ICD Research White Papers
The Austrian Defense Industry - Market Opportunities, Entry Strategies, Analyses and Forecasts to 2017
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.
Austria's defense expenditure, estimated to be US$2.73bn in 2012, declined at a CAGR of -1.04% during the review period, and is projected to record a CAGR of -2.25% during the forecast period, to reduce to an estimated US$2.49bn in 2016. Over the next five years, the country's military spending is expected to be influenced by factors such as participation in international peacekeeping missions, and the procurement of advanced defense systems.
On a cumulative basis, Austrian defense expenditure is expected to be US$12.46bn during the forecast period. During the review period, the nation allocated an average of 0.73% of its GDP towards defense expenditure. However, this is likely to decline to an average of 0.53% of its GDP during the forecast period, in order to reduce the country's overall budget deficit.
Throughout the forecast period the country is expected to allocate 74% of its defense budget to revenue expenditure, mainly due to high troop numbers. The remaining 26% is likely to be allocated for the procurement and modernization of defense equipment. The country is expected to procure advanced defense equipment such as avionics systems, night vision equipment sensors, and ammunition during the forecast period.