Table of Contents

1. Introduction 7

• 1.1. What is this Report About? 7
• 1.2. Definitions 7
• 1.3. Summary Methodology 9
• 1.4. About GlobalData 10

2. Executive Summary 11

3. Market Attractiveness and Emerging Opportunities 12

• 3.1. Current Market Scenario 13
  • 3.1.1. Primary Threat Perception 13
  • 3.1.2. Military Doctrine & Strategy 14
  • 3.1.3. Military Fleet Size 16
  • 3.1.4. Procurement Programs 21
  • 3.1.5. Social, Political and Economic Environment & Support for Defense Projects 24
  • 3.1.6. Political and Strategic Alliances 25
• 3.2. Defense Market Size Historical and Forecast 26
  • 3.2.1. Taiwanese defense budget to grow at an estimated CAGR of 3.28% during 2019-2023 26
  • 3.2.2. Issue of One China anticipated to drive military expenditure 28
  • 3.2.3. Defense budget as a percentage of GDP will remain at an average of 1.93% over the forecast period 29
• 3.3. Analysis of Defense Budget Allocation 31
  • 3.3.1. Share of capital expenditure is expected to increase during the forecast period 31
  • 3.3.2. Capital expenditure is anticipated to record a CAGR of 3.41% during the forecast period 33
  • 3.3.3. Taiwan’s per capita defense expenditure is expected to increase during the forecast period 35
• 3.4. Homeland Security Market Size and Forecast 37
  • 3.4.1. The homeland security market in Taiwan is expected to grow at a CAGR of 1.50% during the forecast period 37
  • 3.4.2. Human trafficking to drive homeland security expenditure 39
  • 3.4.3. Taiwan falls under “Some risk” category in the terrorism index 40
  • 3.4.4. Taiwan faces very low threat from terrorist organizations 41
  • 3.4.5. Taiwan has a terrorism index score of 0.5 43
• 3.5. Benchmarking with Key Global Markets 44
  • 3.5.1. Taiwanese defense expenditure expected to remain low compared to leading spenders 44
  • 3.5.2. Taiwan will continue to remain as a small contributor in the global arms market 46
  • 3.5.3. Defense budget as a percentage of GDP is expected to remain low over the forecast period 47
• 3.6. Market Opportunities: Key Trends and Drivers 48
  • 3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2018-2023 48
  • 3.6.2. Destroyers 49
  • 3.6.3. Diesel−electric Submarine 50
  • 3.6.4. Land-based C4ISR 51

4. Defense Procurement Market Dynamics 52

• 4.1. Import Market Dynamics 54
  • 4.1.1. Defense imports increased during the period 2013−2017 54
  • 4.1.2. The US, Germany, and Italy are the major defense equipment suppliers for Taiwan 55
  • 4.1.3. Aircraft, Missiles and Naval Vessels accounted for a total share 84.9% in Taiwanese defense imports 56
• 4.2. Export Market Dynamics 57
  • 4.2.1. Taiwan defense exports was very low during 2013−2017 58
  • 4.2.2. Central American countries are the major prospects for Taiwanese defense exports 59

5. Industry Dynamics 60

• 5.1. Five Forces Analysis 60
  • 5.1.1. Bargaining power of supplier: High 61
  • 5.1.2. Bargaining power of buyer: Medium 61
  • 5.1.3. Barrier to entry: High 61
  • 5.1.4. Intensity of rivalry: Low 61
  • 5.1.5. Threat of substitution: Low 62

6. Market Entry Strategy 63

• 6.1. Market Regulation 63
  • 6.1.1. The government encourages offsets to develop the domestic defense industrial base 63
• 6.2. Market Entry Route 64
  • 6.2.1. Budgeting process 64
  • 6.2.2. Procurement Policy and Process 64
  • 6.2.3. Foreign equipment manufacturers enter the market through direct commercial sales 64
  • 6.2.4. Foreign military sales is the viable market entry route for foreign defense companies 65
  • 6.2.5. Biennial defense exhibition provides an attractive entry route 65
• 6.3. Key Challenges 66
  • 6.3.1. Corruption and lack of transparency are the factors which hinders the growth of the Taiwanese defense industry 66
  • 6.3.2. Delay of procurement programs will lead to cost overruns 66
  • 6.3.3. Lack of sales agents and stringent regulations restrict domestic defense industry growth 66

7. Competitive Landscape and Strategic Insights 67

• 7.1. Competitive Landscape Overview 67
• 7.2. Key Domestic Companies 69
  • 7.2.1. Aerospace Industrial Development Corporation (AIDC): overview 69
  • 7.2.2. Aerospace Industrial Development Corporation (AIDC): products 69
  • 7.2.3. Aerospace Industrial Development Corporation (AIDC): recent announcements and strategic initiatives 69
  • 7.2.4. Aerospace Industrial Development Corporation (AIDC): alliances 70
  • 7.2.5. Aerospace Industrial Development Corporation (AIDC): recent contract awards 70
  • 7.2.6. Chung-Shan Institute of Science and Technology (CSIST): overview 71
  • 7.2.7. Chung-Shan Institute of Science and Technology (CSIST): products 71
  • 7.2.8. Chung-Shan Institute of Science and Technology (CSIST): recent announcements and strategic initiatives 72
  • 7.2.9. Chung-Shan Institute of Science and Technology (CSIST): alliances 72
  • 7.2.10. China Shipbuilding Corporation (CSBC), Taiwan: overview 73
  • 7.2.11. China Shipbuilding Corporation (CSBC), Taiwan: products 73
  • 7.2.12. China Shipbuilding Corporation (CSBC), Taiwan: alliances 73
  • 7.2.13. The Combined Service Forces (CSF): overview 74
  • 7.2.14. The Combined Service Forces (CSF): products 74
  • 7.2.15. The Combined Service Forces (CSF): alliances 74

8. Business Environment and Country Risk 75

• 8.1. Economic Performance 75
  • 8.1.1. GDP per capita at constant prices (US$) 75
  • 8.1.2. GDP at current prices (US$) 76
  • 8.1.3. Exports of goods and services (NT$ Bn) 77
  • 8.1.4. Imports of goods and services (NT$ Bn) 78
  • 8.1.5. LCU per US$ (period average) 79
  • 8.1.6. Goods exports as a percentage of GDP 80
  • 8.1.7. Goods imports as a percentage of GDP 81
  • 8.1.8. Services imports as a percentage of GDP 82
  • 8.1.9. Services exports as a percentage of GDP 83
  • 8.1.10. Net Foreign Direct Investment as % of GDP 84

9. Appendix 85

• 9.1. About GlobalData 85

Future of the Taiwanese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

"Future of the Taiwanese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023", published by GlobalData, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

This report offers detailed analysis of Taiwanese defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following -
- Taiwanese defense industry market size and drivers: detailed analysis of Taiwanese defense industry during 2019-2023, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget. It also details the key challenges faced by defense market participants within the country
- Porter’s Five Force analysis of Taiwanese defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities: details of the top five defense investment opportunities over the next 10 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of Taiwanese defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Scope

- Taiwan’s military expenditure stands at US$10.9 billion in 2018 and the main factors driving this growth are the rapid modernization of the country’s armed forces in recent years and the People’s Republic of China’s (PRC) assertiveness with regards to territorial claims.
- The capital expenditure allocation, which stood at an average of 18.2% during the historic period, primarily due to the country’s procurement contracts for corvettes, diesel-electric submarines, missile defense systems, and multi-role aircraft.
- Taiwanese defense imports witnessed substantial growth over the period 2013-2017. Imports in 2013 were low due to delayed deliveries by the US, which was under pressure from the People's Republic of China (PRC), however, to compensate this, Taiwan started importing engines from Germany. During the forecast period, the US is expected to remain the largest supplier of defense equipment as other countries are reluctant to supply military equipment due to pressure from the People's Republic of China (PRC). The country’s imports were highest in 2014 due to the procurement of air defense systems, missiles, and aircraft.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of Taiwanese defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of Taiwanese defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts.