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

Coherent Market Insights North America Aircraft Parts Market

Published Date : Mar 2022

The expenditure of the U.S. government on military is the highest among all the countries across the globe. In FY 2019, the U.S government approved a budget of around US$ 686 Billion and out of this, nearly US$ 194 Billion was for the United States Department of the A... View more

Coherent Market Insights Ammunition Market

Published Date : Oct 2021

Ammunition is the material fired, dropped, shattered, or detonated from any weapon. Ammunition or ammo is gunpowder which is used to project force against a chosen target. It is used in weapons, propellants, ... View more

Coherent Market Insights Unmanned Aerial Vehicle Market

Published Date : Jun 2021

The unmanned aerial vehicles are the aircrafts that does not have human pilot aboard, and it is controlled autonomously through onboard computers or remote control by a human operator. Increasing defense spending by various governments across the globe and growing ter... View more

Coherent Market Insights Aircraft Parts Market

Published Date : Jun 2021

An airplane is a transportation vehicle that is used to transport people and cargo from one place to another through air. Airplanes or aircrafts are designed in many shapes and sizes depending on its application. The aircraft can be categorized into following types: n... View more

Coherent Market Insights Drone Airspace Security System Market

Published Date : Mar 2021

Drone Airspace Security Systems are used to restrict the drones or UAVs (unmanned aerial vehicle) from entering the defined premises. The increasing adoption of drone identification systems by armed forces to identify and detect malicious drones is expected to impact ... View more

Coherent Market Insights Domestic Aviation Market

Published Date : May 2020

Air transport is the fastest mode of transport compared to road, rail and marine transport. Due to the increasing demand for faster transport of perishable pharmaceutical products, the aviation industry has witnessed a significant growth in the recent years. Domestic ... View more

Coherent Market Insights Uav Propellers Market

Published Date : Dec 2022

Unmanned Aerial Vehicles are human operated drones. UAV have wide range of applications in healthcare, e-commerce, food, retail, and defense industries. In UAV, propellers acts as one of the most primary component, which converts rotational energy into thrust to drive... View more

Coherent Market Insights Safety And Security Drones Market

Published Date : Aug 2023

Global Safety and Security Drones Market is estimated to be valued at US$ 5,886.4 Mn by 2030. Safety and security drones has several advantages such as increased range of drones, and high-resolution sensors for specific services su... View more

Coherent Market Insights Airport Metal Detectors Market

Published Date : Sep 2023

The global airport metal detectors market accounted for US$ 160.4 Mn in terms of value in 2023 and is expected to grow at a CAGR of 12.1% during the forecast period (2023-2030). ... View more

Coherent Market Insights Aircraft Cabin Interior Market

Published Date : Jul 2023

Global Aircraft Cabin Interior market is estimated to be valued at US$ 45.7 Bn by 2030. The aircraft cabin is the part of the aircraft in which passenger travels. The aircraf... View more

Coherent Market Insights Sonobuoy Market

Published Date : Aug 2023

Global Sonobuoy Market size was valued at US$ 423.2 Million in 2022, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. The sonobuoy market has experienced significant growth in recent ... View more

Coherent Market Insights Air Cargo Security And Screening System Market

Published Date : Jul 2023

Global Air Cargo Security And Screening System Market is estimated to be valued at US$ 4,199.8 Mn by 2030. Global Air cargo Screening Systems are the equipment for viewing parcels shipped through flights. These systems secure conta... View more

Coherent Market Insights X Band Radar Market

Published Date : Aug 2023

The Global X-band Radar market size was valued at US$ 6,104.4 million in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 4.5% from 2023 to 2030.In the coming years, the Global X-Band Radar Market is projected to experience significant growth... View more

Coherent Market Insights Flight Tracking System Market

Published Date : Jul 2023

Global Flight Tracking System Market size was valued at US$ 467.3 Mn in 2022, exhibiting a compound annual growth rate (CAGR) of 5.50% from 2023 to 2030. Advanced Dependent Surveillance-Broadcast (ADS-B) is utilized as a substitute... View more

Coherent Market Insights Aircraft Refurbishing Market

Published Date : Jun 2023

The global aircraft refurbishing market was valued at US$ 500.8 Mn in 2022 and is expected to grow at a CAGR of 5.3% during the forecasted period (2023-2030). In recent years, there has been a significant emphasis on cabin interior upgrades in the aircraft refurbishin... View more

Coherent Market Insights Bulletproof Glass Market

Published Date : Jul 2023

Global Bulletproof Security Glass Market size was valued at US$ 7.64 Bn in 2022, exhibiting a compound annual growth rate (CAGR) of 14.8% from 2023 to 2030. A Bulletproof Security Glass is a strong, optically transparent material t... View more

Coherent Market Insights Thrust Vector Control System Market

Published Date : Nov 2023

Thrust Vector Control (TVC) system is the ability of an aircraft, rocket, and other launch vehicles to handle the direction of the thrust from its engines in order to control the attitude or angular velocity of the vehicle. The system deflects the directions of engine... View more

Coherent Market Insights Weapons Carriage And Release Systems Market

Published Date : Nov 2023

Weapons carriage and release system has racks to store bombs, sonobuoys, electronics pods, fuel tanks, and even unmanned vehicles,  able to  deliver those bombs safely and effectively. These carriage have multi-purpose rack assembly capability, which carries... View more

Coherent Market Insights Single Carriage Ejector Racks Market

Published Date : Nov 2023

Single carriage ejector rack is a carriage system, which enables the racks to stores bombs, missiles, and weapons on it. These carriage have multi-purpose rack assembly capability, which can carry ... View more

Coherent Market Insights Active Phased Array Radar Apar Market

Published Date : Nov 2023

Active Phased Array Radar (APAR) is a ship borne multifunction 3D radar. APAR has four fixed non-rotating sensor arrays (faces), fixed on a pyramidal structure. Each face consists of 3424 transmit/receive (TR) modules operating at X band frequencies. APAR has a wide application in... View more

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