Market Size of Taiwan Defense Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.55 Billion |
| Market Size (2029) | USD 7.94 Billion |
| CAGR (2024 - 2029) | 3.94 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Taiwan Defense Market Analysis
The Taiwan Defense Market size is estimated at USD 6.55 billion in 2024, and is expected to reach USD 7.94 billion by 2029, growing at a CAGR of 3.94% during the forecast period (2024-2029).
Taiwan's defense industry has witnessed robust growth in response to mounting military threats from the People's Republic of China (PRC). The country's defense budget has steadily increased, reaching USD 19.4 billion in 2024. Taiwan's defense investments primarily target military fixed-wing aircraft, naval vessels, and cutting-edge electronic warfare systems, showcasing a clear commitment to modernization and technological advancement.
Given its regional tensions, Taiwan's defense strategy is intricately linked to its geopolitical landscape. The ruling Democratic Progressive Party (DPP) has responded to the PRC's heightened military presence near Taiwan by extending conscription and restructuring the ROC Army. These actions highlight the nation's emphasis on maintaining a robust defense infrastructure. On the other hand, geopolitical issues, economic uncertainty, limited geographical size, and strategic depth hampers market growth.
A notable trend in Taiwan's defense market is the pivot toward asymmetric warfare. This shift involves investments in missile systems, mine warfare, and advanced radar technologies to counterbalance potential adversaries' numerical advantage. The expanding defense budget and the prolonged compulsory military service present lucrative opportunities for defense contractors and technology providers.
