2012-07-15 Our partner ICD has published a new report looking at the evolution of the Australian defense industry market through 2017.
The report offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original equipment manufacturers) to gain a market share in the Australian defense industry.
In particular, it offers in-depth analysis of the following:
Market opportunity and attractiveness: detailed analysis of the current industry size and growth expectations during 2013–2017, including highlights of the key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
Procurement dynamics: trend analysis of imports and exports, together with their implications and impact on the Australian defense industry.
Industry structure: five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
Competitive landscape and strategic insights: analysis of the competitive landscape of the defense industry in Australia, providing an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and availability, labor force, demographics, and political and social risk.
The Australian defense industry is expected to grow at a CAGR of 5.13% from a value of US$31.7 billion in 2013 to US$38.8 billion by 2017. In 2009, the Australian government launched a new military modernization plan to upgrade its forces in order to counteract the threat posed by rising global terrorism, changing political dynamics in the Asia-Pacific region, and the rising number of peacekeeping operations undertaken by Australian forces.
Defense expenditure as a percentage of Australia’s gross domestic product (GDP) is expected to increase from its 2012 levels of 1.8% to 2% in 2017. However, while the capital expenditure as a percentage of the defense budget peaked at 28% in 2010, the government is expected to decrease this value to 27% by 2017. This is due to the increased budget allocation for revenue expenditure in order to manage matters such as death, retirement benefits and support services.
Over the forecast period, the key market opportunities in the defense industry are expected to emerge in categories such as defense information technology, unmanned aerial vehicles (UAVs), helicopters, upgraded vehicles, armory, submarine rescue vehicles, sonar systems, troop protection equipment, patrolling ships, monitoring and security equipment, and cyber security.
For an overview of the report please download the PDF found below
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