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.

View More

Aerospace and Defense Published Insights

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 5.78% from 2024 to 2031. Report Desc... 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

Space capsules are specialized crewed spacecraft used to carry astronauts or passengers into orbital spaceflight and back to Earth. There are two main types of space capsules: the crew capsule and the orbital capsule. The crew capsule is designed primarily for reentry... View more

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

Coherent Market Insights Cloud Seeding Market

Published Date : Nov 2023

Cloud seeding is a weather modification techniques that aims to enhance precipitation by dispersing seeding agents into clouds. It originated in mid-20th century as a response to water scarcity and drought conditions. The process typically involves introduc... View more

Coherent Market Insights Airport Metal Detectors Market

Published Date : Sep 2023

A metal detector is an electronic device, which detects the presence of metals. Metal detectors are useful for detecting hidden metal objects at airports, railway stations, bus stations, and other public and private places. Metal detectors are categorized into two typ... View more

Coherent Market Insights X Band Radar Market

Published Date : Aug 2023

X-band radar operates at a frequency of 8–12 GHz, Additionally, this radar exhibits heightened sensitivity, enabling it to detect even the smallest of targets. X-band radars are get used at airports for air traffic control, as well as it gets used in defense app... View more

Coherent Market Insights Sonobuoy Market

Published Date : Aug 2023

Sonobuoys are compact, expandable sonar devices used for a variety of underwater applications, including anti-submarine warfare and acoustic surveys. They are typically small, 13 cm (5 inches) in diameter and 91 cm (3 ft) long, making them easy to deploy from aircraft... View more

Coherent Market Insights Safety And Security Drones Market

Published Date : Aug 2023

Safety and security drones are mainly adopted for surveillance operations and for managing safety and security. The growth of safety and security drone is majorly attributed by the increasing adoption of safety and security drones across various end-use industries suc... View more

Coherent Market Insights Aircraft Cabin Interior Market

Published Date : Jul 2023

The aircraft cabin is the part of the aircraft in which passenger travels. The primary objective of the aircraft cabin interior is to provide comfort and convenience to passengers. The aircraft cabin interior comprises components and systems that are used inside the c... View more

Coherent Market Insights Air Cargo Security And Screening System Market

Published Date : Jul 2023

The growth of the global Air Cargo Security And Screening System Market is hampered by technical hurdles that need to be overcome. One major challenge is the requirement for screening systems to accommodate various cargo sizes and types, which leads to expensive and c... View more

Coherent Market Insights Body Armor Plates Market

Published Date : Jul 2023

Body armor plates are the "smart" components of bulletproof vests that make them actually stop threats like guns and knives. They are generally rated by the National Institute of Justice or NIJ and are either soft (designed for lesser or more specialized threat levels... View more

Coherent Market Insights Drone Service Market

Published Date : Jul 2023

Drones can be used to perform a variety of tasks, including aerial imaging and video, mapping, 3D modeling, and data collection. Drone service is a broad range of services that companies provide to operate drones and help clients to use the technology for specific bus... View more

Coherent Market Insights Flight Tracking System Market

Published Date : Jul 2023

The avionics business depends on precise and constant following of trips for functional effectiveness, wellbeing, and traveler accommodation. When it comes to keeping current information about aircraft positions, routes, and flight statuses, a flight tracking system i... View more

© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.