Overview

Fire power: Greater government spending on defence will support industry revenue growth

The Defence market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$34bn
Annual Growth
2012 - 2017
5.3%
Annual Growth
2017 - 2022
Profit
Employment
102,172
Business
43

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 largely 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 5.3% over the five years through 2016-17, to $34.4 billion. Strong industry growth occurred following the Coalition's victory in the 2013 Federal Election. This growth is expected to continue in 2016-17 under the Turnbull Government, with revenue anticipated to grow by 8.2% 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 56.5% of the defence budget for 2016-17. 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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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 Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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