NEWTOWN, Conn., April 13, 2015 (GLOBE NEWSWIRE) -- After decades of funding problems, several Latin American governments are beginning to re-arm their militaries. According to Forecast International's "The Military Market for Latin America" report, the regional defense market is becoming increasingly active, pressured by the urgent need to modernize and replace obsolete platforms and supported by continued economic growth and improved saving mechanisms.
"Overall spending figures are expected to increase over the period 2015-2019 by a compound annual growth rate of 4.9 percent, with regional totals increasing from $80.525 billion to $102.246 billion," said Rebecca Barrett Edwards, Forecast International Latin America and Caribbean analyst.
Given the insurgency and counternarcotics concerns in the region, many Latin American countries are primarily interested in counterinsurgency and surveillance equipment. Also topping the list of priorities is paramilitary equipment such as small arms, helicopters, patrol boats, armored vehicles, trucks, and communications equipment, rather than larger systems intended primarily for conventional conflict, such as fighter aircraft, tanks, or large naval vessels.
Interdiction equipment is especially important in countries where there has been a marked rise in the level of drug-related activity.
"Although the drug trade is by no means new to Latin America, there has been an uptick in narcotics trafficking led by the regional insurgent groups. These groups are well funded by the illicit drug industry and have access to advanced weapons which the governments must counter," Edwards said.
Overall, prospects for the market in Latin America are looking robust, and Latin American military procurement shows little sign of slowing at this time.
About Forecast International
Forecast International, Inc. is a leading provider of Market Intelligence and Analysis in the areas of aerospace, defense, power systems and military electronics. Based in Newtown, Conn., USA, Forecast International specializes in long-range industry forecasts and market assessments used by strategic planners, marketing professionals, military organizations, and governments worldwide. Forecast International's resources and extensive base of experience can be readily adapted and efficiently focused to fulfill a broad spectrum of civil and military consulting and special research requirements.
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Source:Forecast International, Inc.