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

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Austria Defense Market – Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2024-2029 report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

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 is not a member of NATO, however it is an EU member, and still contributes to European security initiatives through the EU as well as other organizations like the OSCE and the UN. Being a formally neutral nation also comes with its own implications for security and defense: Austria maintains a small but well-equipped and highly professional standing army, alongside a robust system of ‘people’s militia’ reserve forces – all males aged 18-35 must complete a minimum of 6 month’s military service, or 9 months in ‘alternative public service’ for objectors. Those who have completed training are eligible to be called up again in times of national emergency.

In response to the deteriorating security environment, Austria is beginning to modernise aspects of its existing forces as well as expanding to newer capabilities, such as new medium and long-range air defense systems. It is increasing the mechanisation of its forces with additional orders of Pandur APCs, and will begin seeking a replacement for its Eurofighter combat jet fleet in the coming years, alongside other purchases such as new helicopters from Augusta Westland (Leonardo). Whilst total spending had a historic tendency to fluctuate, since 2022 Austria has seen consistent increases in defense spending, and this is anticipated to continue through until 2029, where spending peaks at $5.8 billion.

Who Should Buy

– Defence Startups, Original Equipment Manufacturers (OEMs), Defence Planners, Aerospace and Defence Integrators, Venture Capital Firms, Government Agencies, Head of Marketing, Head of Sales, CEOs and Senior Executives.
– The concerned stakeholders can utilize the report to identify high growth segments and customize their offerings to match the project requirements.
– The Venture Capital Firms can utilize the project details, growth rate, and market size to identify and fund high potential startups.

Austria Defense Market Drivers

Austria has been committed to modernization for some years, with ongoing key acquisitions, and increased investment in enabling these purchases. Moreover, the conflict in Ukraine has spurred defense spending, with Austria committing to increasing spending in the coming years.

Furthermore, the variety of threats that Austria is facing is a major driver of spending, with conventional and varied asymmetrical threats requiring different approaches.

Austria Military Doctrines and Defense Strategies

In recent years, Austria has established increased early warning capabilities which work in combination with military preparedness to make the country a viable military power. The military is tasked with ensuring domestic sovereignty, as well as facilitating international crisis management.

Austria’s military strategy centers on trying to ensure ongoing peace and avoid violent conflict, as well as fostering relations with allies to ensure ongoing international security. It works with the EU and NATO to pursue common security goals, particulary those in the European neighborhood which increasingly threaten EU security. Austrian security documents describe numerous threats to ongoing stability, including destabilization, shifting global power relations, transnational organized and economic crime, and the proliferation of WMDs globally.

Austria Defense Market Segmentation by Sectors

The key sectors in the Austria defense market are military fixed-wing aircraft, military rotorcraft, electronic warfare, military radar, EOIR, military simulation and training, tactical communications, military land vehicles, and INS GNSS. Military fixed-wing aircraft is the top segment in the Austrian defense market and is expected to rank as the leading sector in the coming years.

Austria Defense Market Analysis by Sectors, 2023 (%)

Austria Defense Market Analysis by Sectors, 2023 (%)

For more sector insights into the Austria defense market, download a free report sample

Austria Defense Market - Competitive Landscape

Some of the leading defense companies in Austria are Mitsubishi Corp, Accenture Plc, Ingram Micro Inc, Cisco Systems Inc, ThyssenKrupp AG, Heraeus Holding GmbH, Arrow Electronics Inc, Jabil Inc, ABB Ltd, and SPINNER GmbH.

Austria Defense Market Report Overview

Market Size (2023) $3.4 billion
CAGR (2024-2028) >11%
Forecast Period 2024-2028
Historical Period 2019-2022
Key Sectors Military Fixed-Wing Aircraft, Military Rotorcraft, Electronic Warfare, Military Radar, EOIR, Military Simulation and Training, Tactical Communications, Military Land Vehicles, and INS GNSS
Leading Companies Mitsubishi Corp, Accenture Plc, Ingram Micro Inc, Cisco Systems Inc, ThyssenKrupp AG, Heraeus Holding GmbH, Arrow Electronics Inc, Jabil Inc, ABB Ltd, and SPINNER GmbH

Segments Covered in the Report

Austria Defense Market Sectors Outlook (Value, $ Billion, 2019-2028)

  • Military Fixed-Wing Aircraft
  • Military Rotorcraft
  • Electronic Warfare
  • Military Radar
  • EOIR
  • Military Simulation and Training
  • Tactical Communications
  • Military Land Vehicles


This report offers detailed analysis of Austria 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.

In particular, it provides an in-depth analysis of the following –

• Austria defense budget: detailed analysis of Austria 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 military doctrine and strategy to provide a comprehensive overview of Austria military procurement regulation.

• Security Environment: political alliances and perceived security threats to Austria are examined; there help to explain trends in spending and modernisation.

• 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 Austria 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 trend analysis of the Austria defense market over the next five years

• Gain in-depth understanding about 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 includes information about the key products, alliances, recent contract 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

Executive Summary

Defense Budget Assessment

Budgeting Process

Defense Market Size Historic And Forecast

Drivers Of Defense Expenditure

Analysis of Defense Expenditure Allocation

Analysis Of Defense Budget Allocation

Key Market Trends and Insights

Military Doctrine And Security Environment

Military Doctrine And Strategy

Strategic Alliances and Geopolitics

Political, Social and Economic Scenario

Market Entry Strategy And Regulations

Defense Procurement Bodies

Funding Opportunities

Trade Associations and Defense Clusters

Types of Contracts and Opportunities

How is the Procurement Procedure Decided?

Types of Procurement Procedure

Procurement Policy and Market Regulations

Market Entry Routes

Key Challenges

Major Deals and M&A

Market Attractiveness And Emerging Opportunities

Market Attractiveness By Defense Sector

Top Sectors in the South Korea Defense Market

Top Defense Segments By Value

Defense Platforms Import and Export Dynamics

Defense Platforms Import Dynamics

Defense Platforms Export Dynamics

Defense Platform Acquisitions

Defense Platform Acquisitions By Value

Long-range Air Defense System

IRIS-T SLS/M Missile Defence System

Pandur 6×6 Evo

Tactical Trucks

C-390 Millenium

Fleet Size


Air Force

Competitive Landscape

Defense Companies Operating In Austria

Main Defense Companies

Fleet Size


Air Force

Competitive Landscape

Defense Companies Operating In Austria

Main Defense Companies


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