Mission accomplished: Government funding commitments have commanded revenue growth

The Defence industry is a Federal Government monopoly that is operated through the Department of Defence. The industry administers a public service to the Australian population by providing national security. Industry revenue is primarily made up of Federal Government appropriations on behalf of taxpayers to fund necessary defence expenditure. The Defence industry is expected to grow at an annualised 5.6% over the five years through 2018-19, to $37.6 billion. This industry has grown strongly since the Coalition’s victory in the 2013 Federal Election. Industry revenue is anticipated to grow 5.8% in the current year, due to funding growth for capability development and Australian Defence Force (ADF) operations...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Naval expenditure for border protection, via Operation Sovereign Borders, has driven defence funding
  • Revenue has grown over the past five years, despite several military operations being wound down
  • Some increased expenditure will be used to build new warships, submarines and aircraft
  • Industry Report - Industry Products Chapter

    The Defence industry provides numerous products and services. The largest and most notable are the three branches of the Australian Defence Force (ADF): the Australian Army, Royal Australian Navy (RAN) and Royal Australian Air Force (RAAF). These services are used to defend Australia's territorial integrity, population and overseas interests, and to engage in overseas military and peacekeeping operations. In addition, the Defence industry provides support to these end outcomes with large operations in several areas, including superannuation and housing; defence support; coordination and assistance; and intelligence, science and technology. As the industry is operated through the Department of Defence, its services are discussed as a share of the defence budget...purchase to read more.

    Additional Insights for the Defence Industry

    IBISWorld has determined the most important Key Success Factors for the Defence are:

  • Access to secure revenues
  • Ability to expand and curtail operations rapidly in line with market demand
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on defence and Real GDP growth in the Defence industry impact industry performance..

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    What's in this report

    What is the Defence Industry?

    The industry is part of Australia’s public sector. The industry largely consists of the Department of Defence, which includes various groups involved in defence and national security. These groups include the army, navy, air force,  intelligence organisations, and associated administrative and support functions. The industry excludes firms that provide services to defence, and educational institutions for the defence force.

    Industry Products
  • Army capabilities
  • Air Force capabilities
  • Navy capabilities
  • Defence support
  • Coordination and assistance
  • Superannuation and housing
  • Intelligence, science and technology
  • Industry Activities
  • Armed forces unit operation (except, service contractors and tertiary educational)
  • Civil defence operation (military)
  • Government administration (defence)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure on defence
  • Real GDP growth
  • Cost of natural disasters
  • Demand from scientific research services

  • Current Performance
  • Participation and profit
  • Budget volatility
  • Military operations
  • Capital expenditure
  • Chart: Revenue Growth

  • Industry Outlook
  • Defence White Paper
  • Capital investment
  • Table: Defence Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Defence Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Central Government Administration

  • Key Selling Industries
  • Aircraft Manufacturing and Repair Services
  • Computer System Design Services
  • Engineering Consulting
  • Motor Vehicle Manufacturing
  • Shipbuilding and Repair Services
  • Wired Telecommunications Network Operation

  • Products & Services
  • Army capabilities
  • Air Force capabilities
  • Navy capabilities
  • Superannuation and housing
  • Defence support
  • Coordination and assistance
  • Intelligence, science and technology
  • Chart: Defence Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Federal Government
  • Chart: Major Market Segmentation for the Defence Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Defence

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Defence Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Defence Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Defence Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Australian Defence Force (Adf)
  • The military organisation responsible for the defence of Australia, consisting of the Australian Army, Royal Australian Navy and the Royal Australian Air Force.
  • Civilian
  • A person who is not a member of his or her country's armed forces.
  • Combat
  • An engagement fought between two military forces.
  • Peacekeeping
  • The supervision by international forces of a truce between hostile nations or groups.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Defence market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Defence:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Defence market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Defence, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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