Aerospace market in Brazil

Brazil's aircraft manufacturing sector and associated supply chains continue to create opportunities for Canadian aerospace companies. Growth is expected in areas related to sustainable aviation, including:

• alternative fuels
• hydrogen-powered aircraft
• electric aircraft
• advanced air mobility technologies such as electric vertical take-off and landing (eVTOL) vehicles

Demand for satellite applications in Brazil continues to grow, creating opportunities in optical, radar, and telecommunications satellites and related services. Emerging "New Space" activities, including launch services and space-based solutions, may also provide opportunities for partnerships between Canadian and Brazilian organizations.

Opportunities exist in applications requiring advanced payloads and long-range operations, including:

• mining
• oil and gas
• power utilities
• surveillance
• forestry
• precision agriculture

Brazil has 664 certified maintenance, repair and overhaul (MRO) facilities across the country, supporting one of the largest aircraft fleets in the world. The presence of major commercial airline maintenance operations, business aviation service providers, and engine repair facilities contributes to sustained demand and growth opportunities across the MRO value chain.

Companies seeking opportunities in Brazil's aircraft manufacturing supply chain face challenges common to major aerospace original equipment manufacturers (OEMs). These include high performance requirements, competitive cost structures, and risk-sharing arrangements. Companies may also need to make significant capital investments. Business development cycles can be lengthy and are often tied to aircraft development and production timelines.

In the upstream space segment, market opportunities may be influenced by changes in government funding and investment priorities. Companies should consider how budget fluctuations can affect demand for space-related products and services.

Customs procedures for aircraft parts can affect service timelines. Suppliers may need to maintain local inventory to meet customer requirements and reduce delivery delays.

The remotely piloted aircraft systems (RPAS) market is highly competitive, particularly in lower-cost product segments. Many products are supplied by established international manufacturers. Opportunities may exist in specialized applications that require advanced capabilities. These include:

• agriculture
• forestry
• mining
• infrastructure monitoring
• industrial operations

• Aerospace products and services are among the leading categories of bilateral trade between Canada and Brazil.
• Most aerospace parts and components enter Brazil duty-free.
• Brazil is an active participant in international aviation and space organizations. Domestic regulations are generally aligned with standards used by Transport Canada Civil Aviation (TCCA), the U.S. Federal Aviation Administration (FAA), and the European Union Aviation Safety Agency (EASA).
• Brazil's aerospace sector is well integrated into global supply chains and international markets. As a result, business practices and commercial processes are generally familiar to Canadian companies operating internationally.

Brazil is one of the world's largest aerospace markets. It is home to one of the largest aircraft fleets globally and the world's third-largest commercial aircraft manufacturer. Opportunities exist across:

• aircraft manufacturing and supply chains
• maintenance
• repair and overhaul
• remotely piloted aircraft systems (RPAS)
• and space technologies

To learn more about opportunities in Brazil's aerospace sector, contact the Trade Commissioner Service in São Paulo at commerce.br@international.gc.ca. Trade Commissioners can provide market intelligence, advice on market entry strategies, and support in identifying potential partners and business opportunities.