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 (www.strategicdefenceintelligence.com)
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. Defense expenditure is projected to grow at a CAGR of 5.13% during the forecast period
3.1.2. Defense expenditure driven by military modernization, terror threats, changing Asia-Pacific power dynamics and peacekeeping missions
3.1.3. Military expenditure as a percentage of GDP is expected to increase during the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Share of capital expenditure in the overall defense budget is expected to increase
3.2.2. Australia’s capital expenditure is expected to grow at a CAGR of 11.93% during the forecast period
3.2.3. Australia is expected to spend US$127.2 billion on revenue expenses over the forecast period
3.2.4. Defense expenditure is expected to correspond with national economic growth
3.3. Homeland Security Market Size and Forecast
3.3.1. Homeland security expenditure is expected to grow at a CAGR of 10.6% during the forecast period
3.3.2. Organized crime, cyber-security and maritime security to drive homeland security spending
3.3.3. Australia faces a minimal threat from foreign terrorist organizations
3.4. Benchmarking with Key Global Markets
3.4.1. Australian defense expenditure expected to remain modest compared to leading spenders
3.4.2. The country will continue to be a significant player in the global arms market
3.4.3. Defense expenditure as a percentage of GDP to increase marginally over forecast period
3.4.4. Australia has a moderate per-capita defense expenditure
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Increased surveillance needs expected to drive demand for UAVs
3.5.2. NCW program expected to drive demand for communication, data management and networking technologies
3.5.3. Land fleet capacity expansion expected to drive demand for upgraded vehicles and armory
3.5.4. Submarines upgrade to drive the demand for submarine rescue vehicles, sonar systems, and ship management and control systems
3.5.5. Safety of troops continues to drive demand for protective equipment
3.5.6. Border security concerns expected to drive demand for patrol vessels, and monitoring and security equipment
3.5.7. Cyber security initiatives in Australia to drive business for private organizations
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. Germany loses market share of arms transfers with Australia to the US and France
4.1.3. Imports of aircraft and missiles continue to increase
4.2. Export Market Dynamics
4.2.1. Defense exports expected to increase during forecast period
4.2.2. Ships constitute majority of 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. Establishing a domestic subsidiary is the preferred market entry route
6.2.2. Foreign OEMs sub-contract defense deals to domestic firms in order to enter the market
6.2.3. Foreign OEMs offer domestic companies access to global supply chains in order to enter the industry
6.2.4. 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 defense industry
6.3.2. Global supply chain pose challenge for foreign OEMs
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Raytheon Australia: Overview
7.2.2. Raytheon Australia: Major Products and Services
7.2.3. Raytheon Australia: Recent Announcements and Strategic Initiatives
7.2.4. Raytheon Australia: Alliances
7.2.5. Raytheon Australia: Recent Contract Wins
7.2.6. Boeing Defense Australia: Overview
7.2.7. Boeing Defense Australia: Major Products and Services
7.2.8. Boeing Defense Australia: Recent Announcements and Strategic Initiatives
7.2.9. Boeing Defense Australia: Alliances
7.2.10. Boeing Defense Australia: Recent Contract Wins
7.2.11. Saab Systems: Overview
7.2.12. Saab Systems: Major Products and Services
7.2.13. Saab Systems: Recent Announcements and Strategic Initiatives
7.2.14. Saab Systems: Alliances
7.2.15. Saab Systems: Recent Contract Wins
7.2.16. Saab Systems: Financial Analysis
7.2.17. General Dynamics Land Systems Australia: Overview
7.2.18. General Dynamics Land Systems Australia: Major Products and Services
7.2.19. General Dynamics Land Systems Australia: Recent Announcements and Strategic Initiatives
7.2.20. General Dynamics Land Systems Australia: Recent Contract Wins
7.2.21. Lockheed Martin Australia: Overview
7.2.22. Lockheed Martin Australia: Major Products and Services
7.2.23. Lockheed Martin Australia: Recent announcements and Strategic initiatives
7.2.24. Lockheed Martin Australia: Alliances
7.2.25. Lockheed Martin Australia: Recent Contract Wins
7.2.26. Navantia: Overview
7.2.27. Navantia: Major Products and Services
7.2.28. Navantia: Recent Announcements and Strategic Initiatives
7.2.29. Navantia: Alliances
7.2.30. Navantia: Recent Contract Wins
7.2.31. Australian Aerospace: Overview
7.2.32. Australian Aerospace: Major Products and Services
7.2.33. Australian Aerospace: Recent Announcements and Strategic Initiatives
7.2.34. Australian Aerospace: Alliances
7.2.35. Australian Aerospace: Recent Contract Wins
7.2.36. Serco Sodexho Defense Services: Overview
7.2.37. Serco Sodexho Defense Services: Major Products and Services
7.2.38. Serco Sodexho Defense Services: Recent Announcements and Strategic Initiatives
7.2.39. Serco Sodexho Defense Services: Recent Contract Wins
7.2.40. Thales Australia: Overview
7.2.41. Thales Australia: Major Products and Services
7.2.42. Thales Australia: Recent Announcements and Strategic Initiatives
7.2.43. Thales Australia: Alliances
7.2.44. Thales Australia: Recent Contract Wins
7.3. Key Public Sector Companies
7.3.1. ASC: Overview
7.3.2. ASC: Major Products and Services
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. Demographics & Social Statistics
8.1.1. Population - Female
8.1.2. Population - Male
8.2. Economic Performance
8.2.1. Construction Output, Current Prices, Local Currency
8.2.2. Construction Output, Current Prices, US Dollars
8.2.3. Current Account Balance as Percentage of GDP
8.2.4. Deposit Interest Rate
8.2.5. Exports of goods and services, current prices
8.2.6. Fiscal Balance as a percentage of GDP
8.2.7. Foreign Direct Investment
8.2.8. GDP at Purchasing Power Parity
8.2.9. GDP, Constant Prices (Local Currency)
8.2.10. GDP, Constant Prices (US$)
8.2.11. GDP, Current Prices (Local Currency)
8.2.12. GDP, Current Prices (US$)
8.2.13. General Government Final Consumption Expenditure
8.2.14. Gross Fixed Capital Formation, Current Prices
8.2.15. Imports of goods and services
8.2.16. Inflation, average consumer prices
8.2.17. Interest Rate (Lending)
8.2.18. Manufacturing Output, Current Prices (Local Currency Bn)
8.2.19. Manufacturing Output, Current Prices (US$ Billions)
8.2.20. Market cap of Stock Exchange (US$ mn)
8.2.21. US$- Exchange Rate (Annual Average)
8.2.22. US$- Exchange Rate (EoP)
8.2.23. Wholesale Price Index
8.3. Energy and Utilities
8.3.1. Crude Oil Distillation Capacity
8.3.2. Electricity Installed Capacity
8.3.3. Fossil Fuels Proved natural gas reserves
8.3.4. Fossil Fuels Proved natural gas reserves
8.3.5. Fossil Fuels- Proved oil reserves
8.3.6. Hydroelectricity Installed Capacity
8.3.7. Natural Gas Consumption
8.3.8. Natural Gas Imports
8.3.9. Natural Gas Production
8.3.10. Net Conventional Thermal Electricity Generation
8.3.11. Net Geothermal, Solar, Wind, and Wood Electric Power Generation
8.3.12. Net Hydroelectric Power Generation
8.3.13. Petroleum, Consumption
8.3.14. Petroleum, Production
8.4. Minerals
8.4.1. Coal Consumption
8.4.2. Coal Production
8.5. Social & Political Risk
8.5.1. Political Stability Index
8.5.2. Transparency Index
8.6. Technology
8.6.1. Fixed Broadband Internet Subscribers (Thousands)
8.6.2. Patents Granted
8.6.3. Software Patents
9 Appendix
9.1. Contact Us
9.2. About SDI
9.3. DisclaimerTable 1: Australian Defense Expenditure, 2008-2012
Table 2: Australian Defense Expenditure, 2013-2017
Table 3: Australian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2008-2012
Table 4: Australian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2017
Table 5: Australian Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
Table 6: Australian Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
Table 7: Australian Capital Budget Allocation (US$ billion), 2008-2012
Table 8: Australian Capital Budget Allocation (US$ billion), 2013-2017
Table 9: Australian Revenue Budget Allocation (US$ billion), 2008-2012
Table 10: Australian Revenue Budget Allocation (US$ billion), 2013-2017
Table 11: Australian Defense Expenditure Growth and GDP Growth (%), 2008-2012
Table 12: Australian Defense Expenditure Growth and GDP Growth(%), 2013-2017
Table 13: Australian Homeland Security Budget (US$ million), 2008-2012
Table 14: Australian Homeland Security Budget (US$ million), 2013-2017
Table 15: Benchmarking with Key Markets - 2007-2011 vs. 2012-2016
Table 16: FATA Approval for Acquisition in Defense in Australia
Table 17: Key Foreign OEMS and Subsidiaries
Table 18: Small Projects with Cost Overruns
Table 19: Major Projects with Cost Overruns
Table 20: Project Delays
Table 21: Raytheon Australia - Major Products & Services
Table 22: Raytheon Australia - Alliances
Table 23: Raytheon Australia - Recent Contract Wins
Table 24: Boeing Defense Australia - Major Products & Services
Table 25: Boeing Defense Australia - Alliances
Table 26: Boeing Defense Australia - Recent Contract Wins
Table 27: Saab Systems - Major Products & Services
Table 28: Saab Systems - Alliances
Table 29: Saab Systems - Recent Contract Wins
Table 30: General Dynamics Land Systems Australia - Major Products & Services
Table 31: General Dynamics Land Systems Australia - Recent Contract Wins
Table 32: Lockheed Martin Australia - Major Products & Services
Table 33: Lockheed Martin Australia - Alliances
Table 34: Lockheed Martin Australia - Recent Contract Wins
Table 35: Navantia - Major Products & Services
Table 36: Navantia - Alliances
Table 37: Navantia - Recent Contract Wins
Table 38: Australian Aerospace - Major Products & Services
Table 39: Australian Aerospace - Alliances
Table 40: Australian Aerospace - Recent Contract Wins
Table 41: Serco Sodexho Defense Services - Major Products & Services
Table 42: Serco Sodexho Defense Services - Recent Contract Wins
Table 43: Thales Australia - Major Products & Services
Table 44: Thales Australia - Alliances
Table 45: Thales Australia - Recent Contract Wins
Table 46: ASC - Major Products & Services
Table 47: ASC - Alliances
Table 48: ASC - Recent Contract winsFigure 1: Australian Defense Expenditure, 2008 -2012
Figure 2: Australian Defense Expenditure, 2013-2017
Figure 3: Australian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2008-2012
Figure 4: Australian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2017
Figure 5: Australian Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
Figure 6: Australian Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
Figure 7: Australian Capital Budget Allocation (US$ billion), 2008-2012
Figure 8: Australian Capital Budget Allocation (US$ billion), 2013-2017
Figure 9: Australian Revenue Budget Allocation (US$ billion), 2008-2012
Figure 10: Australian Revenue Budget Allocation (US$ billion), 2013-2017
Figure 11: Australian Defense Expenditure Growth and GDP Growth(%), 2008-2012
Figure 12: Australian Defense Expenditure Growth and GDP Growth(%), 2013-2017
Figure 13: Australian Homeland Security Budget (US$ million), 2008-2012
Figure 14: Australian Homeland Security Budget (US$ million), 2013-2017
Figure 15: SDI Terrorism Heat Map, 2011
Figure 16: SDI Terrorism Index, 2011
Figure 17: Benchmarking with Key Markets - 2007-2011 vs. 2012-2016
Figure 18: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2011 and 2016
Figure 19: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2011
Figure 20: Per-capita Defense Expenditure of the Largest Military Spenders in the World (US$), 2011
Figure 21: Australian Defense Imports (TIV s), 2007-2011
Figure 22: Australian Defense Imports by Country based on TIVs*, 2007-2011 and 2011
Figure 23: Australian Defense Imports by Weapons based on TIVs*, 2007-2011 and 2011
Figure 24: Australian Defense Exports (TIVs), 2007-2011
Figure 25: Australian Defense Exports by Weapons based on TIVs*, 2007-2011 and 2011
Figure 26: Industry Dynamics - Porter’s Five Forces Analysis
Figure 27: ASC - Revenue Trend Analysis (AUD Million), 2006-2010
Figure 28: ASC - Operating Profit Trend Analysis (AUD Million), 2006-2010
Figure 29: ASC - Net Profit Trend Analysis (AUD Million), 2006-2010
Figure 30: Australian Population - Female (In Millions), 2008-2017
Figure 31: Australian Population - Male (In Millions), 2008-2017
Figure 32: Australian Construction Output, Current Prices, Local Currency (In Billions), 2001-2010
Figure 33: Australian Construction Output, Current Prices, US Dollars (In Billions), 2001-2010
Figure 34: Australian Current Account Balance as Percentage of GDP, 2008-2017
Figure 35: Australian Deposit Interest Rate, 2001-2010
Figure 36: Australian Exports of goods and services, current prices (US$ Billion), 2001- 2010
Figure 37: Australian Fiscal Balance as a percentage of GDP, 2001-2010
Figure 38: Australian Foreign Direct Investment (US$ Billion), 2001-2010
Figure 39: Australian GDP at Purchasing Power Parity (US$ Billion), 2006-2015
Figure 40: Australian GDP at Constant Prices (Local Currency Billion), 2006-2015
Figure 41: Australian GDP at Constant Prices (US$ Billion), 2006-2015
Figure 42: Australian GDP at Current Prices (Local Currency Billion), 2006-2015
Figure 43: Australian GDP at Current Prices (US$ Billion), 2006-2015
Figure 44: Australian General Government Final Consumption Expenditure (US$ Billion), 2001-2010
Figure 45: Australian Gross Fixed Capital Formation, Current Prices (US$ Billion), 2001-2010
Figure 46: Australian Imports of goods and services (current US$ Billion), 2001-2010
Figure 47: Australian Inflation, average consumer prices, 2008-2017
Figure 48: Australian Lending Interest rate, 2001-2010
Figure 49: Australian Manufacturing Output, Current Prices (Local Currency Billion), 2001-2010
Figure 50: Australian Manufacturing Output, Current Prices (US$ Billion), 2001-2010
Figure 51: Australian Market cap of Stock Exchange (US$ mn), 2001-2010
Figure 52: Australian US$- Exchange Rate (Annual Average), 2002-2011
Figure 53: Australian US$- Exchange Rate (EoP), 2002-2011
Figure 54: Australian Wholesale Price Index, 2000-2009
Figure 55: Australian Crude Oil Distillation Capacity(Thousand Barrels Per Cal Day), 2000-2009
Figure 56: Australian Electricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 57: Australian Fossil Fuels Proved natural gas reserves (Trillion Cubic Feet), 2002-2011
Figure 58: Australian Fossil Fuels Proved natural gas reserves (Trillion Cubic Feet), 2002-2011
Figure 59: Australian Fossil Fuels Proved oil reserves (Billion Barrels), 2002-2011
Figure 60: Australian Hydroelectricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 61: Australian Natural Gas Consumption (Billion Cubic Feet), 2001-2010
Figure 62: Australian Natural Gas Imports (Billion Cubic Feet), 2006-2010
Figure 63: Australian Natural Gas Production (Billion Cubic Feet), 2001-2010
Figure 64: Australian Net Conventional Thermal Electricity Generation (Billion Kilowatt hours), 2001-2010
Figure 65: Australian Net Geothermal, Solar, Wind, and Wood Electric Power Generation (Billion Kilowatt hours), 2001-2010
Figure 66: Australian Net Hydroelectric Power Generation (Billion Kilowatt hours), 2001-2010
Figure 67: Australian Petroleum Consumption (Thousand Barrels Per Day), 2002-2011
Figure 68: Australian Petroleum Production (Thousand Barrels Per Day), 2002-2011
Figure 69: Australian Coal Consumption (Thousand Short Tons), 2001-2010
Figure 70: Australian Coal Production (Thousand Short Tons), 2001-2010
Figure 71: Australian Political Stability Index, 2002-2010
Figure 72: Australian Transparency Index, 2002-2011
Figure 73: Australian Fixed Broadband Internet Subscribers (Thousands), 2001-2010
Figure 74: Australian Patents Granted, 2002-2011
Figure 75: Australian Software Patents, 2006-2011