Brazil Country Market
Insights and Opportunities
Aerospace - Aircraft & Parts Sector
Overview: According to the Ministry of Development, Industry and Trade, from January to August 2008, Brazil imported around US$ 1.6 billion in aircraft, parts and components, with approximately 40 percent originating in the U.S. According the National Agency of Civil Aviation (ANAC), 2009 growth rate is expected to be lower at 4% due to the current global financial crisis.
Embraer projects that world air traffic demands should increase 5% per year from 2009 to 2028, with China presenting the highest growth. Embraer foresees a global demand of 6,750 jets with 30 – 120 seats in the next 20 years, translating to US$220 billion dollars in aircraft sales. Brazil will continue to import aircraft parts and components.
Opportunities: The Helicopter market is booming and the future is promising. The manufacturers’ main challenge is to reduce delivery time. According to the National Agency of Civil Aviation (ANAC), Brazil currently has 1,194 helicopters, with 85 percent of the fleet concentrated in the states of Sao Paulo, Rio de Janeiro and Minas Gerais. The fleet is divided between 85 percent turbine helicopters and 15 percent piston. Main players are Helibras of the Eurocopter group, Bell Helicopter, and Sikorsky.
In the Defense sector, the Defense Minister Nelson Jobim recently published the new Defense National Plan, which foresees investments for all Armed Forces. The Brazilian Air Force has already opened the competition for the acquisition of 36 fighter jets. The Brazilian Navy foresees the construction and acquisition of 50 patrol vessels.
In the Maintenance Sector, Brazil has one of the largest maintenance markets in the world with annual expenditures of US$ 2 billion. In the military maintenance segment, in addition to the Centro Logistico da Aeronautica located in Sao Paulo, which is responsible for the acquisition of parts and components for the Brazilian Air Force, the Brazilian Aeronautic Commission in Washington, DC issues periodic requests for quotes to acquire parts and components.
As Brazil’s market continues to expand, imports of aircraft, parts and components will increase, representing good business opportunities for U.S. suppliers. The products expected to have the most potential are: helicopters, parts and components for helicopters, avionics and systems, aircraft control systems and aircraft accessories.