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Market Research Report

Future of the Thai Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

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Future of the Thai Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023
Published: November 26, 2018 Content info: 117 Pages
Description

"Future of the Thai Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023", published by GlobalData, 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.

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 -

  • The Thai defense industry market size and drivers: detailed analysis of the Thai defense industry over 2019-2023, 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 Thai defense industry.

Scope

  • Thailand, the second-largest economy in Southeast Asia, witnessed defense budget growth of 4.78% during 2014-2018, to reach a value of US$6.8 billion in 2018.
  • 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 grow at a CAGR of 4.61% to reach US$8.4 billion by 2023.

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 over the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
  • Profiles of the top domestic and foreign defense manufacturers . 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.
Table of Contents
Product Code: GDDF0535MR

Table of Contents

1. Introduction 8

  • 1.1. What is this Report About? 8
  • 1.2. Definitions 8
  • 1.3. Summary Methodology 10
  • 1.4. About GlobalData 11

2. Executive Summary 12

3. Market Attractiveness and Emerging Opportunities 14

  • 3.1. Current Market Scenario 15
    • 3.1.1. Primary Threat Perception 15
    • 3.1.2. Military Doctrine & Strategy 17
    • 3.1.3. Military Fleet Size 19
    • 3.1.4. 24
    • 3.1.5. Procurement Programs 25
    • 3.1.6. Top 10 Procurement Programs by Value (US$ Million) 2018-2023 27
    • 3.1.7. Social, Political and Economic Environment & Support for Defense Projects 29
    • 3.1.8. Political and Strategic Alliances 30
  • 3.2. Defense Market Size Historical and Forecast 31
    • 3.2.1. Thailand's defense budget is expected to grow at a CAGR of 4.61% over the forecast period 31
    • 3.2.2. Arms race with other Asian countries, border conflicts, modernization of armed forces, and political volatility drives Thailand's defense expenditure 33
    • 3.2.3. Defense expenditure as a percentage of GDP to average 1.3% over the forecast period 35
  • 3.3. Analysis of Defense Budget Allocation 37
    • 3.3.1. Average capital expenditure allocation expected to average 26.6% of the total defense budget over the forecast period 37
    • 3.3.2. Need to replace obsolete equipment to drive defense capital expenditure 39
    • 3.3.3. Army Defense accounted for the largest percentage share of the overall defense budget 41
    • 3.3.4. Army to account for the majority share of Thailand's defense budget 43
    • 3.3.5. Per capita defense expenditure is expected to increase over the forecast period 47
  • 3.4. Homeland Security Market Size and Forecast 49
    • 3.4.1. Homeland security expenditure is expected to grow at a CAGR of 5.32% over the forecast period 49
    • 3.4.2. Counter terrorism and maritime security to drive Thailand's homeland security expenditure 51
    • 3.4.3. Thailand faces a high level of threat from foreign terrorist organizations 52
    • 3.4.4. Thailand faces "high risk" from acts of terrorism 53
    • 3.4.5. Thailand has a terrorism index score of 6.6 55
  • 3.5. Benchmarking with Key Global Markets 56
    • 3.5.1. Thailand's defense expenditure is expected to increase at a slower rate than other Asian countries over the forecast period 56
    • 3.5.2. Thailand's defense expenditure is relatively small when compared to other Asian countries 58
    • 3.5.3. Thailand's defense budget as a percentage of GDP is expected to remain constant over the forecast period 59
  • 3.6. Market Opportunities: Key Trends and Growth Stimulators 60
    • 3.6.1. Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections 60
    • 3.6.2. Physical Security Market 61
    • 3.6.3. Land-based C4ISR 62
    • 3.6.4. Diesel Electric Submarine 63

4. Defense Procurement Market Dynamics 64

  • 4.1. Import Market Dynamics 66
    • 4.1.1. Thailand's defense imports are expected to increase over the forecast period 66
    • 4.1.2. Ukraine and China are the key arms suppliers to Thailand 67
    • 4.1.3. Aircraft and armored vehicles dominate Thailand's arms imports 68
  • 4.2. Export Market Dynamics 69
    • 4.2.1. Negligible defense exports in Thailand 69

5. Industry Dynamics 70

  • 5.1. Five Forces Analysis 70
    • 5.1.1. Bargaining Power of Supplier: Medium 71
    • 5.1.2. Bargaining Power of Buyer: Medium 71
    • 5.1.3. Barrier to Entry: Low to Medium 71
    • 5.1.4. Intensity of Rivalry: Medium to High 71
    • 5.1.5. Threat of Substitution: High 71

6. Market Entry Strategy 72

  • 6.1. Market Regulation 72
    • 6.1.1. Thailand's defense industry is largely driven by the government's offset policy 72
    • 6.1.2. Thailand's defense sector is partially regulated 73
  • 6.2. Market Entry Route 74
    • 6.2.1. Budgeting Process 74
    • 6.2.2. Defense exhibitions can be used as a direct entry route into Thailand's defense industry 75
    • 6.2.3. Foreign defense organizations enter the market by partnering with a domestic defense firm 75
    • 6.2.4. Foreign Military Sales (FMS) in Thailand 76
  • 6.3. Key Challenges 77
    • 6.3.1. Negligible defense exports pose a major challenge for domestic defense companies 77
    • 6.3.2. Limited defense budget allocation by Thailand's government discourages investors from market entry 77
    • 6.3.3. Corruption and lack of transparency hinder the growth of Thailand's defense industry 77
    • 6.3.4. Presence of indirect offsets hampers the growth of the domestic defense sector 77

7. Competitive Landscape and Strategic Insights 79

  • 7.1. Competitive Landscape Overview 79
    • 7.1.1. Saab: Overview 80
    • 7.1.2. Saab: Products and Services 80
    • 7.1.3. Saab: Recent Announcements and Strategic Initiatives 80
    • 7.1.4. Saab: Alliances 81
    • 7.1.5. Saab: Recent Contract Wins 81
    • 7.1.6. SAAB - Financial Analysis 82
    • 7.1.7. Airbus Helicopters: Overview 84
    • 7.1.8. Airbus Helicopters: Products and Services 84
    • 7.1.9. Airbus Helicopters: Recent Announcements and Strategic Initiatives 84
    • 7.1.10. Airbus Helicopters: Recent Contract Wins 85
    • 7.1.11. Sikorsky: Overview 86
    • 7.1.12. Sikorsky: Products and Services 86
    • 7.1.13. Sikorsky: Recent Announcements and Strategic Initiatives 86
    • 7.1.14. Sikorsky: Recent Contract Wins 87
    • 7.1.15. Northrop Grumman Corp. Overview 88
    • 7.1.16. Northrop Grumman Corp.: Products and Services 88
    • 7.1.17. Northrop Grumman Corp.: Recent Contract Wins 89
    • 7.1.18. Northrop Grumman Corp.: Financial analysis 90
    • 7.1.19. Lockheed Martin Corp. Overview 92
    • 7.1.20. Lockheed Martin Corp.: Products and Services 92
    • 7.1.21. Lockheed Martin Corp.: Recent Announcements and Strategic Initiatives 92
    • 7.1.22. Lockheed Martin Corp.: Recent Contract Wins 92
    • 7.1.23. Lockheed Martin Corp.: Financial analysis 93
    • 7.1.24. Leonardo: Overview 95
    • 7.1.25. Leonardo-: Products and Services 95
    • 7.1.26. Leonardo-: Recent Announcements and Strategic Initiatives 96
    • 7.1.27. Leonardo-: Recent Contract Wins 96
    • 7.1.28. Leonardo: Financial Analysis 97
    • 7.1.29. Daewoo Shipbuilding & Marine Engineering: Overview 99
    • 7.1.30. Daewoo Shipbuilding & Marine Engineering: Products and Services 99
    • 7.1.31. Daewoo Shipbuilding & Marine Engineering: Recent Announcements and Strategic Initiatives 99
    • 7.1.32. Daewoo Shipbuilding & Marine Engineering: Recent Contract Wins 99
    • 7.1.33. Enstrom Helicopter Corporation: Overview 100
    • 7.1.34. Enstrom Helicopter Corporation: Products and Services 100
    • 7.1.35. Enstrom Helicopter Corporation: Recent Announcements and Strategic Initiatives 100
    • 7.1.36. Enstrom Helicopter Corporation: Recent Contract Wins 100

8. Business Environment and Country Risk 101

  • 8.1. Economic Performance 101
    • 8.1.1. Nominal GDP per Capita 101
    • 8.1.2. GDP at Current Prices (US$ Billion) 102
    • 8.1.3. Exports of Goods and Services (LCU Billion) 103
    • 8.1.4. Imports of Goods and Services (LCU Billion) 104
    • 8.1.5. Gross National Disposable Income (US$ Billion) 105
    • 8.1.6. LCU per US$ (period average) 106
    • 8.1.7. Market Capitalization of Listed Companies (US$ Billion) 107
    • 8.1.8. Market Capitalization of Listed Companies (% of GDP) 108
    • 8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (LCU) 109
    • 8.1.10. Goods Exports as a Percentage of GDP 110
    • 8.1.11. Goods Imports as a Percentage of GDP 111
    • 8.1.12. Services Imports as a Percentage of GDP 112
    • 8.1.13. Service Exports as a Percentage of GDP 113
    • 8.1.14. Foreign Direct Investment, net (BoP, current US$ Billion) 114
    • 8.1.15. Net Foreign Direct Investment as a % of GDP 115
    • 8.1.16. Mining, Manufacturing, Utilities Output (LCU Billion) 116

9. Appendix 117

  • 9.1. About GlobalData 117
  • 9.2. Disclaimer 117

List of Tables

  • Table 1: Thailand Ground Forces Strength 19
  • Table 2: Thailand Air Force Strength 21
  • Table 3: Thailand Navy Strength 22
  • Table 4: Thailand - Ongoing Development and Procurement Programs 25
  • Table 5: Thailand - Future Procurement Programs 26
  • Table 6: Thai - Top Defense Procurement Programs by Value (US$ Million), 2018-2023 27
  • Table 7: Thai Defense Expenditure (THB Billion & US$ Billion), 2014-2023 31
  • Table 8: Thai GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2014-2023 35
  • Table 9: Thai Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 37
  • Table 10: Thai Defense Capital Expenditure (THB Billion & US$ Billion), 2014-2023 39
  • Table 11: Thai Defense Budget Split Between Military Services (Army, Navy, Air Force and Others) (%), 2014-2023 41
  • Table 12: Thai - Defense Budget Breakdown by Service (THB Billion), 2014-2023 43
  • Table 13: Thai - Defense Budget Breakdown by Service ( US$ Billion), 2014-2023 45
  • Table 14: Thai Per Capita Defense Expenditure (US$), 2014-2023 47
  • Table 15: Thai Homeland Security Expenditure (THB Billion & US$ Billion), 2014-2023 49
  • Table 16: Terrorism Index, 2018 53
  • Table 17: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 56
  • Table 18: Thai - 10 Leading Defense Market Categories by Value (US$ Million), 2018-2023 60
  • Table 19: Thailand Defense Offset Regulations 72
  • Table 20: Thailand Budget Formation Timetable 74
  • Table 21: FMS Deals in Thailand 76
  • Table 22: Thai - Top Defense Suppliers by Value (US$ Million), 2018-2023 79
  • Table 23: Saab - Product Focus 80
  • Table 24: Saab - Alliances 81
  • Table 25: Saab - Recent Contract Wins 81
  • Table 26: Airbus Helicopters - Product Focus 84
  • Table 27: Airbus Helicopters - Recent Contract Wins 85
  • Table 28: Sikorsky - Product Focus 86
  • Table 29: Sikorsky - Recent Contract Wins 87
  • Table 30: Northrop Grumman Corp. - Product Focus 88
  • Table 31: Northrop Grumman Corp.- Recent Contract Wins 89
  • Table 32: Lockheed Martin Corp. - Product Focus 92
  • Table 33: Lockheed Martin Corp.- Recent Contract Wins 92
  • Table 34: Leonardo-- Product Focus 95
  • Table 35: SME: Leonardo-- Recent Contract Wins 96
  • Table 36: Daewoo Shipbuilding & Marine Engineering - Product Focus 99
  • Table 37: Daewoo Shipbuilding & Marine Engineering - Recent Contract Wins 99
  • Table 38: Helicopter Corporation- Product Focus 100
  • Table 39: Helicopter Corporation- Recent Contract Wins 100

List of Figures

  • Figure 1: Thai Defense Expenditure (THB Billion), 2014-2023 32
  • Figure 2: Thai Defense Expenditure (US$ Billion), 2014-2023 32
  • Figure 3: Thai GDP Growth vs. Defense Expenditure as Percentage of GDP, 2014-2023 36
  • Figure 4: Thai Defense Budget Split Between Capital and Revenue Expenditure (%),2014-2023 38
  • Figure 5: Thai Defense Capital Expenditure (THB Billion), 2014-2023 40
  • Figure 6: Thai Defense Capital Expenditure (US$ Billion), 2014-2023 40
  • Figure 7: Thai Defense Budget Split Between Army, Navy, Air Force and Others, 2014-2023 42
  • Figure 8: Thai - Defense Budget Breakdown by Service (THB Billion), 2014-2023 44
  • Figure 9: Thai - Defense Budget Breakdown by Service (US$ Billion), 2014-2023 46
  • Figure 10: Thai Per Capita Defense Expenditure (US$), 2014-2023 48
  • Figure 11: Thailand Homeland Security Expenditure (THB Billion), 2014-2023 50
  • Figure 12: Thailand Homeland Security Expenditure (US$ Billion), 2014-2023 50
  • Figure 13: Terrorism Heat Map, 2018 52
  • Figure 14: Terrorism Index, 2018 55
  • Figure 15: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 57
  • Figure 16: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2018 and 2023 58
  • Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018 59
  • Figure 18: Physical Security Market Size (US$ Million), 2018-2023 61
  • Figure 19: Land-based C4ISR Market Size (US$ Million), 2018-2028 62
  • Figure 20: Thailand Diesel Electric Submarine Market Size (US$ Million), 2018-2023 63
  • Figure 21: Thailand - Defense Procurements in Terms of Supplier Relationships, 2018 65
  • Figure 22: Thailand's Defense Import Trend, 2013-2017 (TIV values) 66
  • Figure 23: Thailand's Defense Import by Country, 2013-2017 (TIV values) 67
  • Figure 24: Thailand's Defense Imports by Category (%), 2013-2017 68
  • Figure 25: Industry Dynamics - Porter's Five Forces Analysis 70
  • Figure 26: SAAB - Revenue Trend Analysis (SEK Billion), 2013-2017 82
  • Figure 27: SAAB - Operating Profit Trend Analysis (SEK Billion), 2013-2017 83
  • Figure 28: SAAB - Net Profit Trend Analysis (SEK Billion), 2013-2017 83
  • Figure 29: Northrop Grumman Corp. - Revenue Trend Analysis (US$ billion), 2013-2017 90
  • Figure 30: Northrop Grumman Corp. - Operating Profit Trend Analysis (US$ billion), 2013-2017 91
  • Figure 31: Northrop Grumman Corp. - Net Profit Trend Analysis (US$ billion), 2013-2017 91
  • Figure 32: Lockheed Martin Corp. - Revenue Trend Analysis (US$ billion), 2013-2017 93
  • Figure 33: Lockheed Martin Corp. - Operating Profit Trend Analysis (US$ billion), 2013-2017 94
  • Figure 34: Lockheed Martin Corp. - Net Profit Trend Analysis (US$ billion), 2013-2017 94
  • Figure 35: Leonardo - Revenue Trend Analysis (EUR Billion), 2013-2017 97
  • Figure 36: Leonardo - Operating Profit Trend Analysis (EUR Million), 2013-2017 98
  • Figure 37: Leonardo - Net Profit Trend Analysis (EUR Million), 2013-2017 98
  • Figure 38: Thailand's GDP Per Capita at Constant Prices (US$), 2015-2025 101
  • Figure 39: Thailand - GDP at Current Prices (US$ Billion), 2015-2025 102
  • Figure 40: Thailand's Exports of Goods and Services (LCU Billion), 2005-2014 103
  • Figure 41: Thailand's Imports of Goods and Services (LCU Billion), 2005-2014 104
  • Figure 42: Thailand's Gross National Disposable Income (US$ Billion), 2005-2013 105
  • Figure 43: Thailand LCU per US$, 2015-2024 106
  • Figure 44: Thailand's Market Capitalization of Listed Companies (US$ Billion), 2005-2012 107
  • Figure 45: Thailand's Market Capitalization of Listed Companies (% of GDP), 2005-2012 108
  • Figure 46: Thailand's Government Cash Surplus/Deficit as % of GDP (LCU), 2005-2012 109
  • Figure 47: Thailand - Goods Exports as a % of GDP (%), 2005-2014 110
  • Figure 48: Thailand - Goods Imports as a % of GDP (%), 2005-2014 111
  • Figure 49: Thailand's Services Imports as a % of GDP (%), 2005-2014 112
  • Figure 50: Thailand Service Exports as a % of GDP (%), 2005-2014 113
  • Figure 51: Thailand - Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2014 114
  • Figure 52: Thailand- Net Foreign Direct Investment as a % of GDP, 2005-2014 115
  • Figure 53: Thailand's Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 116
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