South Korean Defense Market – Attractiveness, Competitive Landscape and Forecast to 2025

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

Companies mentioned

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 and Lockheed Martin Korea

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

3.2. Defense Market Size Historical and Forecast

3.3. Analysis of Defense Budget Allocation

3.4. Homeland Security Market Size and Forecast

3.5. Benchmarking with Key Global Markets

3.6. Market Opportunities: Key Trends and Growth Stimulators

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.2. Export Market Dynamics

5. Industry Dynamics

5.1. Five Forces Analysis

6. Market Entry Strategy

6.1. Market Regulation

6.2. Market Entry Route

6.3. Key Challenges

7. Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.2. Key Public Sector Companies

7.3. Key Private Sector Companies

7.4. Key Foreign Companies

8. Business Environment

8.1. Economic Performance

9. Appendix

9.1. About GlobalData

9.2. Disclaimer

List of Tables

List of Tables

Table 1: South Korean Ongoing Procurement Programs

Table 2: South Korean Future Procurement Programs

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

Table 4: South KoreanDefense Cooperation

Table 5: South Korean Military Training Exercises

Table 6: South Korean Defense Expenditure (KRW Trillion and US$ Billion), 2016-2025

Table 7: South Korean GDP Growth vs Defense Expenditure as a Percentage of GDP, 2016-2025

Table 8: South Korean Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025

Table 9: South Korean Defense Capital Expenditure (KRW Trillion and US$ Billion), 2016-2025

Table 10: South Korean Per Capita Defense Expenditure (US$), 2016-2025

Table 11: South Korean Homeland Security Expenditure (KRW Trillionand US$ Billion), 2016-2025

Table 12: Benchmarking with Key Markets, 2016-2020 vs 2021-2025

Table 13: Top 10 South Korea Defense Market Sectors by Value (US$ Million),2020-2025

Table 14: South Korean Defense Market Demand (US$ Million)

Table 15: Offset Regulations in South Korea

Table 16: South Korean Budget Formation Timetable

Table 17: Top Defense Suppliers in South Korean Defense Industry By Value (US$ Million),2020-2025

Table 18: Competitive Landscape of the South Korean Defense Industry

Table 19: Korean Aerospace Industries – Products and Services

Table 20: Korean Aerospace Industries – Alliances

Table 21: Korean Aerospace Industries – Recent Contract Wins

Table 22: Hanwha Techwin- Products

Table 23: Hanwha Techwin- Alliances

Table 24: Hanwha Techwin- Recent Contract Wins

Table 25: Hanwha Corporation -Products

Table 26: Hanwha Corporation – Alliances

Table 27: Hanwha Corporation – Recent Contract Wins

Table 28: Hyundai Heavy Industries – Products

Table 29: Hyundai Heavy Industries – Alliances

Table 30: Hyundai Heavy Industries – Recent Contract Wins

Table 31: Daewoo Shipbuilding & Marine Engineering – Products

Table 32: Daewoo Shipbuilding & Marine Engineering – Alliances

Table 33: Daewoo Shipbuilding & Marine Engineering – Recent Contract Wins

Table 34: Huneed Technologies – Products and Services

Table 35: Huneed Technologies – Alliances

Table 36: Huneed Technologies – Recent Contract Wins

Table 37: STX Engine – Products and Services

Table 38: STX Engine – Alliances

Table 39: STX Engine – Recent Contract Wins

Table 40: S&T Dynamics – Products

Table 41: S&T Dynamics – Recent Contract Wins

Table 42: Poongsan Corporation – Products

Table 43: Poongsan Corporation – Alliances

Table 44: Poongsan Corporation – Recent Contract Wins

Table 45: Samsung Thales – Products and Services

Table 46: Samsung Thales – Alliances

Table 47: Samsung Thales – Recent Contract Wins

Table 48: LIG NEX1 – Products

Table 49: LIG NEX1 – Alliances

Table 50: LIG NEX1 – Recent Contract Wins

Table 51: Doosan DST – Products and Services

Table 52: Doosan DST – Recent Contract Wins

Table 53: Lockheed Martin Korea- Products

Table 54: Lockheed Martin – Alliances

Table 55: Lockheed Martin – Recent Contract Wins

List of Figures

List of Figures

Figure 1: South KoreanAnalysis of Defense Budget: 2021 and 2025

Figure 2: South Korean Defense Imports/Exports: 2015 and 2019

Figure 3: South Korean Top Five Prospective Procurements/Developments

Figure 4: South Korean National Security Threats

Figure 5: South Korean Partnering Countries for Defense Cooperation and Military Training

Figure 6: South Korean Defense Expenditure (KRW Trillion), 2016-2025

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

Figure 8: South Korean GDP Growth vs Defense Expenditure as a Percentage of GDP, 2016-2025

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

Figure 10: South Korean Capital Budget Allocation (KRW Trillion),2016-2025

Figure 11: South Korean Capital Budget Allocation (US$ Billion), 2016-2025

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

Figure 13: South Korean Homeland Security Expenditure (KRW Trillion), 2016-2025

Figure 14: South Korean Homeland Security Budget (US$ Billion), 2016-2025

Figure 15: Benchmarking with Key Markets – 2016-2020 vs 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: Fighters and Multirole Aircraft (US$ Million), 2020-2025

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

Figure 20: Airborne C4ISR Market Size (US$ Million), 2020-2025

Figure 21: South Korean Defense Procurements in Terms of Their Supplier Relationships

Figure 22: South Korean Defense Imports Trend, 2015-2019

Figure 23: South Korean Defense Imports by Country (%),2015-2019

Figure 24: South Korean Defense Imports by Category (%),2015-2019

Figure 25: South Korean Defense Exports by Value, 2015-2019

Figure 26: South Korean Defense Exports by Country (US$ Million), 2015-2019

Figure 27: South Korean Defense Exports by Category (%), 2015-2019

Figure 28: Industry Dynamics Porter’s Five Forces Analysis

Figure 29: South Korean Defense Off Set Policy – Revision to SME Multipliers

Figure 30: South Korean Offset Process

Figure 31: South Korean Market Challenges

Figure 32: South Korea Market Share Analysis, 2020-2025

Figure 33: Korea Aerospace Industries (KAI) – Revenue Trend Analysis (2015-2019)

Figure 34: Korea Aerospace Industries (KAI) – Operating Profit Trend Analysis (2015-2019)

Figure 35: Korea Aerospace Industries (KAI) – Net Profit Trend Analysis (2015-2019)

Figure 36: Hanwha Corporation – Revenue Trend Analysis, 2015-2019

Figure 37: Hanwha Corporation – Operating Profit Trend Analysis,2015-2019

Figure 38: Hanwha Corporation – Net Profit Trend Analysis,2015-2019

Figure 39: Hyundai Heavy Industries – Revenue Trend Analysis, 2015-2019

Figure 40: Hyundai Heavy Industries – Operating Profit Trend Analysis, 2015-2019

Figure 41: Hyundai Heavy Industries – Net Profit Trend Analysis, 2015-2019

Figure 42: STX Engine – Revenue Trend Analysis, 2015-2019

Figure 43: STX Engine – Operating Profit Trend Analysis, 2015-2019

Figure 44: STX Engine – Net Profit Trend Analysis, 2015-2019

Figure 45: S&T Dynamics – Revenue Trend Analysis, 2015-2019

Figure 46: S&T Dynamics – Operating Profit Trend Analysis,2015-2019

Figure 47: S&T Dynamics – Net Profit Trend Analysis,2015-2019

Figure 48: Poongsan Corporation – Revenue Trend Analysis, 2015-2019

Figure 49: Poongsan Corporation – Operating Profit Trend Analysis,2015-2019

Figure 50: Poongsan Corporation – Net Profit Trend Analysis, 2015-2019

Figure 51: Lockheed Martin – Revenue Trend Analysis (US$ Billion), 2015-2019

Figure 52: Lockheed Martin – Operating Profit Trend Analysis (US$ Billion), 2015-2019

Figure 53: Lockheed Martin – Net Profit Trend Analysis (US$ Billion), 2015-2019

Figure 54: South Korean GDP Per Capita (US$/%), 2015-2025

Figure 55: South Korean Real GDP Growth (%) – 2016-2025

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