The rapid modernization of the People’s Liberation Army (PLA) of China, invasive drills and Taiwan’s aging equipment has forced the Taiwanese government to increase its defense expenditure besides enhancing its defense capabilities. Consequently, the total defense expenditure hit a robust compound annual growth rate (CAGR) of 12.0% to record $16.9bn in 2022 and will continue to grow at a CAGR of 3.0% to reach $18.1bn in 2027, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Taiwan Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-2027’, reveals Taiwan’s focus on increasing investment in its acquisition and other operational budgets. China’s aim to include Taiwan within its territory has imposed a great threat to Taiwan’s national security and sovereignty. With the PLA frequently violating the median line by conducting military drills in the Taiwan strait, the level of threat continues to amplify. Hence, with the additional budget, the acquisition budget hit a robust CAGR of 40.8% to record $2.3bn in 2022.

Akash Pratim Debbarma, Aerospace & Defense Analyst at GlobalData, comments: “With Taiwan’s change in military doctrine, Taiwan aims to develop joint capabilities, with all-out defense, and make use of long-range and multi-domain deterrence measures to discourage the enemy’s aggression and ensure homeland security.

“Taiwan’s additional budget invested to procure 66 units of F-16 Vipers and series of weapons systems perfectly aligns with the new doctrine and strategy proving their intention to stand strong against any future aggression and construct a resolute defense. These aircraft and weapon systems procured from the US will not only enhance Taiwan’s defensive capabilities but will also prove to be a lethal weapon to strike on the aggressor’s mainland.”

The US, Taiwan’s most important ally, continues to support Taiwan in terms of defense consultation, developing joint capabilities, and providing the country with advanced arms and weapon systems to remain independent and defend itself from its northern neighbor. Recent deals with the US to procure Lockheed Martin M142 HIMARS, Boeing AGM-84H SLAM-ER missiles, and the upgrade of Patriot missile systems are some examples that show the US’ support in the modernization of Taiwan’s armed forces to maintain a strong defensive capability.”

Debbarma concludes: “The current Russia-Ukraine scenario could probably ignite a spark within the PLA to follow Russia’s footsteps, albeit cautiously. Taiwan’s national security relies completely on its future capabilities and the extent to which the US will be involved in any future conflict between the two nations.”