Australia Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

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Australia Defense Market Overview

The Australia defense budget is worth $38.1 billion in 2023. The country’s defense budget is expected to grow at a CAGR of more than 5% during 2024-2028. The increase in defense spending will be driven by increasing acquisition programs. The acquisition budget is primarily expected to increase due to the procurement of aircraft, submarines, naval vessels, and missiles.

Australia Defense Market Outlook, 2023-2028

Australia Defense Market Outlook, 2023-2028

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The Australia defense budget market research report provides the market size forecast and the projected growth rate for the next five years. It also covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Market Size (2023) $38.1 billion
CAGR (2024-2028) >5%
Forecast Period 2024-2028
Historical Period 2019-2023
Key Sectors ·       Submarines

·       Naval Vessels and Surface Combatants

·       Missiles and Missile Defense Systems

·       Military Fixed-Wing

·       Military Unmanned Aerial Vehicles

·       Military Rotorcraft

·       Tactical Communications Systems

·       Electronic Warfare Systems

·       Military Land Vehicles

·       Military Satellite

Leading Companies ·       Singtel Optus Pty Ltd

·       Spotless Group Holdings Ltd

·       Monadelphous Group Ltd

·       Sky & Space Global Co Ltd

·       Austal Ltd

·       ASC Pty Ltd

·       IRESS Ltd

·       Airservices Australia

·       BSA Limited

·       Domain Holdings Australia Ltd

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Australia Defense Market Drivers

Strategic priorities have been realigned in the immediate Indo-Pacific region in response to China’s military modernization and expanding sphere of influence.

Furthermore, fulfilling the defense strategy will need new platform acquisitions for deterrence capabilities. Strategic priorities are focusing on deterring potential conflict with greater military power in the immediate region. Future investment in hypersonic research and ballistic missile defense will enable long-distance deterrence.

Australia Military Doctrines and Defense Strategies

Australia’s defense strategy is based on three strategic defense interests which are protecting national security and sea lines of communication, protecting surrounding regions including Southeast Asia and the South Pacific, and ensuring the stability of the Indo-Pacific through a rules-based order.

The military doctrine of Australia is designed specifically to safeguard border and offshore territories like Timor-Leste, Papua New Guinea, maritime Southeast Asia, and Pacific Island countries, and to counter terrorism. Strategically and economically, the Asia-Pacific region has become a focal point for Australia, and its defense strategy is developed to protect trade routes in the region.

Australia Defense Market Segmentation by Sectors

The key sectors in the Australia defense market are submarines, naval vessels and surface combatants, missiles and missile defense systems, military fixed-wing, military unmanned aerial vehicles, military rotorcraft, tactical communications systems, electronic warfare systems, military land vehicles, and military satellite, among others. The top sector in the Australia defense market is submarine, followed by naval vessels and surface combatants and missiles and missile defense systems.

Australia Defense Market Analysis by Sectors, 2023 (%)

Australia Defense Market Analysis by Sectors, 2023 (%)

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Australia Defense Market - Competitive Landscape

Some of the leading defense companies operating in Australia are Singtel Optus Pty Ltd, Spotless Group Holdings Ltd, Monadelphous Group Ltd, Sky & Space Global Co Ltd, Austal Ltd, ASC Pty Ltd, IRESS Ltd, Airservices Australia, BSA Limited, and Domain Holdings Australia Ltd.

Segments Covered in the Report

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

  • Submarines
  • Naval Vessels and Surface Combatants
  • Missiles and Missile Defense Systems
  • Military Fixed-Wing
  • Military Unmanned Aerial Vehicles
  • Military Rotorcraft
  • Tactical Communications Systems
  • Electronic Warfare Systems
  • Military Land Vehicles
  • Military Satellite


The report provides:

  • Detailed analysis of the military doctrine and strategy, budgeting process and procurement process, providing a full picture of the doctrinal and regulatory environment of the market.
  • Analysis of the primary threat perception and alliances shaping the country’s acquisition policy.
  • Detailed analysis of the defense budget, current acquisition programs, imports and exports, and most common entry strategy providing a comprehensive picture of the country’s defense market.
  • Summary of the armed forces standing fleet by main domain: fixed–wing, rotorcraft, naval vessels, submarines, armored vehicles, and artillery.
  • Profiles of the top five defense contractors including business overview, SWOT analysis, latest contracts, and financial results.

Key Highlights

• Drivers of Defense expenditure include Redefined strategic priorities, Acquiring new capabilities for the Australian defense force

• Major ongoing procurement program include procurement of Hunter-class (SEA 5000),RIM-66 Standard, UH-60M Black Hawk

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of the Australia 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 French 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 Australia defense market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion
  • Channel resources by focusing on the ongoing programs that are being undertaken by the Australia 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 contract awarded, and financial analysis, wherever available

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

  • 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. Procurement Policy and Market Regulations
    • 4.3. Market Entry Routes
    • 4.4. Key Challenges
    • 4.5. Major Deals and M&A

  • 5. Market Attractiveness and Emerging Opportunities

    • 5.1. Market Attractiveness, 2023–28
    • 5.2. Top Defense Segments by Value

  • 6. Defense Platform Acquisitions

    • 6.1. Defense Platform Acquisitions by Value
    • 6.2. SSN – AUKUS
    • 6.3. Hunter-class (SEA 5000)
    • 6.4. Virginia-class
    • 6.5. RIM-66 Standard
    • 6.6. C-130J
    • 6.7. UH-60M Black Hawk
    • 6.8. AH-64E Apache
    • 6.9. JP 9102

  • 7. Fleet Size
  • 8. Competitive Landscape

    • 8.1. Defense Companies Operating in Australia
    • 8.2. Main Defense Companies

  • 9. Appendix

    • 9.1. About This Report
    • 9.2. About Us
    • 9.3. Contact Us

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