Thailand's Defense Industry Emerges As New Growth Engine
Thailand's defense industry has grown from 20 billion baht in 2015 to over 50 billion baht in 2026, with the government positioning it as a major economic growth engine alongside food production. The Ministry of Industry is supporting expan
Industry Minister Varawut Silpaarch delivered a keynote address at THAIDEF-EX 2026 on "Thailand's Industrial Adaptation and New Opportunities in Defense Industry," stating that the defense sector is evolving from a security role to become a key economic growth engine for Thailand. The industry has significant potential to create added value through technology, innovation, employment, and exports while enhancing national self-reliance.
Thailand's defense industry market value has grown from approximately 20 billion baht in 2015 to over 50 billion baht in 2026. The country currently has around 267 facilities related to this industry, with 152 falling under the Ministry of Industry's oversight, representing 57 percent of the total system. This reflects the readiness of the domestic supply chain to support future growth.
Given global uncertainty from geopolitical conflicts, economic divisions, and fragile global supply chains, Thailand must accelerate its self-sufficiency capabilities. The defense industry will serve as a crucial mechanism for driving economic, social, and environmental progress through the development of dual-use technologies with both security and commercial applications.
Thailand has strong potential in drones and unmanned aerial vehicles (UAVs), which can be applied to agriculture, disaster relief, natural resource management, and advanced data analysis. The country's armored vehicle and shipbuilding industries are also creating export opportunities across ASEAN, the Middle East, and other regions.
To enhance competitiveness, the Ministry of Industry has established a free trade zone for the defense industry since 2025 to reduce component and raw material import costs. The ministry is also streamlining tax structures, simplifying export procedures for military equipment, and promoting a comprehensive one-stop service center.
"Our country is not only prepared in defense industry but also in food and agricultural industries, which are equally important," the minister stated. "With food comes workforce. If we support both the food and military industries simultaneously, we can accelerate Thai economic growth."
The ministry is also coordinating with financial institutions to develop specialized funding sources for entrepreneurs and working with defense technology institutes to establish a defense industrial complex in Kanchanaburi province to create a comprehensive investment ecosystem.
For the S-Curve Phase 3 plan (2027-2031), the Ministry of Industry will focus on three main areas: research and development of green defense industry, production enhancement through deep tech startups and Thai SMEs in AI, robotics, autonomous systems, and foreign joint ventures emphasizing advanced technology transfer.
The key objective is converting research into practical products with commercial value and elevating the defense industry to become a new growth engine for Thailand's economy while building manufacturing sovereignty and long-term economic security.
