Aerospace and Defense

Aerospace & defense industry is broadly categorized into general aviation & commercial aircrafts, military aircrafts, space & missiles, ground defense, shipbuilding and satellites, electronics & communications. Industry portfolio encapsulates the broad portfolio including the 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

Increasing number of air travelers, over the past few years, have led to exponential growth of commercial aviation industry., Growing safety concerns  has led to increased investments in providing high end security to passengers for commercial applications. Therefore, this segment creates lucrative revenue opportunities for participants offering passenger security solutions.

The spending in defense industry has significantly declined in 2017, as compared the past couple of years.  However, geopolitical issues existing across several international and national boundaries are projected to provide significant growth through 2024. For instance, conflicts existing between Syria & Iraq, tension between the U.S. and Mexico, Russia intervention in Ukraine, border disputes in South East Asia, among many others are likely to substantially influence increased defense budgets in 2017.

Trends such as utilization of man-portable military electronics for military force modernization programs, X band radar systems for pinpointing, averting and ceasing threats from enemy attacks, C4ISR systems and many other advanced technologies are expected to present considerable demands. Such systems enable advanced awareness and in turn lead to minimum fatality rates. Countries that include China, India, Korea, Saudi Arabia, Russia, France, are projected to increasingly invest in such advanced technologies to enhance their defense forces capability.

Growth inhibitors

Existing geopolitical issues existing across international borders are likely to present considerable growth challenge to 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 barrier to the industry growth,

Small and medium suppliers are increasingly opting out of the business segments owing to the conflicts over intellectual property licensing, trade control regulations, and technology transfer requirements and other political risks. Increasing regulatory stringency limiting the utilization of materials used for manufacturing (such as lead), increasing fuel prices, and tightening military expenditures  in major economies such as the U.S., UK, Italy, and Japan are expected to hamper the aerospace & defense market over the forecast timeframe. Moreover, intervention of defense departments in the strategic initiatives of the major country partnering companies will also hinder the overall growth. For instance, Lockheed Martin’s proposition for acquisition of Northrop Grumman, in 1998, and General Dynamics’ merger proposal with Newport News shipbuilding, in 1999, was ceased by the U.S. Defense Department.

Growth Opportunity

Commercial aviation is projected to offer better growth prospects in relation to defense, as our study forecasts predict around 3% growth in the defense segment, with commercial aviation registering gains at 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 portfolio 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 the investment of over US$ 33 billion jointly in the project. Furthermore, incorporating utilization of 3-D printing technologies in manufacturing & product designing will provide the flexibility and opportunity to enhance the profit margins.

Regional Overview

U.S held the largest overall aerospace & defense market share in 2016 is expected to continue its dominance through the forecast timeframe of 2016 to 2024. 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. North America was followed by Asia Pacific that includes emerging economies such as China, India, Singapore, Malaysia, 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 in the 2009 to 2014 timeframe, revenue of the Middle East countries witnessed exponential increase. Strong cash positions of the economies that are part of the Gulf Cooperation Council, undertook multibillion dollar program 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. Europe aerospace and defense equipment market is likely to witness flat growth trend owing to flat defense spending. Moreover, players in the region are increasingly focusing on opportunities 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 few major players in the global industry landscape. In electronics, satellites, and communications segment, Litton, Raytheon, and Honeywell are among the top contenders. Mergers & acquisition are among the major strategies adopted to strengthen the global positioning in the industry segment. For instance, in April 2017, Rockwell Collins completed the acquisition of B/E Aerospace to strengthen its global positioning in the aerospace & defense market and widen its portfolio. It also helped in improving its positioning as cockpit and cabin interior solution provider. Industry will also exhibit development of innovative IoT solutions, incorporation of smart technologies, and collaborations to provide upgraded products to enhance user experience.

Coherent Market Insights
Hybrid Electric Jet Market, By Electric Motor Type (Batteries, Solar Cells, Gas-powered, Ultra Capacitors, and Power Cables), By End User (Industrial and Commercial), and By Region - Global Industry Insights, and Forecast till 2026

Published Date : Apr 2018

Hybrid Electric Jet Market – Insights The hybrid electric jets are the aircrafts powered with the electric motors. The electricity is supplied through several methods such as batteries, solar cells, ul

Coherent Market Insights
Synthetic Aperture Radar In Space Sector Market, by Platform (Space Platform and Ground Platform), by Frequency Band (Single Frequency Band, and Multi-Frequency Band), by Application (Defense Application and Research & Commercial Application) and by Region - Global Industry Insights to 2025

Published Date : Mar 2018

Synthetic Aperture Radar (SAR) in Space Sector Market The global synthetic aperture radar in space sector market was valued at US$ 600.6 Mn in 2016 and is expected to be pegged at US$ 1,714.0 Mn by 2025, regi

Coherent Market Insights
Mine Clearance System Market Report, by System Type (Flails, Tillers, combined flail and tiller system), by Mode Of Operation (Manual, Remote Controlled) and by Region - Global Trends and Forecast till 2025

Published Date : Dec 2017

Global Mine Clearance System Market - Insights Antipersonnel and anti-vehicle mines such as improvised explosive devices (IEDs) are designed to explode when in the proximity, presence or contact of person or

Coherent Market Insights
Aircraft Electric Brake Control System Market, by Brake Type (Single disc brakes, Dual-disc brakes, and Multiple-disc-brakes), by Application (Civil Aviation, Commercial, and Military), and by Region - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Jul 2018

Aircraft electric brake control system collects data from remote data consolidators and then transmit the information of wheel’s data to brake control system with the help of digital data communication bus. This system helps in reducing the overall weight of the

Coherent Market Insights
Airport Charging Stations Market, by Product Type (Floor-standing Type, Embedded Type, and Wall-mounted Type), by Applications (Mobile phones, Laptop, Tablet, Cameras, and Others), by Region - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Jul 2018

An airport charging station is used for charging batteries of the portable devices such as mobile phone, computer, cameras, and many more. Low battery life of portable devices is one of the major driving factors for growth of the market. Increasing usage of internet f

Coherent Market Insights
Global Aircraft Communication Systems Market - By Product Type (SATCOM, HF Communication, Data Link Communication, and VHF), By Component (Antennas, Receivers, Transmitters, Transceivers, and Others), By Aircraft (Commercial Aircraft and Military Aircraft), and By Region – Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018–2026

To Be Published : Jul 2018

Aircraft communication systems are used in the transmission of a messages between the aircraft and ground stations by using satellites and air band radios. It is the collection of individual communication networks, transmission systems, data terminal equipment (DTE),

Coherent Market Insights
Airborne Surveillance Market, by Type (LiDAR, Radar, and Imaging System), by Product Type (Manned system and Unmanned system), by Application (Military, Defense, and Security and Commercial), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018 – 2026

To Be Published : Jul 2018

Airborne surveillance system aims to provide early airborne unusual activities warning. It consists of antenna, airborne data processor, and integrated navigation system, which are featured to provide high accuracy navigation system. These are responsible for tracking

Coherent Market Insights
Airborne Weapon Systems for Rotorcraft Market, by Class (Helicopters, Cyclocopter, Autogyro, Gyrodyne, and Rotor kite), by Application (Military Rotorcraft and Civil Rotorcraft), and Geography - Global Forecast to 2026

To Be Published : Jul 2018

A rotorcraft is a heavy airborne machine that works by generating lift caused by its wings, which are called rotary wings or rotor blades. Several rotor blades are fixed and rotate around the pole to generate the lifting force to overcome the gravity pull and the weig

Coherent Market Insights
UAV Jammers Market, By Jamming Range (Short, Medium and Long-Ranged), By Components (Power supply, Software, Network Jammers, Housing), and By Application (Defense & Research, Civil (Law Enforcement & Paramilitary), Commercial & Domestic) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018–2026

To Be Published : Jul 2018

Commercialization and increasing popularity of the drones in commercial and entertainment applications have led to the considerable increase in the privacy concerns among the population. These include the developed economies such as the U.S, owing to the drones that a

Coherent Market Insights
Unmanned Combat Aerial Vehicle (UCAV) Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018–2026

To Be Published : Jul 2018

Unmanned combat aerial vehicle (UCAV), also called as combat drones are used as missiles and other ordnance carriers that do not require the onboard human pilots for the control and operation of the drones. These are featured with remote, real time controlling from di

Coherent Market Insights
Spacesuit Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018–2026

To Be Published : Jul 2018

Spacesuit market primarily caters to the limited list of space agencies such as Russian Space Agency (ROSCOSMOS) and National Aeronautics and Space Administration (NASA) that utilize these products for the astronaut survival in the outer space. These also find signifi

Coherent Market Insights
Stun Gun Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018–2026

To Be Published : Jul 2018

Stun guns market refers to the business generated by the non-lethal conducted electrical weapons (CEWs) that are primarily utilized for the self-defense and law enforcement agencies. Ability to incapacitate the potential suspect through the delivery of high voltage el

Coherent Market Insights
Synthetic Aperture Radar (SAR) Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018–2026

To Be Published : Jul 2018

Synthetic aperture radar market refers to the space and air-based SAR that functions on the principle of transmission and reception of the reflected signals that interact with the ground and aid in the imaging, tracking, detection and characterization. SAR finds signi

Coherent Market Insights
Airborne Weapon Delivery Systems Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018–2026

To Be Published : Jul 2018

Airborne weapon delivery systems market that have gained significant industry traction owing to investments in the procurement and development of the next generation aerial platforms that can leverage the country’s defense and attack capabilities. Some of the ma

"How Can I Help You" ?

Finding it difficult to find the research that would cater to your business demands? Give us a chance to help you. One of our Research Consultants will connect to provide a customized solution.

Coherent Market Insights Benefits

  • Custom Research Solution

    Talk to our research consultant to design an exclusive report as per your research needs.

  • Customer Fulfilment

    We aim to fulfil client's research demands with tailored research solutions.

  • Quick Turnaround Time Reports

    We aim to provide research studies in quickest turnaround time and in a much cost effective manner.

  • 360-degree Approach

    We cover each industry from supply and demand side with an aim to provide a most holistic research study.

  • Assured Quality

    We strive to provide most accurate and reliable research findings in our research reports.