over the forecast period ....................... 56

3.4.2. Chilean military expenditure is expected to remain low compared to other leading spenders ................ 58

3.4.3. Defense budget as a percentage of GDP expected to remain low on a global scale .............................. 59

3.5. Market Opportunities: Key Trends and Growth Stimulators ......................................................60

3.5.1. Multi-role Aircraft ....................................................................................................................................... 60

3.5.2. Transport Aircraft ...................................................................................................................................... 61

3.5.3. Electronic Warfare .................................................................................................................................... 61

3.5.4. Military Helicopters ................................................................................................................................... 62

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4. Defense Procurement Market Dynamics ........................................................................... 64

4.1. Import Market Dynamics ...............................................................................................................65

4.1.1. Defense imports maintained large volumes during the historic period ..................................................... 65

4.1.2. The US accounts for the majority of Chilean defense imports ................................................................. 66

4.1.3. Aircraft, armored vehicles, and ships are the largest imported military hardware .................................... 67

5. Industry Dynamics .............................................................................................................. 68

5.1. Five Forces Analysis.....................................................................................................................68

5.1.1. Bargaining power of supplier: medium ..................................................................................................... 69

5.1.2. Bargaining power of buyer: high ............................................................................................................... 69

5.1.3. Barrier to entry: low ................................................................................................................................... 69

5.1.4. Intensity of rivalry: medium to high ........................................................................................................... 69

5.1.5. Threat of substitution: high ....................................................................................................................... 69

6. Market Entry Strategy ......................................................................................................... 70

6.1. Market Regulation .........................................................................................................................70

6.1.1. Offset policy aids the development of the domestic defense industry ..................................................... 70

6.1.2. Foreign direct investment in the defense sector is permitted without any complications ......................... 70

6.2. Market Entry Route .......................................................................................................................71

6.2.1. The country’s biennial defense exhibition provides an attractive entry route ........................................... 71

6.2.2. Joint ventures and collaborations provide market entry opportunities ..................................................... 71

6.2.3. Foreign equipment manufacturers enter the market through direct commercial sales ............................ 71

6.3. Key Challenges .............................................................................................................................72

6.3.1. Decreasing defense budget due to removal of the Copper Reserve Law ................................................ 72

6.3.2. Changes in the economic environment .................................................................................................... 72

7. Competitive Landscape and Strategic Insights ................................................................ 73

7.1. Competitive Landscape Overview ...............................................................................................73

7.2. Key Domestic Companies ............................................................................................................73

7.2.1. FAMAE: overview ..................................................................................................................................... 73

7.2.2. FAMAE: products and services ................................................................................................................ 73

7.2.3. FAMAE: recent announcements and strategic initiatives ......................................................................... 74

7.2.4. FAMAE: Alliances ..................................................................................................................................... 74

7.2.5. FAMAE: recent contract wins ................................................................................................................... 75

7.2.6. Desarrollo de Tecnologias y Sistemas (DTS): overview .......................................................................... 75

7.2.7. Desarrollo de Tecnologias y Sistemas (DTS): products and services ..................................................... 75

7.2.8. Desarrollo de Tecnologias y Sistemas (DTS): recent announcements and strategic initiatives .............. 76

7.2.9. Desarrollo de Tecnologias y Sistemas (DTS): alliances .......................................................................... 76

7.2.10. Linktronic Radar Systems: overview ........................................................................................................ 76

7.2.11. Linktronic Radar Systems: products and services ................................................................................... 77

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7.2.12. SISDEF Ltda: overview............................................................................................................................. 77

7.2.13. SISDEF Ltda: products and services ........................................................................................................ 77

7.2.14. SISDEF Ltda: recent announcements and strategic initiatives ................................................................ 78

7.2.15. SISDEF Ltda: recent contract wins ........................................................................................................... 79

8. Business Environment and Country Risk ......................................................................... 80

8.1. Demographics & Social Statistics ................................................................................................80

8.1.1. Total Rural Population .............................................................................................................................. 80

8.1.2. Total Urban Population ............................................................................................................................. 81

8.1.3. Number of households.............................................................................................................................. 82

8.2. Economic Performance ................................................................................................................83

8.2.1. GDP Per Capita ........................................................................................................................................ 83

8.2.2. GDP, Current Prices ................................................................................................................................. 84

8.2.3. Consumer Price Index .............................................................................................................................. 85

8.2.4. Wholesale Price Index .............................................................................................................................. 86

8.2.5. Local Currency Unit per USD ................................................................................................................... 87

8.2.6. Market Capitalization of Listed Companies .............................................................................................. 88

8.2.7. Market Capitalization of Listed Companies (% of GDP) ........................................................................... 89

8.2.8. Government Cash Surplus/Deficit ............................................................................................................ 90

8.2.9. Government Cash Surplus/Deficit as % of GDP ...................................................................................... 91

8.2.10. Goods exports as % of GDP .................................................................................................................... 92

8.2.11. Goods imports as % of GDP .................................................................................................................... 93

8.2.12. Goods Trade Surplus/Deficit as % of GDP............................................................................................... 94

8.2.13. Service Imports as % of GDP ................................................................................................................... 95

8.2.14. Service Exports as % of GDP ................................................................................................................... 96

8.2.15. Service Trade Surplus/Deficit as % of GDP ............................................................................................. 97

8.2.16. Foreign Direct Investment......................................................................................................................... 98

8.2.17. Net foreign direct investment as % of GDP .............................................................................................. 99

8.2.18. International reserves, including gold ..................................................................................................... 100

8.3. Energy and Utilities ..................................................................................................................... 101

8.3.1. Conventional Thermal Electricity Net Generation .................................................................................. 101

8.3.2. Hydroelectricity Net Generation .............................................................................................................. 102

8.3.3. Conventional Thermal Electricity Installed Capacity .............................................................................. 103

8.3.4. Electricity Imports ................................................................................................................................... 103

8.3.5. Proved Natural Gas Reserves ................................................................................................................ 105

8.3.6. Petroleum Consumption ......................................................................................................................... 106

8.3.7. Crude Oil Proved Reserves .................................................................................................................... 107

8.3.8. Total Non-Hydro Renewable Electricity Net Generation ........................................................................ 108

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8.4. Infrastructure ............................................................................................................................... 109

8.4.1. Rail Lines ................................................................................................................................................ 109

8.4.2. Air transport, freight ................................................................................................................................ 110

8.5. Minerals ....................................................................................................................................... 111

8.5.1. Mining, Manufacturing, Utilities Output ................................................................................................... 111

8.6. Technology .................................................................................................................................. 112

8.6.1. Patents Granted ...................................................................................................................................... 112

8.7. Telecommunication .................................................................................................................... 113

8.7.1. Telephone Lines ..................................................................................................................................... 113

8.7.2. Telephone Lines Penetration Rate ......................................................................................................... 114

9. Appendix ............................................................................................................................ 115

9.1. About SDI ..................................................................................................................................... 115

9.2. Disclaimer .................................................................................................................................... 115

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LIST OF FIGURES

Figure 1: Chilean Defense Expenditure (US$ Billion), 2011–2015 ......................................................................................................... 16 Figure 2: Chilean Defense Expenditure (US$ Billion), 2016–2020 ......................................................................................................... 17 Figure 3: Chilean Defense Expenditure (CLP Billion), 2011–2015 ......................................................................................................... 18 Figure 4: Chilean Defense Expenditure (CLP Billion), 2016–2020 ......................................................................................................... 19 Figure 5: Chilean GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as a Percentage of GDP, 2011–2015........ 22 Figure 6: Chilean GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as a Percentage of GDP, 2016–2020........ 23 Figure 7: Chilean Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2011–2015 ............................................. 24 Figure 8: Chilean Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2016–2020 ............................................. 25 Figure 9: Chilean Defense budget breakdown (%), 2011–2015 ............................................................................................................. 26 Figure 10: Chilean Defense budget breakdown (%), 2016–2020 ........................................................................................................... 27 Figure 11: Chilean Defense Capital Expenditure (US$ Million), 2011–2015 ........................................................................................... 28 Figure 12: Chilean Defense Capital Expenditure (US$ Million), 2016–2020 ........................................................................................... 29 Figure 13: Chilean Defense Capital Expenditure (CLP Billion), 2011–2015 ........................................................................................... 30 Figure 14: Chilean Defense Capital Expenditure (CLP Billion), 2016–2020 ........................................................................................... 31 Figure 15: Chilean Defense Expenditure budget for Army (US$ Million), 2011–2015 ............................................................................. 32 Figure 16: Chilean Defense Expenditure budget for Army (US$ Million), 2016–2020 ............................................................................. 33 Figure 17: Chilean Defense Expenditure budget for Army (CLP Billion), 2011–2015 ............................................................................. 34 Figure 18: Chilean Defense Expenditure budget for Army (CLP Billion), 2016–2020 ............................................................................. 35 Figure 19: Chilean Naval Expenditure Allocation (US$ Million), 2011–2015 ........................................................................................... 36 Figure 20: Chilean Naval Expenditure Allocation (US$ Million), 2016–2020 ........................................................................................... 37 Figure 21: Chilean Naval Expenditure Allocation (CLP Billion), 2011–2015 ........................................................................................... 38 Figure 22: Chilean Naval Expenditure Allocation (CLP Billion), 2016–2020 ........................................................................................... 39 Figure 23: Chilean Air Force Expenditure Allocation (US$ Million), 2011–2015 ..................................................................................... 40 Figure 24: Chilean Air Force Expenditure Allocation (US$ Million), 2016–2020 ..................................................................................... 41 Figure 25: Chilean Air Force Expenditure Allocation (CLP Billion), 2011–2015 ...................................................................................... 42 Figure 26: Chilean Air Force Expenditure Allocation (CLP Billion), 2016–2020 ...................................................................................... 43 Figure 27: Chilean Per-Capita Defense Expenditure (US$), 2011–2015 ................................................................................................ 44 Figure 28: Chilean Per-Capita Defense Expenditure (US$), 2016–2020 ................................................................................................ 45 Figure 29: Chilean Homeland Security Budget (US$ Billion), 2011–2015 .............................................................................................. 47 Figure 30: Chilean Homeland Security Budget (US$ Billion), 2016–2020 .............................................................................................. 48 Figure 31: Chilean Homeland Security Budget (CLP Billion), 2011–2015 .............................................................................................. 49 Figure 32: Chilean Homeland Security Budget (CLP Billion), 2016–2020 .............................................................................................. 50 Figure 33: Strategic Defence Intelligence Terrorism Heat Map, 2015 .................................................................................................... 52 Figure 34: Strategic Defence Intelligence Terrorism Index, 2015 ........................................................................................................... 53 Figure 35: Benchmarking with Key Global Markets: 2011–2015 vs. 2016–2020 .................................................................................... 57 Figure 36: Defense Expenditure of Countries with the Largest Global Military Expenditure (US$ billion), 2015 and 2020 ...................... 58 Figure 37: Defense Expenditure as percentage of GDP of Countries with the Largest Military Expenditure (%), 2015 ........................... 59 Figure 38: Multi-role Aircraft Market Size (US$ Million), 2015–2025 ..................................................................................................... 60 Figure 39: Transport Aircraft Market Size (US$ Million), 2015–2025 ...................................................................................................... 61 Figure 40: Electronic Warfare Market Size (US$ Million), 2015–2025 .................................................................................................... 62 Figure 41: Chilean Military Helicopters Market Size (US$ Million), 2015–2025 ...................................................................................... 63 Figure 42: Chilean Defense Imports (US$ Million), 2010–2014 .............................................................................................................. 65 Figure 43: Chilean Defense Imports by Country 2010–2014 .................................................................................................................. 66 Figure 44: Chilean Defense Imports by Category 2010–2014 ................................................................................................................ 67 Figure 45: Industry Dynamics - Porter’s Five Forces Analysis................................................................................................................ 68 Figure 46: Chilean Rural Population (In Millions), 2015–2024 ................................................................................................................ 80 Figure 47: Chilean Urban Population (In Millions), 2015–2024 ............................................................................................................... 81 Figure 48: Chilean Number of Households (In Millions), 2009–2018 ...................................................................................................... 82 Figure 49: Chilean GDP Per Capita, 2015–2024 ................................................................................................................................... 83 Figure 50: Chilean GDP, Current Prices (US$ Billion), 2015–2024 ........................................................................................................ 84 Figure 51: Chilean Consumer Price Index, 2015–2024 .......................................................................................................................... 85 Figure 52: Chilean Wholesale Price Index, 2002–2011 .......................................................................................................................... 86 Figure 53:Local Currency per USD, 2015–2024 .................................................................................................................................... 87

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Figure 54: Chilean Market Capitalization of Listed Companies (US$ Billion), 2003–2012 ...................................................................... 88 Figure 55: Chilean Market Capitalization of Listed Companies (% of GDP), 2002–2011 ........................................................................ 89 Figure 56: Chilean Government Cash Surplus/Deficit (LCU Billion), 2002–2011 .................................................................................... 90 Figure 57: Chilean Government Cash Surplus/Deficit as % of GDP, 2002–2011 ................................................................................... 91 Figure 58: Chilean Goods Exports as % of GDP, 2001–2010 ................................................................................................................ 92 Figure 59: Chilean Goods Imports as % of GDP, 2001–2010 ................................................................................................................ 93 Figure 60: Chilean Goods Trade Surplus/Deficit as % of GDP, 2001–2010 ........................................................................................... 94 Figure 61: Chilean Service Imports as % of GDP, 2001–2010 ............................................................................................................... 95 Figure 62: Chilean Service Exports as % of GDP, 2001–2010 ............................................................................................................... 96 Figure 63: Chilean Service Trade Surplus/Deficit as % of GDP, 2001–2009 .......................................................................................... 97 Figure 64: Chilean Foreign Direct Investment (US$ Billion), 2002–2011 ................................................................................................ 98 Figure 65: Chilean Net foreign direct investment as % of GDP, 2001–2010 ........................................................................................... 99 Figure 66: Chilean International reserves, including gold (US$ Billion), 2002–2011 ............................................................................. 100 Figure 67: Chilean Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2002–2011 ........................................... 101 Figure 68: Chilean Hydroelectricity Net Generation (Billion Kilowatt hours), 2003–2012 ...................................................................... 102 Figure 69: Chilean Conventional Thermal Electricity Installed Capacity (Million Kilowatts), 2001–2010 ............................................ 103 Figure 70: Chilean Electricity Imports(Billion Kilowatt hours), 2002–2011 ............................................................................................ 104 Figure 71: Chilean Proved Natural Gas Reserves (Trillion Cubic Feet), 2004–2013 ............................................................................ 105 Figure 72: Chilean Petroleum Consumption (Thousand Barrels Per Day), 2004–2013 ........................................................................ 106 Figure 73: Chilean Crude Oil Proved Reserves (Billion Barrels), 2004–2013 ....................................................................................... 107 Figure 74: Chilean Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts), 2003–2012 .......................................... 108 Figure 75: Chilean Rail Lines (kms), 2002–2011 ................................................................................................................................. 109 Figure 76: Chilean Air transport freight (million ton-km), 2002–2011 .................................................................................................... 110 Figure 77: Chilean Mining, Manufacturing, Utilities Output (US$ Billion), 2002–2011 ........................................................................... 111 Figure 78: Chilean Patents Granted, 2003–2012 ................................................................................................................................. 112 Figure 79: Chilean Telephone Lines (In Million), 2003–2012 ............................................................................................................... 113 Figure 80: Chilean Telephone Lines Penetration Rate (Per 100 People), 2003–2012 .......................................................................... 114

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LIST OF TABLES

Table 1: Chilean Defense Expenditure (US$ Billion), 2011–2015 .......................................................................................................... 16 Table 2: Chilean Defense Expenditure (US$ Billion), 2016–2020 .......................................................................................................... 17 Table 3: Chilean Defense Expenditure (CLP Billion), 2011–2015 .......................................................................................................... 18 Table 4: Chilean Defense Expenditure (CLP Billion), 2016–2020 .......................................................................................................... 19 Table 5: Chilean GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as a Percentage of GDP, 2011–2015 ......... 22 Table 6: Chilean GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as a Percentage of GDP, 2016–2020 ......... 23 Table 7: Chilean Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2011–2015 .............................................. 24 Table 8: Chilean Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2016–2020 .............................................. 25 Table 9: Chilean Defense budget breakdown (%), 2011–2015 .............................................................................................................. 26 Table 10: Chilean Defense budget breakdown (%), 2016–2020 ............................................................................................................ 27 Table 11: Chilean Defense Capital Expenditure (US$ Million), 2011–2015 ............................................................................................ 28 Table 12: Chilean Defense Capital Expenditure (US$ Million), 2016–2020 ............................................................................................ 29 Table 13: Chilean Defense Capital Expenditure (CLP Billion), 2011–2015 ............................................................................................. 30 Table 14: Chilean Defense Capital Expenditure (CLP Billion), 2016–2020 ............................................................................................. 31 Table 15: Chilean Defense Expenditure budget for Army (US$ Million), 2011–2015 .............................................................................. 32 Table 16: Chilean Defense Expenditure budget for Army (US$ Million), 2016–2020 .............................................................................. 33 Table 17: Chilean Defense Expenditure budget for Army (CLP Billion), 2011–2015 ............................................................................... 34 Table 18: Chilean Defense Expenditure budget for Army (CLP Billion), 2016–2020 ............................................................................... 35 Table 19: Chilean Naval Expenditure Allocation (US$ Million), 2011–2015 ............................................................................................ 36 Table 20: Chilean Naval Expenditure Allocation (US$ Million), 2016–2020 ............................................................................................ 37 Table 21: Chilean Naval Expenditure Allocation (CLP Billion), 2011–2015 ............................................................................................ 38 Table 22: Chilean Naval Expenditure Allocation (CLP Billion), 2016–2020 ............................................................................................ 39 Table 23: Chilean Air Force Expenditure Allocation (US$ Million), 2011–2015 ....................................................................................... 40 Table 24: Chilean Air Force Expenditure Allocation (US$ Million), 2016–2020 ....................................................................................... 41 Table 25: Chilean Air Force Expenditure Allocation (CLP Billion), 2011–2015 ....................................................................................... 42 Table 26: Chilean Air Force Expenditure Allocation (CLP Billion), 2016–2020 ....................................................................................... 43 Table 27:Chilean Per-Capita Defense Expenditure (US$), 2011–2015 .................................................................................................. 44 Table 28: Chilean Per-Capita Defense Expenditure (US$), 2016–2020 ................................................................................................. 45 Table 29: Chilean Homeland Security Budget (US$ Billion), 2011–2015................................................................................................ 47 Table 30: Chilean Homeland Security Budget (US$ Billion), 2016–2020................................................................................................ 48 Table 31: Chilean Homeland Security Budget (CLP Billion), 2011–2015................................................................................................ 49 Table 32: Chilean Homeland Security Budget (CLP Billion), 2016–2020................................................................................................ 50 Table 33: SDI Terrorism Index ............................................................................................................................................................... 54 Table 34: Benchmarking with Key Markets: 2011–2015 vs. 2016–2020 ................................................................................................ 56 Table 35: FAMAE– Product Focus ........................................................................................................................................................ 73 Table 36: FAMAE – Alliances ................................................................................................................................................................ 74 Table 37: FAMAE: Recent Contract Wins ............................................................................................................................................. 75 Table 38: Desarrollo de Tecnologias y Sistemas (DTS) – Product Focus .............................................................................................. 75 Table 39: Desarrollo de Tecnologias y Sistemas (DTS) – Alliances ....................................................................................................... 76 Table 40: Linktronic Radar Systems – Product Focus ............................................................................................................................ 77 Table 41: SISDEF Ltda – Product Focus ............................................................................................................................................... 77 Table 42: SISDEF Ltda –Recent Contract Wins .................................................................................................................................... 79