Taiwan is undertaking a comprehensive, multi-layered defence modernisation effort, driven by rising security threats and the imperative to deter potential aggression from China. With defence spending projected to reach $23.5 billion in 2030, Taiwan is prioritising advanced air, naval, and unmanned systems, while also strengthening logistics and support infrastructure to enhance resilience and sustain prolonged military operations, says GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Taiwan Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2025-30,” Australia Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-27’ reveals that the country’s cumulative defense spending is anticipated to reach $112.2 billion during 2026-30, out of which the acquisition budget share is estimated to be approximately average 14.7%, amounting to $16.5 billion.
Abhijit Apsingikar, Aerospace & Defence Analyst at GlobalData, comments: “Persistent Chinese incursions into territorial waters and airspace, along with the constant threat of a potential naval amphibious invasion, have compelled Taiwan to make substantial investments in strengthening its overall defence posture.”
Against this backdrop, Taiwan placed a contract to procure 66 new F-16 Block 70/72 aircraft in 2020 and the first of the new aircraft were delivered in March 2025. The country has also completed modernising its existing fleet of 139 F-16 A/B multirole aircraft to F-16 Block 70/72 standard as a part of the first phase of Peace Phoenix Rising program, the last of which was delivered in December 2023. Taiwan is also in the process of reinforcing its sea denial capabilities by investing in Hai Kun-class submarines, while also investing in the acquisition of Harpoon Coastal Defence System.
Over the period 2020-25, Taiwan sanctioned a large defence investment fund disbursed over multiple years. The key focus of these investments was directed towards strengthening the defence infrastructure and to revitalise defence R&D capabilities within the country, with its Navy being a key beneficiary. Taiwan is also in the process of building a new 2,500-ton light frigate to bolster its naval defence capabilities.
Apsingikar continues: “The ongoing Russo-Ukraine war offers a template for Taiwan to adopt proven methods for defending against a stronger adversary by deploying unmanned platforms such as unmanned aerial vehicles, unmanned ground vehicles, unmanned surface vessels and unmanned underwater vehicles. These platforms can assist Taiwan to compensate for its relatively smaller military strength and combat potential”
Although Taiwan’s defence RDT&E spending is modest with a budgetary allocation of $530 million for 2025, it’s anticipated to be directed mainly towards R&D in automated unmanned systems. For instance, Taiwan is developing Huilong uncrewed underwater vehicle (UUV), the Endeavour Manta Unmanned Surface Vessel, and Tu-40 Fixed Wing Unmanned Aerial Vehicle.
Apsingikar concludes: “Taiwan is strategically focused on building a resilient and multi-layered defence posture. The emphasis is not only on acquiring advanced platforms but also on investing in robust logistics, maintenance, and support infrastructure. This integrated approach is critical to sustaining prolonged defence operations and delaying potential aggression long enough to enable allied intervention. By learning from modern conflict scenarios, Taiwan is prioritising asymmetric warfare capabilities, particularly unmanned systems and sea denial strategies, to offset its numerical disadvantage and enhance its deterrence credibility in the region.”
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