The defense budget in Taiwan is valued at $16.9 billion in 2022. The market is expected to grow at a CAGR of more than 2% from 2023-2027. The ongoing dispute with China over the ‘One China Principle’ has compelled the Taiwanese government to expedite the modernization of its armed forces.

The Taiwan defense market report provides the market size forecast and the projected growth rate for the next five years. The report covers 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 military platforms over the forecast period.

Taiwan defense market overview

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What are the military doctrines and defense strategies of Taiwan?

In 2017, Taiwan’s Chief of the General Staff, Adm. Lee Hsi-ming, proposed a new and revolutionary approach to Taiwanese defense, which is known as the Overall Defense Concept. This defense concept utilizes a defense strategy of asymmetric warfare, through which Taiwan maximizes its defense advantages and targets an invading force or enemy when it is at its weakest. This concept divides Taiwan’s defense operations into two phases, both of which are based close to Taiwan’s shores, where the lines of communication are short, and Taiwan’s forces are likely to get assistance from more effective surveillance and reconnaissance land-based air denial.

According to the Constitution of Taiwan, the main objectives of its national defense strategy are to safeguard its national security and preserve world peace. With the intent of confronting the enemy without any fear, the ROC is focusing on building up its forces and constructing a resolute defense to assure peace through faster resolutions and enhanced military strength.

What are the key sectors in the Taiwan defense market?

The key sectors in the Taiwanese defense market are military fixed-wing aircraft, missile, and missile defense systems, naval vessels & surface combatants, submarines, military rotorcraft, and military UAVs.

Military fixed-wing aircraft sector in the Taiwan defense market

The military fixed-wing sector is the largest sector within the Taiwan defense market. The multirole aircraft segment is the largest segment within the military fixed-wing aircraft sector followed by the training aircraft and transport aircraft.

Missiles and missile defense systems sector in the Taiwan defense market

Missiles and missile defense systems are the second largest sector within the Taiwanese defense market. Anti-air missiles are the largest segment within the missiles and missile defense systems sector followed by platform-based MDS and anti-tank guided missiles.

Military naval vessels and surface combatants sector in the Taiwan defense market

Naval vessels and surface combatants are the third largest sector within the Taiwanese defense market. destroyer is the largest segment within the naval vessels and surface combatants sector followed by a frigate and light combat vessels.

Taiwan defense market, by sector

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Which are the key companies in the Taiwan defense market?

The key companies in the Taiwanese defense market include Lockheed Martin, National Chung-Shan Institute of Science and Technology, CSBC Corporation and Taiwanese Navy, CSBC Corporation, Lung Teh Shipbuilding, General Dynamics Land Systems, Sikorsky Aircraft, General Atomics Aeronautical Systems, Leonardo, Ordnance Readiness Development Center, BAE Systems, Jong Shyn Shipbuilding Company, Aerospace Industrial Development Corp, XAC Automation Corporation, and Ministry of National Defence – Taiwan.

Taiwan defense market, by key companies

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Market report scope

Scope

It provides an in-depth analysis of the following –

• Taiwan defense budget: detailed analysis of Taiwan FY2022 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
• Regulation: the procurement policy and the process is explained. This is coupled with an analysis of Taiwan’s military doctrine and strategy to provide a comprehensive overview of Taiwan’s military regulation.
• Security Environment: political alliances and perceived security threats to Taiwan are examined; there help to explain trends in spending and modernization.
• Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
• Competitive landscape and strategic insights: analysis of the competitive landscape of the Taiwan 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 an in-depth understanding of 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
• Channel 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 include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available.