Summary
South Korean Defense Market - Attractiveness, Competitive Landscape and Forecast to 2025 report provides the market size forecast and the projected Compound Annual Growth Rate (CAGR) for the next five years. The report covers the industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for maritime and border security market over the forecast period.
The Defense Reform (DR) 2.0 initiative explicitly calls for the cutting down of the country’s overall personnel strength for the armed forces from the current 618,000 to 522,000 by 2022, as well as cutting back the top echelons of the ground forces by reducing the number of generals from 436 to 360 by 2022. The New Defense Reform Plan also intends to make effective use of revolutionary developments in battlefield technologies and military science, with specific emphasis on artificial intelligence. As such, the South Korean DR 2.0 initiative is expected to drive a surge in defense investments over 2020-2024. As a consequence, South Korea’s defense expenditure, in accordance with its GDP, remained relatively constant throughout the historic period, standing at an average of 2.4% during 2016-2020. However, South Korea’s defense expenditure as a percentage of its GDP is anticipated to increase to an average of 2.9% over the forecast period.
Between 2016 and 2020, the country’s capital expenditure allocation stood at an average of 30.6% of the total defense budget and is expected to increase slightly to an average of 31.2% over the forecast period. Overall, South Korea is projected to spend a total of US$88.6 billion on the acquisition of military hardware between 2021 and 2025.
Over the forecast period, the country is expected to invest in multirole attack/trainer aircraft and multi-role aircraft, border security, infantry fighting vehicles, main battle tanks, UAVs, cyber security, submarines, computer network defense capabilities, and naval vessels.
This report offers detailed analysis of the South Korean defense market 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.
Key Highlights
Scope
In particular, it provides an in-depth analysis of the following -
Reasons to Buy
South Korean Defense Market - Attractiveness, Competitive Landscape and Forecast to 2025 report provides the market size forecast and the projected Compound Annual Growth Rate (CAGR) for the next five years. The report covers the industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for maritime and border security market over the forecast period.
The Defense Reform (DR) 2.0 initiative explicitly calls for the cutting down of the country’s overall personnel strength for the armed forces from the current 618,000 to 522,000 by 2022, as well as cutting back the top echelons of the ground forces by reducing the number of generals from 436 to 360 by 2022. The New Defense Reform Plan also intends to make effective use of revolutionary developments in battlefield technologies and military science, with specific emphasis on artificial intelligence. As such, the South Korean DR 2.0 initiative is expected to drive a surge in defense investments over 2020-2024. As a consequence, South Korea’s defense expenditure, in accordance with its GDP, remained relatively constant throughout the historic period, standing at an average of 2.4% during 2016-2020. However, South Korea’s defense expenditure as a percentage of its GDP is anticipated to increase to an average of 2.9% over the forecast period.
Between 2016 and 2020, the country’s capital expenditure allocation stood at an average of 30.6% of the total defense budget and is expected to increase slightly to an average of 31.2% over the forecast period. Overall, South Korea is projected to spend a total of US$88.6 billion on the acquisition of military hardware between 2021 and 2025.
Over the forecast period, the country is expected to invest in multirole attack/trainer aircraft and multi-role aircraft, border security, infantry fighting vehicles, main battle tanks, UAVs, cyber security, submarines, computer network defense capabilities, and naval vessels.
This report offers detailed analysis of the South Korean defense market 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.
Key Highlights
- The South Korean defense budget, which stands at US$41 billion in 2020, is anticipated to grow to US$54.4 billion in 2025, reflecting a CAGR of 5.18% over the forecast period.
- The South Korean defense market has three major sectors: Fighters and Multirole Aircraft, Land Based C4ISR and Airborne C4ISR.
- South Korea is projected to spend a total of US$88.6 billion on the acquisition of military hardware between 2021 and 2025.
- The various procurements that have fueled the growth of the capital budget allocation include F-35 Lightning II, KUH-1 Surion helicopters, MUH-1 Marineon helicopters, Light Armed Helicopter (LAH), KAI-KFX Fifth Generation Fighter Aircraft, Surveillance and Reconaissange Aircraft, , Eurofighter Typhoon Fighter Aircraft, Light Armored Vehicles (LAVs), PATRIOT (PAC-2) Missiles , and Air Defense Systems.
Scope
In particular, it provides an in-depth analysis of the following -
- The South Korean defense industry market size and drivers: detailed analysis of the South Korea's defense industry during 2021-2025, 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 South Korea's defense industry.
Reasons to Buy
- Determine prospective investment areas based on a detailed trend analysis of the South Korean defense market over the next five years
- Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the South Korean market and identify the opportunities offered.
- Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
- Identify the major threats that are driving the South Korean defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
- Channelize resources by focusing on the ongoing programs that are being undertaken by the South Korean government
- Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available
Table of Contents
1. Introduction
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
7. Competitive Landscape and Strategic Insights
8. Business Environment
9. Appendix
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Korea Aerospace Industries (KAI)
- Hanwha Techwin
- Hanwha Corporation
- Hyundai Heavy Industries (HHI)
- Daewoo Ship Building & Marine Engineering (DSME)
- Huneed Technologies
- STX Engine
- S&T Dynamics
- Poongsan Corporation
- Samsung Thales
- LIG NEX1
- Doosan DST
- Lockheed Martin Korea
