Naperville, IL -- (SBWIRE) -- 06/25/2012 -- This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original equipment manufacturers) to gain a market share in the Austrian defense industry.
Introduction and Landscape
Why was the report written?
The Austrian Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 offers the reader insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Austrian defense industry.
What is the current market landscape and what is changing?
Austria’s defense expenditure, which registered a CAGR of -1.04% during the review period, is anticipated to record a CAGR of -2.25% during the forecast period. Military spending is expected to be driven by the procurement of new defense systems and participation in international peacekeeping missions. The country’s per-capita defense spending is also expected to decline during the forecast period. The country’s homeland security budget is expected to be driven by its efforts to counter criminal activities such as the illicit drug trade and human trafficking.
What are the key drivers behind recent market changes?
Austria’s defense expenditure is primarily driven by its peacekeeping and disaster relief operations, along with the need to acquire advanced defense equipment. Over the next five years the country is expected to invest US$4.1 billion in the acquisition of military hardware for its armed forces.
What makes this report unique and essential to read?
The Austrian Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 provides detailed analysis of the current industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
Key Features and Benefits
The report provides detailed analysis of the current austrian defense industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the austrian defense industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
The report includes trend analysis of imports and exports, together with its implications and impact on the Austrian defense industry.
The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
The report helps the reader to understand the competitive landscape of the defense industry in Brunei. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Key Market Issues
The Austrian economy has just begun to recover from the 2008 recession with a growth rate of 6.3% in 2011. The pace of recovery is, however, expected to be slow. To counter the mounting deficit and increasing public debt, the government is cutting back spending, including defense. This is expected to adversely affect military procurement expenditure over the next five years, and the domestic industry, which is mostly dependent on government procurement, will be severely affected.
The recession, combined with decreasing threat levels from external sources, has made the Austrian government refocus its defense procurement strategy. In December 2010, it announced a massive sell-off plan of its heavy equipment armory, and according to the country’s Defense Ministry, this is a direct consequence of the peace efforts propagated by the European Union (EU) region bordering Austria.
Austria’s domestic defense capabilities are limited to the production of armored vehicles, small arms, ammunition, and subsystems and components for equipment such as aircraft. In order to enhance the capabilities of its domestic defense industry, the country is compelled to import defense equipment from foreign defense firms. European suppliers such as Germany and Italy dominate the Austrian defense market, as the country favors military hardware manufactured by EU members.
Offsets are mandatory for all defense procurements in Austria equal to or exceeding EUR 0.73 million (US$0.95 million). The effective period of the offset agreement varies between 5-15 years and the country has a provision for multipliers to encourage investment in significant areas. Offset multipliers vary between three and ten, and are applied in accordance with the economic impact and its strategic relevance in terms of preferred areas, technological relevance, social impact, and alignment with national priorities.
On a cumulative basis, Austria’s homeland security spending is forecast to be US$15.94 billion over the next five years. Despite financial constraints, spending will be driven by the policing of organized crime such as the illicit drug trade, illegal immigration, and human trafficking, and the country is expected to invest in border security equipment.
AMST Air Ambulance TechnologyAMESHirtenbergerGeneral Dynamics European Land SystemsSteyr MannlicherFrequentisRheinmetall Waffe Munition Arges GmbHSchiebel Elektronische Geraete GmbH (SEG) Diamond Aircraft Industries