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.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
2012 - 2017
Annual Growth
2017 - 2022

Industry Threats & Opportunities

  • Naval expenditure for border protection, via Operation Resolute, has supported defence funding growth
  • Several military operations have been wound down over the period, reducing defence expenditure
  • 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 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 Locations Chapter

    The distribution of defence employees across Australia can largely be put down to where the industry has established its headquarters and military bases. The distribution of ADF military personnel and Australian Public Service (APS) civilian staff is decidedly different. The Department of Defence is headquartered at the Russell Offices complex in Canberra, which means there is a high concentration of APS staff working in the ACT. APS staff includes both Defence and Capability Acquisition and Sustainment Group (CASG) staff. Victoria and South Australia also have a greater proportion of APS staff than ADF personnel as CASG workers are located close to the strong equipment manufacturing industries in these states.


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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
  • 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
  • Navy capabilities
  • Air Force capabilities
  • Superannuation and housing
  • Coordination and assistance
  • Defence support
  • 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
  • Internal competition
  • External 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
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • 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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