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Future of the Thai Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

Future of the Thai Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

Thailand, the second-largest economy in Southeast Asia, witnessed defense budget growth of 5.53% during 2015-2019, to reach a value of US$6.9 billion in 2019. The country faces an ongoing and brutal insurgency in its southernmost provinces, as well as continued threats in Bangkok and other parts of the country from southern militants. Thailand has amped up the security spending to manage new threats, maintain internal peace and order, prevent transnational crimes and cyber-attacks and protect the monarchy.

Thailand has continued the pattern of having one of Southeast Asia’s highest levels of defense spending. With this trend expected to continue over the forecast period, the country’s defense expenditure is projected to grow at a CAGR of 4.25% to reach US$8.6 billion by 2024. Defense capital expenditure is anticipated to increase from US$1.9 billion in 2020 to US$2.3 billion in 2024, at a CAGR of 4.39%, over the forecast period. The country’s defense revenue expenditure is expected to value US$5.4 billion in 2020 and grow at a CAGR of 4.20% over the forecast period to reach US$6.3 billion by 2024.

Thailand’s homeland security (HLS) budget increased at a CAGR of 6.69% during the historical period, to reach US$6 billion in 2019. Over the forecast period, the country’s HLS budget is projected to increase from US$6.3 billion in 2020 to US$7.7 billion in 2024, at a CAGR of 5.04%. Thailand is expected to allocate 49.6% of its total budget to its army, with expenditure on the navy, air force, and others sectors accounting for an average of 20.2%, 18.5%, and 11.7% respectively over the forecast period.

Thailand’s homeland security (HLS) budget increased at a CAGR of 6.69% during the historical period, to reach US$6 billion in 2019. Over the forecast period, the country’s HLS budget is projected to increase from US$6.3 billion in 2020 to US$7.7 billion in 2024, at a CAGR of 5.04%. The expected increase in funding for domestic security will cover important infrastructure upgrades and overhauls for areas such as airports, port and harbors, and mass transportation systems over the forecast period.

The report Future of the Thai Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies and key news.

Companies mentioned: Saab, Airbus Helicopters, Sikorsky, Northrop Grumman Corp, Lockheed Martin Corp., Leonardo, Daewoo Shipbuilding & Marine Engineering

Scope

In particular, it provides an in-depth analysis of the following -

  • The Thai defense industry market size and drivers: detailed analysis of the Belgian defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns.
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Market opportunities:list of the top ten defense investment opportunities over the next 5 years.
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Belgian defense industry.
Reasons to buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Thai defense industry market trends for the coming five years.
  • The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period.
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector.
  • A deep qualitative analysis of the Thai defense industry covering sections including demand drivers, key trends and latest industry contracts.


  • Introduction
    • What is this Report About?
    • Definitions
    • Summary Methodology
    • About GlobalData
  • Executive Summary
    • Table Figure 1 : Thailand Defense Budget: 2020 and 2024
    • Table Figure 2: Thailand Defense Imports/Exports, 2013 and 2017
  • Market Attractiveness and Emerging Opportunities
    • Table Figure 3: Thailand's Top Five Prospective Procurements/Developments
    • Current Market Scenario
      • Primary Threat Perception
        • Table Figure 4: Thai National Security Threats
      • Military Doctrine and Strategy
      • Equipment of Thailand Military
        • Table Thailand Army
        • Table Thailand Navy
        • Table Thailand Air Force
      • Procurement Programs
        • Table Thailand – Ongoing Development and Procurement Programs
      • Future Procurement Programs
        • Table Thailand – Future Procurement Programs
      • Top 10 Procurement Programs by Value (US$ Million), 2019–2024
        • Table Thailand – Top Defense Procurement Programs by Value (US$ Million), 2019–2024
      • Social, Political and Economic Environment and Support for Defense Projects
      • Political and Strategic Alliances
        • Table Figure 5: Thailand's Partnering Countries for Defense Cooperation and Military Training
    • Defense Market Size Historical and Forecast
      • Thailand's Defense Budget is Expected to Grow at a CAGR of 4.25% over the Forecast Period
        • Table Thai Defense Expenditure (THB Billion and US$ Billion), 2015–2024
        • Table Figure 6: Thai Defense Expenditure (THB Billion), 2015–2024
        • Table Figure 7: Thai Defense Expenditure (US$ Billion), 2015–2024
      • Arms Race with Other Asian countries, Border Conflicts, Modernization of Armed Forces, and Political Volatility Drives Thailand's Defense Expenditure
      • Defense Expenditure as a Percentage of GDP to Average 1.3% over the Forecast Period
        • Table Thai GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2015– 2024
        • Table Figure 8: Thai GDP Growth vs. Defense Expenditure as Percentage of GDP, 2015–2024
    • Analysis of Defense Budget Allocation
      • Average Capital Expenditure Allocation Expected to Average 26.5% of the Total Defense Budget over the Forecast Period
        • Table Thai Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2024
        • Table Figure 9: Thai Defense Budget Split Between Capital and Revenue Expenditure (%), 2015– 2024
      • Need to Replace Obsolete Equipment to Drive Defense Capital Expenditure
        • Table Thai Defense Capital Expenditure (THB Billion and US$ Billion), 2015–2024
        • Table Figure 10: Thai Defense Capital Expenditure (THB Billion), 2015–2024
        • Table Figure 11: Thai Defense Capital Expenditure (US$ Billion), 2015–2024
      • Army Defense Accounted for the Largest Percentage Share of the Overall Defense Budget
        • Table Thai Defense Budget Split Between Military Services (Army, Navy, Air Force and Others) (%), 2015–2024
        • Table Figure 12: Thai Defense Budget Split Between Army, Navy, Air Force and Others, 2015–2024
      • Army to Account for the Majority Share of Thailand's Defense Budget
        • Table Figure 13: Thai – Defense Budget Breakdown by Service (THB Billion), 2015–2024
        • Table Thai – Defense Budget Breakdown by Service (US$ Billion), 2015–2024
        • Table Figure 14: Thai – Defense Budget Breakdown by Service (US$ Billion), 2015–2024
      • Per Capita Defense Expenditure is Expected to Increase over the Forecast Period
        • Table Thai Per Capita Defense Expenditure (US$), 2015–2024
        • Table Figure 15: Thai Per Capita Defense Expenditure (US$), 2015–2024
    • Homeland Security Market Size and Forecast
      • Homeland Security Expenditure is Expected to Grow at a CAGR of 5.04% over the Forecast Period
        • Table Thai Homeland Security Expenditure (THB Billion and US$ Billion), 2015–2024
        • Table Figure 16: Thailand Homeland Security Expenditure (THB Billion), 2015–2024
        • Table Figure 17: Thailand Homeland Security Expenditure (US$ Billion), 2015–2024
      • Counter Terrorism and Maritime Security to Drive Thailand's Homeland Security Expenditure
    • Benchmarking with Key Global Markets
      • Thailand's Defense Expenditure is Expected to Increase at a Slower Rate than that of other Asian Countries over the Forecast Period
        • Table Benchmarking with Key Markets, 2015–2019 vs. 2020–2024
        • Table Figure 18: Benchmarking with Key Markets, 2015–2019 vs. 2020–2024
      • Thailand's Defense Expenditure is Relatively Small when Compared to other Asian Countries
        • Table Figure 19: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2019 and 2024
      • Thailand's Defense Budget as a Percentage of GDP is Expected to Remain Constant over the Forecast Period
        • Table Figure 20: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
    • Market Opportunities: Key Trends and Growth Stimulators
      • Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections
        • Table Thai – 10 Leading Defense Market Categories by Value (US$ Million), 2019–2024
    • Land-based C4ISR
      • Table Figure 21: Land-based C4ISR Market Size (US$ Million), 2019–2024
    • Physical Security Market
      • Table Figure 22: Physical Security Market Size (US$ Million), 2019–2024
    • SSK Diesel Electric Submarine
      • Table Figure 23: Thailand SSK Diesel Electric Submarine Market Size (US$ Million), 2019–2024
  • Defense Procurement Market Dynamics
    • Table Figure 24: Thailand, Defense Procurements in Terms of Supplier Relationships, 2019
    • Import Market Dynamics
      • Thailand's Defense Imports are Expected to Increase over the Forecast Period
        • Table Figure 25: Thailand's Defense Import Trend, 2013–2017 (TIV Values)
      • China has Slowly Emerged to Become the Key Arms Supplier to Thailand
        • Table Figure 26: Thailand's Defense Import by Country, 2014–2018 (TIV Values)
      • Aircraft and Armored Vehicles Dominate Thailand's Arms Imports
        • Table Figure 27: Thailand's Defense Imports by Category (%), 2014–2018
    • Export Market Dynamics
      • Negligible Defense Exports in Thailand
  • Industry Dynamics
    • Five Forces Analysis
      • Table Figure 28: Industry Dynamics - Porter's Five Forces Analysis
  • Market Entry Strategy
    • Market Regulation
      • Thailand's Defense Industry is Largely Driven by the Government's Offset Policy
        • Table Thailand Defense Offset Regulations
      • Thailand's Defense Sector is Partially Regulated
    • Market Entry Route
      • Budgeting Process
        • Table Figure 29: Thailand's Budgeting Process (Sample Graphical Representation)
      • Defense Exhibitions Can be Used as a Direct Entry Route into Thailand's Defense Industry
      • Foreign Defense Organizations Enter the Market by Partnering with a Domestic Defense Firm
      • Foreign Military Sales (FMS) in Thailand
        • Table FMS Deals in Thailand
    • Key Challenges
      • Table Figure 30: Key Challenges in the Thai Defense Market
    • Limited Defense Budget Discourages Investors from Market Entry
    • Corruption and Lack of Transparency Hinder the Growth of Thailand's Defense Industry
    • Presence of Indirect Offsets Hampers the Growth of the Domestic Defense Sector
  • Competitive Landscape and Strategic Insights
    • Competitive Landscape Overview
      • Table Thailand's Top Defense Suppliers by Value (US$ Million), 2018–2024
      • Thailand Market Share Analysis, 2019–2024
        • Table Figure 31: Thailand Market Share Analysis, 2019–2024
    • Saab: Overview
    • Saab: Products and Services
      • Table Saab – Product Focus
    • Saab: Recent Announcements and Strategic Initiatives
    • Saab: Alliances
      • Table Saab – Alliances
    • Saab: Recent Contract Wins
      • Table Saab – Recent Contract Wins
    • SAAB – Financial Analysis
      • Table Figure 32: SAAB – Revenue Trend Analysis (SEK Billion), 2013–2017
      • Table Figure 33: SAAB – Operating Profit Trend Analysis (SEK Billion), 2013–2017
      • Table Figure 34: SAAB – Net Profit Trend Analysis (SEK Billion), 2013–2017
    • Airbus Helicopters: Overview
    • Airbus Helicopters: Products and Services
      • Table Airbus Helicopters – Product Focus
    • Airbus Helicopters: Recent Announcements and Strategic Initiatives
    • Airbus Helicopters: Recent Contract Wins
      • Table Airbus Helicopters – Recent Contract Wins
    • Sikorsky: Overview
    • Sikorsky: Products and Services
      • Table Sikorsky – Product Focus
    • Sikorsky: Recent Announcements and Strategic Initiatives
    • Sikorsky: Recent Contract Wins
      • Table Sikorsky – Recent Contract Wins
    • Northrop Grumman Corp. Overview
    • Northrop Grumman Corp.: Products and Services
      • Table Northrop Grumman Corp. –Product Focus
    • Northrop Grumman Corp.: Recent Contract Wins
      • Table Northrop Grumman Corp. –Recent Contract Wins
    • Northrop Grumman Corp.: Financial analysis
      • Table Figure 35: Northrop Grumman Corp. –Revenue Trend Analysis (US$ billion), 2013–2017
      • Table Figure 36: Northrop Grumman Corp. –Operating Profit Trend Analysis (US$ billion), 2013–2017
      • Table Figure 37: Northrop Grumman Corp. –Net Profit Trend Analysis (US$ billion), 2013–2017
    • Lockheed Martin Corp. Overview
    • Lockheed Martin Corp.: Products and Services
      • Table Lockheed Martin Corp. –Product Focus
    • Lockheed Martin Corp.: Recent Announcements and Strategic Initiatives
    • Lockheed Martin Corp.: Recent Contract Wins
      • Table Lockheed Martin Corp. –Recent Contract Wins
    • Lockheed Martin Corp.: Financial analysis
      • Table Figure 38: Lockheed Martin Corp. –Revenue Trend Analysis (US$ billion), 2013–2017
      • Table Figure 39: Lockheed Martin Corp. –Operating Profit Trend Analysis (US$ billion), 2013–2017
      • Table Figure 40: Lockheed Martin Corp. –Net Profit Trend Analysis (US$ billion), 2013–2017
    • Leonardo: Overview
    • Leonardo: Products and Services
      • Table Leonardo – Product Focus
    • Leonardo: Recent Announcements and Strategic Initiatives
    • Leonardo: Recent Contract Wins
      • Table SME: Leonardo – Recent Contract Wins
    • Leonardo: Financial Analysis
      • Table Figure 41: Leonardo – Revenue Trend Analysis (EUR Billion), 2013–2017
      • Table Figure 42: Leonardo – Operating Profit Trend Analysis (EUR Million), 2013–2017
      • Table Figure 43: Leonardo – Net Profit Trend Analysis (EUR Million), 2013–2017
    • Daewoo Shipbuilding & Marine Engineering: Overview
    • Daewoo Shipbuilding & Marine Engineering: Products and Services
      • Table Daewoo Shipbuilding & Marine Engineering – Product Focus
    • Daewoo Shipbuilding & Marine Engineering: Recent Announcements and Strategic Initiatives
    • Daewoo Shipbuilding & Marine Engineering: Recent Contract Wins
      • Table Daewoo Shipbuilding & Marine Engineering – Recent Contract Wins
  • Business Environment and Country Risk
    • Economic Performance
      • Nominal GDP per Capita
        • Table Figure 44: Thailand's GDP Per Capita at Constant Prices (US$), 2015–2025
      • GDP at Current Prices (US$ Billion)
        • Table Figure 45: Thailand's GDP at Current Prices (US$ Billion), 2015–2025
      • Exports of Goods and Services (LCU Billion)
        • Table Figure 46: Thailand's Exports of Goods and Services (LCU Billion), 2005–2014
      • Imports of Goods and Services (LCU Billion)
        • Table Figure 47: Thailand's Imports of Goods and Services (LCU Billion), 2005–2014
      • Gross National Disposable Income (US$ Billion)
        • Table Figure 48: Thailand's Gross National Disposable Income (US$ Billion), 2005–2013
      • LCU per US$ (Period Average)
        • Table Figure 49: Thailand LCU per US$, 2015–2024
      • Market Capitalization of Listed Companies (US$ Billion)
        • Table Figure 50: Thailand's Market Capitalization of Listed Companies (US$ Billion), 2005–2012
      • Market Capitalization of Listed Companies (% of GDP)
        • Table Figure 51: Thailand's Market Capitalization of Listed Companies (% of GDP), 2005–2012
      • Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
        • Table Figure 52: Thailand's Government Cash Surplus/Deficit as % of GDP (LCU), 2005–2012
      • Goods Exports as a Percentage of GDP
        • Table Figure 53: Thailand, Goods Exports as a % of GDP (%), 2005–2014
      • Goods Imports as a Percentage of GDP
        • Table Figure 54: Thailand, Goods Imports as a % of GDP (%), 2005–2014
      • Services Imports as a Percentage of GDP
        • Table Figure 55: Thailand's Services Imports as a % of GDP (%), 2005–2014
      • Service Exports as a Percentage of GDP
        • Table Figure 56: Thailand, Service Exports as a % of GDP (%), 2005–2014
      • Foreign Direct Investment, Net (BoP, Current US$ Billion)
        • Table Figure 57: Thailand, Foreign Direct Investment, Net (BoP, Current US$ Billion), 2005–2014
      • Net Foreign Direct Investment as a % of GDP
        • Table Figure 58: Thailand, Net Foreign Direct Investment as a % of GDP, 2005–2014
      • Mining, Manufacturing, Utilities Output (LCU Billion)
        • Table Figure 59: Thailand's Mining, Manufacturing, Utilities Output (LCU Billion), 2005–2014
  • Appendix
    • Disclaimer

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