South East Asia Defense Market Opportunity Analysis
Countries in the South East Asian region have begun to overcome the economic downturn and are increasing their defense spending to keep pace with their economic growth. While there has been increasing economic development it has been accompanied by greater geo-political instability in the region. While a few countries have stepped up their arms procurement programs to equip their forces, this has spurred a parallel push from other countries in the region to keep pace and to act as a deterrent. These driving factors have seen increase in military modernization programs and the purchase of UAVs, armoured vehicles, ships and aircrafts by many nations. This will pave the way for greater defense allocations and budgets and continued growth in the market for defense products for the period until 2018.
Almost every country in South-East Asia has a defense procurement program and this makes it one of the fastest-growing defense markets in the world. While greater details are provided elsewhere in this report the general trend has been that countries in this region have been adding to their sophisticated arsenal, modernizing and upgrading their equipment and arming themselves to avoid border disputes, regional security threats and as a deterrent.
South East Asian countries have been shopping around for the best price, technology and the need to be not tied to one or a small group of suppliers. Vietnam procuring from India, France and other European nations, apart from its ‘regular ally’ Russia while Philippines buys from its regular partner US and other nations such as South Korea, Japan and Russia and the region’s largest nation Indonesia buys from South Korea, China, Russia and the US.
“South East Asia Defense Market Opportunity Analysis” research report by KuicK Research gives comprehensive insight on following aspects related to booming Defense market opportunity in South East Asian region:
- Regional & Country Level Defense Market Overview
- Market Attractiveness Parameters
- Defense Spending by Country
- Defense Contracts
- Future Buyout Plans
- Defense Spending Forecast
1.1 Market Overview
1.2 Market Attractiveness
2. PHILIPPINES
2.1 Market Overview
2.2 Defense Budget & Expenditure
2.3 Defense Contracts & Future Buyout Plans
3. THAILAND
3.1 Market Overview
3.2 Defense Budget & Expenditure
3.3 Defense Contracts & Future Buyout Plans
4. SINGAPORE
4.1 Market Overview
4.2 Defense Budget & Expenditure
4.3 Defense Contracts & Future Buyout Plans
5. MALAYSIA
5.1 Market Overview
5.2 Defense Budget & Expenditure
5.3 Defense Contracts & Future Buyout Plans
6. INDONESIA
6.1 Market Overview
6.2 Defense Budget & Expenditure
6.3 Defense Contracts & Future Buyout Plans
7. VIETNAM
7.1 Market Overview
7.2 Defense Budget & Expenditure
7.3 Defense Contracts & Future Buyout Plans
Figure 1-1: South East Asia Defense Spending (US$ Billion), 2006-2012
Figure 1-2: South East Asia Defense Budget by Country (%), 2006- 2012
Figure 1-3: South East Asia Defense Spending (US$ Billion), 2013-2018
Figure 1-4: South East Asia Defense Budget by Country (%), 2013-2018
Figure 1-5: South East Asia Defense Spending by Equipment, 2013 till 2018
Figure 2-1: Philippines - Defense Spending (US$ Billion), 2006-2012
Figure 2-2: Philippines - Per Capita Defense Spending (US$), 2006-2012
Figure 2-3: Philippines - Defense Budget as % of Government Spending (US$), 2006-2012
Figure 2-4: Philippines - Defense Spending (US$ Billion), 2013-2018
Figure 3-1: Thailand - Defense Spending (US$ Billion), 2006-2012
Figure 3-2: Thailand - Per Capita Defense Spending (US$), 2006-2012
Figure 3-3: Thailand - Defense Budget as % of Government Spending (US$), 2006-2012
Figure 3-4: Thailand - Defense Spending (US$ Billion), 2013-2018
Figure 4-1: Singapore - Defense Spending (US$ Billion), 2006-2012
Figure 4-2: Singapore - Per Capita Defense Spending (US$), 2006-2012
Figure 4-3: Singapore - Defense Budget as % of Government Spending (US$), 2006-2012
Figure 4-4: Singapore - Defense Spending (US$ Billion), 2013-2018
Figure 5-1: Malaysia - Defense Spending (US$ Billion), 2006-2012
Figure 5-2: Malaysia - Per Capita Defense Spending (US$), 2006-2012
Figure 5-3: Malaysia - Defense Budget as % of Government Spending (US$), 2006-2012
Figure 5-4: Malaysia - Defense Spending (US$ Billion), 2013-2018
Figure 6-1: Indonesia - Defense Spending (US$ Billion), 2006-2012
Figure 6-2: Indonesia - Per Capita Defense Spending (US$), 2006-2012
Figure 6-3: Indonesia - Defense Budget as % of Government Spending (US$), 2006-2012
Figure 6-4: Indonesia - Defense Spending (US$ Billion), 2013-2018
Figure 7-1: Vietnam - Defense Spending (US$ Billion), 2006-2012
Figure 7-2: Vietnam - Per Capita Defense Spending (US$), 2006-2012
Figure 7-3: Vietnam - Defense Budget as % of Government Spending (US$), 2006-2012
Figure 7-4: Vietnam - Defense Spending (US$ Billion), 2013-2018
Countries in the South East Asian region have begun to overcome the economic downturnand are increasing their defense spending to keep pace with their economic growth. Whilethere has been increasing economic development it has been accompanied by greater geopoliticalinstability in the region. While a few countries have stepped up their armsprocurement programs to equip their forces, this has spurred a parallel push from othercountries in the region to keep pace and to act as a deterrent. These driving factors haveseen increase in military modernization programs and the purchase of UAVs, armoredvehicles, ships and aircrafts by many nations. This will pave the way for greater defenseallocations and budgets and continued growth in the market for defense products for theperiod until 2018.
We now find that almost every country in South-East Asia has a defense procurementprogram and this makes it one of the fastest-growing defense markets in the world. Whilegreater details are provided elsewhere in this report the general trend has been thatcountries in this region have been adding to their sophisticated arsenal, modernizing andupgrading their equipment and arming themselves to avoid border disputes, regionalsecurity threats and as a deterrent.
In this attempt to arm these countries are shopping around for the best price, technologyand the need to be not tied to one or a small group of suppliers. So we see Vietnamprocuring from India, France and other European nations, apart from its ‘regular ally’Russia while Philippines buys from its ally the US and other nations such as South Korea,Japan and Russia. The region’s largest nation Indonesia buys from South Korea, China,Russia and the US.
Though there have been no confrontations or flare-ups the build-up and modernization isseen more as a "cycle of action-reaction", rather than about ultimate supremacy. Thisincreased militarization drive and defense budget growth has made the region quiteinteresting for major international weapons manufacturers and exporters. This widespreaddefense spending run means that for the first time Asia's military spending is set toovertake that of Europe. This is in contrast to earlier times when most of Southeast Asia defense budget was towards weapons such as guns and small tanks to tackle threats thatwere mainly internal with the umbrella of U.S. protection being seen as a deterrentenough for international conflicts.
It mostly seems to be a case of economic success contributing to the means, needs and theopportunity update their hardware. Rapid economic growth and healthy defense budgets,especially after the lull brought about by the Asian financial crisis in 1997-98, has seenthis market opening up. The boom in Southeast Asian economies saw defense spendinggrowing xx percent in real terms from 2002 to 2012.
Besides concerns such as piracy, illegal fishing, smuggling, terrorism and disaster relief thedefense spending in these countries has been spurred by domestic political considerationsalso, especially in countries where the armed forces have a greater role in politics, so thatthe military is in tune the political establishment. However, for Singapore, the interesthas been to build its own high-tech arms industry that is good enough to export to othercountries. The basic and larger reason is, of course, the strategic interests and concerns inprotecting the shipping lanes, ports and maritime boundaries that are important to thebusiness and economic aspects of each country.
This boost in the defense market is a positive turn for makers of weapons, communicationsgear and surveillance systems. For example, xx% of the international revenues of LockheedMartin and Boeing's defense division are expected to come from the Asia-Pacific region.While this is the case with imports and international suppliers, most countries are activelyencouraging their domestic arms industry since it is cheaper than buying from overseasand has other long-term strategic benefits as well.
