Homeland security spending is expected to increase at a CAGR of 10.60% during the forecast period
London, June 19th, 2012 – During the review period, the defense expenditure of Australia exhibited a CAGR of -1.42% to reach an estimated US$28.5 billion in 2012, and is expected to grow at a CAGR of 5.13% over the forecast period to reach US$38.8 billion by 2017.The government is expected to make cumulative capital acquisitions of US$40.2 billion 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 below).
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 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.
About Strategic Defence Intelligence
This report is one of a series available to subscribers of our premium research platform, Strategic Defence Intelligence. Strategic Defence Intelligence provides a stream of continuously updated customer and competitor intelligence, as well as detailed research reports providing an unrivalled source of global information on the latest developments in the defence industry. Strategic Defence Intelligence’s unique monitoring platform tracks global defence activity for over 2,500 companies and 65 product categories in real time and in a highly structured manner, giving a comprehensive and easily-searchable picture of all defence industry activity. The site features: daily updated analysis, comment and news, company and customer profiles, defence spending, tenders and contracts, product and technology intelligence, a research and analysis database providing access to industry and competitor reports to enable business and market planning, and fully customizable tools, including instant personalized report generation and custom alerts.
For more than a decade GlobalDefence.net provides information from the field of foreign and security policy. It all started in the year 2001. After 911 the founder and current editor in chief Holger Paletschek started to create a German-speaking website with an overview about the armed forces of the world. Today GlobalDefence.net stands for current news, background articles, geopolitical analyses, network of experts, industry leaders, political decision makers, as well as information about the armed forces of the world provided in German and English.
If you would like to purchase the report “The Australian Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017”, then please
Mr. Jens Hohmann
c/o Contados Medien und Verlags KG
34132 Kassel / Germany
Fon: +49 (0)176 — 322 367 95
Fax: +49 (0)561 — 350 29 32 -19