Summary
The Future of the Australian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2021, published by Strategic Defence Intelligence, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
Key Findings
- Over the historic period, Australia's defense expenditure registered a CAGR of -0.44%; between 2017 and 2021, the defense budget is expected to grow at a CAGR of 5.75%
- The country's total defense expenditure during the forecast period is expected to be US$149 billion
- The average share of capital expenditure is expected to be 34.1% over the forecast period, compared to an average share of 26.3% during 2012-2016
- Over the forecast period, the country's budget for homeland security is expected to be US$22.2 billion cumulatively
- The key areas of investment are expected to be multi-role aircraft, submarines, infrastructure construction, aircrafts MRO, and destroyers
Synopsis
This report offers detailed analysis of the Australian defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
In particular, it provides an in-depth analysis of the following:
- Australian defense industry market size and drivers: detailed analysis of the Australian defense industry during 2017-2021, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to the army, navy, and air force. It also details the key challenges faced by defense market participants within the country
- Porter's Five Force analysis of the Australian defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
- Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years
- Market opportunities: details of the top five defense investment opportunities over the coming 10 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Australian defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis
Reasons To Buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Australian defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Australian defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
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1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 SDI Terrorism Index
1.5 About Strategic Defence Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size Historical and Forecast
3.1.1 The Australian defense budget is expected to grow at an estimated CAGR of 5.75% during the forecast period
3.1.2 Military modernization, participation in peacekeeping missions, instability in Asian regions, and research and development programs are the major factors driving the Australian defense industry
3.1.3 Military expenditure as a percentage of GDP to average 2.1% during the forecast period
3.2 Analysis of Defense Budget Allocation
3.2.1 Capital expenditure allocation is expected to average 34.1% over the forecast period
3.2.2 The share of other expenditure is anticipated to increase to 44% over the forecast period
3.2.3 Army expenditure to grow at a CAGR of 5.12% over the forecast period to reach US$6.6billion by 2021
3.2.4 Air force expenditure to cumulatively valueUS$28.9billion over the forecast period
3.2.5 Naval expenditure is expected to reach US$5.5 billion by 2021
3.2.6 Per capita defense expenditure expected to increase during the forecast period
3.3 Homeland Security Market Size and Forecast
3.3.1 Homeland security expenditure is expected to be US$22.2 billion cumulatively during the forecast period
3.3.2 Measures to curb organized crime, cyber-attacks, maritime threats and combating terrorism will drive homeland security expenditure
3.3.3 Australia faces moderate threat from foreign terrorist organizations
3.3.4 Australia has a terrorism index score of 3.1
3.4 Benchmarking with Key Global Markets
3.4.1 Australian defense expenditure expected to remain modest compared to the leading spenders
3.4.2 Australia will continue to dominate the arms market in the Asia-Pacific region
3.4.3 Defense expenditure as a percentage of GDP to average 2.1% over the forecast period
3.4.4 Australia faces a moderate threat from foreign terrorist organizations
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Multi-role Aircraft
3.5.2 Submarine
3.5.3 Transport Aircraft MRO
3.5.4 Multi-role Aircraft MRO
3.5.5 Destroyer
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Defense imports expected to increase considerably over the forecast period
4.1.2 The US stands as the largest arms supplier to Australia during 2011-2015
4.1.3 Imports of aircraft and ships expected to surge over the forecast period
4.2 Export Market Dynamics
4.2.1 Defense exports expected to increase during the forecast period owing to the government's initiatives
4.2.2 The US was the main importer of the Australian defense goods during 2011-2015
4.2.3 Aircraft and ships constitute the majority of Australian exports
5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: Low to Medium
5.1.2 Bargaining power of buyer: High
5.1.3 Barrier to entry: High
5.1.4 Intensity of rivalry: Medium to High
5.1.5 Threat of substitution: high
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 AIC program ensures the participation of local industry
6.1.2 Approval for foreign investment in defense sector set at US$216.2 million
6.2 Market Entry Route
6.2.1 Foreign military sales (FMS) to Australia
6.2.2 Establishing a domestic subsidiary is the preferred market entry route
6.2.3 Foreign OEMs sub-contract defense deals to domestic firms in order to enter the market
6.2.4 Foreign OEMs offer domestic companies access to global supply chains in order to enter the industry
6.2.5 DRSS provides opportunities to develop strong relations with the ADO
6.3 Key Challenges
6.3.1 Cost overruns and project delays continue to worry the defense industry
6.3.2 Low allocation of skilled labour in the defense sector
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.2 Key Domestic Companies
7.2.1 Thales Australia: Overview
7.2.2 Thales Australia: Products
7.2.3 Thales Australia: Recent announcements and strategic initiatives
7.2.4 Thales Australia: alliances
7.2.5 Thales Australia: recent contract wins
7.2.6 Boeing Defence Australia: Overview
7.2.7 Boeing Defence Australia: Products
7.2.8 Boeing Defence Australia: Recent Announcements and Strategic Initiatives
7.2.9 Boeing Defence Australia: Alliances
7.2.10 Boeing Defence Australia: Recent Contract Wins
7.2.11 Lockheed Martin Australia: Overview
7.2.12 Lockheed Martin Australia: Products
7.2.13 Lockheed Martin Australia: Recent announcements and strategic initiatives
7.2.14 Lockheed Martin Australia: Alliances
7.2.15 Lockheed Martin Australia: recent contract wins
7.2.16 Raytheon Australia: Overview
7.2.17 Raytheon Australia: Products
7.2.18 Raytheon Australia: Recent Announcements and Strategic Initiatives
7.2.19 Raytheon Australia: Alliances
7.2.20 Raytheon Australia: recent contract wins
7.2.21 Austal Ltd.: Overview
7.2.22 Austal Ltd.: Products and services
7.2.23 Austal Ltd.: recent announcements and strategic initiatives
7.2.24 Austal Ltd.: Alliances
7.2.25 Austal Ltd.: recent contract wins
7.2.26 Austal Ltd.: Financial analysis
7.2.27 Saab Systems: Overview
7.2.28 Saab Systems: Products
7.2.29 Saab Systems: Recent announcements and strategic initiatives
7.2.30 Saab Systems: Alliances
7.2.31 Saab Systems: recent contract wins
7.2.32 General Dynamics Land Systems Australia: Overview
7.2.33 General Dynamics Land Systems Australia: Products
7.2.34 General Dynamics Land Systems Australia: Recent Announcements and Strategic Initiatives
7.2.35 General Dynamics Land Systems Australia: Alliances
7.2.36 General Dynamics Land Systems Australia: recent contract wins
7.2.37 Navantia: Overview
7.2.38 Navantia: Products
7.2.39 Navantia: Recent announcements and strategic initiatives
7.2.40 Navantia: Alliances
7.2.41 Navantia: recent contract wins
7.2.42 Airbus Group Australia Pacific: Overview
7.2.43 Airbus Group Australia Pacific: Major Products
7.2.44 Airbus Group Australia Pacific: Recent Announcements and Strategic Initiatives
7.2.45 Airbus Group Australia Pacific: Alliances
7.2.46 Airbus Group Australia Pacific: Recent Contract Wins
7.3 Key Public Sector Company
7.3.1 ASC: Overview
7.3.2 ASC: Major Products
7.3.3 ASC: Recent Announcements and Strategic Initiatives
7.3.4 ASC: Alliances
7.3.5 ASC: Recent Contract Wins
7.3.6 ASC: Financial analysis
8 Business Environment and Country Risk
8.1 Economic Performance
8.1.1 GDP per capita
8.1.2 GDP at current prices (US$)
8.1.3 Exports of goods and services (LCU)
8.1.4 Imports of goods and services (LCU)
8.1.5 Gross national disposable income (US$ Bn)
8.1.6 LCU per US$ (period average)
8.1.7 Market capitalization of listed companies (US$ bn)
8.1.8 Market capitalization of listed companies (% of GDP)
8.1.9 Government cash surplus/deficit as a percentage of GDP (LCU)
8.1.10 Goods exports as a percentage of GDP
8.1.11 Goods imports as a percentage of GDP
8.1.12 Services imports as a percentage of GDP
8.1.13 Services exports as a percentage of GDP
8.1.14 Foreign Direct Investment
8.1.15 Net foreign direct investment as % of GDP
8.2 Mineral
8.2.1 Mining, Manufacturing, Utilities Output (USD Bn)
9 Appendix
9.1 About SDI
9.2 Disclaimer
Table 1: Australian Defense Expenditure (AU$ billion and US$ billion), 2012-2021
Table 2: Australian GDP Growth and Defense Expenditure as Percentage of GDP,
Table 3: Australian Defense Budget Split Between Capital and Revenue Expenditure (%),
Table 4: Australian Defense Expenditure Breakdown (%), 2012-2021
Table 5: Australian Defense Expenditure for Army (AU$ billion and US$ billion), 2012-2021
Table 6: Australian Defense Expenditure for Air Force (AU$ billion and US$ billion), 2012-2021
Table 7: Australian Defense Expenditure for Navy (AU$ billion and US$ billion), 2012-2021
Table 8: Australian Per Capita Defense Expenditure (US$), 2012-2021
Table 9: Australian Homeland Security Expenditure (AU$ billion and US$ billion), 2012-2021
Table 10: Benchmarking with Key Markets - 2012-2016vs. 2017-2021
Table 11: SDI Terrorism Index
Table 12: FATA Approval for Acquisition within the Defense sector in Australia
Table 13: FMS deals to Australia
Table 14: Key Foreign OEMS and Subsidiaries
Table 15: Small Projects with Cost Overruns
Table 16: Major Projects with Cost Overruns
Table 17: Project Delays
Table 18: Thales Australia - Major Products
Table 19: Thales Australia - Alliances
Table 20: Thales Australia - Recent Contract Wins
Table 21: Boeing Defence Australia - Major Products
Table 22: Boeing Defence Australia - Alliances
Table 23: Boeing Defence Australia - Recent Contract Wins
Table 24: Lockheed Martin Australia - Major Products
Table 25: Lockheed Martin Australia - Alliances
Table 26: Lockheed Martin Australia - Recent Contract Wins
Table 27: Raytheon Australia - Major Products
Table 28: Raytheon Australia - Alliances
Table 29: Raytheon Australia - Recent Contract Wins
Table 30: Austal Ltd. - Major Products and Services
Table 31: Austal - Alliances
Table 32: Austal Ltd. - Recent Contract wins
Table 33: Saab Systems - Major Products
Table 34: Saab Systems - Alliances
Table 35: Saab Systems - Recent Contract Wins
Table 36: General Dynamics Land Systems Australia - Major Products
Table 37: General Dynamics Land Systems Australia - Alliances
Table 38: General Dynamics Land Systems Australia - Recent Contract Wins
Table 39: Navantia - Major Products
Table 40: Navantia - Alliances
Table 41: Navantia - Recent Contract Wins
Table 42: Airbus Group Australia Pacific - Major Products
Table 43: Airbus Group Australia Pacific - Alliances
Table 44: Airbus Group Australia Pacific - Recent Contract Wins
Table 45: ASC - Major Products
Table 46: ASC - Alliances
Table 47: ASC - Recent Contract wins
Figure 1: Australian Defense Expenditure (AU$ Billion), 2012-2021
Figure 2: Australian Defense Expenditure (US$ Billion), 2012-2021
Figure 3: Australian GDP Growth vs. Defense Expenditure as Percentage of GDP, 2012-2021
Figure 4: Australian Defense Budget Split Between Capital and Revenue Expenditure (%), 2012-2021
Figure 5: Australian Defense Expenditure Breakdown (%), 2012-2021
Figure 6: Australian Expenditure for Army (AU$ Billion), 2012-2021
Figure 7: Australian Defense Expenditure for Army (US$ billion), 2011-2015
Figure 8: Australian Expenditure for Air Force (AU$ Billion), 2012-2021
Figure 9: Australian Defense Expenditure for Air Force (US$ billion), 2012-2021
Figure 10: Australian Expenditure for Navy (AU$ Billion), 2012-2021
Figure 11: Australian Defense Expenditure for Navy (US$ billion), 2012-2021
Figure 12: Australian Per Capita Defense Expenditure (US$), 2012-2021
Figure 13: Australian Homeland Security Budget (AU$ Billion), 2012-2021
Figure 14: Australian Homeland Security Expenditure (US$ billion), 2012-2021
Figure 15: SDI Terrorism Heat Map, 2016
Figure 16: SDI Terrorism Index, 2016
Figure 17: Benchmarking with Key Markets - 2012-2016 vs. 2017-2021
Figure 18: Benchmarking with World's Largest and Top Regional Defense Spenders (US$ Billion), 2016 and 2021
Figure 19: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2016
Figure 20: Multi-role Aircraft Market Size (US$ Billion), 2016-2026
Figure 21: Diesel Electric Submarine Market Size (US$ Million), 2016-2026
Figure 22: Transport Aircraft MRO Market Size (US$ Million), 2016-2026
Figure 23: Multi-role Aircraft MRO Market Size (US$ Million), 2016-2026
Figure 24: Destroyer Market Size (US$ Million), 2016-2026
Figure 25: Australia's Defense Import Trend, 2011-2015(TIV values)
Figure 26: Australia's Defense Import by Country (%), 2011-2015
Figure 27: Australia Defense Imports by Category (%), 2011-2015
Figure 28: Australia's Defense Export Trend, 2011-2015 (TIV values)
Figure 29: Australian Defense Exports by Country (%), 2011-2015
Figure 30: Australian Defense Exports by Category(%), 2011-2015
Figure 31: Industry Dynamics - Porter's Five Forces Analysis
Figure 32: Austal Ltd. - Revenue Trend Analysis (AUD Million), 2011-2015
Figure 33: Austal Ltd. - Operating Profit Trend Analysis (AUD Million), 2011-2015
Figure 34: Austal Ltd. - Net Profit Trend Analysis (AUD Million), 2011-2015
Figure 35: ASC - Revenue Trend Analysis (AUD Million), 2011-2015
Figure 36: ASC - Operating Profit Trend Analysis (AUD Million), 2011-2015
Figure 37: ASC - Net Profit Trend Analysis (AUD Million), 2011-2015
Figure 38: Australia's GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 39: Australia - GDP at Current Prices (US$ Billion), 2015-2025
Figure 40: Australia's Exports of goods and services (LCU), 2005-2014
Figure 41: Australia's Imports of goods and services (LCU), 2005-2014
Figure 42: Australia's Gross national disposable income (US$ billion), 2005-2012
Figure 43: Australia LCU per US$, 2015-2024
Figure 44: Australia's market capitalization of listed companies (US$ billion), 2005-2012
Figure 45: Australia's market capitalization of listed companies (% of GDP), 2005-2012
Figure 46: Australia's Government cash surplus/deficit as % of GDP (LCU), 2005-2013
Figure 47: Australia - Goods exports as a % of GDP (%), 2005-2014
Figure 48: Australia - Goods imports as a % of GDP (%), 2005-2014
Figure 49: Australia's Services imports as a % of GDP (%), 2005-2014
Figure 50: Australia's Services exports as a % of GDP (%), 2005-2014
Figure 51: US Foreign Direct Investment (US$ Billion), 2005-2014
Figure 52: US Net foreign direct investment as % of GDP, 2005-2014
Figure 53: Australia's Mining, Manufacturing, Utilities Output (USD Bn), 2005-2014
Thales Australia
Boeing Defense Australia
Lockheed Martin Australia
Raytheon Australia
Austal
Saab Systems
General Dynamics Land Systems Australia
Navantia
Airbus Group Australia Pacific
ASC
