Page 53 - InvestmentGuideBrasilEng

craft designed for different types of missions, inte- with growing demand for both domestic and in- MAIN OPPORTUNITIES II. Growth of the business jet segment;
gration of systems, equipment, components and ternational air travel.
parts, intelligent and unguided weapons. Sales of local producers grew at an impressive AND NEW TRENDS III. Greater industry focus on the creation
The aerospace area provides small satellites rate, though slightly lower than the total mar- of more fuel-efficient planes;
and structures and their equipment, including ket – an annual average of 17% during the review
payloads aboard, scan rockets and vehicle launch, period – to reach R$24 billion, putting it on a par IV. Increased outsourcing of development
various systems and parts, propulsion and ground with the size of the domestic market. Aircraft According to IBM Plant Location International, and manufacturing activities;
segments of services involving the application of manufacturing was the most significant area of the main opportunities and new trends of the
satellite images, consulting and other specialized the industry, accounting for over 79% of total rev- aerospace industry, which could impact the Bra- V. Increased industry consolidation
services. enue. Although its relative importance decreased zilian market, are: and partnering opportunities;
slightly, in grew 17% a year in terms of value.
Throughout the review period, this category I. Forecasted growth in both the airline VI. Good prospects for MRO activities
MARKET experienced strong growth and should not lose industry and defense spending;
any of it in the immediate future since many Lat-
in American airlines are using old and inefficient
Stronger trade, a growing middle class, invest- aircraft to explore new market opportunities
ment liberalization, more tourism and the ex- throughout Latin America and consumers are
pansion of free trade agreements are the ma- keenly aware of equipment age and view aircraft
jor contributors to sustainable air transport type as a factor that makes an airline stand out Automotive
growth in Brazil, which facilitates growth in from its competitors. Projected demand for new
demand for new aircraft. The Fortaleza Agree- aircraft in the coming decade is at around 800 new
ment, an “open skies” agreement in the region, deliveries throughout the region. The spacecraft BRAZILIAN AUTOMOTIVE INDUSTRY
is expected to help develop air transportation category experienced 19% annual growth and was
in small and medium-sized markets beyond the the second-largest area with, a 20% share of indus-
scope of existing bilateral limits in subregions in try sales. However, there are signs that not all of COMPANIES FOREIGN MARKET 2012
the Americas. Sales in the Brazilian aircraft and the potential for growth is being taken advantage VEHICLES AND AGRICULTURAL MACHINERY INCLUDING AUTOPARTS
spacecraft market are therefore predicted to in- of. Brazil is in a naturally good location for the space ASSEMBLERS: 28 EXPORTS: US$ 22,7 BILLION
crease steadily at a 10-11% annual rate during the industry – since it is on the Equator, it provides a AUTOPARTS: 500 (25% OF MANUFACTURED EXPORTS)
2011-2016 forecast period. 25% fuel savings compared to Cape Kennedy. DEALERS: 5.116 IMPORTS: US$ 33,2 BILLION
Domestic aviation in Brazil grew 194% in the BALANCE: (-) US$ 10,5 BILLION
last decade according to Civil Aviation National PLANTS
Agency (ANAC). It is estimated that the civil avia- EMBRAER INDUSTRIAL UNITS: 57 EMPLOYMENT
tion market in Brazil will grow even more, driven STATES: 10 DIRECT AND INDIRECT
by economic growth and stability. CITIES: 35 1,5 MILLION OF PERSONS
Brazil is the second-largest market for the More than a hundred years ago, a young Brazilian
executive aviation industry worldwide, after the aviator impressed the people of Paris with his suc- PRODUCTION CAPACITY 2012 GDP SHARE 2012
United States. cessful flight of a monoplane of his own design. VEHICLES: 4,5 MILLION INCLUDING AUTOPARTS
The Brazilian market for aircraft and space- Inspired by Santos Dumont, Embraer is one of the AGRICULTURAL MACHINERY: 109 THOUSAND INDUSTRIAL: 21,0%
craft totaled R$23.9 billion in 2010, increasing world’s main aircraft manufacturers, a position it TOTAL: 5,0%
more than fivefold from 2000 to 2010. It’s the larg- has achieved through constant and determined REVENUE 2012
est aerospace market in the southern hemisphere. pursuit of full customer satisfaction. Throughout INCLUDING AUTOPARTS TAX GENERATION 2012 (IPI, ICMS, PIS, COFINS)
The total size of the aircraft and spacecraft its 43-year history, the company has been involved US$ 106,8 BILLION VEHICLES: US$ 24,8 BILLION
market increased at an average annual rate of in all stages of a complex process: design, devel-
22% over the review period, fluctuating as high opment, manufacturing, sales and after-sale sup- INVESTMENTS 1994/2012 SECTORIAL RELATIONS
as 52% in 2008 and as low as -13% in 2004. Direct port for aircraft in the commercial aviation, exec- INCLUDING AUTOPARTS 200 THOUSAND COMPANIES
business purchases accounted for 56% of total utive aviation, defense systems and agricultural US$ 68,0 BILLION
buyer expenditures on the market in 2010. The air aviation segments. WORLD RANKING 2012
transportation industry was the largest of these, It has produced over 5,000 aircraft that op- ACCUMULATED PRODUCTION VEHICLES: 7 / 4 DOMESTIC MARKET
TH
TH
with 3%, or R$725 million, of the total market val- erate in 92 countries on five continents and is the ASSEMBLED VEHICLES
ue. Investment or capital spending by airlines or market leader for commercial jets with up to 120 64,4 MILLION (1957/2012)
aircraft leasing companies accounted for 40% of seats. Embraer manufactures some of the best AGRICULTURAL MACHINERY
the total market value in 2010, 16% more than in executive jets in operation and is now entering a 2,3 MILLION (1960/2012)
2000. Refurbishing ageing Brazilian airline fleets new level in the defense segment.
facilitated growth in this buyer segment, in line Source: ANFAVEA (2013)
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