Austria Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2029

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

Austria Defense Market Report Overview

In 2024, Austria’s defense budget is worth $4.3 billion and will grow at a CAGR of more than 5% during 2025-2029. Austrian defense spending, as with many other European nations, has seen an appreciable uptick as the crisis in continental security stemming from Russia’s full-scale invasion of Ukraine.

Austria Defense Market Outlook, 2024-2029 ($ Billion)

Austria Defense Market Outlook, 2024-2029 ($ Billion)

Buy the Full Report for More Insights into the Austria Defense Market Forecast

Download a Free Report Sample

The Austria defense market research report provides the market size forecast and the projected growth rate for the next five years. Furthermore, our analysts have carried out a comprehensive industry analysis to determine key market drivers, emerging technology trends, key sectors, and major challenges faced by market participants. The Austria defense market study has also assessed key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Market Size (2024) $4.3 Billion
CAGR (2025-2029) >5%
Forecast Period 2025-2029
Historical Period 2020-2024
Key Sectors ·       Missiles and Missile Defense Systems

·       Military Rotorcraft

·       Ammunition

·       Military Land Vehicles

·       Military Fixed Wing Aircraft

·       Electronic Warfare

Leading Companies ·       Diehl Defence GmbH

·       General Dynamics European Land Systems

·       Rheinmetall MAN Military Vehicles GmbH

·       Embraer SA

·       Leonardo SpA

Enquire & Decide Discover the perfect solution for your business needs. Enquire now and let us help you make an informed decision before making a purchase.

Austria Defense Market Drivers

European Security & the Ukraine Conflict and military modernization are a few factors driving Austria’s defense market growth.

Modernization: The Austrian military has made several acquisitions to keep its fleet of armored vehicles up-to-date and ready for deployment. The country is also actively investing in upgrading its combat air fleet and a medium-lift transport capability to support international deployments.

Buy the Full Report for More Information on Austria’s Defense Market Drivers

Download a Free Report Sample

Austria Military Doctrines and Defense Strategies

Neutrality continues to inform Austria’s doctrine. However, the military is tasked with ensuring domestic sovereignty, as well as facilitating international crisis management. Permanent tasks include maintaining general operational readiness, defense of threats across land air, and cyber-space, surveilling Austrian air space, and generating strategic situational pictures. The military is also tasked with contributing to domestic security by supporting homeland security operations. In terms of structure, the Austrian military is based on modern doctrines of maneuver warfare and joint-domain operations, ensuring close cooperation between the Army’s mechanized formations and a supporting Air Force, although the Air Force remains comparatively small at a force of just 15 combat jets.

Austria is militarily neutral but shares security concerns with the EU and hosts several international organizations. It is a member of the EU and has contributed troops to EU missions including military operations in Kosovo, Georgia, Palestine, and Libya. Austria is opposed to the idea of a European army, with many domestic actors seeing it as a violation of Austrian neutrality. However, despite some opposition to elements of European security, many domestic actors see participation in EU programs as a way to bring down procurement costs for defense programs.

Buy the Full Report for More Insights on the Military Doctrines and Defense Strategies in the Austria Defense Market

Download a Free Report Sample

Austria Defense Market Segmentation by Sectors

The key sectors in the Austria defense market are military rotorcraft, ammunition, military land vehicles, military fixed-wing aircraft, electronic warfare, and missiles and missile defense systems, among others. In 2024, missiles and missile defense systems accounted for the highest share of the Austrian defense market.

The furnishing of additional air defense systems in the wake of drone proliferation and frequent use of air and missile attacks in conflicts around the world today makes this the most valuable sector for Austria’s defense market.

Austria Defense Market Analysis by Sectors, 2024 (%)

Austria Defense Market Analysis by Sectors, 2024 (%)

Buy the Full Report for More Sector Insights into the Austria Defense Market

Download a Free Report Sample

Austria Defense Market - Competitive Landscape

A few of the leading defense companies operating in Austria are:

  • Diehl Defence GmbH
  • General Dynamics European Land Systems
  • Rheinmetall MAN Military Vehicles GmbH
  • Embraer SA
  • Leonardo SpA

Air and missile defense has become a priority issue for militaries undergoing modernization in recent years. The geopolitical conflicts such as Russia and Ukraine, and the ongoing exchanges between Hamas and Israel and the Houthis against Western warships in the Red Sea have propelled military expenditure. As a part of the ‘European Sky Shield’ initiative, Austria will be purchasing eight batteries (24 launchers and eight radars) of the German-made IRIS-T air defense system – four of the medium-range SLM systems, and eight of the short-range SLS versions. This system has been in high demand since the war in Ukraine, and Diehl Defense is planning to double production from four in 2024 to eight in 2025.

Austria Defense Market Analysis by Companies

Austria Defense Market Analysis by Companies

Buy the Full Report for More Company Insights into the Austria Defense Market

Download a Free Report Sample

Segments Covered in the Report

Austria Defense Market Sectors Outlook (Value, $ Billion, 2020-2029)

  • Military Rotorcraft
  • Ammunition
  • Military Land Vehicles
  • Military Fixed Wing Aircraft
  • Electronic Warfare
  • Military Unmanned Aerial Vehicles


The report provides:

  • Austria’s defense budget: Detailed analysis of Austria’s 2024 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Regulation: The procurement policy and 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 procurement regulation.
  • Security Environment: Political alliances and perceived security threats to Austria are examined and help to explain trends in spending and modernization.
  • Competitive landscape and strategic insights: Analysis of the competitive landscape of Austria’s defense industry.

Key Highlights

• Drivers of Defense expenditure include Russia, Ukraine and European Security, tensions in the Middle East, and military technology and rearmament

• Major ongoing procurement program include procurement of long and medium-range air defense systems.

Reasons to Buy

  • Determine prospective investment areas based on a detailed Austria defense market trend analysis over the next five years.
  • Understand 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 driving Austria’s defense market and provide a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
  • Channel resources by focusing on the ongoing programs undertaken by the Austrian government.
  • Make correct business decisions based on an 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.

Fischer Advanced Composite Components AG
Kapsch TrafficCom AG
Frequentis AG
A3 Avionics GmbH
Atlas Aerospace GmbH
Avcon Jet AG
Carbon Soltions Hintsteiner GmbH
Diamond Aircraft Industries GmbH
ESL Advanced Information Technology GmbH
Franz Achleitner Fahrzegba und ReifenZentrum GMBH
Glock GesmbH
Hirtenberger AG
Hirtenbrger Defence Europe GmbH
HPI High Pressure Instrumentation Gesellschaft mbH
ISSC Handels GmbH
Madritsch KG
Photonic Optische Gerate GmbH & Co KG
Raytech Vertriebs GmbH
Rheinmetall Waffe Munition Arges GmbH
Rohde & Schwarz Austria Gesellschaft mbH
Schiebel Corp
Steyr Mannlicher Gmbh
Steyr Motors Betriebs GmbH
Steyr-Daimler-Puch Spezialfahrzeug GmbH
Thales Austria GmbH
Embraer SA
Diehl Defence GmbH
Rheinmetall GmbH
Leonardo SpA

Table of Contents

  • 1. Executive Summary
  • 2. Defense Budget Assessment

    • 2.1. Budgeting Process
    • 2.2. Defense Market Size Historic And Forecast
    • 2.3. Drivers Of Defense Expenditure
    • 2.4. Analysis of Defense Expenditure Allocation
    • 2.5. Analysis Of Defense Budget Allocation
    • 2.6. Key Market Trends and Insights

  • 3. Military Doctrine and Security Environment

    • 3.1. Military Doctrine and Strategy
    • 3.2. Strategic Alliances and Geopolitics
    • 3.3. Political, Social and Economic Scenario

  • 4. Market Entry Strategy and Regulations

    • 4.1. Defense Procurement Bodies
    • 4.2. Funding Opportunities
    • 4.3. Trade Associations and Defense Clusters
    • 4.4. Types of Contracts and Opportunities
    • 4.5. How is the Procurement Procedure Decided?
    • 4.6. Types of Procurement Procedure
    • 4.7. Procurement Policy and Market Regulations
    • 4.8. Market Entry Routes
    • 4.9. Key Challenges
    • 4.10. Major Deals and M&A

  • 5. Market Attractiveness and Emerging Opportunities

    • 5.1. Market Attractiveness by Defense Sector
    • 5.2. Top Sectors in the Austria Defense Market
    • 5.3. Top Defense Segments by Value

  • 6. Defense Platforms Import and Export Dynamics

    • 6.1. Defense Platform Import Dynamics
    • 6.2. Defense Platform Export Dynamics

  • 7. Defense Platform Acquisitions

    • 7.1. Defense Platform Acquisitions By Value
    • 7.2. Long-range Air Defense System
    • 7.3. IRIS-T SLS/M Missile Defence System
    • 7.4. Pandur 6×6 Evo
    • 7.5. Tactical Trucks
    • 7.6. C-390 Millenium

  • 8. Fleet Size

    • 8.1. Army
    • 8.2. Air Force

  • 9. Competitive Landscape

    • 9.1. Defense Companies Operating in Austria
    • 9.2. Main Defense Companies

  • 10. Appendix

    • 10.1. About This Report
    • 10.2. About Us
    • 10.3. Contact Us

Frequently asked questions

Austria Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2029 standard reports
Currency USD

Can be used by individual purchaser only


Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

Austria Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2029 was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Austria Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2029 in real time.

  • Access a live Austria Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2029 dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.