The Australian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017
- - Homeland security spending is expected to increase at a CAGR of 10.60% during the forecast period
- - The Australian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 report is now available at ASDReports.com!
During the review period, the defense expenditure of Australia exhibited a CAGR of -1.42% to reach an estimated US$28.5 bn in 2012, and is expected to grow at a CAGR of 5.13% over the forecast period to reach US$38.8 bn by 2017.The government is expected to make cumulative capital acquisitions of US$40.2 bn during the forecast period, 35% of which will be procured from domestic firms, in order to support government plans to increase the independence of its defense industry. The acquisitions are expected to focus on the improvement of capabilities of the Australian Air Force and Australian Navy (reference see graph).
The Australian DMO has taken criticism for the project delays and cost overruns associated with its domestic defense procurements, several of which have cost double the original estimations. Currently, the Australian defense industry is facing cost overruns and delays in its project to acquire 100 F-35 joint strike fighters. As a result, similar opportunities may be offered to foreign firms, rather than domestic firms, during the forecast period.
The Australian Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017
The Australian Industry Capability (AIC) program supports the domestic defense industry by encouraging foreign OEMs to grant domestic access to the global supply chain in exchange for market entry. Global supply chain deeds can be entered into voluntarily or as part of a procurement contract, and insist that the foreign OEM procures its equipment or components from a domestic company. While global supply chain deeds offer substantial export opportunities to domestic firms, they can pose major concerns for foreign OEMs, as Australian defense products are often expensive due to high labor costs and expensive logistics related to the country’s geographical location.
The Australian Government’s November 2009 Cyber Security Strategy professed the fact that Australian Government computer networks are increasingly under threat from malicious cyber-attacks. Recently the Government has initiated the Internet Gateway Reduction Program, which aims to reduce the number of internet gateways to the minimum for improved operational efficiency, reliability and security. The domestic Australian cyber security industry is entering into partnerships with the US cyber security participants in order to gain technical and strategic insights into the domain.
The Australian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 report is now available at ASDReports.com!
Source : ASDReports - Market Research
Apr 3 - 6, 2017 - Washington, United States