Defence in Australia Industry Market Research Report now updated by IBISWorld

Share Article

The Defence industry in Australia’s performance is dependent on Federal Government funding. Relatively large revenue fluctuations can occur from year to year, but volatility tends to smooth out over the long term. Despite continued defence spending, there is uncertainty over agreements with Australian industries that supply products and services to defence, due to cost controls and the aim to maintain compatible equipment with the United States. For these reasons, industry research firm IBISWorld has updated its report on the Defence industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The Defence industry in Australia is dependent on Federal Government funding

Contributions towards the Defence industry in Australia are expected to rise at a rate of 1.4% per annum over the five years through 2011-12. The rise in Federal Government funding, which makes up the majority of total revenue, represents the government's commitment toward ensuring the safety and security of Australia and its neighbouring nations. In 2011-12, the industry will generate revenue of $23.9 billion, representing a fall of 3.8% from the previous year. According to IBISWorld industry analyst David Stephen, “relatively large revenue fluctuations can occur from year to year, but volatility tends to smooth out over the long term”.

The major challenge for the Defence industry over the five years through 2016-17 will be in assessing the appropriate level and capability of defence equipment in a volatile global, political and security environment. Despite continued defence spending, there is uncertainty over agreements with Australian industries that supply products and services to defence, due to cost controls and the aim to maintain compatible equipment with the United States. Stephen adds, “this could mean that the Department of Defence and its Defence Material Organisation may bypass some local suppliers in favour of off-the-shelf systems that are cheaper, proven and extensively customised”.

The Defence industry in Australia is exclusively controlled and managed by the Federal Government, and therefore is considered to have an extremely high market share concentration level. An alternative way to analyse concentration is to assess the share of the supply chain that is controlled by the industry. The increasing complexity of technology used in defence has resulted in much of this work now being outsourced to private firms, particularly specialist electronics, communications and engineering companies. This trend is expected to continue over the next five years, meaning that the industry's level of control over the supply goods and services will further decline.

For more information, visit IBISWorld’s Defence industry report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

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

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
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

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website