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

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

4. Appendix 117

• 4.1. About GlobalData 117