1. Introduction 7
1.1. What is this Report About? 7
1.2. Definitions 7
1.3. Summary Methodology 9
1.4. About GlobalData 10

2. Executive Summary 11

3. Market Attractiveness and Emerging Opportunities 13
3.1. Current Market Conditions 14
3.1.1. Military Fleet Size 14
3.1.2. Procurement Programs 16
3.1.3. Key Drivers and Challenges 16
3.2. Defense Market Size Historical and Forecast 19
3.2.1. Austrian defense budget to record a CAGR of 3.02% over the forecast period 19
3.2.2. Spending to be driven by peacekeeping missions and the acquisition of advanced defense systems 22
3.2.3. The defense budget as a percentage of GDP is expected to increase during the forecast period 23
3.3. Analysis of Defense Budget Allocation 25
3.3.1. Procurement of advanced equipment to drive capital expenditure allocation during the forecast period 25
3.3.2. Capital expenditure is expected to grow at a CAGR of 3.62% over the forecast period 27
3.3.3. Per capita defense expenditure expected to increase during the forecast period 29
3.4. Homeland Security Market Size and Forecast 31
3.4.1. Austria homeland security is expected to increase at a CAGR of 2.35% over the forecast period 31
3.4.2. Protection of energy infrastructure and combating drug trafficking will be the key factors driving homeland security 33
3.4.3. Austrian falls under “some risk” category on the Terrorism Index 34
3.4.4. Austrian faces “some risk” by acts of terrorism 35
3.4.5. Austria has a terrorism index score of 1.5 37
3.5. Benchmarking with Key Global Markets 38
3.5.1. Austrian defense expenditure is expected to remain modest during the forecast period 38
3.5.2. Austrian defense expenditure is relatively small when compared to the leading defense spenders 40
3.5.3. Austria spent over 0.57% of its GDP on defense in 2018 41
3.6. Market Opportunities: Key Trends and Drivers 42
3.6.1. Top Defense Sectors by Value (US$ Million) - Projections over 2018-2023 42

4. Defense Procurement Market Dynamics 43
4.1. Import Market Dynamics 44
4.1.1. Defense imports expected to increase rapidly during the forecast period 44
4.1.2. Austria imports the majority of its arms from Italy 45
4.1.3. Armoured Vehicles dominates Austrian defense imports 46
4.2. Export Market Dynamics 47
4.2.1. Austrian defense exports registered a decline post 2013 47
4.2.2. Austria supplies defense equipment to a diverse consumer base 48
4.2.3. Armored vehicles accounted for the majority of the country's defense exports during 2013-2017 49

5. Industry Dynamics 50
5.1. Market Regulation 50
5.1.1. Offset policy requires suppliers to invest 100% of the contract value into the Austrian economy 50
5.1.2. Austrian defense industry open to foreign direct investment 51
5.2. Market Entry Route 52
5.2.1. Budgeting Process 52
5.2.2. Foreign defense OEMs enter the market through acquisitions or alliances 52
5.2.3. Europe Defense Agency (EDA) promotes defense procurements within EU 53
5.2.4. Single distributor system advisable in Austria 53
5.2.5. Joint Projects and Sharing of Technology 53

6. Competitive Landscape and Strategic Insights 54
6.1. Competitive Landscape Overview 54
6.1.1. The majority of modern defense equipment in Austria are supplied by foreign manufacturers 54

7. Business Environment and Country Risk 56
7.1. Economic Performance 56
7.1.1. GDP per Capita 56
7.1.2. Gross Domestic Product 57
7.1.3. Exports of Goods and Services (LCU Billion) 58
7.1.4. Imports of Goods and Services (LCU Billion) 59
7.1.5. Gross National Disposable Income 60
7.1.6. LCU per USD (period average) 61
7.1.7. Market Capitalization of Listed Companies 62
7.1.8. Market Capitalization of Listed Companies (% of GDP) 63
7.1.9. Goods exports as a % of GDP 64
7.1.10. Government Cash Surplus/Deficit as % of GDP 65
7.1.11. Goods imports as a % of GDP 66
7.1.12. Services imports as a % of GDP 66
7.1.13. Services exports as a % of GDP 67
7.1.14. Foreign direct investment, net (BoP, current US$ Billion) 68
7.1.15. Net foreign direct investment as % of GDP 70
7.1.16. Mining, Manufacturing, Utilities Output (LCU Billion) 71

8. Appendix 72
8.1. About GlobalData 72
8.2. Disclaimer 72

List of Tables
Table 1: Austrian Army Strength 14
Table 2: Austrian Air Force Strength 15
Table 3: Austria - Future Procurement Programs 16
Table 4: Austria - Future Procurement Programs 16
Table 5: Austrian Defense Expenditure (EUR Billion & US$ Billion), 2014-2023 20
Table 6: Austrian GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2014-2023 23
Table 7: Austrian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 25
Table 8: Austrian Defense Capital Expenditure (EUR Million & US$ Million), 2014-2023 27
Table 9: Austrian Per Capita Expenditure (US$), 2014-2023 29
Table 10: Austria Defense Expenditure for Homeland Security (EUR Billion & US$ Billion), 2014-2023 31
Table 11: Terrorism Index, 2017 35
Table 12: Benchmarking with Key Markets, 2014-2018 vs. 2019-2023 38
Table 13: Top Austrian Defense Sectors by Value (US$ Million), 2018-2023 42
Table 14: Offset Regulations in Austria 50
Table 15: Austria - Budget Formation Timetable 52
Table 16: Competitive Landscape of the Austrian Defense Industry 54

List of Figures
Figure 1: Austrian Defense Expenditure (in EUR Billion), 2014-2023 21
Figure 2: Austrian Defense Expenditure (US$ Billion), 2014-2023 21
Figure 3: Austrian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2014-2023 24
Figure 4: Austrian Defense Expenditure Split Between Capital and Revenue Expenditure (%), 2014-2023 26
Figure 5: Austrian Defense Capital Expenditure (EUR Million), 2014-2023 28
Figure 6: Austrian Defense Capital Expenditure (US$ Million), 2014-2023 28
Figure 7: Austrian Per Capita Expenditure (US$), 2014-2023 30
Figure 8: Austria Homeland Security Expenditure (AED Billion), 2014-2023 32
Figure 9: Austria Homeland Security Expenditure (US$ Billion), 2014-2023 32
Figure 10: Terrorism Heat Map, 2018 34
Figure 11: Terrorism Index, 2018 37
Figure 12: Benchmarking with Key Markets, 2014-2018 vs. 2019-2023 39
Figure 13: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2018 and 2023 40
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018 41
Figure 15: Austrian Defense Imports (US$ million), 2013-2017 44
Figure 16: Austrian Defense Imports by Country (%), 2013-2017 45
Figure 17: Austrian Defense Imports by Category, 2013-2017 46
Figure 18: Austrian Defense Exports (US$ million), 2013-2017 47
Figure 19: Austrian Defense Exports by Country (%), 2013-2017 48
Figure 20: Austrian Defense Exports by Category, 2013-2017 49
Figure 21: Austrian GDP Per Capita (US$), 2015-2025 56
Figure 22: Austrian GDP at Current Prices (US$ Billion), 2015-2025 57
Figure 23: Austrian Exports of goods and services (LCU Billion), 2005-2014 58
Figure 24: Austrian Imports of goods and services (LCU Billion), 2005-2014 59
Figure 25: Austrian Gross National disposable income (US$ Billion), 2005-2013 60
Figure 26: LCU per USD (US$), 2015-2024 61
Figure 27: Austrian Market Capitalization of Listed Companies (US$ Billion), 2005-2012 62
Figure 28: Austrian Market Capitalization of Listed Companies (% of GDP), 2005-2012 63
Figure 29: Austrian Goods exports as a % of GDP, 2005-2014 64
Figure 30: Austrian Government Cash Surplus/Deficit as % of GDP, 2005-2012 65
Figure 31: Austrian Goods imports as a % of GDP, 2005-2014 66
Figure 32: Austrian Services imports as a % of GDP, 2005-2014 67
Figure 33: Austrian Services exports as a % of GDP, 2005-2014 67
Figure 34: Austrian Net Foreign Direct Investment (BoP, Current US$ Billion) 2005-2014 68
Figure 35: Austrian Net Foreign Direct Investment as a % of GDP 2005-2014 70
Figure 36: Austrian Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 71

Companies Mentioned
- Austria Metall System Technik GmbH (AMST)
- Air Ambulance Technology
- AMES
- Hirtenberger
- General Dynamics European Land Systems
- Steyr Mannlicher Systems
- Frequentis
- Rheinmetall Waffe Munition Arges GmbH
- Schiebel Elektronische Geraete GmbH
- Diamond Aircraft Industries