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

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

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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

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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
• FACC AG
• Carbon Solutions Hintsteiner GmbH
• Diamond Aircraft Industries GmbH
• Hirtenberger AG

Market report scope

Scope

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.