Future of the Australia Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022
NEW YORK, July 11, 2017 /PRNewswire/ -- Future of the Australia Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022
Summary
Australian defense budget recorded a CAGR of 0.28% during the historic period (2013-2017), from US$26.2 Billion in 2013 to US$26.5 Billion in 2017. Modernization initiatives and advanced equipment procurement programs - as outlined in white papers published by the Australian Department of Defence (DoD) - will drive expenditure. According to one white paper, the country is expected to undertake a number of modernization and procurement programs over the coming decade. Participation in a number of UN peacekeeping operations will also fuel the country's defense expenditure, propelling the budget from US$27.5 Billion in 2016 to US$35.4 Billion in 2022, at a CAGR of 6.54%.
During the historic period, other expenditure - which comprises intelligence capabilities, chief operating officers, defense support and reforms, chief information officers, science and technology - accounted for 41.6% of the total defense budget and valued at US$10.90 Billion in 2017. It will average 44.0% over the forecast period. Due to security threats from terrorist organizations and the deployment of troops in overseas peacekeeping missions, Australia will focus on the acquisition of multirole aircraft, helicopters, nuclear attack submarines, patrol ships, frigates, and armored vehicles.
To accelerate exports, the government established the Defense Export Unit (DEU), which assists domestic companies in gaining access to the export market. The Australian Industry Capability (AIC) plan was designed to provide domestic firms with access to external global supply chains and foreign firms' technology.
The preferred entry route for most foreign OEMs looking to enter the Australian defense market has been to establish a subsidiary or acquire a domestic firm. Increasingly, foreign OEMs are entering the market by sub-contracting business to the domestic industry or entering into a foreign direct investment (FDI) scheme. In recognition, the DoD launched a scheme rewarding those defense suppliers that maintain a successful relationship with the Australian Defense Organization.
The report "Future of the Australia Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022" offers detailed analysis of Australia 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, this report provides an in-depth analysis of the following -
- Australia defense industry market size and drivers: Detailed analysis of Australia defense industry during 2018-2022, 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. It also details the key challenges faced by defense market participants within the country.
- Porter's Five Force analysis of Australia 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 next 10 years.
- Competitive landscape and strategic insights: Analysis of the competitive landscape of Australia defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Companies mentioned in this report: Thales Australia, Boeing Defence Australia, Lockheed Martin, Raytheon Australia, Austal Ltd, Saab Systems, General Dynamics Land Systems Australia, Navantia, Airbius Group Australia, ASC.
Scope
- The Australian government remains committed to building strong defense capabilities. The country's defense budget recorded a CAGR of 0.28% during the historic period (2013-2017), from US$26.2 billion in 2013 to US$26.5 billion in 2017. Modernization initiatives and advanced equipment procurement programs - as outlined in white papers published by the Australian Department of Defence (DoD) - will drive expenditure. According to one white paper, the country is expected to undertake a number of modernization and procurement programs over the coming decade.
- During the historic period, an average of 27.9% of the total defense budget was allocated to capital expenditure; this will reach 39.4% over the forecast period. This is predominantly due to Australia's planned armed force modernization program and procurement plans. Specifically, investment will be allocated to replacing ageing armored vehicles with infantry fighting and combat reconnaissance vehicles.
- The MoD is expected to invest in Multi-role aircraft, submarines, frigates, multi-role aircraft MRO, land-based C4ISR, and armored fighting vehicles
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of Australia 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 Australia defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
Read the full report: http://www.reportlinker.com/p04978321/Future-of-the-Australia-Defense-Industry-Market-Attractiveness-Competitive-Landscape-and-Forecasts-to.html
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