Thailand, the third largest country in Southeast Asia, has one of the
fastest-growing defense markets in the world. As a consequence of years
of defense budget underfunding, Thailand’s military spending is
anticipated to increase during the forecast period as the country’s
armed forces undergo an extensive modernization program and, as a
result, the country’s military expenditure as a percentage of GDP is
projected to increase. Thai defense expenditure is expected to be driven
by factors such as security threats, modernization plans, border
disputes, and an ongoing arms race within the Southeast Asian region;
additionally, the country is increasing its HLS spending in order to
counter threats posed by pirates, terrorists, and internal rebel groups.
During the review period an average of 67.7% of the nation’s defense spending was earmarked for revenue expenses, while an average of 32.3% was spent on capital expenditure; however, during the forecast period the share of capital expenditure in the overall defense budget is expected to increase to an average of 34.5% as the country focuses on replacing the existing fleet of obsolete military hardware. As a result of this increase in capital expenditure, defense equipment suppliers will witness a surge in demand for advanced defense systems such as fighter aircraft, military helicopters, armored vehicles, surveillance equipment, warships, and submarines.
Thai Defense Industry Market Opportunities
Published: September 2012 No. of Pages: 113
Price: Single User: US $ 1250 Corporate User: US $ 3750
Thai military spending, estimated at US$5.4 billion in 2012, has increased at a CAGR of 5.44% during the review period (2008-2012) and is projected to register a CAGR of 8.5% during the forecast period (2013-17), to reach US$8.2 billion by 2017. Thai defense expenditure is expected to be driven by modernization initiatives in addition to border disputes, security threats, and an arms race with neighboring countries; moreover, years of defense budget underfunding has created the need for a comprehensive modernization program for equipment including fighter aircraft, military helicopters, armored carrier vehicles, and diesel submarines. To enable this, Thailand is aiming to increase defense expenditure as a percentage of GDP from 1.5% in 2012 to 1.9% in 2017.
During the review period an average of 67.7% of the nation’s defense spending was earmarked for revenue expenses, while an average of 32.3% was spent on capital expenditure; however, during the forecast period the share of capital expenditure in the overall defense budget is expected to increase to an average of 34.5% as the country focuses on replacing the existing fleet of obsolete military hardware. As a result of this increase in capital expenditure, defense equipment suppliers will witness a surge in demand for advanced defense systems such as fighter aircraft, military helicopters, armored vehicles, surveillance equipment, warships, and submarines.
Thai Defense Industry Market Opportunities
Published: September 2012 No. of Pages: 113
Price: Single User: US $ 1250 Corporate User: US $ 3750
Thai military spending, estimated at US$5.4 billion in 2012, has increased at a CAGR of 5.44% during the review period (2008-2012) and is projected to register a CAGR of 8.5% during the forecast period (2013-17), to reach US$8.2 billion by 2017. Thai defense expenditure is expected to be driven by modernization initiatives in addition to border disputes, security threats, and an arms race with neighboring countries; moreover, years of defense budget underfunding has created the need for a comprehensive modernization program for equipment including fighter aircraft, military helicopters, armored carrier vehicles, and diesel submarines. To enable this, Thailand is aiming to increase defense expenditure as a percentage of GDP from 1.5% in 2012 to 1.9% in 2017.
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