Defence in Australia - Market Research Report

Defence industry trends (2014-2019)

poll Average industry growth 2014–2019: 3.2%

The Defence industry is a Federal Government monopoly that is operated through the Department of Defence. The industry administers a public service to the Australian population by providing national security. Industry revenue is primarily made up of Federal Government appropriations on behalf of taxpayers to fund necessary defence expenditure. The Defence industry is expected to grow at an annualised 5.6% over the five years through 2018-19, to $37.6 billion. This industry has grown strongly since the Coalition's victory in the 2013 Federal Election. Industry revenue is anticipated to grow 5.8% in the current year, due to funding growth for capability development and Australian Defence Force (ADF) operations. Over half of all defence expenditure goe...
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Defence industry outlook (2019-2024)

poll Average industry growth 2019-2024: x.xlockPurchase this report or a membership to unlock the average company profit margin for this industry.

The Defence industry is forecast to continue growing strongly over the next five years, as the Federal Government continues to target annual defence spending of X.X% of GDP. Industry revenue is projected to rise at an annualised X.X% over the five years through XXX-XX, to reach $XX.X billion. Increased expenditure will involve constructing new warships, submarines and aircraft; enhancing defence support systems; and modernising intelligence and surveillance systems in response to global terrorism threats. The XXX Defence White Paper (DWP) indicated that the industry will increasingly focus on the Indo-Pacific region. The DWP sets out the industry's strategic direction over much of the next five years. The ADF will continue to contribute to United Na...
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Defence industry statistics

  • attach_money Market Size: $38bn
  • business Number of Businesses: 384
  • poll Average Industry Profit Margin: x.x%
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  • supervisor_account Industry Employment: 98,068

Biggest companies in the Defence industry

The Defence in Australia industry has no companies with major market shares. Get the full report to find out why.

What is Defence industry?

Industry Definition

The industry is part of Australia’s public sector. The industry largely consists of the Department of Defence, which includes various groups involved in defence and national security. These groups include the army, navy, air force,  intelligence organisations, and associated administrative and support functions. The industry excludes firms that provide services to defence, and educational institutions for the defence force.

Industry Products and Services

  • Army capabilities
  • Air Force capabilities
  • Navy capabilities
  • Defence support
  • Coordination and assistance
  • Superannuation and housing
  • Intelligence, science and technology

Industry Activities

  • Armed forces unit operation (except manufacturing, service contractors and tertiary educational)
  • Civil defence operation (military)
  • Government administration (defence)

Market research report - table of contents

Industry Definition

The industry is part of Australia’s public sector. The industry largely consists of the Department of Defence, which includes various groups involved in defence and national security. These groups include the army, navy, air force,  intelligence organisations, and associated administrative and support functions. The industry excludes firms that provide services to defence, and educational institutions for the defence force.

Main Activities

  • Armed forces unit operation (except manufacturing, service contractors and tertiary educational)
  • Civil defence operation (military)
  • Government administration (defence)

Similar Industries

Additional Resources

Industry Statistics Snapshot

Industry Structure

Executive Summary

Key External Drivers

The industry receives most of its revenue from the Federal Government. Capital expenditure on defence reflects the political priorities of the Federal Gov...
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Capital expenditure on defence
Real GDP growth
Cost of natural disasters
Demand from scientific research services

Current Performance

Budget volatility
Military operations
Capital expenditure
 Chart: Revenue Growth

Industry Outlook

Capital investment
 Table: Defence in Australia - Market Research Report Industry Revenue Outlook

Industry Life Cycle

Life Cycle Reasons
 Chart: Benchmarking - Defence in Australia - Market Research Report Industry Lifecycle vs The Economy

Supply Chain

Key Buying Industries

Central Government Administration in Australia






Key Selling Industries

Motor Vehicle Manufacturing in Australia
Shipbuilding and Repair Services in Australia
Aircraft Manufacturing and Repair Services in Australia
Engineering Consulting in Australia
Computer System Design Services in Australia
Wired Telecommunications Network Operation in Australia

Products & Services

The Defence industry provides numerous products and services. The largest and most notable are the three branches of the Australian Defence Force (ADF): t...






Demand Determinants

The Defence industry works continuously to protect the national security interests of Australia through its military and intelligence capabilities. Demand...
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Major Markets








 Chart: Major Market Segmentation for the Defence in Australia - Market Research Report Industry

International Trade

Business Locations

Chart: Business Locations by State Chart: Business Locations by State

Market Share Concentration

The Defence industry is exclusively controlled and managed by the Federal Government through the Department of Defence. It therefore has extremely high ma...
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Key Success Factors

Cost Structure Benchmarks

Profit, Purchases, Wages, Other Costs
 Chart: Cost Structure Benchmarking – Sector vs Defence in Australia - Market Research Report

Basis of Competition

Internal competition
External competition

Barriers to Entry

 Table: Barriers to Entry Checklist for the Defence in Australia - Market Research Report Industry

Industry Globalization

The Defence in Australia industry has no major companies. Get the full report to find out why.

Capital Intensity

The Defence industry exhibits a high level of capital intensity and this trend has increased over the past five years. For every dollar spent on capital c...
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 Chart: Level of Capital Intensity for the Defence in Australia - Market Research Report Industry
 Chart: Tools of the Trade: Growth Strategies for Success

Technology & Systems

Revenue Volatility

Chart: Volatility vs Industry Growth Chart: Volatility vs Industry Growth

Regulation & Policy

Industry Assistance

Table: Industry data Table: Industry Data for the Defence in Australia Industry

Industry Revenue (2007-2025)
Industry Gross Product (2007-2025)
Establishments (2007-2025)
Businesses (2007-2025)
Employment (2007-2025)
Exports (2007-2025)
Imports (2007-2025)
Wages (2007-2025)
Domestic Demand (2007-2025)

Table: Annual Percentage Change for Key Industry Data Table: Annual Percentage Change for Key Industry Data

Table: Key Ratios for Industry Key Dat Table: Key Ratios for Industry Key Data

Table: Industry Financial Ratios Table: Industry Financial Ratios

Liquidity Ratios
Coverage Ratios
Leverage Ratios
Operating Ratios
Cash Flow & Debt Service Ratios (% of Sales)
Assets, %
Liabilities, %

AUSTRALIAN DEFENCE FORCE (ADF)

CIVILIAN

COMBAT

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Included in Report

  • Industry Financial Ratios
    Industry Financial Ratios
  • Revenue Forecasts
    Revenue Forecasts
  • Historical and Forecast Growth
    Historical and Forecast Growth
  • Industry Market Size
    Industry Market Size
  • Industry Major Players
    Industry Major Players
  • Profitability Analysis
    Profitability Analysis
  • SWOT Analysis
    SWOT Analysis
  • Industry Trends
    Industry Trends
  • Industry Operating Conditions
    Industry Operating Conditions
  • Porter's 5 Forces Analysis
    Porter's 5 Forces Analysis

Why buy this report on the Defence industry?

IBISWorld industry market research reports enable you to:

  • Find out about key industry trends
  • Identify threats and opportunities
  • Inform your decisions for marketing, strategy and planning
  • Quickly build competitive intelligence

This report on Defence in Australia:

  • Provides Market Size information to assist with planning and strategic decisions.
  • Includes the necessary information to perform SWOT, PEST and STEER analysis.
  • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
  • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.

The Defence in Australia market research report includes:

  • Historical data and analysis for the key drivers of this industry
  • A five-year forecast of the market and noted trends
  • Detailed research and segmentation for the main products and markets
  • An assessment of the competitive landscape and market shares for major companies
  • And of course, much more

IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Defence in Australia, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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