Korean defense companies to expand global market share by 2032

K9. [Courtesy of Hanwha Aerospace Co.]

South Korean defense companies, including Hanwha Aerospace Co., Hyundai Rotem Co., LIG Nex1 Co., and Korea Aerospace Industries Ltd. (KAI), are expected to significantly increase their global market share for key export products by 2032.

Projection shows that K9 and Cheongung II will dominate the self-propelled howitzer and medium-range surface-to-air missile markets, respectively, while the K2 and FA-50 will rank second in the tank and light combat aircraft markets.

According to British military intelligence firm Janes on Monday, the country‘s four major defense companies are expected to take the top two positions in their respective fields by 2032.

In the self-propelled howitzer sector, Hanwha Aerospace’s K9 is projected to achieve a 63.8 percent market share by 2032.

The K9 currently holds over 50 percent of the global self-propelled howitzer export market, leading in performance evaluations. It has been exported to eight countries to date, including Poland, Norway, Egypt, Australia, and Finland.

In the medium-range surface-to-air missile sector, LIG Nex1‘s Cheongung II is expected to secure the top spot with a 27.5 percent market share by 2032.

The United States’ RTX Patriot missile is projected to follow with a 24.9 percent market share, while Russia’s Rostec S-400 is expected to take third place with a 20.6 percent share.

[Courtesy of LIG Nex1 Co.]

LIG Nex1 signed a 4 trillion won ($2.94 billion) contract with Saudi Arabia in November 2023 to export Cheongung II, and the Saudis are reportedly considering additional purchases amid the escalating regional instability.

The company also signed a business agreement with Romania’s state-owned defense company ROMARM the same year for air defense missiles, indicating a high potential for securing orders in Romania.

In the main battle tank sector, Hyundai Rotem‘s K2 is expected to rank second with a 19.2 percent market share by 2032, following General Dynamics Corp., which is projected to maintain a 22.1 percent share with its Abrams tanks.

In the light combat aircraft sector, KAI’s FA-50 is expected to secure the second spot with a 10.0 percent market share by 2032, while Lockheed Martin Corp.‘s F-16 is anticipated to maintain its leadership with a 25.1 percent share.

Janes predicted that potential demand for main battle tanks in the global market, excluding China and Russia will reach 2,637 units from this year until 2032, while that for self-propelled howitzers and advanced trainer aircraft during the same period is estimated to be 3,074 units and 1,201 units, respectively.