The Thai Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017

113pages

Published Date: September 2012

Published By: ICD Research

Category: Defense and Security
Description

Synopsis

  • Top level overview of the Thai defense industry 
  • A breakdown of the Thai defense industry by spend pattern valued from 2006 through 2010 and forecasted from 2011 through 2015 
  • A breakdown of the markets by segment valued from 2006 through 2010 and forecasted from 2011 through 2015 •Details of top companies active across the Thai defense industry 
  • Emerging trends and opportunities in the Thai defense industry in the last 12 months
Summary

This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original equipment manufacturers) to gain a market share in the Thai defense industry. In particular, it offers in-depth analysis of the following: 
  • Market opportunity and attractiveness: detailed analysis of the current industry size and growth expectations during 2011–2015, including highlights of the key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas. 
  • Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the Thai defense industry. 
  • Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future. 
  • Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives. 
  • Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry in Thailand. It provides an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis. 
  • Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and availability, labor force, demographics, and political and social risk.

Scope

  • Analysis of Defense industry market size from 2006 through 2010 and forecasts till 2015 
  • Analysis of defense budget allocation 
  • Benchmarking with key global markets 
  • Market opportunities 
  • Defense procurement dynamics 
  • Industry dynamics 
  • Market entry strategy 
  • Competitive landscape and strategic insights 
  • Business environment and country risk

Reasons To Buy

  • Gain insight into the Thai defense industry with current, historic and forecast market values 
  • Get insight on market opportunity and attractiveness 
  • Get insight on industry procurement dynamics 
  • Gain insight on industry structure 
  • Gain insight into the regulations governing the Thai defense industry and the potential market entry strategies with an expert analysis of the competitive structure 
  • Identify top companies of the Thai defense industry along with profiles of all those companies

Key Highlights

Thai defense expenditure expected to increase at a CAGR of 14.56% during the forecast period Thai military spending, estimated at US$5.6 billion in 2011, has increased at a CAGR of 21.15% during the review period and is projected to register a CAGR of 14.46% during the forecast period to reach US$9.7 billion by 2015. 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 1.6% in 2011 to 2.1% in 2015. 

During the review period an average of 70% of the nation’s defense spending was earmarked for revenue expenses while an average of 30% 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 35% 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 advance defense systems such as fighter aircraft, military helicopters, armored vehicles, surveillance equipment, warships and submarines. 

 

 

Table of Content

1 Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. SDI Terrorism Index
1.5. About Strategic Defence Intelligence

2 Executive Summary

3 Market Attractiveness and Emerging Opportunities

3.1. Defense Market Size Historical and Forecast
3.1.1. Thai defense expenditure expected to increase at a CAGR of XX% during the forecast period
3.1.2. Modernization initiatives, security threats, an arms race with neighboring countries, and border disputes are expected to drive defense spending
3.1.3. Military spending as a percentage of GDP is expected to increase over the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. The share of capital expenditure in the overall defense budget is expected to increase during the forecast period
3.2.2. The army accounts for the largest share of defense expenditure
3.2.3. The country is expected to spend US$XX billion on its army over the forecast period
3.2.4. Naval budget projected to grow at a CAGR of XX% during the forecast period
3.2.5. Air force budget expected to be US$XX billion by 2017
3.2.6. Thailand to spend US$XX billion on support services over the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Homeland security (HLS) expenditure expected to grow at a CAGR of XX% during 2013-2017
3.3.2. HLS expenditure to be driven by the country's efforts to counter security threats and civil unrest
3.3.3. Thailand faces a high level of threat from foreign terrorist organizations
3.4. Benchmarking with Key Global Markets
3.4.1. Thai defense expenditure is expected to remain modest during the forecast period
3.4.2. Thailand has a low per capita defense expenditure
3.4.3. Thailand faces a high level of threat from foreign terrorist organizations
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Demand for naval defense equipment expected to increase
3.5.2. Modernization of the armed forces will create demand for advanced defense systems
3.5.3. Demand for land-based defense systems expected to increase
3.5.4. Potential demand for frigates and its MRO services

4 Defense Procurement Market Dynamics
4.1.1. Undeveloped domestic defense industry drives imports
4.1.2. Defense imports expected to increase during the forecast period
4.1.3. Sweden and Ukraine dominated Thai defense imports during 2011
4.1.4. Aircraft accounted for a majority of defense imports during 2011
4.2. Export Market Dynamics
4.2.1. Thailand has limited export capabilities

5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low
5.1.2. Bargaining power of buyer: high
5.1.3. Barrier to entry: low to medium
5.1.4. Intensity of rivalry: high
5.1.5. Threat of substitution: high

6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Offsets are mandatory for all procurements exceeding US$9.5 million
6.1.2. The Thai defense sector is partially regulated
6.2. Market Entry Route
6.2.1. Biennial defense exhibition provides an attractive entry route
6.2.2. Foreign equipment manufacturers enter the market through direct commercial sales
6.2.3. Foreign defense organizations venture into the market by partnering with a domestic defense firm
6.3. Key Challenges
6.3.1. Corruption and a lack of transparency impedes the growth of Thailand's defense industry
6.3.2. Presence of indirect offset hampers the growth of the domestic defense sector

7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Avia Saab Technologies Co. Ltd.: overview
7.2.2. Avia Saab Technologies Co. Ltd.: products
7.2.3. Avia Saab Technologies Co. Ltd: recent announcements and strategic initiatives
7.2.4. Avia Saab Technologies Co. Ltd.: recent contract wins
7.2.5. Avia Saab Technologies: financial analysis
7.2.6. Avia Satcom: overview
7.2.7. Avia Satcom: products and services
7.2.8. Avia Satcom: alliances
7.2.9. Avia Satcom: recent contract wins
7.2.10. Infowave (Thailand) Co. Ltd.: overview
7.2.11. Infowave (Thailand) Co. Ltd.: defense products and services
7.2.12. Infowave (Thailand) Co., Ltd.: alliances

8 Business Environment and Country Risk
8.1. Demographics and Social Statistics
8.1.1. Population - Female
8.1.2. Population - Male
8.2. Economic Performance
8.2.1. Business Confidence index
8.2.2. Construction Output, Current Prices, Local Currency
8.2.3. Construction Output, Current Prices, US Dollars
8.2.4. Current Account Balance as Percentage of GDP
8.2.5. Debt-Service Ratio
8.2.6. Debt-Service Ratio
8.2.7. Exports of Goods and Services, Current Prices
8.2.8. External Debt as a percentage of GDP
8.2.9. Fiscal Balance as a percentage of GDP
8.2.10. Foreign Direct Investment
8.2.11. GDP at Purchasing Power Parity
8.2.12. GDP, Constant Prices(Local Currency)
8.2.13. GDP, Constant Prices (US$ Billion)
8.2.14. GDP, Current Prices(Local Currency)
8.2.15. GDP, Current Prices (US$ billion)
8.2.16. General Government Final Consumption Expenditure
8.2.17. Gross Fixed Capital Formation, Current Prices
8.2.18. Imports of goods and services
8.2.19. Inflation, Average Consumer Prices
8.2.20. Interest Rate (Lending)
8.2.21. Manufacturing Output, Current Prices (Local Currency Bn)
8.2.22. Manufacturing Output, Current Prices (US$ Billions)
8.2.23. Market Cap of Stock Exchange
8.2.24. US$- Exchange Rate (Annual Average)
8.2.25. US$- Exchange Rate (EoP)
8.2.26. Wholesale Price Index
8.3. Energy and Utilities
8.3.1. Hydroelectricity Installed Capacity
8.3.2. Crude Oil Distillation Capacity
8.3.3. Natural Gas Consumption
8.3.4. Natural Gas Imports
8.3.5. Natural Gas Production
8.3.6. Net Conventional Thermal Electricity Generation
8.3.7. Net Geothermal, Solar, Wind, and Wood Electric Power Generation
8.3.8. Net Hydroelectric Power Generation
8.3.9. Petroleum, Consumption
8.3.10. Petroleum, Production
8.4. Minerals
8.4.1. Coal Consumption
8.4.2. Coal Production
8.5. Social and Political Risk
8.5.1. Political Stability Index
8.5.2. Transparency Index
8.6. Technology
8.6.1. Fixed Broadband Internet Subscribers
8.6.2. Gross Domestic Expenditure on Research and Development as % of GDP
8.6.3. Patents Granted

9 Appendix
9.1. Contact Us
9.2. About SDI
9.3. Disclaimer


List Of Figures


Figure 1: Thai Defense Expenditure (US$ Billion), 2008-2012
Figure 2: Thai Defense Expenditure (US$ Billion), 2013-2017
Figure 3: Thai GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP (%), 2008-2012
Figure 4: Thai GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP (%), 2013-2017
Figure 5: Thai Defense Budget Split between Capital and Revenue Expenditure (%), 2008-2012
Figure 6: Thai Defense Budget Split between Capital and Revenue Expenditure (%), 2013-2017
Figure 7: Thai Defense Budget Allocation (%), 2008-2012
Figure 8: Thai Defense Budget Allocation (%), 2013-2017
Figure 9: Thai Army Defense Budget Allocation (US$ Billion), 2008-2012
Figure 10: Thai Army Defense Budget Allocation (US$ Billion), 2013-2017
Figure 11: Thai Navy Defense Budget Allocation (US$ Billion), 2008-2012
Figure 12: Thai Navy Defense Budget Allocation (US$ Billion), 2013-2017
Figure 13: Thai Air Force Defense Budget Allocation (US$ Billion), 2008-2012
Figure 14: Thai Air Force Defense Budget Allocation (US$ Billion), 2013-2017
Figure 15: Thai Other Categories Defense Budget Allocation (US$ Billion), 2008-2012
Figure 16: Thai Other Categories Defense Budget Allocation (US$ Billion), 2013-2017
Figure 17: Thai Homeland Security Expenditure (US$ Billion), 2008-2012
Figure 18: Thai Homeland Security Expenditure (US$ Billion), 2013-2017
Figure 19: SDI Terrorism Heat Map, 2011
Figure 20: SDI Terrorism Index, 2011
Figure 21: Benchmarking with Key Markets - 2008-2012 vs. 2013-2017
Figure 22: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2012 and 2017
Figure 23: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2012
Figure 24: Per Capita Defense Expenditure of the Largest Military Spenders in the World (US$), 2012
Figure 25: Thai Defense Imports (US$ million), 2007-2011
Figure 26: Thai Defense Imports by Country (%), 2007-2011
Figure 27: Thai Defense Imports by Category (%), 2007-2011
Figure 28: Industry Dynamics - Porter's Five Forces Analysis
Figure 29: Avia Saab Technologies- Revenue Trend Analysis (SEK Million), 2006-2010
Figure 30: Avia Saab Technologies- Operating Profit Trend Analysis (SEK Million), 2006-2010
Figure 31: Avia Saab Technologies- Net Profit Trend Analysis (SEK Million), 2006-2010
Figure 32: Thai Population - Female (In Millions), 2008-2017
Figure 33: Thai Population - Male (In Millions), 2008-2017
Figure 34: Thai Business Confidence index, 2003-2012
Figure 35: Thai Construction Output, Current Prices, Local Currency (In Billions), 2001-2010
Figure 36: Thai Construction Output, Current Prices, US Dollars (In Billions), 2001-2010
Figure 37: Thai Current Account Balance as Percentage of GDP, 2008-2017
Figure 38: Thai Debt-Service Ratio, 2001-2010
Figure 39: Thai Deposit Interest Ratio, 2001-2010
Figure 40: Thai Exports of Goods and Services, Current Prices (US$ Billion), 2001- 2010
Figure 41: Thai External Debt as a Percentage of GDP, 2001-2010
Figure 42: Thai Fiscal Balance as a percentage of GDP, 2003-2010
Figure 43: Thai Foreign Direct Investment (US$ Billion), 2001-2010
Figure 44: Thai GDP at Purchasing Power Parity (US$ Billion), 2006-2015
Figure 45: Thai GDP at Constant Prices (Local Currency Billion), 2006-2015
Figure 46: Thai GDP at Constant Prices(US$ Billion), 2006-2015
Figure 47: Thai GDP at Current Prices(Local Currency Billion), 2006-2015
Figure 48: Thai GDP at Current Prices(US$ Billion), 2006-2015
Figure 49: Thai General Government Final Consumption Expenditure (US$ Billion), 2001-2010
Figure 50: Thai Gross Fixed Capital Formation, Current Prices (US$ Billion), 2001-2010
Figure 51: Thai Imports of Goods and Services (current US$ Billion), 2001-2010
Figure 52: Thai Inflation, Average Consumer Prices, 2008-2017
Figure 53: Thai Interest Rate (Lending), 2001-2010
Figure 54: Thai Manufacturing Output, Current Prices (Local Currency Billion), 2001-2010
Figure 55: Thai Manufacturing Output, Current Prices (US$ Billion), 2001-2010
Figure 56: Thai Market Cap of Stock Exchange (US$ Million), 2001-2010
Figure 57: Thai US$- Exchange Rate (Annual Average), 2002-2011
Figure 58: Thai US$- Exchange Rate (EoP), 2002-2011
Figure 59: Thai Wholesale Price Index, 2000-2009
Figure 60: Thai Hydroelectricity Installed Capacity (Million Kilowatt), 2000-2009
Figure 61: Thai Crude Oil Distillation Capacity (Thousand Barrels Per Cal Day), 2000-2009
Figure 62: Thai Natural Gas Consumption (Billion Cubic Feet), 2001-2010
Figure 63: Thai Natural Gas Imports (Billion Cubic Feet), 2001-2010
Figure 64: Thai Natural Gas Production (Billion Cubic Feet), 2001-2010
Figure 65: Thai Net Conventional Thermal Electricity Generation (Billion Kilowatt hours), 2001-2010
Figure 66: Thai Net Geothermal, Solar, Wind, and Wood Electric Power Generation (Billion Kilowatt hours), 2001-2010
Figure 67: Thai Net Hydroelectric Power Generation(Billion Kilowatt hours), 2001-2010
Figure 68: Thai Petroleum Consumption (Thousand Barrels Per Day), 2002-2011
Figure 69: Thai Petroleum Production (Thousand Barrels Per Day), 2002-2011
Figure 70: Thai Coal Consumption (Thousand Short Tons), 2001-2010
Figure 71: Thai Coal Production (Thousand Short Tons), 2001-2010
Figure 72: Thai Political Stability Index, 2002-2010
Figure 73: Thai Transparency Index, 2002-2011
Figure 74: Thai Fixed Broadband Internet Subscribers (Thousands), 2001-2010
Figure 75: Gross Domestic Expenditure on Research and Development as % of GDP, 2000-2009
Figure 76: Patents Granted, 2002-2011


List Of Tables


Table 1: Thai Defense Expenditure (US$ Billion), 2008-2012
Table 2: Thai Defense Expenditure (US$ Billion), 2013-2017
Table 3: Thai GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP (%), 2008-2012
Table 4: Thai GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP (%), 2013-2017
Table 5: Thai Defense Budget Split between Capital and Revenue Expenditure (%), 2008-2012
Table 6: Thai Defense Budget Split between Capital and Revenue Expenditure (%), 2013-2017
Table 7: Thai Defense Budget Allocation (%), 2008-2012
Table 8: Thai Defense Budget Allocation (%), 2013-2017
Table 9: Thai Army Defense Budget Allocation (US$ Billion), 2008-2012
Table 10: Thai Army Defense Budget Allocation (US$ Billion), 2013-2017
Table 11: Thai Navy Defense Budget Allocation (US$ Billion), 2008-2012
Table 12: Thai Navy Defense Budget Allocation (US$ Billion), 2013-2017
Table 13: Thai Air Force Defense Budget Allocation (US$ Billion), 2008-2012
Table 14: Thai Air Force Defense Budget Allocation (US$ Billion), 2013-2017
Table 15: Thai Other Categories Defense Budget Allocation (US$ Billion), 2008-2012
Table 16: Thai Other Categories Defense Budget Allocation (US$ Billion), 2013-2017
Table 17: Thai Homeland Security Expenditure (US$ Billion), 2008-2012
Table 18: Thai Homeland Security Expenditure (US$ Billion), 2013-2017
Table 19: Benchmarking with Key Markets - 2008-2012 vs. 2013-2017
Table 20: SDI Terrorism Index, 2011
Table 21: Defense Offset Regulations in Thailand
Table 22: Avia Saab Technologies Co. Ltd. -Product Focus
Table 23: Avia Saab Technologies Co. Ltd.: - Recent Contract Wins
Table 24: Avia Satcom -Product Focus
Table 25: Avia Satcom - Alliances
Table 26: Avia Satcom - Recent Contract Wins
Table 27: Infowave (Thailand) Co. Ltd-Product Focus
Table 28: Infowave (Thailand) Co. Ltd - Alliances

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