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Future of the Thai Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019

Summary

The Future of the Thai Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019 published by Strategic Defence Intelligence, provides readers with a detailed analysis of both historic and forecast Thai defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies and key news.

Key Findings

The Thai defense expenditure recorded a CAGR of 3.33% between 2010 and 2014, and valued US$5.7 billion in 2014

The country's total defense expenditure during the forecast period is expected to be US$30.9billion.

The average share of capital expenditure is expected to be 34.2% over the forecast period, against an average share of 33.7% during 2010-2014

Over the forecast period, the country's budget for homeland security is expected to be US$27.5 billion cumulatively

The key areas of investment is expected to be multi-role aircraft, naval vessels, armored vehicles and multi-mission helicopters, and surveillance and monitoring systems.

This report offers detailed analysis of the Thai 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:

Thai defense industry market size and drivers: detailed analysis of the Thai defense industry during 2015-2019, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the spending patterns and modernization patterns of the country

Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to the army, navy and air force. It also details the key challenges faced by the defense market participants within the country

Porter's Five Force analysis of the Thai defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyer, tthreat of substitutions, intensity of rivalry and barrier to entry

Import and Export Dynamics: analysis of prevalent trends in the country's import and export over the last five years

Market opportunities: details of the top five defense investment opportunities over the coming 10 years

Competitive landscape and strategic insights: analysis of the competitive landscape of the Thai defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives and a brief financial analysis.

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 which 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, Porter's Five Force Analysis, Key Trends and Growth Stimulators, latest industry contracts etc.

Table of Contents

1 Introduction

  • 1.1. What is this Report About?
  • 1.2. Definitions
  • 1.3. Summary Methodology
  • 1.4. SDI Terrorism Index
  • 1.5. About Strategic Defence Intelligence

2 Executive Summary

3 Market Attractiveness and Emerging Opportunities

  • 3.1. Defense Market Size Historical and Forecast
    • 3.1.1. The Thai defense budget expected to be cumulatively US$30.9 billion over the forecast period
    • 3.1.2. Modernization of the armed forces, the current political volatility, arms race with other Asian countries and border disputes to drive Thai defense spending
    • 3.1.3. Defense expenditure as a percentage of GDP to average 1.2% over the forecast period
  • 3.2. Analysis of Defense Budget Allocation
    • 3.2.1. Capital expenditure allocation to average 34.2% of the total defense budget over the forecast period
    • 3.2.2. Expenditure on Army to increase at a CAGR of 3.74% over the forecast period
    • 3.2.3. Air force expenditure to accumulate US$5.5 billion over the forecast period
    • 3.2.4. Naval expenditure is expected to reach US$1.3 billion by 2019
    • 3.2.5. Thailand to spend US$3.8 billion on support services during the forecast period
    • 3.2.6. Per capita defense expenditure expected to increase during the forecast period
  • 3.3. Homeland Security Market Size and Forecast
    • 3.3.1. Thai homeland security spending expected to grow at a CAGR of 6.32% over the forecast period
    • 3.3.2. Counter terrorism and maritime security to drive Thai Homeland security expenditure
    • 3.3.3. Thailand faces a high level of threat from foreign terrorist organizations
    • 3.3.4. Thailand has a terrorism index score of 2.3
  • 3.4. Benchmarking with Key Global Markets
    • 3.4.1. Thai defense expenditure expected to increase at a slower rate than other Asian countries over the forecast period
    • 3.4.2. Thai defense expenditure is relatively smaller than other Asian countries
    • 3.4.3. Thailand defense budget as a percentage of GDP is expected to decline over the forecast period
    • 3.4.4. Iraq, Pakistan, and Afghanistan are the most terror-prone countries
  • 3.5. Market Opportunities: Key Trends and Growth Stimulators
    • 3.5.1. Multi-role Aircraft
    • 3.5.2. Main Battle Tank (MBT)
    • 3.5.3. Frigates
    • 3.5.4. Multi-mission Helicopters

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. Sweden and Ukraine to remain the key arms suppliers to Thailand
    • 4.1.3. Aircrafts and missiles dominated the arms imports of Thailand
  • 4.2. Export Market Dynamics
    • 4.2.1. No defense exports for 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

6 Market Entry Strategy

  • 6.1. Market Regulation
    • 6.1.1. Thai defense industry is largely driven by the government's offset policy
    • 6.1.2. The Thai defense sector is partially regulated
  • 6.2. Market Entry Route
    • 6.2.1. Defense exhibitions can be used as a direct entry route to the Thai defense industry
    • 6.2.2. Foreign defense organizations venture into the market by partnering with a domestic defense firm
    • 6.2.3. Foreign Military Sales (FMS) to Thailand
  • 6.3. Key Challenges
    • 6.3.1. Negligible defense exports pose a challenge for domestic defense companies
    • 6.3.2. Limited defense budget discourages investors from market entry
    • 6.3.3. Corruption and lack of transparency impede the growth of Thailand's defense industry
    • 6.3.4. Presence of indirect offset hampers the growth of the domestic defense sector

7 Competitive Landscape and Strategic Insights

  • 7.1. Competitive Landscape Overview
  • 7.2. Key Private Sector Companies
    • 7.2.1. Saab: Overview
    • 7.2.2. Saab: Products and services
    • 7.2.3. Saab: Recent announcements and strategic initiatives
    • 7.2.4. Saab: alliances
    • 7.2.5. Saab: recent contract wins
    • 7.2.6. Airbus Helicopters: Overview
    • 7.2.7. Airbus Helicopters: Products and services
    • 7.2.8. Airbus Helicopters: Recent Contract Wins
    • 7.2.9. Sikorsky: Overview
    • 7.2.10. Sikorsky: Products and services
    • 7.2.11. Sikorsky: Recent announcements and strategic initiatives
    • 7.2.12. Sikorsky: recent contract wins
    • 7.2.13. Northrop Grumman Corp. Overview
    • 7.2.14. Northrop Grumman Corp.: Products and services
    • 7.2.15. Northrop Grumman Corp.: recent contract wins
    • 7.2.16. Lockheed Martin Corp. Overview
    • 7.2.17. Lockheed Martin Corp.: Products and services
    • 7.2.18. Lockheed Martin Corp.: recent announcements and strategic initiatives
    • 7.2.19. Lockheed Martin Corp.: recent contract wins
    • 7.2.20. AgustaWestland: Overview
    • 7.2.21. AgustaWestland: Products and services
    • 7.2.22. AgustaWestland: Recent announcements and strategic initiatives
    • 7.2.23. AgustaWestland: recent contract wins
    • 7.2.24. Daewoo Shipbuilding and Marine Engineering: Overview
    • 7.2.25. Daewoo Shipbuilding and Marine Engineering: Products and services
    • 7.2.26. Daewoo Shipbuilding and Marine Engineering: recent contract wins
    • 7.2.27. Enstrom Helicopter Corporation: Overview
    • 7.2.28. Enstrom Helicopter Corporation: Products and services
    • 7.2.29. Enstrom Helicopter Corporation: Recent announcements and strategic initiatives
    • 7.2.30. Enstrom Helicopter Corporation: recent contract wins
    • 7.2.31. Avia Saab Technologies Co. Ltd.: overview
    • 7.2.32. Avia Saab Technologies Co. Ltd.: Products and services
    • 7.2.33. Avia Saab Technologies Co. Ltd.: recent announcements and strategic initiatives
    • 7.2.34. Avia Saab Technologies Co. Ltd.: alliances
    • 7.2.35. Avia Saab Technologies Co. Ltd.: recent contract wins

8 Business Environment and Country Risk

  • 8.1. Demographics
    • 8.1.1. Total Rural population
    • 8.1.2. Total urban population
    • 8.1.3. Number of households
  • 8.2. Economic Performance
    • 8.2.1. GDP per capita at constant prices
    • 8.2.2. GDP at current prices (US$)
    • 8.2.3. Exports of goods and services (current US$ bn)
    • 8.2.4. Imports of goods and services (current US$ bn)
    • 8.2.5. Gross national disposable income (US$ Bn)
    • 8.2.6. Manufacturing Output (US$ Bn)
    • 8.2.7. Consumer price index
    • 8.2.8. Wholesale price index
    • 8.2.9. LCU per US$ (period average)
    • 8.2.10. LCU per Euro (period average)
    • 8.2.11. Lending rate (%)
    • 8.2.12. Deposit rate (%)
    • 8.2.13. Real Interest rate (%)
    • 8.2.14. Market capitalization of listed companies (US$ bn)
    • 8.2.15. Market capitalization of listed companies (% of GDP)
    • 8.2.16. Total Government cash surplus/deficit (LCU billion)
    • 8.2.17. Government cash surplus/deficit as a percentage of GDP (LCU)
    • 8.2.18. Central government debt (LCU billion)
    • 8.2.19. Central government debt as a percentage of GDP (LCU)
    • 8.2.20. Goods exports as a percentage of GDP
    • 8.2.21. Goods imports as a percentage of GDP
    • 8.2.22. Goods balance as a percentage of GDP
    • 8.2.23. Services imports as a percentage of GDP
    • 8.2.24. Service exports as a percentage of GDP
    • 8.2.25. Services balance as a percentage of GDP
    • 8.2.26. Foreign direct investment, net (BoP, current US$ billions)
    • 8.2.27. Net foreign direct investment as a percentage of GDP
    • 8.2.28. International reserves, including gold (US$ billions)
    • 8.2.29. External Debt as a percentage of GDP
  • 8.3. Energy and utilities
    • 8.3.1. Total Conventional Thermal Electricity Net Generation (Billion kWh)
    • 8.3.2. Hydroelectricity Net Generation (Billion kWh)
    • 8.3.3. Total Conventional Thermal Electricity Installed Capacity (Million kW)
    • 8.3.4. Total Electricity Exports (Million kW)
    • 8.3.5. Total Electricity Imports (Million kW)
    • 8.3.6. Proved Reserves of Natural Gas (Trillion Cubic Feet)
    • 8.3.7. Total Petroleum Consumption (Thousand Barrels Per Day)
    • 8.3.8. Crude Oil Proved Reserves (Billion Barrels)
    • 8.3.9. Total Non-Hydro Renewable Electricity Net Generation (Billion kW)
  • 8.4. Infrastructure Quality and Availability
    • 8.4.1. Air transport, freight (million ton-km)
    • 8.4.2. Overall construction (US$ million)
  • 8.5. Mineral
    • 8.5.1. Mining, Manufacturing, Utilities Output (USD Bn)
  • 8.6. Technology
    • 8.6.1. Patents Granted
  • 8.7. Telecommunication
    • 8.7.1. Telephone lines (in Millions)
    • 8.7.2. Telephone lines Penetration Rate (per 100 people)

9 Appendix

  • 9.1. About SDI
  • 9.2. Disclaimer

List of Tables

  • Table 1: Thai Defense Expenditure (US$ Billion), 2010-2014
  • Table 2: Thai Defense Expenditure (US$ Billion), 2015-2019
  • Table 3: Thai Defense Expenditure (in THB Billion), 2010-2014
  • Table 4: Thai Defense Expenditure (in THB Billion), 2015-2019
  • Table 5: Thai GDP Growth vs. Defense Expenditure Growth vs. Defense Expenditure as Percentage of GDP,2010-2014
  • Table 6: Thai GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2015-2019
  • Table 7: Thai Defense Budget Split Between Capital and Revenue Expenditure (%), 2010-2014
  • Table 8: Thai Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2019
  • Table 9: Thai Defense Expenditure for Army (US$ billion), 2010-2014
  • Table 10: Thai Defense Expenditure for Army (US$ billion), 2015-2019
  • Table 11: Thai Expenditure for Army (in THB Billion), 2010-2014
  • Table 12: Thai Defense Expenditure for Army (in THB Billion), 2015-2019
  • Table 13: Thai Defense Expenditure for Air Force (US$ billion), 2010-2014
  • Table 14: Thai Defense Expenditure for Air Force (US$ billion), 2015-2019
  • Table 15: Thai Expenditure for Air Force (in THB Billion), 2010-2014
  • Table 16: Thai Expenditure for Air Force (in THB Billion), 2015-2019
  • Table 17: Thai Defense Expenditure for Navy (US$ billion), 2010-2014
  • Table 18: Thai Defense Expenditure for Navy (US$ billion), 2015-2019
  • Table 19: Thai Expenditure for Navy (in THB Billion), 2010-2014
  • Table 20: Thai Expenditure for Navy (in THB Billion), 2015-2019
  • Table 21: Thai Other Category Defense Budget Allocation (US$ Billion), 2010-2014
  • Table 22: Thai Other category Defense Budget Allocation (US$ Billion), 2015-2019
  • Table 23: Thai Expenditure for the Other category (in THB Billion), 2010-2014
  • Table 24: Thai Defense Expenditure for the Other category (in THB Billion), 2015-2019
  • Table 25: Thai Per Capita Defense Expenditure (US$), 2010-2014
  • Table 26: Thai Per Capita Defense Expenditure (US$), 2015-2019
  • Table 27: Thai Homeland Security Expenditure (US$ billion), 2010-2014
  • Table 28: Thai Homeland Security Expenditure (US$ billion), 2015-2019
  • Table 29: Thai Homeland Security Budget (THB Billion), 2010-2014
  • Table 30: Thai Homeland Security Budget (THB Billion), 2015-2019
  • Table 31: Benchmarking with Key Markets - 2010-2014vs. 2015-2019
  • Table 32: SDI Terrorism Index
  • Table 33: Thai Defense Offset Regulations
  • Table 34: FMS deals to Thailand
  • Table 35: Saab - Product Focus
  • Table 36: Saab - Alliances
  • Table 37: Saab - Recent Contract Wins
  • Table 38: Airbus Helicopters - Product Focus
  • Table 39: Airbus Helicopters - Recent Contract Wins
  • Table 40: Sikorsky - Product Focus
  • Table 41: Sikorsky - Recent Contract Wins
  • Table 42: Northrop Grumman Corp. - Product Focus
  • Table 43: Northrop Grumman Corp.- Recent Contract Wins
  • Table 44: Lockheed Martin Corp. - Product Focus
  • Table 45: Lockheed Martin Corp.- Recent Contract Wins
  • Table 46: AgustaWestland- Product Focus
  • Table 47: AgustaWestland - Recent Contract Wins
  • Table 48: Daewoo Shipbuilding and Marine Engineering - Product Focus
  • Table 49: Daewoo Shipbuilding and Marine Engineering - Recent Contract Wins
  • Table 50: Enstrom Helicopter Corporation- Product Focus
  • Table 51: Enstrom Helicopter Corporation- Recent Contract Wins
  • Table 52: Avia Saab Technologies Co. Ltd. - Product Focus
  • Table 53: Avia Saab Technologies Co. Ltd. - Alliances
  • Table 54: Avia Saab Technologies Co. Ltd. - Recent Contract Wins

List of Figures

  • Figure 1: Thai Defense Expenditure (US$ Billion), 2010-2014
  • Figure 2: Thai Defense Expenditure (US$ Billion), 2015-2019
  • Figure 3: Thai Defense Expenditure (in THB Billion), 2010-2014
  • Figure 4: Thai Defense Expenditure (in THB Billion), 2015-2019
  • Figure 5: Thai GDP Growth vs. Defense Expenditure Growth vs. Defense Expenditure as Percentage of GDP, 2010-2014
  • Figure 6: Thai GDP Growth vs. Defense Expenditure Growth and Defense Expenditures Percentage of GDP, 2015-2019
  • Figure 7:Thai Defense Budget Split Between Capital and Revenue Expenditure (%),2010-2014
  • Figure 8: Thai Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2019
  • Figure 9: Thai Defense Expenditure for Army (US$ billion), 2010-2014
  • Figure 10: Thai Defense Expenditure for Army (US$ billion), 2015-2019
  • Figure 11: Thai Expenditure for Army (in THB Billion), 2010-2014
  • Figure 12: Thai Defense Expenditure for Army (in THB Billion), 2015-2019
  • Figure 13: Thai Defense Expenditure for Air Force (US$ billion), 2010-2014
  • Figure 14: Thai Defense Expenditure for Air Force (US$ billion), 2015-2019
  • Figure 15: Thai Expenditure for Air Force (in THB Billion), 2010-2014
  • Figure 16: Thai Expenditure for Air Force (in THB Billion), 2015-2019
  • Figure 17: Thai Defense Expenditure for Navy (US$ billion), 2010-2014
  • Figure 18: Thai Defense Expenditure for Navy (US$ billion), 2015-2019
  • Figure 19: Thai Expenditure for Navy (in THB Billion), 2010-2014
  • Figure 20: Thai Expenditure for Navy (in THB Billion), 2015-2019
  • Figure 21: Thai Other Category Defense Budget Allocation (US$ Billion), 2010-2014
  • Figure 22: Thai Other category Defense Budget Allocation (US$ Billion), 2015-2019
  • Figure 23: Thai Expenditure for the Other category (in THB Billion), 2010-2014
  • Figure 24: Thai Defense Expenditure for the Other category (in THB Billion), 2015-2019
  • Figure 25: Thai Per Capita Defense Expenditure (US$), 2010-2014
  • Figure 26: Thai Per Capita Defense Expenditure (US$), 2015-2019
  • Figure 27: Thai Homeland Security Expenditure (US$ billion), 2010-2014
  • Figure 28: Thai Homeland Security Expenditure (US$ billion), 2015-2019
  • Figure 29: Thai Homeland Security Budget (THB Billion), 2010-2014
  • Figure 30: Thai Homeland Security Budget (THB Billion), 2015-2019
  • Figure 31: SDI Terrorism Heat Map, 2014
  • Figure 32: SDI Terrorism Index, 2014
  • Figure 33: Benchmarking with Key Markets - 2010-2014 vs. 2015-2019
  • Figure 34: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2014 and 2019
  • Figure 35: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2014
  • Figure 36: Thai Multi-role Aircraft Market Size (US$ Million), 2014-2024
  • Figure 37: Thai Main Battle Tank Market Size (US$ Million), 2014-2024
  • Figure 38: Thai Frigates Market Size (US$ Million), 2014-2024
  • Figure 39: Thai Multi-mission Helicopters Market Size (US$ Million), 2014-2024
  • Figure 40: Thailand's Defense Import Trend, 2009-2013 (TIV values)
  • Figure 41: Thailand's Defense Import by Country, 2009-2013 (TIV values)
  • Figure 42: Thailand Defense Imports by Category (%),2009-2013
  • Figure 43: Industry Dynamics - Porter's Five Forces Analysis
  • Figure 44: Thailand Rural population (In million), 2010-2019
  • Figure 45: Thailand Urban population (In million), 2010-2019
  • Figure 46: Thailand - Number of Households (Million), 2008-2017
  • Figure 47: Thailand's GDP Per Capita at Constant Prices (US$), 2005-2014
  • Figure 48: Thailand - GDP at Current Prices (US$ Billion), 2010-2019
  • Figure 49: Thailand's Exports of goods and services (US$), 2003-2012
  • Figure 50: Thailand's Imports of goods and services (US$), 2003-2012
  • Figure 51: Thailand's Gross national disposable income (US$ billion), 2002-2011
  • Figure 52: Thailand's Gross national disposable income (US$ billion), 2003-2012
  • Figure 53: Thailand's Consumer price index, 2005-2014
  • Figure 54: Thailand's Wholesale price index, 2003-2012
  • Figure 55: Thailand LCU per US$, 2005-2014
  • Figure 56: Thailand LCU per US$, 2005-2014
  • Figure 57: Thailand's Lending rate (%), 2003-2012
  • Figure 58: Thailand's Deposit rate (%), 2003-2012
  • Figure 59: Thailand's Real Interest rate (%), 2003-2012
  • Figure 60: Thailand's market capitalization of listed companies (US$ billion), 2003-2012
  • Figure 61: Thailand's market capitalization of listed companies (% of GDP), 2002-2011
  • Figure 62: Thailand's Total Government cash surplus/deficit (LCU billion), 2003-2011
  • Figure 63: Thailand's Government cash surplus/deficit as % of GDP (LCU), 2002-2011
  • Figure 64: Thailand's - Central government debt (LCU billion), 2003-2011
  • Figure 65: Thailand's Central government debt as % of GDP (LCU), 2003-2011
  • Figure 66: Thailand - Goods exports as a % of GDP (%), 2001-2010
  • Figure 67: Thailand - Goods imports as a % of GDP (%), 2001-2010
  • Figure 68: Thailand's Goods balance as a % of GDP (%), 2001-2010
  • Figure 69: Thailand's Services imports as a % of GDP (%), 2001-2010
  • Figure 70: Thailand Service exports as a % of GDP (%), 2001-2010
  • Figure 71: Thailand - Services balance as a % of GDP (%), 2001-2010
  • Figure 72: Thailand - Foreign direct investment, net (BoP, current US$ billion), 2001-2010
  • Figure 73: Thailand's Net foreign direct investment as % of GDP, 2002-2010
  • Figure 74: Thailand's International reserves, including gold (US$ billion), 2002-2011
  • Figure 75: Thailand's International reserves, including gold (US$ billion), 2001-2010
  • Figure 76: Thailand - Total Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2002-2011
  • Figure 77: Thailand's Hydroelectricity Net Generation (Billion Kilowatt hours), 2002-2011
  • Figure 78: Thailand's Total Conventional Thermal Electricity Installed Capacity (Million Kilowatts), 2001-2010
  • Figure 79: Thailand's Total Electricity Exports (Million Kilowatts), 2002-2011
  • Figure 80: Thailand's Total Electricity Imports (Million Kilowatts), 2002-2011
  • Figure 81: Thailand's Proved Reserves of Natural Gas (Trillion Cubic Feet), 2004-2013
  • Figure 82: Thailand's Total Petroleum Consumption (Thousand Barrels Per Day), 2003-2012
  • Figure 83: Crude Oil Proved Reserves (Billion Barrels), 2003-2012
  • Figure 84: Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts), 2002-2011
  • Figure 85: Thailand's Air transport, freight (million ton-km), 2002-2011
  • Figure 86: Thailand - Overall construction (US$ million), 2007-2014
  • Figure 87: Thailand's Mining, Manufacturing, Utilities Output (USD Bn), 2002-2011
  • Figure 88: Thailand's Patents Granted, 2003-2012
  • Figure 89: Thailand's Telephone lines, 2003-2012
  • Figure 90: Thailand's Telephone lines Penetration Rate (per 100 people), 2003-2012
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