The Austrian defense market will be driven by active participation in peacekeeping missions along with a focus to modernize its military by procuring advanced defense systems. In addition, the capital expenditure allocation is anticipated to average 23.6% of the total defense budget during 2016-2020 and defense equipment procurements are expected to be in the areas of military rotorcraft, unmanned aerial vehicles (UAVs), and spending towards cyber security and soldier modernization
– During 2011-2015, Austrian defense expenditure registered a growth rate of -6.18%, declining from US$2.9 billion in 2011 to US$2.2 billion in 2015
– Military expenditure is anticipated to register a CAGR of 3.24% during 2016-2020, to value US$2.5 billion in 2020
– Corruption, retaining conscription, changes in security environment and economic recession possess challenges for the Austrian defense market
– Demand for equipment is mainly expected to revolve around military rotorcraft, unmanned aerial vehicles (UAVs), and spending towards cyber security and soldier modernization during 2016-2020
