Austria Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-2027

Pages: 74 Published: March 30, 2022 Report Code: GDDF0746MR

The Austria defense expenditure was valued at $3.4 billion in 2022. The market is expected to grow at a CAGR of more than 1% during 2023-2027. The Austrian military is pursuing a number of programs to replace existing inventory, including a modern replacement to the Eurofighter, as well as new armored vehicles. This modernization will drive investment in the coming years.

The Austria defense market research report offers detailed analysis of the Austrian defense market 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.

Austria Defense Market Overview

Austria Defense Market Overview

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Austria Defense Market Drivers and Trends

Austria is embarking on a number of programs to keep its forces advanced, which include a replacement for the Saab 105 jet-trainer, as well as AW169 helicopters and Pandur armored vehicles. The acquisition budget is increasing in the coming years, according to GlobalData intelligence, and a large amount of this budget will be dedicated to major programs. Austria has a few security threats, including instability in the Balkan region and threats from Russia, and it is increasingly contributing to EU security operations. These drivers require Austria to maintain an advanced military, which necessitates upgrade programs. This expenditure is expected be spread out, as the increased funding will not be enough to accommodate outright purchases. Instead, the country will need purchases to be spread across a number of years or potentially need to make second-hand purchases to alleviate financial shortfalls.

Austria sees the European Common Security and Defense Policy (CSDP) as critical to its own national security. The Federal Chancellery coordinates Austrian positions in response to the Policy. Austrian troops have contributed to a number of missions as part of the CSDP, including in Bosnia and Herzegovina as well as the anti-piracy operation Atalanta.

Key Austria Defense Market Sectors

  • Military Fixed Wing Aircraft
  • Military Infrastructure and Logistics
  • Military Rotorcraft.

The military fixed wing aircraft segment is forecast to be the largest sector in the Austrian defense market. This segment comprises only one sector, multirole aircraft. Within this segment the replacement for the Saab 105 is being procured, and whilst the supplier is yet to be decided this is likely to be a high value contract in line with Austrian military modernization.

The military infrastructure and logistics segment can be further categorized into central logistics, facilities management, and infrastructure construction. The relatively high levels of spending is due to Austrian cooperation with multi-lateral organizations including the EU and NATO, for which it hosts troops and groups requiring infrastructure support.

The military rotorcraft segment is forecast to be the third largest sector in Austria’s defense market. The contracts are for UH-60 Black Hawks, S-70 and AW169, which are due to be finished by 2024, with the S-70 and the UH-60s due to finish delivery in 2023.

Key Austria Defense Market Sectors

Key Austria Defense Market Sectors

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Key Austria Defense Platform Acquisitions

  • Saab 105 Replacement – Future Procurement
  • AW169
  • Pandur 6*6

Key Austria Defense Market Players

  • Fischer Advanced Composite Components AG
  • Kapsch TrafficCom AG
  • Frequentis AG
  • A3 Avionics GmbH
  • Atlas Aerospace GmbH
  • Glock GesmbH
  • Carbon Solutions Hintsteiner GmbH
  • Diamond Aircraft Industries GmbH
  • Hirtenberger AG

Market report scope

Market size (2022)  $3.4 billion
CAGR  >1% (2023-2027)
Forecast period 2022-2027
Key sectors Military Fixed Wing Aircraft, Military Infrastructure and Logistics, and Military Rotorcraft
Key defense platform acquisitions Saab 105 Replacement, AW169, and Pandur 6*6
Key companies Fischer Advanced Composite Components AG, Kapsch TrafficCom AG, Frequentis AG, A3 Avionics GmbH, Atlas Aerospace GmbH, Glock GesmbHy, FACC AG, Carbon Solutions Hintsteiner GmbH, Diamond Aircraft Industries GmbH, and Hirtenberger AG


It provides an in-depth analysis of the following –

  • Regulation: the procurement policy and the process is explained. This is coupled with an analysis of Austria’s military doctrine and strategy to provide a comprehensive overview of Austria’s military regulation.
  • Security Environment: political alliances and perceived security threats to Austria are examined; there help to explain trends in spending and modernization.
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Austria defense industry.

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of the Austria defense market over the next five years.
  • Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the Austria market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
  • Identify the major threats that are driving the Austria defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion.
  • Channel resources by focusing on the ongoing programs that are being undertaken by the Austria government.
  • Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available.

Key Players

BAE Systems
Krauss-Maffei Wegmann
MAN Truck and Bus
Fisched Advanced Composite Components
Atlas Aerospace GmbH
Diamond Aircraft Industries
Glock Gesmph
Rheinmetall Waffe Munition Arges
Scheibel Corp

Table of Contents

Table of Contents

Executive Summary

Defense Budget Assessment

Budgeting Process

Defense Market Size Historical And Forecast

Drivers Of Defense Expenditure

Analysis Of Defense Budget Allocation

Key Market Trends and Insights

Military Doctrine And Security Environment

Military Doctrine And Strategy

Political And Strategic Alliances

Market Entry Strategy And Regulations

Defense Procurement Bodies

Bidding Process

Funding Opportunities

Trade Associations and Defense Clusters

Austrian Tender Trends

Procurement Policy and Process

How is the type of procurement procedure decided?

Types of European Procurement Procedure

Types of Austrian National Procurement Procedure

Procurement Policy and Market Regulations

Market Entry Routes

Key Challenges

Major Deals and M&A

Market Attractiveness And Emerging Opportunities

Market Attractiveness, 2022-27

Top Defense Segments By Value

Import And Export Market Dynamics

Import Market Dynamics

Export Market Dynamics

Defense Platform Acquisitions

Defense Platform Acquisitions By Value

Saab 105 replacement


Pandur 6*6

Fleet Size

Competitive Landscape

Defense Companies Operating In Austria

Main Defense Companies


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Frequently Asked Questions

The defense market size in Austria was valued at $3.4 billion in 2022.





The defense market in Austria is expected to grow at a CAGR of more than 1% during 2023 and 2027.

The key sectors in the Austrian defense market are military fixed wing aircraft, military infrastructure and logistics, and military rotorcraft.

The key defense platform acquisitions in the Austrian defense market are Saab 105 Replacement, AW169, and Pandur 6*6.

The key players in the Austrian defense market include Fischer Advanced Composite Components AG, Kapsch TrafficCom AG, Frequentis AG, A3 Avionics GmbH, Atlas Aerospace GmbH, Glock GesmbHy, FACC AG, Carbon Solutions Hintsteiner GmbH, Diamond Aircraft Industries GmbH, and Hirtenberger AG.


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