Overview

Gunning it: Increasing government funding commitments have driven revenue growth

IBISWorld’s Defence market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$37bn
Annual Growth
2013 - 2018
5.6%
Annual Growth
2018 - 2023
Profit
Employment
103,126
Business
44

Industry Threats & Opportunities

  • Naval expenditure for border protection, via Operation Resolute, has supported defence funding growth
  • Industry revenue has grown despite several military operations being wound down over the past five years
  • Some of the increased defence expenditure will be used to build new warships, submarines and aircraft

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    Industry Analysis & Industry Trends

    The Defence industry is primarily funded by the Federal Government. The industry provides a public service to the Australian population by providing national security. Industry revenue is mostly 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 2017-18, to reach $36.5 billion. The industry grew strong following the Coalition's victory in the 2013 Federal Election. Industry growth is expected to continue in 2017-18 under the Turnbull Government, with revenue anticipated to grow by 5.3% due to funding growth for capability development and Australian Defence Force (ADF) operations...

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    Industry Report - Industry Key Buyers Chapter

    The Defence industry is exclusively controlled and managed by the Federal Government through the Department of Defence. Therefore, it is considered to have extremely high market share concentration. Army, Navy and Air Force capabilities are estimated to account for 58.1% of the defence budget for 2017-18. This figure has remained relatively steady over the past five years.

    An alternative method of analysing concentration is to assess the share of the supply chain that is controlled by the industry. Due to the increasing complexity of technology used in defence, the industry often outsources manufacturing and maintenance work that was formerly performed in-house. Specialist electronics, communications and engineering companies are contracted for much of the work required. The..

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    Additional Insights for the Defence Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Defence Industry are

  • Access to secure revenue
  • Ability to expand and curtail operations rapidly in line with market demand
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on defence and Real GDP growth in the Defence industry impact industry performance..

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    Industry Products

    What is the Defence Industry?

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

    Industry Products
    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, service contractors and tertiary educational)
    Civil defence operation (military)
    Government administration (defence)

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Capital expenditure on defence
  • Real GDP growth
  • Demand from scientific research services
  • Natural disasters

  • Current Performance
  • Participation and profit
  • Budget volatility
  • Military operations
  • Capital expenditure
  • Chart: Revenue Growth

  • Industry Outlook
  • Defence White Paper
  • Capital investment
  • Table: Defence Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Defence Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Central Government Administration

  • Key Selling Industries
  • Aircraft Manufacturing and Repair Services
  • Computer System Design Services
  • Engineering Consulting
  • Motor Vehicle Manufacturing
  • Shipbuilding and Repair Services
  • Wired Telecommunications Network Operation

  • Products & Services
  • Army capabilities
  • Air Force capabilities
  • Navy capabilities
  • Defence support
  • Coordination and assistance
  • Superannuation and housing
  • Intelligence, science and technology
  • Chart: Defence Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Federal Government
  • Chart: Major Market Segmentation for the Defence Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Defence

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Defence Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Defence Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Defence Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Australian Defence Force (Adf)
  • The military organisation responsible for the defence of Australia, consisting of the Australian Army, Royal Australian Navy and the Royal Australian Air Force.
  • Civilian
  • A person who is not a member of his or her country's armed forces.
  • Combat
  • An engagement fought between two military forces.
  • Peacekeeping
  • The supervision by international forces of a truce between hostile nations or groups.
  • Why buy this report?

    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:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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