1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 SDI Terrorism Index
1.5 About Strategic Defense Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size Historical and Forecast
3.1.1 The Australian defense budget is expected to grow at an estimated CAGR of
5.75% during the forecast period
3.1.2 Military modernization, participation in peacekeeping missions, instability in Asian regions, and research and development programs are the major factors driving the Australian defense industry
3.1.3 Military expenditure as a percentage of GDP to average
2.1% during the forecast period
3.2 Analysis of Defense Budget Allocation
3.2.1 Capital expenditure allocation is expected to average
34.1% over the forecast period
3.2.2 The share of other expenditure is anticipated to increase to 44% over the forecast period
3.2.3 Army expenditure to grow at a CAGR of
5.12% over the forecast period to reach US$6.6billion by 2021
3.2.4 Air force expenditure to cumulatively valueUS$28.9billion over the forecast period
3.2.5 Naval expenditure is expected to reach US$5.5 billion by 2021
3.2.6 Per capita defense expenditure expected to increase during the forecast period
3.3 Homeland Security Market Size and Forecast
3.3.1 Homeland security expenditure is expected to be US$22.2 billion cumulatively during the forecast period
3.3.2 Measures to curb organized crime, cyber-attacks, maritime threats and combating terrorism will drive homeland security expenditure
3.3.3 Australia faces moderate threat from foreign terrorist organizations
3.3.4 Australia has a terrorism index score of
3.1
3.4 Benchmarking with Key Global Markets
3.4.1 Australian defense expenditure expected to remain modest compared to the leading spenders
3.4.2 Australia will continue to dominate the arms market in the Asia-Pacific region
3.4.3 Defense expenditure as a percentage of GDP to average
2.1% over the forecast period
3.4.4 Australia faces a moderate threat from foreign terrorist organizations
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Multi-role Aircraft
3.5.2 Submarine
3.5.3 Transport Aircraft MRO
3.5.4 Multi-role Aircraft MRO
3.5.5 Destroyer
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Defense imports expected to increase considerably over the forecast period
4.1.2 The US stands as the largest arms supplier to Australia during 2011-2015
4.1.3 Imports of aircraft and ships expected to surge over the forecast period
4.2 Export Market Dynamics
4.2.1 Defense exports expected to increase during the forecast period owing to the government's initiatives
4.2.2 The US was the main importer of the Australian defense goods during 2011-2015
4.2.3 Aircraft and ships constitute the majority of Australian exports
5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: Low to Medium
5.1.2 Bargaining power of buyer: High
5.1.3 Barrier to entry: High
5.1.4 Intensity of rivalry: Medium to High
5.1.5 Threat of substitution: high
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 AIC program ensures the participation of local industry
6.1.2 Approval for foreign investment in defense sector set at US$216.2 million
6.2 Market Entry Route
6.2.1 Foreign military sales (FMS) to Australia
6.2.2 Establishing a domestic subsidiary is the preferred market entry route
6.2.3 Foreign OEMs sub-contract defense deals to domestic firms in order to enter the market
6.2.4 Foreign OEMs offer domestic companies access to global supply chains in order to enter the industry
6.2.5 DRSS provides opportunities to develop strong relations with the ADO
6.3 Key Challenges
6.3.1 Cost overruns and project delays continue to worry the defense industry
6.3.2 Low allocation of skilled labour in the defense sector
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.2 Key Domestic Companies
7.2.1 Thales Australia: Overview
7.2.2 Thales Australia: Products
7.2.3 Thales Australia: Recent announcements and strategic initiatives
7.2.4 Thales Australia: alliances
7.2.5 Thales Australia: recent contract wins
7.2.6 Boeing Defense Australia: Overview
7.2.7 Boeing Defense Australia: Products
7.2.8 Boeing Defense Australia: Recent Announcements and Strategic Initiatives
7.2.9 Boeing Defense Australia: Alliances
7.2.10 Boeing Defense Australia: Recent Contract Wins
7.2.11 Lockheed Martin Australia: Overview
7.2.12 Lockheed Martin Australia: Products
7.2.13 Lockheed Martin Australia: Recent announcements and strategic initiatives
7.2.14 Lockheed Martin Australia: Alliances
7.2.15 Lockheed Martin Australia: recent contract wins
7.2.16 Raytheon Australia: Overview
7.2.17 Raytheon Australia: Products
7.2.18 Raytheon Australia: Recent Announcements and Strategic Initiatives
7.2.19 Raytheon Australia: Alliances
7.2.20 Raytheon Australia: recent contract wins
7.2.21 Austal Ltd.: Overview
7.2.22 Austal Ltd.: Products and services
7.2.23 Austal Ltd.: recent announcements and strategic initiatives
7.2.24 Austal Ltd.: Alliances
7.2.25 Austal Ltd.: recent contract wins
7.2.26 Austal Ltd.: Financial analysis
7.2.27 Saab Systems: Overview
7.2.28 Saab Systems: Products
7.2.29 Saab Systems: Recent announcements and strategic initiatives
7.2.30 Saab Systems: Alliances
7.2.31 Saab Systems: recent contract wins
7.2.32 General Dynamics Land Systems Australia: Overview
7.2.33 General Dynamics Land Systems Australia: Products
7.2.34 General Dynamics Land Systems Australia: Recent Announcements and Strategic Initiatives
7.2.35 General Dynamics Land Systems Australia: Alliances
7.2.36 General Dynamics Land Systems Australia: recent contract wins
7.2.37 Navantia: Overview
7.2.38 Navantia: Products
7.2.39 Navantia: Recent announcements and strategic initiatives
7.2.40 Navantia: Alliances
7.2.41 Navantia: recent contract wins
7.2.42 Airbus Group Australia Pacific: Overview
7.2.43 Airbus Group Australia Pacific: Major Products
7.2.44 Airbus Group Australia Pacific: Recent Announcements and Strategic Initiatives
7.2.45 Airbus Group Australia Pacific: Alliances
7.2.46 Airbus Group Australia Pacific: Recent Contract Wins
7.3 Key Public Sector Company
7.3.1 ASC: Overview
7.3.2 ASC: Major Products
7.3.3 ASC: Recent Announcements and Strategic Initiatives
7.3.4 ASC: Alliances
7.3.5 ASC: Recent Contract Wins
7.3.6 ASC: Financial analysis
8 Business Environment and Country Risk
8.1 Economic Performance
8.1.1 GDP per capita
8.1.2 GDP at current prices (US$)
8.1.3 Exports of goods and services (LCU)
8.1.4 Imports of goods and services (LCU)
8.1.5 Gross national disposable income (US$ Bn)
8.1.6 LCU per US$ (period average)
8.1.7 Market capitalization of listed companies (US$ bn)
8.1.8 Market capitalization of listed companies (% of GDP)
8.1.9 Government cash surplus/deficit as a percentage of GDP (LCU)
8.1.10 Goods exports as a percentage of GDP
8.1.11 Goods imports as a percentage of GDP
8.1.12 Services imports as a percentage of GDP
8.1.13 Services exports as a percentage of GDP
8.1.14 Foreign Direct Investment
8.1.15 Net foreign direct investment as % of GDP
8.2 Mineral
8.2.1 Mining, Manufacturing, Utilities Output (USD Bn)
9 Appendix
9.1 About SDI
9.2 Disclaimer