subject: The Australian Defense Sector Market Opportunities And Entry Strategies, Analyses And Forecasts [print this page] Summary Summary
This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs
(original equipment manufacturers) to gain a market share in the Australian defense industry. In
particular, it offers in-depth analysis of the following:
Market opportunity and attractiveness: detailed analysis of the current industry size and
growth expectations during 20102015, including highlights of the key growth stimulators. It also
benchmarks the industry against key global markets and provides detailed understanding of
emerging opportunities in specific areas.
Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the Australian defense industry.
Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives.
Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry in Australia. It provides an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and
availability, labor force, demographics, and political and social risk.
Scope
analysis of Defense industry market size from 2004 through 2009 and forecasts till 2015
analysis of defense budget allocation
Benchmarking with key global markets
Market opportunities
Defense procurement dynamics
Industry dynamics
Market entry strategy
Competitive landscape and strategic insights
Business environment and country risk
Reasons To Buy
Gain insight into Australian defense industry with current, historic and forecast market values
Get insight on market opportunity and attractiveness
Get insight on industry procurement dynamics
Gain insight on industry structure
Gain insight into the regulations governing the Australian defense industry and the potential market entry strategies with an expert analysis of the competitive structure
Identify top companies of the Australian defense industry along with profiles of all those companies
Key Highlights
The Australian defense industry is expected to grow at a CAGR of 1.97% from a value of US$20.8 billion in 2009 to US$24.7 billion by 2015. Indeed, in 2009, the Australian government launched a new military modernization plan to upgrade its forces in order to counteract the threat posed by rising global terrorism, changing political dynamics in the Asia-Pacific region and the rising number of peacekeeping operations undertaken by the Australian forces. Furthermore, with the exception of a spike of 2.3% in 2009, defense expenditure as a percentage of its gross domestic product (GDP) is expected to increase from 1.9% in 2005 to 2.1% in 2015. However, while the capital expenditure as a percentage of defense budget peaked at 29.4% in 2009, the government is expected to decrease this value to 23.7% by 2015. This is due to the increased budget allocation for revenue expenditure in order to manage matters such as death and retirement benefits, and support services.
During the forecast period, the key market opportunities in the defense industry are expected to emerge in categories such as defense information technology, unmanned aerial vehicles (UAVs), helicopters, upgraded vehicles, armory, submarine rescue vehicles, sonar systems, troop protection equipment, patrolling ships, monitoring and security equipment.
Keywords
Defense, Australia, Raytheon Australia, Boeing Defense Australia, Saab Systems, General Dynamics Land systems Australia, Lockheed Martin Australia (LMA) , Navantia, Tenix Defense, Australian Aerospace , Serco Sodexho Defense Services (SSDS), Thales Australia, ASC, , , , , , , , , , , , , , , , ,
Table of Contents :
1 Introduction
1.1 About this Report
1.2 Definitions
1.3 Methodology
1.3.1 Secondary research
1.3.2 Primary research
1.3.3 Conventions
1.4 ICD Research Terrorism Index
1.5 About ICD Research Defense Intelligence Center
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size and Forecast
3.1.1 Australian annual defense expenditure expected to reach US$24.7 billion by 2015
3.1.2 Defense expenditure driven by military modernization, terror threats, changing Asia-Pacific power dynamics and peacekeeping missions
3.2 Analysis of Defense Budget Allocation
3.2.1 Capital expenditure share to decrease to US$5.9 billion by 2015
3.2.2 Budget allocation for air force, navy and army expected to increase in the near term
3.2.3 Allocation for air force is expected to increase moderately in the forecast period
3.2.4 Navy expenditure expected to increase marginally during the forecast period
3.2.5 Army expenditure expected to increase at a CAGR of 3.78% in the forecast period
3.2.6 Budget allocation for defense support, intelligence and personnel expected to increase in line with defense budget
3.3 Homeland security market size and forecast
3.3.1 Border protection and aviation security to drive growth of homeland security budget
3.3.2 Terrorism and illegal fishing to drive homeland security expenditure
3.4 Benchmarking with Key Global Markets
3.4.1 Australia ranked fourteenth among top military spenders
3.4.2 Australian defense expenditure accounts for 1.5% of global spend
3.4.3 Defense expenditure as percentage of GDP to increase over forecast period
3.4.4 Australia ranked fourteenth among top arms importing countries
3.4.5 Australia ranked twenty ninth among top arms exporting countries
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Increased surveillance needs expected to drive demand for UAVs
3.5.2 NCW program expected to drive demand for communication, data management and networking technologies
3.5.3 Land fleet capacity expansion expected to drive demand for upgraded vehicles and armory
3.5.4 Submarines upgrade to drive the demand for submarine rescue vehicles, sonar systems, and ship management and control systems
3.5.5 Safety of troops continues to drive demand for protective equipment
3.5.6 Border security concerns expected to drive demand for patrol vessels, and monitoring and security equipment
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 Germany loses market share of arms transfers with Australia to the US and France
4.1.3 Imports of aircraft and missiles continue to increase
4.2 Export Market Dynamics
4.2.1 Defense exports expected to increase during forecast period
4.2.2 Ships constitute majority of 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 Establishing domestic subsidiary is preferred market entry route
6.2.2 Foreign OEMs sub-contract defense deals to domestic firms in order to enter the market
6.2.3 Foreign OEMs offer domestic companies access to global supply chains in order to enter the industry
6.2.4 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 defense industry
6.3.2 Global supply chain pose challenge for foreign OEMs
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.1.1 Eight established foreign OEMs dominate the Australian defense market
7.2 Key Foreign Companies
7.2.1 Raytheon Australia: overview
7.2.2 Raytheon Australia: product focus
7.2.3 Raytheon Australia: recent announcements and strategic initiatives
7.2.4 Raytheon Australia: alliances
7.2.5 Raytheon Australia: recent contract wins
7.2.6 Raytheon Australia: financial analysis
7.2.7 Boeing Defense Australia: overview
7.2.8 Boeing Defense Australia: product focus
7.2.9 Boeing Defense Australia: recent announcements and strategic initiatives
7.2.10 Boeing Defense Australia: alliances
7.2.11 Boeing Defense Australia: recent contract wins
7.2.12 Boeing Defense Australia: financial analysis
7.2.13 Saab Systems: overview
7.2.14 Saab Systems: product focus
7.2.15 Saab Systems: recent announcements and strategic initiatives
7.2.16 Saab Systems: alliances
7.2.17 Saab Systems: recent contract wins
7.2.18 Saab Systems: financial analysis
7.2.19 General Dynamics Land Systems Australia: overview
7.2.20 General Dynamics Land Systems Australia: product focus
7.2.21 General Dynamics Land Systems Australia: recent announcements and strategic initiatives
7.2.22 General Dynamics Land Systems Australia: alliances
7.2.23 General Dynamics Land Systems Australia: recent contract wins
7.2.24 General Dynamics Land Systems Australia: financial analysis
7.2.25 Lockheed Martin Australia: overview
7.2.26 Lockheed Martin Australia: product focus
7.2.27 Lockheed Martin Australia: recent announcements and strategic initiatives
7.2.28 Lockheed Martin Australia: alliances
7.2.29 Lockheed Martin Australia: recent contract wins
7.2.30 Lockheed Martin Australia: financial analysis
7.2.31 Navantia: overview
7.2.32 Navantia: product focus
7.2.33 Navantia: recent announcements and strategic initiatives
7.2.34 Navantia: alliances
7.2.35 Navantia: recent contract wins
7.2.36 Navantia: financial analysis
7.2.37 Tenix Defense: overview
7.2.38 Tenix Defense: products and services
7.2.39 Tenix Defense: recent announcements and strategic initiatives
7.2.40 Tenix Defense: alliances
7.2.41 Tenix Defense: recent contract wins
7.2.42 Tenix Defense: financial analysis
7.2.43 Australian Aerospace: overview
7.2.44 Australian Aerospace: products and services
7.2.45 Australian Aerospace: recent announcements and strategic initiatives
7.2.46 Australian Aerospace: alliances
7.2.47 Australian Aerospace: recent contract wins
7.2.48 Australian Aerospace: financial analysis
7.2.49 Serco Sodexho Defense Services: overview
7.2.50 Serco Sodexho Defense Services: products and services
7.2.51 Serco Sodexho Defense Services: recent announcements and strategic initiatives
