Taiwan Defense Market – Attractiveness, Competitive Landscape and Forecast to 2025

The Taiwanese Defense Market -Attractiveness, Competitive Landscape and Forecasts 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 Taiwanese defense budget valued US$11.9 billion in 2020 and registered a CAGR of 4.63% during the historical period. The country plans to increase its defense expenditure with significant and steady investments in defense procurements. Some of current key defense procurements are 66 F-16V aircraft worth US$8.1 billion and the procurement of 108 M1A2 Abrams tanks and stinger missiles along with other equipment worth US$2.2 billion.

Tensions between the People‘s Republic of China (PRC) and Taiwan have increased since the Pro-independence Democratic Progressive Party came to power in 2016 and Tsai Ing-wen became President of Taiwan. The tensions were escalated further after the reinauguration of Tsai Ing-wen as Taiwanese President in May 2020.

This report offers detailed analysis of the Taiwanese 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

– Dispute over sovereignty with China and the armed forces mordernization are expected to drive the defense expenditure over the forecast period.

– Aircraft, naval vessels and air defense systems accounted for major share of defense equipemnt imports for Taiwan during 2015-2019.

Scope

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

– The Taiwanese defense industry market size and drivers: detailed analysis of the Taiwan'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 Taiwanese defense industry.

Reasons to buy

– Determine prospective investment areas based on a detailed trend analysis of the Taiwan 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 Taiwan 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 Taiwan 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 Taiwan 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

Companies mentioned

Aerospace Industrial Development Corporation

Chung-Shan Institute of Science and Technology

CSBC Corporation, Taiwan

Table of Contents

Table of Contents

LIST OF FIGURES

LIST OF TABLES

1. Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. About GlobalData

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 and Strategy

3.1.3. Procurement Programs

3.1.4. Geopolitical, Social and Economic Scenario

3.1.5. Political and Strategic Alliances

3.2. Defense Market Size Historical and Forecast

3.2.1. Taiwanese defense budget will grow at an estimated CAGR of

2.03% during 2021-2025

3.2.2. Issue of One China anticipated to drive military expenditure

3.2.3. Defense budget as a percentage of GDP will average

1.9% over the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. Share of capital expenditure is expected to increase during the forecast period

3.3.2. Capital expenditure is estimated to record a CAGR of

4.22% during the forecast period

3.3.3. Taiwan’s per capita defense expenditure is expected to increase during the forecast period

3.4. Homeland Security Market Size and Forecast

3.4.1. The homeland security market in Taiwan is expected to grow at a CAGR of

13.26% during the forecast period

3.4.2. Human trafficking and illicit drug trade to drive homeland security expenditure

3.5. Benchmarking with Key Global Markets

3.5.1. Taiwanese defense expenditure expected to remain low compared to leading spenders

3.5.2. Taiwan will continue to remain a small contributor in the global arms market

3.5.3. Defense budget as a percentage of GDP is expected to remain low over the forecast period

3.6. Market Opportunities: Key Trends and Drivers

3.6.1. Top 10 Defense Sectors by Value (US$ Million) – Projections over 2020-2025

3.6.2. Land Based C4ISR

3.6.3. Airborne C4ISR

3.6.4. Aviation MRO

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense imports decreased during 2015−2019

4.1.2. The USenjoys amonopoly as the only defense equipment supplier toTaiwan

4.1.3. Aircraft, naval vessels, and air defense systems accounted for a total shareof 84% in Taiwanese defense imports

4.2. Export Market Dynamics

5. Industry Dynamics

5.1. Five Forces Analysis

5.1.1. Bargaining power of supplier: Medium to High

5.1.2. Bargaining power of buyer: Medium

5.1.3. Barrier to entry: High

5.1.4. Intensity of rivalry: Low

5.1.5. Threat of substitution: Low

6. Market Entry Strategy

6.1. Market Regulation

6.1.1. The government encourages offsets to develop the domestic defense industrial base

6.2. Market Entry Route

6.2.1. Budgeting process

6.2.2. Procurement Policy and Process

6.2.3. Foreign equipment manufacturers enter the market through local partners and direct commercial sales

6.2.4. Biennial aerospace & defense exhibition provides an attractive entry route

6.3. Key Challenges

6.3.1. Corruption and lack of transparency are the factors which hinder the growth of the Taiwanese defense industry

6.3.2. Stringent regulations and lack of sales agents restricts the domestic defense industry growth

6.3.3. COVID-19 Impact on Taiwanese defense sector

7. Competitive Landscape and Strategic Insights

8. Business Environment and Country Risk

8.1. Economic Performance

8.1.1. GDP per Capita at Constant Prices(US$)

8.1.2. GDP at Current Prices(US$)

8.1.3. Exports of Goods and Services (NT$ Bn)

8.1.4. Imports of Goods and Services (NT$ Bn)

8.1.5. LCU per US$ (Period Average)

8.1.6. Goods Exports as a Percentage of GDP

8.1.7. Goods Imports as a Percentage of GDP

8.1.8. Services Imports as a Percentage of GDP

8.1.9. Services Exports as a Percentage of GDP

8.1.10. Net Foreign Direct Investment as Percentage of GDP

9. Appendix

9.1. About GlobalData

9.2. Disclaimer

List of Tables

List of Tables

Table 1: Taiwan – Ongoing Development and Procurement Programs

Table 2: Taiwan – Future Procurement Programs

Table 3: Taiwan – Top Defense Procurement Programs by Value (US$ Million), 2020-2025

Table 4: Taiwan Defense Cooperation

Table 5: Taiwanese Defense Expenditure (NT$ Billion and US$ Billion), 2016-2025

Table 6: Taiwanese GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2016-2025

Table 7: Taiwanese Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025

Table 8: Taiwanese Defense Capital Expenditure (NT$ Billion and US$ Billion), 2016-2025

Table 9: Taiwanese Per Capita Defense Expenditure (US$), 2016-2025

Table 10: Taiwanese Homeland Security Expenditure (NT$ billion and US$ billion), 2016-2025

Table 11: Benchmarking with Key Markets – 2016-2020vs.2021-2025

Table 12: Top Taiwanese Defense Sectors by Value (US$ Million), 2020-2025

Table 13: Defense Offset Regulations in Taiwan

Table 14: Top Defense Suppliers in the Taiwanese Defense Industry by Value (US$ Million),2020-2025

Table 15: Competitive Landscape of the Taiwan Defense Industry

Table 16: Aerospace Industrial Development Corporation (AIDC) – Product Focus

Table 17: Aerospace Industrial Development Corporation (AIDC) – Alliances

Table 18: Taiwan Aerospace Industrial Development Corporation (AIDC) – Recent Contract Wins

Table 19: Chung-Shan Institute of Science and Technology (CSIST) – Product Focus

Table 20: Chung-Shan Institute of Science and Technology (CSIST) – Alliances

Table 21: China Shipbuilding Corporation (CSBC) – Product Focus

Table 22: China Shipbuilding Corporation (CSBC), Taiwan− Alliances

List of Figures

List of Figures

Figure 1: Taiwanese Defense Budget, 2021 and 2025

Figure 2: Taiwanese Defense Imports/Exports, 2015 and 2019

Figure 3: Taiwanese TopProspective Procurements/Developments

Figure 4: Taiwanese National Security Threats

Figure 5: Taiwan – Partner Countries for Defense Cooperation and Military Training

Figure 6: Taiwanese Defense Expenditure (NT$ Billion), 2016-2025

Figure 7: Taiwanese Defense Expenditure (US$ Billion), 2016-2025

Figure 8: Taiwan GDP Growth and Defense Expenditure as Percentage of GDP,2016-2025

Figure 9: Taiwanese Defense Budget Split Between Capital and Revenue Expenditure (%),2016-2025

Figure 10: Taiwanese Defense Capital Expenditure (NT$ Billion), 2016-2025

Figure 11: Taiwanese Defense Capital Expenditure (US$ Billion), 2016-2025

Figure 12: Taiwanese Per Capita Defense Expenditure (US$), 2016-2025

Figure 13: Taiwanese Homeland Security Expenditure (NT$ Billion), 2016-2025

Figure 14: Taiwanese Homeland Security Expenditure (US$ Billion), 2016-2025

Figure 15: Benchmarking with Key Markets, 2016-2020Vs.2021-2025

Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ billion),2020 and 2025

Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2020

Figure 18: Land Based C4ISRMarket Size (US$ Million), 2020-2025

Figure 19: Airborne C4ISR Market Size (US$ Million), 2020-2025

Figure 20: Aviation MROMarket Size(US$ Million), 2020-2025

Figure 21: Taiwan Defense Import Trend (US$ Million), 2014-2018 (TIV values*)

Figure 22: Taiwanese Defense Imports by Country (%), 2015-2019

Figure 23: Taiwanese Defense Imports by Category (%), 2015-2019

Figure 24: Industry Dynamics – Porter’s Five Forces Analysis

Figure 25: Taiwanese Budgeting Process

Figure 26: Taiwanese Market Share Analysis, 2020-2025

Figure 27: Taiwan, GDP Per Capita at Constant Prices (US$), 2015-2025

Figure 28: Taiwan’s GDP at Current Prices (US$ Billion), 2015-2025

Figure 29: Exports of Goods and Services (NT$ Million), 2005-2014

Figure 30: Imports of Goods and Services (NT$ Billion), 2005-2014

Figure 31: Taiwan, NT$ per US$, 2016-2025

Figure 32: Taiwan, Goods Exports as a Percentage of GDP (%), 2005-2014

Figure 33: Taiwan, Goods Imports as a Percentage of GDP (%), 2005-2014

Figure 34: Taiwan, Services Imports as a Percentage of GDP (%), 2005-2014

Figure 35: Taiwan, Services Exports as a Percentage of GDP (%), 2005-2014

Figure 36: Taiwan, Net Foreign Direct Investment as % of GDP 2005-2012

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