Taiwan Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

Taiwan Defense Market Overview

The Taiwan defense budget is estimated to be worth $19.9 billion in 2023 and is expected to achieve a CAGR of more than 4% during 2024-2028. The Taiwan defense market research 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 Outlook, 2023-2028 ($ Billion)

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Taiwan Defense Market Drivers

The ongoing dispute with China over the ‘One China Principle’ has compelled the Taiwanese government to expedite the modernization of its armed forces. Taiwan has signed a multibillion-dollar deal for the procurement of the F-16 Viper from the US, along with missiles and missile defense systems. Moreover, Taiwan is also indigenously building diesel-electric submarines and naval vessels to modernize its naval forces.

Taiwan Military Doctrines and Defense Strategies

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.

Furthermore, Taiwan has informal defense relationships with many countries, particularly in the Indo-Pacific region, where it is seen as a reliable partner in promoting regional stability and security. The US and Japan are two of Taiwan’s closest security partners, and both have expressed their commitment to supporting Taiwan’s defense. The US is also Taiwan’s largest supplier of arms and has signed several security agreements with Taiwan to enhance their defense relationship.

Taiwan Defense Market Segmentation by Sectors

The key sectors in the Taiwan defense market are military fixed-wing aircraft, missiles and missile defense systems, electronic warfare, military radar, EOIR, military simulation and training, tactical communication stems, military UAV, INS GNSS, and artillery, among others. The military fixed-wing aircraft sector is the largest within the Taiwanese defense market and is expected to continue its dominance during the forecast period. The market is sustained by a slew of acquisition programs, especially within the combat aircraft and training and light attack aircraft segments.

Taiwan Defense Market Analysis by Sectors, 2023 (%)

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Taiwan Defense Market - Competitive Landscape

Some of the leading defense companies in Taiwan are Lockheed Martin, CSBC Corporation and Taiwanese Navy, National Chung-Shan Institute of Science and Technology, CSBC Corporation, Lung Teh Shipbuilding, General Dynamics Land Systems, Sikorsky Aircraft, General Atomics Aeronautical Systems, Leonardo, and Ordnance Readiness Development Center.

Taiwan Defense Market Report Overview

Segments Covered in the Report

Taiwan Defense Market Sectors Outlook (Value, $ Billion, 2019-2028)

• Military Fixed-Wing Aircraft
• Missiles and Missile Defense Systems
• Electronic Warfare
• Military Radar
• EOIR
• Military Simulation and Training
• Tactical Communication Stems
• Military UAV
• INS GNSS
• Artillery

Scope

The report provides an in-depth analysis of the following –

• Taiwan’s defense budget: detailed analysis of Taiwan’s FY2023 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 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; they 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 Taiwan’s 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
• 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 includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available