Future of the Austrian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Table of Contents

1. Introduction 7

• 1.1. What is this Report About? 7
• 1.2. Definitions 7
• 1.3. Summary Methodology 9
• 1.4. About GlobalData 10

2. Executive Summary 11

3. Market Attractiveness and Emerging Opportunities 13

• 3.1. Current Market Conditions 14
  • 3.1.1. Military Fleet Size 14
  • 3.1.2. Procurement Programs 16
  • 3.1.3. Key Drivers and Challenges 16
• 3.2. Defense Market Size Historical and Forecast 19
  • 3.2.1. Austrian defense budget to record a CAGR of 3.02% over the forecast period 19
  • 3.2.2. Spending to be driven by peacekeeping missions and the acquisition of advanced defense systems 22
  • 3.2.3. The defense budget as a percentage of GDP is expected to increase during the forecast period 23
• 3.3. Analysis of Defense Budget Allocation 25
  • 3.3.1. Procurement of advanced equipment to drive capital expenditure allocation during the forecast period 25
  • 3.3.2. Capital expenditure is expected to grow at a CAGR of 3.62% over the forecast period 27
  • 3.3.3. Per capita defense expenditure expected to increase during the forecast period 29
• 3.4. Homeland Security Market Size and Forecast 31
  • 3.4.1. Austria homeland security is expected to increase at a CAGR of 2.35% over the forecast period 31
  • 3.4.2. Protection of energy infrastructure and combating drug trafficking will be the key factors driving homeland security 33
  • 3.4.3. Austrian falls under “some risk” category on the Terrorism Index 34
  • 3.4.4. Austrian faces “some risk” by acts of terrorism 35
  • 3.4.5. Austria has a terrorism index score of 1.5 37
• 3.5. Benchmarking with Key Global Markets 38
  • 3.5.1. Austrian defense expenditure is expected to remain modest during the forecast period 38
  • 3.5.2. Austrian defense expenditure is relatively small when compared to the leading defense spenders 40
  • 3.5.3. Austria spent over 0.57% of its GDP on defense in 2018 41
• 3.6. Market Opportunities: Key Trends and Drivers 42
  • 3.6.1. Top Defense Sectors by Value (US$ Million) - Projections over 2018-2023 42

4. Defense Procurement Market Dynamics 43

• 4.1. Import Market Dynamics 44
  • 4.1.1. Defense imports expected to increase rapidly during the forecast period 44
  • 4.1.2. Austria imports the majority of its arms from Italy 45
  • 4.1.3. Armoured Vehicles dominates Austrian defense imports 46
• 4.2. Export Market Dynamics 47
  • 4.2.1. Austrian defense exports registered a decline post 2013 47
  • 4.2.2. Austria supplies defense equipment to a diverse consumer base 48
  • 4.2.3. Armored vehicles accounted for the majority of the country’s defense exports during 2013-2017 49

5. Industry Dynamics 50

• 5.1. Market Regulation 50
  • 5.1.1. Offset policy requires suppliers to invest 100% of the contract value into the Austrian economy 50
  • 5.1.2. Austrian defense industry open to foreign direct investment 51
• 5.2. Market Entry Route 52
  • 5.2.1. Budgeting Process 52
  • 5.2.2. Foreign defense OEMs enter the market through acquisitions or alliances 52
  • 5.2.3. Europe Defense Agency (EDA) promotes defense procurements within EU 53
  • 5.2.4. Single distributor system advisable in Austria 53
  • 5.2.5. Joint Projects and Sharing of Technology 53

6. Competitive Landscape and Strategic Insights 54

• 6.1. Competitive Landscape Overview 54
  • 6.1.1. The majority of modern defense equipment in Austria are supplied by foreign manufacturers 54

7. Business Environment and Country Risk 56

• 7.1. Economic Performance 56
  • 7.1.1. GDP per Capita 56
  • 7.1.2. Gross Domestic Product 57
  • 7.1.3. Exports of Goods and Services (LCU Billion) 58
  • 7.1.4. Imports of Goods and Services (LCU Billion) 59
  • 7.1.5. Gross National Disposable Income 60
  • 7.1.6. LCU per USD (period average) 61
  • 7.1.7. Market Capitalization of Listed Companies 62
  • 7.1.8. Market Capitalization of Listed Companies (% of GDP) 63
  • 7.1.9. Goods exports as a % of GDP 64
  • 7.1.10. Government Cash Surplus/Deficit as % of GDP 65
  • 7.1.11. Goods imports as a % of GDP 66
  • 7.1.12. Services imports as a % of GDP 66
  • 7.1.13. Services exports as a % of GDP 67
  • 7.1.14. Foreign direct investment, net (BoP, current US$ Billion) 68
  • 7.1.15. Net foreign direct investment as % of GDP 70
  • 7.1.16. Mining, Manufacturing, Utilities Output (LCU Billion) 71

8. Appendix 72

• 8.1. About GlobalData 72