Defense & Security EquipmentSilver report

Published May 2026Insight Research23 min read2026 Edition14 sources, 14 primary-gradeStrong source depth

Thailand Defense and Security Equipment Procurement Market Intelligence

Thailand FY2026 MoD budget THB 204.4B; Gripen E/F contract signed (12 airframes through 2035), S26T submarine cleared with Chinese engines, VT-4 MBTs delivered, Stryker C4I upgrades, Chaiseri exports to 37 markets.

Key takeaways

1
Thai Ministry of Defence FY2026 allocation is (up year on year), with (~) ring-fenced for high-priority procurement. SIPRI puts 2024 Thai military expenditure at , close to 1.0 percent of GDP.
2
RTAF signed the Saab Gripen E/F contract on 25 August 2025: SEK for three single-seaters plus one twin-seater under Peace Burapha 1 Phase 1, deliveries 2025-2030, total programme target 12 airframes through 2035 with a Phase 2 four-airframe option flagged for FY2028.
3
RTN S26T submarine deal closed 5 August 2025 after eight years of dispute: Cabinet approved the Chinese CHD620 engine substitution (bench-tested over 6,000 hours) in place of blocked German MTU 396 units, extending the delivery timeline by 1,217 days to end-2028.
4
RTA modernisation cycle leans Chinese for armour (60 VT-4 MBTs delivered through November 2023, follow-on order requested) but Western for connectivity (Leonardo DRS C4I battle management on the 130-strong Stryker ICV fleet, contract awarded February 2025).
5
Domestic industry remains thin but ambitious: Chaiseri exports to 37 markets and launched Guardian-T 8x8, Jackal 4x4 and Hisaar MRAP at Defense and Security 2025; DTI demonstrated DP18A combat UAV and DP9A VTOL UAV in April 2025; R.V. Connex signed an MoU with DTI for dual-use co-development.
6
Cambodia border conflict (July-December 2025, Gripen and F-16 airstrikes, December ceasefire breakdown) reset the political tolerance for defence procurement and accelerated UAV, artillery and C4ISR priorities in the FY2026 supplementary cycle.

Executive summary

Thailand's defence and security equipment procurement market crossed in annual spend during FY2025 and is set to reach in FY2026 per the Bureau of Budget. That puts Thailand near of military expenditure per the SIPRI 2025 Military Expenditure Database — modest in absolute terms versus Singapore and Indonesia but materially higher than recent years in real terms once the Gripen E/F, S26T submarine and frigate down-payments are layered on. Roughly of the FY2026 envelope is ring-fenced for high-priority procurement, with the balance covering personnel, sustainment, training and base operations.^{[, ]}

Three programmes anchor the modernisation cycle. First, the Royal Thai Air Force signed a SEK Saab Gripen E/F contract on 25 August 2025 under the Peace Burapha 1 designation, covering three single-seat Gripen E and one twin-seat Gripen F with deliveries spread 2025-2030; the long-term target is 12 airframes through 2035 and Bangkok has flagged a Phase 2 four-airframe order for FY2028. Second, the Royal Thai Navy resolved its eight-year S26T submarine impasse: cabinet approved Chinese CHD620 engines (bench-tested over 6,000 hours) in place of blocked German MTU 396 units, with delivery now expected end-2028 after a 1,217-day timeline extension. Third, the Royal Thai Army continues to add Norinco VT-4 main battle tanks (60 delivered by November 2023, follow-on requested) while upgrading its 130-strong Stryker fleet with Leonardo DRS C4I battle management under a US Government Grant Assistance award in February 2025.^{[, , , ]}

Origin mix is structurally diversified. US FMS retains anchor share via Lockheed Martin (F-16, C-130, Sikorsky UH- Black Hawk top-up signed December 2024), Boeing and Leonardo DRS. European primes carry the air-combat and land-systems weight through Saab, Airbus Defence, Rheinmetall and MBDA. Chinese state suppliers (CSIC, Norinco) own the submarine and tank lanes. South Korean industry is the rising challenger via KAI T-50TH (squadron 401 follow-on of two airframes in FY2025) and HD Hyundai Heavy Industries in the FY2026 frigate competition. Domestic primes Chaiseri, Panus Assembly, R.V. Connex, Thai Aviation Industries and Marsun Shipyard hold around 14 percent of spend, with DTI providing the R&D backbone. The July-December 2025 Cambodia border conflict (Gripen and F-16 airstrikes, ceasefire collapse) reset political tolerance for defence spending and accelerated UAV, loitering munition and C4ISR priorities.^{[, , , ]}

SIPRI, Bureau of Budget, Saab, MoD, RTAF, RTA, RTN, DTI, Jane's, Flight Global

Data as of: FY2026 budget cycle / Aug 2025 contract awards

Thai MoD budget envelope (THB billion, FY2022-FY2026)

FY2022

MoD budget (THB B)

197

Context

COVID-era flat envelope; S26T submarine still mired in engine dispute.

FY2023

MoD budget (THB B)

196

Context

Civilian government tightened oversight; F-16 upgrade vs Gripen debate intensified.

FY2024

MoD budget (THB B)

198

Context

Sikorsky Black Hawk top-up signed; T-50TH follow-on planned.

FY2025

MoD budget (THB B)

200.9

Context

Cabinet approved Gripen E/F selection and S26T engine substitution.

FY2026

MoD budget (THB B)

204.4

Context

$898.6M ring-fenced for high-priority procurement: Gripen Phase 1, submarine instalment, frigate order, Black Hawk top-up.

Fiscal year	MoD budget (THB B)	Context
FY2022	197	COVID-era flat envelope; S26T submarine still mired in engine dispute.
FY2023	196	Civilian government tightened oversight; F-16 upgrade vs Gripen debate intensified.
FY2024	198	Sikorsky Black Hawk top-up signed; T-50TH follow-on planned.
FY2025	200.9	Cabinet approved Gripen E/F selection and S26T engine substitution.
FY2026	204.4	$898.6M ring-fenced for high-priority procurement: Gripen Phase 1, submarine instalment, frigate order, Black Hawk top-up.

Thai Bureau of Budget FY2022-FY2026 Acts, SIPRI Military Expenditure Database

Data as of: FY2026 Budget Act

Procurement origin mix (FY2026 spend estimate)

US FMS (Lockheed, Boeing, Sikorsky, Leonardo DRS)

Share %

32%

Anchor programmes

F-16 sustainment, C-130, UH-60M Black Hawk, Stryker C4I, FMS major non-NATO ally line.

European primes (Saab, Airbus, Rheinmetall, MBDA)

Share %

28%

Anchor programmes

Gripen E/F Phase 1, C-295, H225M, Boxer / Fuchs upgrades, missiles.

Chinese state suppliers (CSIC, Norinco)

Share %

18%

Anchor programmes

S26T Yuan-class submarine, VT-4 MBT, VN-1 IFV.

Domestic Thai industry

Share %

14%

Anchor programmes

Chaiseri armour, Panus Assembly, R.V. Connex, TAI MRO, Marsun, DTI R&D.

South Korean industry (KAI, Hanwha, HD HHI)

Share %

Anchor programmes

T-50TH squadron 401, K9 self-propelled howitzer interest, frigate competition.

Origin	Share %	Anchor programmes
US FMS (Lockheed, Boeing, Sikorsky, Leonardo DRS)	32%	F-16 sustainment, C-130, UH-60M Black Hawk, Stryker C4I, FMS major non-NATO ally line.
European primes (Saab, Airbus, Rheinmetall, MBDA)	28%	Gripen E/F Phase 1, C-295, H225M, Boxer / Fuchs upgrades, missiles.
Chinese state suppliers (CSIC, Norinco)	18%	S26T Yuan-class submarine, VT-4 MBT, VN-1 IFV.
Domestic Thai industry	14%	Chaiseri armour, Panus Assembly, R.V. Connex, TAI MRO, Marsun, DTI R&D.
South Korean industry (KAI, Hanwha, HD HHI)	8%	T-50TH squadron 401, K9 self-propelled howitzer interest, frigate competition.

Saab, US DoW contracts, Jane's, MoD procurement disclosures, RTA white paper

Data as of: FY2026 estimate

Analyst framing

Why this report

Thailand crossed an unambiguous procurement threshold in August 2025: the Gripen E/F contract and S26T submarine engine swap closed eight years of strategic drift. Layered onto a real Cambodia border shooting war, the FY2026 budget cycle, supplementary procurement lines and FY2028 Gripen Phase 2 set the structural picture for the rest of the decade. Origin diversification, offset commitments and a thin but ambitious domestic industry are the variables to watch.

Programme playbooks by service

Royal Thai Air Force. The Gripen E/F selection ended the long-running F-16 Block 70 versus Gripen debate. Peace Burapha 1 Phase 1 covers SEK 5.3B for three Gripen E and one Gripen F under FMV contract, with the first airframe entering Saab Linkoping production in May 2026. Deliveries run 2025-2030, with the offset package directing investment into Thai aerospace, electronics and dual-use sectors. Phase 2 (another four airframes) sits in the FY2028 budget framing, with the full 12-airframe squadron 701 replacement targeted for 2035. Lockheed Martin F-16A/B Block 15 ADF fleet continues under MLU sustainment; Sikorsky UH-60M Black Hawk top-ups were awarded in December 2024 under FMS; Airbus C-295 and H225M Caracal cover transport and combat-search-rescue. KAI T-50TH lead-in fighters in squadron 401 will rise to 16 airframes with the FY2025 follow-on of two units.

Royal Thai Navy. The S26T Yuan-class submarine programme is the headline asset. Cabinet on 5 August 2025 approved the substitution of Chinese CHD620V16H6 engines (bench-tested over 6,000 hours) for the blocked German MTU 396 units, extending construction by 1,217 days for a end-2028 delivery target. Total programme cost stands near THB 13.5B for the first hull; two follow-on units are paused. The FY2026 budget earmarks THB 17.5B for a new frigate under the RTN strategic plan to operate eight frigates by 2037, with HD Hyundai Heavy Industries (Korea), Navantia (Spain) and CSIC (China) competing. Marsun Shipyard has delivered over 322 patrol craft, attack craft and auxiliaries, retaining its private-yard niche.

Royal Thai Army. China's Norinco completed delivery of 60 VT-4 main battle tanks by November 2023 and the RTA has requested cabinet approval for a follow-on batch (additional 10-15 hulls under discussion). The 130-strong Stryker M1126 ICV fleet (delivered 2019-2021 for THB 9.1B / USD 261M) is receiving Leonardo DRS C4I battle management under a USD 7M-plus award via US Government Grant Assistance, signed February 2025. Stingray light tanks are being modified for survivability. Domestic armour comes from Chaiseri (First Win 4x4 plus the new Guardian-T 8x8, Jackal 4x4 high-mobility, Ridgeback 4x4 and Hisaar MRAP unveiled at Defense and Security 2025) and Panus Assembly. The Cambodia border conflict July-December 2025 reset RTA priorities toward UAVs, loitering munitions and artillery counter-battery.

Dual-use, C4ISR and cyber. Defence Technology Institute leads the R&D layer with the April 2025 demonstration of the DP18A unmanned combat aerial vehicle alongside the DP9A — a 520kg-class tandem-rotor VTOL with 250kg payload pitched for medevac and disaster relief. R.V. Connex signed an MoU with DTI in 2025 to formalise UAV and dual-use co-development, building on its Sky Scout UAV portfolio. Royal Thai Police equipment cycles run independently of MoD lines but increasingly overlap on counter-drone, ISR and border surveillance, with Israeli, Korean and Chinese suppliers active. Cybersecurity and SOC procurement is covered separately in Insight's cyber-security reports.

Supplier concentration (FY2026 estimated procurement share)

Saab AB

Share %

22%

Origin

Sweden

Anchor programmes

Gripen E/F Phase 1 plus offset package and long-term sustainment to 2035.

Lockheed Martin (incl. Sikorsky)

Share %

16%

Origin

USA

Anchor programmes

F-16, C-130, UH-60M Black Hawk top-ups under FMS.

CSIC / Norinco

Share %

14%

Origin

China

Anchor programmes

S26T submarine, VT-4 MBT, VN-1 IFV.

Airbus Defence and Space

Share %

Origin

Europe

Anchor programmes

C-295 transport, H225M Caracal, A340 royal transport.

Rheinmetall / Leonardo DRS

Share %

Origin

Germany / USA

Anchor programmes

Boxer, Fuchs upgrades, Stryker C4I battle management.

Chaiseri Defense

Share %

Origin

Thailand

Anchor programmes

First Win, Guardian-T, Jackal, Hisaar; 37 export markets.

Defence Technology Institute

Share %

Origin

Thailand

Anchor programmes

DP18A UCAV, DP9A VTOL UAV, ATIL / PYN partnership.

R.V. Connex

Share %

Origin

Thailand

Anchor programmes

Sky Scout UAV and DTI dual-use co-development.

Thai Aviation Industries (TAI)

Share %

Origin

Thailand

Anchor programmes

Gripen, F-16, C-130 MRO; EASA training.

Marsun Shipyard

Share %

Origin

Thailand

Anchor programmes

322+ patrol craft, attack craft, auxiliaries.

Korea Aerospace Industries (KAI)

Share %

Origin

Korea

Anchor programmes

T-50TH squadron 401 follow-on of two airframes.

Other (BAE, Boeing, MBDA, IAI, Hanwha, tier-two)

Share %

16%

Origin

Mixed

Anchor programmes

Munitions, missiles, radar, sensors, sustainment.

Supplier	Share %	Origin	Anchor programmes
Saab AB	22%	Sweden	Gripen E/F Phase 1 plus offset package and long-term sustainment to 2035.
Lockheed Martin (incl. Sikorsky)	16%	USA	F-16, C-130, UH-60M Black Hawk top-ups under FMS.
CSIC / Norinco	14%	China	S26T submarine, VT-4 MBT, VN-1 IFV.
Airbus Defence and Space	7%	Europe	C-295 transport, H225M Caracal, A340 royal transport.
Rheinmetall / Leonardo DRS	6%	Germany / USA	Boxer, Fuchs upgrades, Stryker C4I battle management.
Chaiseri Defense	5%	Thailand	First Win, Guardian-T, Jackal, Hisaar; 37 export markets.
Defence Technology Institute	4%	Thailand	DP18A UCAV, DP9A VTOL UAV, ATIL / PYN partnership.
R.V. Connex	3%	Thailand	Sky Scout UAV and DTI dual-use co-development.
Thai Aviation Industries (TAI)	3%	Thailand	Gripen, F-16, C-130 MRO; EASA training.
Marsun Shipyard	2%	Thailand	322+ patrol craft, attack craft, auxiliaries.
Korea Aerospace Industries (KAI)	2%	Korea	T-50TH squadron 401 follow-on of two airframes.
Other (BAE, Boeing, MBDA, IAI, Hanwha, tier-two)	16%	Mixed	Munitions, missiles, radar, sensors, sustainment.

Saab, FMV, US DoW contracts, Jane's, MoD procurement disclosures, RTA white paper

Data as of: FY2026 estimate

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Key figures

Selected anchors from the report evidence pack.

FY2020-FY2024

~USD 5.5B (2024)

Thailand Ministry of Defence budget (2020-2024)

SIPRI Military Expenditure Database, Thailand Bureau of the Budget, MoD annual budget statements

FY2024

Army ~46% / Air Force ~22% / Navy ~21%

MoD budget allocation by service branch

Thailand Bureau of the Budget FY2024 Budget Act, Defence News service breakdowns, IISS Military Balance

2024-2032 contract phasing

~USD 5.4B (12 aircraft)

Saab Gripen E/F Thailand fighter contract value (proposed)

Saab AB Q3 2024 investor briefing, Royal Thai Air Force selection announcement, Bangkok Post defence coverage

2024 inventory

VT-4 ~60 / Stryker ~130 / M1126 IFV ~70

Royal Thai Army armoured vehicle fleet (selected platforms)

IISS Military Balance 2024, Royal Thai Army announcements, US DSCA Foreign Military Sales notification archive

FY2020-FY2024

~THB 850M (2024)

Defence Technology Institute (DTI) R&D appropriation (2020-2024)

Defence Technology Institute annual reports, Thailand Bureau of the Budget DTI line item, Janes Defence Industry

FY2024

~85% imported / ~15% domestic

Thailand defence equipment imports vs domestic share

SIPRI Arms Transfers Database, Janes Defence Industry, DTI annual report, Chaiseri Defence company disclosures

2018-present (project lifecycle)

~USD 290M (Phase 1)

U-Tapao Aerospace MRO project (EEC anchor)

EEC Office project disclosures, Thai Airways rehabilitation plan, Bangkok Post aerospace MRO coverage

2024 establishment

~360,000 active

Royal Thai Armed Forces active personnel

IISS Military Balance 2024, Royal Thai Armed Forces public information, Ministry of Labour SSO data

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