Austria Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2029
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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)
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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 |
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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.
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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.
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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 (%)
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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
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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
Scope
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.
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
FACC AG
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
Frequently asked questions
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What is Austria defense market size in 2024?
The defense market size in Austria is $4.3 billion in 2024.
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What will the Austria defense market growth rate be during the forecast period?
The defense market in Austria is expected to achieve a CAGR of more than 5% during 2025-2029.
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Which sector holds the highest share of the Austria defense market in 2024?
Missiles and missile defense systems hold the highest share of the Austrian defense market in 2024.
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Which are the key companies operating in the Austria defense market?
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, and Leonardo SpA among others.
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