Aerospace and Defense

The aerospace & defense industry is broadly categorized into general aviation & commercial aircrafts, military aircrafts, space & missiles, ground defense, shipbuilding and satellites, electronics & communications. The industry portfolio consists of commercial planes, jet fighters, private planes, traffic helicopters, space shuttles, mission control software, radar systems, rocket guidance systems, missiles, submarines, aircraft carriers, tanks, satellites, flight simulators, munitions, and countless small electronic devices.

Growth factors

The increasing number of air travelers in the past few years has led to exponential growth of the commercial aviation industry. Growing safety concerns have led manufacturers to invest in the provision of high end security to passengers for commercial applications. These factors are creating lucrative growth opportunities for providers of passenger security solutions.

The expenditure in the defense industry across the globe has declined significantly in 2017 compared to the past couple of years. However, geopolitical issues existing across several international and national boundaries are projected to favor growth of the industry. For instance, conflicts existing between Syria & Iraq, tensions between the U.S. and Mexico, ’s intervention in Ukraine, and border disputes in South East Asia among many others are likely to substantially increase the defense budgets in 2017.

Trends such as utilization of man-portable electronics for military force modernization programs, X band radar systems for pinpointing, averting and ceasing threats from enemy attacks, C4ISR systems and other advanced technologies is expected to facilitate the market growth. Such systems enable advanced awareness which, in turn leads to minimum fatality rates. Countries such as China, India, South Korea, Saudi Arabia, Russia, and France are projected to increasing their investment in development or adoption of advance technology to enhance their defense capability.

Growth inhibitors

Existing geopolitical issues across international borders are likely to challenge growth of the commercial aerospace industry. Moreover, increasing competition in the commercial aviation industry has led to lower average revenue passenger kilometers and narrow profit margins for industry participants. Major industry entry barriers that include high initial capital and incessant approval requirements are projected to present significant growth barriers to the industry growth,

An increasing number of small and medium suppliers are opting out of business segments owing to conflicts over intellectual property licensing, trade control regulations, and technology transfer requirements among other political risks. Increasing regulatory stringency is limiting the utilization of materials used in manufacturing processes. Moreover, the increasing fuel prices and the narrowing military expenditure in major economies such as the U.S., UK, Italy, and Japan are some of the factors that are expected to hamper growth of the aerospace & defense market over the forecast period. Moreover, intervention by the governmental departments in strategic initiatives of manufacturers is expected to hinder the overall market growth. For instance, Lockheed Martin’s proposition for acquisition of Northrop Grumman in 1998, and General Dynamics's merger proposal with Newport News shipbuilding in 1999 was ceased by the U.S. Defense Department.

Growth Opportunity

Commercial aviation is projected to witness better growth prospects in the defense sector as per our analysis, which predicts an approximate 3% growth in the defense segment, with commercial aviation registering gains over 5% year-on-year till 2020. This can be attributed to mega infrastructure investments in emerging economies and exponential growth in global passenger traffic. According to International Air Transport Association (IATA), international air passenger traffic witnessed 6.7% increase in comparison to the 2015 statistics with highest revenue passenger kilometers (RPK) reported in the Middle East.

Industry competitors are striving to provide products with faster speeds, high end designs, increased carrying capacity, and sustainable fuel technologies to strengthen their foothold in the aerospace and defense market segment. For instance, in May 2017, China Russia Commercial Aircraft International Corporation (CRAIC) announced plans to build next generation jumbo jets that can seat up to 280 passengers. The announcement plan is to be followed by an investment of over US$ 33 billion jointly in the project. Furthermore, incorporating utilization of 3-D printing technologies in manufacturing & product designing will provide flexibility and opportunity to enhance profit margins.

Regional Overview

The U.S held the largest overall share in the aerospace & defense market in 2016, and it is expected to continue its dominance through the forecast period of 2016 to 2024, with the annual defense expenditure accounting for around 35% of the global share. Additionally, three of the world’s largest companies are based in the U.S., which cater to national and international businesses. Asia Pacific is also projected to witness significant growth owing to the presence of emerging economies such as China, India, Singapore, Malaysia, the Philippines, and Vietnam. According to Boeing’s forecast, China is projected to invest around US$ 340 billion in the next two decades and will enhance its position to be the largest market for commercial aircrafts outside U.S,

Owing to significant increase in oil prices between 2009 and 2014, the revenue of the Middle Eastern countries increased exponentially. Economies that are part of the Gulf Cooperation Council, undertook multibillion dollar programs to upgrade their aerospace and defense equipment. Geopolitical conflicts such as Saudi Arabia’s involvement in the Syria and Yemen, and UAE’s requirement of advanced surveillance, naval and missile products are expected to drive the industry demands. The European aerospace and defense equipment market is likely to witness steady growth owing to lower defense spending. Moreover, players in the region are increasingly focusing on expanding their presence in China, Middle East, India, and Russia.

Industry Overview

Boeing, Airbus, Lockheed Martin, United Technologies, General Electric, Northrop Grumman, Raytheon, Safran, Finmeccanica, Rolls-Royce, BAE Systems, Honeywell, Bombardier, and General Dynamics are among the major players operating in the global industry landscape. In electronics, satellites, and communications segment, Litton, Raytheon, and Honeywell are the top contenders. Mergers & acquisitions are the major strategies adopted by market players to strengthen their global positioning. For instance, in April 2017, Rockwell Collins completed the acquisition of B/E Aerospace to strengthen its global positioning in the aerospace & defense market. It also helped the company in improving its position as cockpit and cabin interior solution provider. The industry will also exhibit development of innovative IoT solutions, incorporation of smart technologies, and collaborations to provide upgraded products to enhance user experience.

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Aerospace and Defense Published Insights

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Coherent Market Insights Maritime Security Market

Published Date : May 2024

Global maritime security market is estimated to be valued at USD 24.90 Bn in 2024 and is expected to reach USD 40.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.1% from 2024 to 2031. Report Description:... View more

Coherent Market Insights Drone In A Box Market

Published Date : May 2024

The drone in a box market is estimated to be valued at US$ 120.96 Bn in 2024 and is expected to reach US$ 294.17 Bn by 2031, growing at a compound annual growth rate (CAGR) of 13.5% from 2024 to 2031. Report Description:... View more

Coherent Market Insights Anti Drone Market

Published Date : May 2024

The anti-drone market is estimated to be valued at US$ 1.72 billion in 2024 and is expected to reach US$ 8.51 billion by 2031, growing at a compound annual growth rate (CAGR) of 25.7% from 2024 to 2031. The use of drones for both c... View more

Coherent Market Insights Military Aircraft Market

Published Date : May 2024

Global military aircraft market is estimated to be valued at US$ 48.27 Bn in 2024, and is expected to reach US$ 66.29 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031. Report Description... View more

Coherent Market Insights Ultralight Aircraft Market

Published Date : Apr 2024

The ultralight aircraft market is estimated to be valued at US$ 9.54 Bn in 2024 and is expected to reach US$ 18.17 Bn by 2031, growing at a compound annual growth rate (CAGR) of 9.6% from 2024 to 2031. Ultralight aircraft, also kno... View more

Coherent Market Insights Defense Cyber Security Market

Published Date : Apr 2024

The defense cyber security market is estimated to be valued at US$ 15.39 Bn in 2024 and is expected to reach US$ 40.28 Bn by 2031, growing at a compound annual growth rate (CAGR) of 14.7% from 2024 to 2031. Report Descripti... View more

Coherent Market Insights Active Protection Systems Market

Published Date : Apr 2024

The active protection systems market is estimated to be valued at US$ 4.30 Bn in 2024 and is expected to reach 6.31 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031. Report Description:... View more

Coherent Market Insights Small Uav Market

Published Date : Apr 2024

The small UAV market is estimated to be valued at US$ 6.67 billion in 2024 and is expected to reach US$ 14.23 billion by 2031, growing at a compound annual growth rate (CAGR) of 11.4% from 2024 to 2031. Report Description:... View more

Coherent Market Insights Zero Emission Aircraft Market

Published Date : Mar 2024

The zero emission aircraft market is estimated to be valued at USD 7.68 Billion in 2024 and is expected to reach USD 22.1 Billion by 2031, growing at a compound annual growth rate (CAGR) of 16.3% from 2024 to 2031. Report D... View more

Coherent Market Insights Electronic Warfare Market

Published Date : Mar 2024

The electronic warfare market is estimated to be valued at USD18.45 Billion in 2024 and is expected to reach USD 27.35 Billion by 2031, growing at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031. Report Descr... View more

Coherent Market Insights Unmanned Aerial Vehicle Drones Market

Published Date : Mar 2024

Global unmanned aerial vehicle drones market is estimated to be valued at USD 28.40 Bn in 2024, growing at a compound annual growth rate (CAGR) of 10.4% from 2024 to 2031. Unmanned aerial vehicles, are revolutionizing various indus... View more

Coherent Market Insights Aerospace Parts Manufacturing Market

Published Date : Mar 2024

The aerospace parts manufacturing market is estimated to be valued at USD 918.7 Bn in 2024, growing at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031. The aerospace parts manufacturing market involves the production... View more

Coherent Market Insights Space Capsule Market

Published Date : Feb 2024

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Coherent Market Insights Aircraft De Icing Market

Published Date : Jan 2024

The aircraft de-icing market has been growing steadily over the past few decades in line with the increasing air traffic globally. De-icing systems play a crucial role in ensuring flight safety especially during winters in areas with sub-zero temperatures by preventin... View more

Coherent Market Insights Air Data Indicator Market

Published Date : Jan 2024

The global air data indicator market has been gaining significant traction over the recent years owing to the increasing use of air data indicators in aircraft for critical flight parameter measurement applications. An air data indicator is an instrument that is used ... View more

Coherent Market Insights Autopilot System Market

Published Date : Jan 2024

The rapid advancement of technology has revolutionized the automotive industry, and one such innovation that is taking the world by storm is the autopilot system. An autopilot system is a sophisticated technology that allows vehicles to drive themselves with minimal h... View more

Coherent Market Insights Global Space Situational Awareness Market

Published Date : Jan 2024

Space situational awareness (SSA) refers to the capability of monitoring and understanding the space environment to ensure the safety and security of space assets. With the increasing deployment of satellites and other space objects, SSA has become crucial in preventi... View more

Coherent Market Insights Aircraft Radome Market

Published Date : Jan 2024

The aircraft radome market has been witnessing significant growth over the past few years. Radomes are structural, weatherproof enclosures placed over antennas of aircraft, spacecraft, missiles, and other airborne vehicles. They protect radar antennas and other sensin... View more

Coherent Market Insights Aircraft Line Maintenance Market

Published Date : Jan 2024

Aircraft line maintenance refers to the routine day-to-day checks, servicing and repairing that are carried out to ensure an aircraft remains fit for its intended operations. This includes two main types of tasks - daily inspection checks and defect rectification. Dai... View more

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