Future of the Thailand Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

  • ID: 4410319
  • Report
  • Region: Thailand
  • 103 pages
  • Strategic Defence Intelligence
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Thailand's Defense Capital Expenditure is Expected to Increase to US$3.5 Billion over the Forecast Period till 2022

FEATURED COMPANIES

  • Airbus Helicopters
  • Enstrom Helicopters
  • Leonardo
  • Lockheed Martin Corp.
  • Northrop Grumman Corp.
  • Saab
  • MORE

Thailand, the second-largest economy in Southeast Asia, witnessed defense budget growth of 1.11% over 2013-2017. The country aims to modernize its military equipment in order to sustain its military capabilities and maintain acceptable readiness levels in line with other countries around the world. The escalation of the arms race in the ASEAN region (Association of Southeast Asian Nations), due to massive military expenditure by China and India, and territorial conflicts with adjoining nations, are the key factors driving Thailand’s defense expenditure. With this trend expected to continue over the forecast period, the country’s defense expenditure is projected to reach US$7.7 Billion by 2022.

Defense capital expenditure is expected to increase to US$3.5 Billion over the forecast period till 2022. The country’s defense revenue expenditure is expected to grow at a CAGR of 4.00% over the forecast period to reach US$4.2 Billion by 2022. Thailand is expected to allocate half of its total budget to its army, with expenditure on the navy, air force, and others sectors accounting for an average of 19.6%, 18.6%, and 12.2% respectively.

Thailand also aims to increase its homeland security expenditure in order to counter threats posed by terrorists, pirates, and internal rebel groups. Thailand’s homeland security expenditure cumulatively valued US$23.9 Billion between 2013 and 2017; and is predicted to increase to US$29.3 Billion over the forecast period. Over the forecast period, demand for equipment is mainly expected to revolve around military IT networking, main battle tanks, infrastructure construction, multi-role aircraft, naval vessels, submarine, helicopters, armored vehicles, unmanned aerial vehicles (UAVs), and surveillance equipment.

The report “Future of the Thailand Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Thailand defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

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

  • The Thailand defense industry market size and drivers: Detailed analysis of the Thailand defense industry during 2018-2022, 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.
  • Porter’s Five Force analysis of the Thailand defense industry: Analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry.
  • Import and Export Dynamics: Analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Market opportunities: Details of the top five defense investment opportunities over the next 10 years.
  • Competitive landscape and strategic insights: Analysis of the competitive landscape of the Thailand defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Scope

The Thailand government has been steadily increasing its defense budget 2015 - 2017. Defense expenditure registered a CAGR of 1.11% over 2013-2017. The country allocated US$5.9 billion to its defense sector in 2013, which increased to US$6.2 billion in 2017. This trend is expected to continue during the forecast period, owing to the government’s well-defined military modernization plans to better equip its armed forces.
Revenue expenditure allocation decreased from 57.2% in 2013 to 55.6% in 2017. Conversely, the country’s capital expenditure declined from 42.8% to 44.4% during the historic period. Over the forecast period, Bangladesh is expected to allocate an average of 45.1% of its defense budget to capital expenditure, while the remainder will be assigned to revenue expenditure.
The MoD is expected to invest in acquisition of main battle tanks, diesel engine submarine and military IT networking.

Reasons to buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Thailand 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 Thailand defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Airbus Helicopters
  • Enstrom Helicopters
  • Leonardo
  • Lockheed Martin Corp.
  • Northrop Grumman Corp.
  • Saab
  • MORE

1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Publisher

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine & Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Social, Political and Economic Environment & Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Thailand’s defense budget is expected to surge at a CAGR of 4.46% over the forecast period
3.2.2. Arms race with other Asian countries, border conflicts, modernization of armed forces, and political volatility drives Thailand’s defense expenditure
3.2.3. Defense expenditure as a percentage of GDP to average 1.4% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Average capital expenditure allocation anticipated to remain at 45.1% of the total defense budget over the forecast period
3.3.2. Need to replace obsolete equipment to drive defense capital expenditure
3.3.3. Expenditure on the army to increase at a CAGR of 4.46% over 2018-20
3.3.4. Budget allocation on Army expected to remain highest over the forecast period
3.3.5. Per capita defense expenditure is expected to increase during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security expenditure is expected to grow at a CAGR of 4.71% over the forecast period
3.4.2. Counter terrorism and maritime security to drive Thailand’s homeland security expenditure
3.4.3. Thailand faces a high level of threat from foreign terrorist organizations
3.4.4. Thailand faces “moderate risk” from acts of terrorism
3.4.5. Thailand has a terrorism index score of 6.
3.5. Benchmarking with Key Global Markets
3.5.1. Thailand’s defense expenditure is expected to increase at a slower rate than other Asian countries over the forecast period
3.5.2. Thailand’s defense expenditure is relatively small when compared to other Asian countries
3.5.3. Thailand’s defense budget as a percentage of GDP is expected to remain the same over the forecast period
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Military IT - Networking
3.6.2. Main Battle Tank (MBT)
3.6.3. Diesel Electric Submarine

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Thailand’s defense imports are expected to increase over the forecast period
4.1.2. Ukraine and Sweden to remain the key arms suppliers to Thailand
4.1.3. Aircraft and armored vehicles dominate Thailand’s arms imports
4.2. Export Market Dynamics
4.2.1. Negligible defense exports in Thailand

5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining Power of Supplier: Low
5.1.2. Bargaining Power of Buyer: High
5.1.3. Barrier to Entry: Low to Medium
5.1.4. Intensity of Rivalry: Medium to High
5.1.5. Threat of Substitution: High
5.2. Market Regulation
5.2.1. Thailand’s defense industry is largely driven by the government’s offset policy
5.2.2. Thailand’s defense sector is partially regulated
5.3. Market Entry Route
5.3.1. Budgeting Process
5.3.2. Defense exhibitions can be used as a direct entry route into Thailand’s defense industry
5.3.3. Foreign defense organizations venture into the market by partnering with a domestic defense firm
5.3.4. Foreign Military Sales (FMS) in Thailand
5.4. Key Challenges
5.4.1. Negligible defense exports pose a major challenge for domestic defense companies
5.4.2. Limited defense budget allocation by Thailand’s government discourages investors from market entry
5.4.3. Corruption and lack of transparency hinder the growth of Thailand’s defense industry
5.4.4. Presence of indirect offset hampers the growth of the domestic defense sector

6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview
6.1.1. Saab: Overview
6.1.2. Saab: Products and Services
6.1.3. Saab: Recent Announcements and Strategic Initiatives
6.1.4. Saab: Alliances
6.1.5. Saab: Recent Contract Wins
6.1.6. Airbus Helicopters: Overview
6.1.7. Airbus Helicopters: Products and Services
6.1.8. Airbus Helicopters: Recent Announcements and Strategic Initiatives
6.1.9. Airbus Helicopters: Recent Contract Wins
6.1.10. Sikorsky: Overview
6.1.11. Sikorsky: Products and Services
6.1.12. Sikorsky: Recent Announcements and Strategic Initiatives
6.1.13. Sikorsky: Recent Contract Wins
6.1.14. Northrop Grumman Corp. Overview
6.1.15. Northrop Grumman Corp.: Products and Services
6.1.16. Northrop Grumman Corp.: Recent Contract Wins
6.1.17. Lockheed Martin Corp. Overview
6.1.18. Lockheed Martin Corp.: Products and Services
6.1.19. Lockheed Martin Corp.: Recent Announcements and Strategic Initiatives
6.1.20. Lockheed Martin Corp.: Recent Contract Wins
6.1.21. Leonardo: Overview
6.1.22. Leonardo-: Products and Services
6.1.23. Leonardo-: Recent Announcements and Strategic Initiatives
6.1.24. Leonardo-: Recent Contract Wins
6.1.25. Daewoo Shipbuilding & Marine Engineering: Overview
6.1.26. Daewoo Shipbuilding & Marine Engineering: Products and Services
6.1.27. Daewoo Shipbuilding & Marine Engineering: Recent Announcements and Strategic Initiatives
6.1.28. Daewoo Shipbuilding & Marine Engineering: Recent Contract Wins
6.1.29. Enstrom Helicopter Corporation: Overview
6.1.30. Enstrom Helicopter Corporation: Products and Services
6.1.31. Enstrom Helicopter Corporation: Recent Announcements and Strategic Initiatives
6.1.32. Enstrom Helicopter Corporation: Recent Contract Wins

7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. Nominal GDP per Capita
7.1.2. GDP at Current Prices (US$ Billion)
7.1.3. Exports of Goods and Services (THB billion)
7.1.4. Imports of Goods and Services (THB billion)
7.1.5. Gross National Disposable Income (US$ billion)
7.1.6. LCU per US$ (period average)
7.1.7. Market Capitalization of Listed Companies (US$ Billion)
7.1.8. Market Capitalization of Listed Companies (% of GDP)
7.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (THB)
7.1.10. Goods Exports as a Percentage of GDP
7.1.11. Goods Imports as a Percentage of GDP
7.1.12. Services Imports as a Percentage of GDP
7.1.13. Service Exports as a Percentage of GDP
7.1.14. Foreign Direct Investment, net (BoP, current US$ bn)
7.1.15. Net Foreign Direct Investment as a % of GDP
7.1.16. Mining, Manufacturing, Utilities Output (THB Billion)

8. Appendix
8.1. About the Author
8.2. Disclaimer

List of Tables
Table 1: Thailand Ground Forces Strength
Table 2: Thailand Air Force Strength
Table 3: Thailand Navy Strength
Table 4: Thailand - Ongoing Development and Procurement Programs
Table 5: Thailand - Future Procurement Programs
Table 6: Thailand Defense Expenditure (THB Billion & US$ Billion), 2013-2022
Table 7: Thailand GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2013-2022
Table 8: Thailand Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022
Table 9: Thailand Defense Capital Expenditure (THB Billion & US$ Billion), 2013-2022
Table 10: Thailand Defense Budget Split Between Military Services (Army, Air Force, Navy and Others) (%), 2013-2022
Table 11: Thailand Defense Budget in THB Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2013-2022
Table 12: Thailand Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2013-2022
Table 13: Thailand Per Capita Defense Expenditure (US$), 2013-2022
Table 14: Thailand Homeland Security Expenditure (THB Billion & US$ Billion), 2013-2022
Table 15: Terrorism Index, 2017
Table 16: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022
Table 17: Thailand Defense Offset Regulations
Table 18: Thailand Budget Formation Timetable
Table 19: FMS Deals in Thailand
Table 20: Saab - Product Focus
Table 21: Saab - Alliances
Table 22: Saab - Recent Contract Wins
Table 23: Airbus Helicopters - Product Focus
Table 24: Airbus Helicopters - Recent Contract Wins
Table 25: Sikorsky - Product Focus
Table 26: Sikorsky - Recent Contract Wins
Table 27: Northrop Grumman Corp. - Product Focus
Table 28: Northrop Grumman Corp.- Recent Contract Wins
Table 29: Lockheed Martin Corp. - Product Focus
Table 30: Lockheed Martin Corp.- Recent Contract Wins
Table 31: Leonardo-- Product Focus
Table 32: SME: Leonardo-- Recent Contract Wins
Table 33: Daewoo Shipbuilding & Marine Engineering - Product Focus
Table 34: Daewoo Shipbuilding & Marine Engineering - Recent Contract Wins
Table 35: Helicopter Corporation- Product Focus
Table 36: Helicopter Corporation- Recent Contract Wins

List of Figures
Figure 1: Thailand Defense Expenditure (THB Billion), 2013-2022
Figure 2: Thailand Defense Expenditure (US$ Billion), 2013-2022
Figure 3: Thailand GDP Growth vs. Defense Expenditure as Percentage of GDP, 2013-2022
Figure 4: Thailand Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022
Figure 5: Thailand Defense Capital Expenditure (THB Billion), 2013-2022
Figure 6: Thailand Defense Capital Expenditure (US$ Billion), 2013-2022
Figure 7: Thailand Defense Budget Split Between Army, Navy, Air Force and Others, 2013-2022
Figure 8: Thailand Defense Budget in THB Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2013-2022
Figure 9: Thailand Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2013-2022
Figure 10: Thailand Per Capita Defense Expenditure (US$), 2013-2022
Figure 11: Thailand Homeland Security Expenditure (THB Billion), 2013-2022
Figure 12: Thailand Homeland Security Expenditure (US$ Billion), 2013-2022
Figure 13: Terrorism Heat Map, 2017
Figure 14: Terrorism Index, 2017
Figure 15: Benchmarking with Key Markets - 2013-2027 vs. 2018-2022
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2017 and 2022
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2017
Figure 18: Thailand Military IT- Networking Market Size (US$ Million), 2017-2027
Figure 19: Thailand Main Battle Tank Market Size (US$ Million), 2017-2027
Figure 20: Thailand Diesel Electric Submarine Market Size (US$ Million), 2017-2020
Figure 21: Thailand’s Defense Import Trend, 2012-2016 (TIV values)
Figure 22: Thailand’s Defense Import by Country, 2012-2016 (TIV values)
Figure 23: Thailand Defense Imports by Category (%), 2013-2022
Figure 24: Industry Dynamics - Porter’s Five Forces Analysis
Figure 25: Thailand’s GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 26: Thailand - GDP at Current Prices (US$ Billion), 2015-2025
Figure 27: Thailand’s Exports of Goods and Services (THB Billion), 2005-2014
Figure 28: Thailand’s Imports of Goods and Services (THB billion), 2005-2014
Figure 29: Thailand’s Gross National Disposable Income (US$ billion), 2005-2013
Figure 30: Thailand LCU per US$, 2015-2025
Figure 31: Thailand’s Market Capitalization of Listed Companies (US$ billion), 2005-2012
Figure 32: Thailand’s Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 33: Thailand’s Government Cash Surplus/Deficit as % of GDP (LCU), 2005-2012
Figure 34: Thailand - Goods Exports as a % of GDP (%), 2005-2014
Figure 35: Thailand - Goods Imports as a % of GDP (%), 2005-2014
Figure 36: Thailand’s Services Imports as a % of GDP (%), 2005-2014
Figure 37: Thailand Service Exports as a % of GDP (%), 2005-2014
Figure 38: Thailand - Foreign Direct Investment, net (BoP, current US$ bn), 2005-2014 1
Figure 39: Thailand- Net Foreign Direct Investment as a % of GDP, 2005-2014
Figure 40: Thailand’s Mining, Manufacturing, Utilities Output (THB Billion), 2005-2014

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  • Airbus Helicopters
  • Daewoo Ship Building & Marine Engineering (DSME)
  • Enstrom Helicopters
  • Leonardo
  • Lockheed Martin Corp.
  • Northrop Grumman Corp.
  • Saab
  • Sikorsky
Note: Product cover images may vary from those shown
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