Thailand Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2029

Thailand Defense Market Report Overview

In 2024, Thailand’s defense budget is worth $4.4 billion and will grow at a CAGR of more than 5% during 2025-2029. The protection of vital infrastructure and securing maritime borders are expected to drive the country’s future defense expenditures.

Thailand Defense Market Outlook, 2024-2029 ($ Billion)

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The Thailand defense market research report provides the market size forecast and the projected growth rate for the next five years. Furthermore, our analysts have carried out a comprehensive industry analysis to determine key market drivers, emerging technology trends, key sectors, and major challenges faced by market participants. The Thailand defense market study has also assessed key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Thailand Defense Market Drivers

Modernization programs and maritime protection programs will spur defense spending in the Thailand defense market.

• Maritime protection: Maritime security is one of the biggest concerns for all coastal states, with sea lanes serving as a lifeline in terms of global trade. The Southeast Asian maritime route is highly valuable, so it is a major factor considered by Thailand when investing in its defense.

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Thailand Military Doctrines and Defense Strategies

The security sector has played a foundational role in Thailand’s development. Core security actors are spearheaded by the Royal Thai Armed Forces (RTARF). Thailand’s comprehensive military doctrine focuses on a broad array of security concerns and the deployment of robust military capabilities. The current military-controlled government has prioritized policies to boost consumption and investment, including increased public spending on defense and infrastructure, and has gradually made the regulatory framework more efficient and transparent to attract investment and better integrate the economy into the global marketplace.

Thailand has close defense ties with Western and Asian countries and continues to operate significant volumes of defense equipment made by Western manufacturers. Thai forces participate in several military exercises with allied nations. The 42nd iteration of Exercise Cobra Gold ran from Feb. 28 to March 10, 2023, in Thailand, with multiple nations coming together to train and promote regional peace and security in support of a free and open Indo-Pacific. Exercise Cobra Gold is a demonstration of the US’s commitment to Thailand and its allies in support of a free and open Indo-Pacific.

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Thailand Defense Market Segmentation by Sectors

The key sectors in the Thailand defense market are submarines, naval vessels and surface combatants, military fixed-wing aircraft, tactical communications, and military rotorcraft. In 2024, military fixed-wing aircraft account for the highest Thailand defense market share. The market will be sustained by the demand and subsequent growth in the multi-role aircraft market, which is anticipated to grow significantly by 2029.

Thailand Defense Market Analysis by Sectors, 2024 (%)

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Thailand Defense Market - Competitive Landscape

A few of the leading defense companies operating in Thailand are:

• China Shipbuilding & Offshore International Co Ltd (CSOC)
• DTI Thailand and Beihang UAS Technology
• Hanwha Ocean Co Ltd
• Elbit Systems Ltd
• Tata Motors Ltd

S26T Class (Yuan-class) is a high-budget project of CSOC. Thailand decided in 2015 to acquire three S26T diesel-electric submarines, an export version of the Type 039A, or Yuan-class. The contract for the first boat was signed in 2017 by the military government in power at that time, with delivery originally expected in 2024. However, due to the disruption cancellation and subsequent revival of the deal, the first delivery of the submarine is now delayed at least until 2027.

Thailand Defense Market Analysis by Companies

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Segments Covered in the Report

Thailand Defense Market Sectors Outlook (Value, $ Billion, 2020-2029)

• Submarines
• Naval Vessels and Surface Combatants
• Military Fixed-Wing Aircraft
• Tactical communications
• Military Rotorcraft

Scope

The report provides:

• Defense Budget Assessment: This chapter covers the defense budgeting process, market size forecasts, drivers of expenditure, and allocation analysis. It also examines key market trends and insights.
• Military Doctrine and Security Environment: Detailed analysis of military doctrine, strategic alliances, geopolitical dynamics, and the political, social, and economic factors influencing the security environment.
• Market Entry Strategy and Regulations: This section elaborates on essential aspects of procurement policy and market regulations, market-entry routes, key defense procurement bodies, and major deals.
• Market attractiveness and emerging opportunities: It evaluates the attractiveness of various defense sectors, indicating cumulative market value, and highlights the top sectors and defense segments by value in the country.
• Defense Platforms Import and Export Dynamics: Provides an understanding of the defense platform imports and exports of the country from 2016 to 2023. Both imports and exports of the country are provided in terms of value ($M) and volume (units), categorized by country and sector.
• Defense Platform Acquisitions: It offers an overview of defense platform acquisitions by value. It lists current defense procurement schedules for the major ongoing and planned military platforms that have been formulated in the country and elaborates on the reasons leading to the procurement of the same.
• Fleet Size: Outlines the current fleet sizes of the Army, Air Force, and Navy, detailing the year of acquisition, units in service, and the prime contractor for the equipment.
• Competitive Landscape: Profiles the main defense companies operating in the country, offering insights into their business overviews, latest contracts, and financial results.

Key Highlights

• Drivers of Defense expenditure include Arms race in the ASEAN region, Border disputes and Maritime protection

• Major ongoing procurement program include procurement of S26T-class (Yuan-class), Bhumibol Adulyadej-class and M758 ATMG Systems

Reasons to Buy

• Determine prospective investment areas based on a detailed trend analysis of the Thailand 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 Thailand 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 Thailand defense market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion
• Channel resources by focusing on the ongoing programs that are being undertaken by the Thailand government
• Make correct business decisions based on an 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.