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The Australian defence market is a significant and growing sector, driven by the country's strategic location, complex security challenges, and strong commitment to national defence. In 2023, the market is estimated to be worth around A$38.1 billion, and it is expected to grow at a CAGR of over 5% during the period 2024-2028
The Australian government is the primary driver of defence spending, with the 2023-24 defence budget reaching A$53 billion. This substantial investment is aimed at modernizing the Australian Defence Force (ADF) and enhancing its capabilities to meet emerging threats
The Australian government procures a wide range of defence products and services, including:
Platforms: Aircraft, ships, submarines, land vehicles, and weapons systems.
Electronic warfare systems: Radar, sonar, and communications systems.
Cybersecurity solutions: Software, hardware, and services to protect against cyberattacks.
Logistics and support services: Maintenance, training, and supply chain management
Australia's defence procurement priorities are focused on acquiring capabilities to address key strategic challenges, including:
Regional security: Enhancing Australia's ability to defend its interests in the Indo-Pacific region.
Cybersecurity: Protecting Australia's critical infrastructure and information systems from cyberattacks.
Emerging technologies: Investing in cutting-edge technologies such as artificial intelligence and robotics to maintain Australia's technological edge.
The key government agencies responsible for defence procurement in Australia include:
Department of Defence: The lead agency for defence policy and procurement.
Defence Materiel Organisation (DMO): Responsible for managing the procurement of defence capabilities.
Australian Industry and Skills Committee (AISC): Provides advice to the government on industry participation in defence procurement
Major Australian and international companies are involved in supplying defence products and services to the Australian government, including:.
Boeing: Aircraft manufacturer.
Lockheed Martin: Aerospace and defence company.
Raytheon Technologies: Aerospace and defence company.
BAE Systems: Defence and aerospace company.
Lendlease: Engineering and construction company.
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