The global Aerospace & Defense industry witnessed a steady growth in 2018 and the trend is unlikely to change in 2019. The year-over-year growth between 2017 and 2018 remained strong. The industry outlook remains positive for the next couple of years. The global gross domestic product (GDP) has been on an upward trajectory with stable crude oil and commodity prices. This is reflecting favorably of the Aerospace & Defense sector. Meanwhile, a strong growth has been observed in the passenger travel demand particularly in emerging economies. Regions such as Asia-Pacific and the Middle East show tremendous market scope and is expected to present attractive opportunities in the years to come.
China and India, Asia’s rising economic superpowers are undergoing substantial urbanization, which is proving an impetus to several large-scale sectors such as tourism, transportation, aviation among others. To support the increased number of air passengers, airline companies are investing on fleet expansion, which is fueling the demand for aircrafts. Realizing the opportunity, aircraft manufacturers are increasing their operation capacity. The vast untapped market in Asia is expected to lure higher foreign direct investment in the region. Demand for commercial aircraft in the region continues to grow at an unprecedented scale. Global aircraft production is at all time high main due to the robust growth of both commercial and defence aviation sector. The defence sector remains a key revenue pocket for aircraft OEMs.
With rising security threat, governments all over the world continue to increase their defence budgets. Higher defence spending in Asia, the Middle East, Europe and Americas is driving the defence aviation sector in 2019 and beyond. Sociopolitical conflicts between countries in South-East Asia, and the Middle East has led to a rise in demand for defence equipment, commodities, devices, vehicles, etc. Growth of the global Aerospace & Defense industries is also helping in job creation. North America and Europe is home to some of the top-notch industry players. These regions have witnessed a decent rise in employment in the Aerospace & Defense sector. Both civil and military grade aircraft and engine OEMs account for a significant percentage of the overall Aerospace & Defense economic activity. The sub-markets of the global Aerospace & Defense sector are also profiting from the uptick in aviation sectors, which include simulator manufacturing and aircraft electronics.
To tap into the offshore market opportunities, industry leaders are actively engaging into merger and acquisition (M&Q) activity. Over the past years, M&A activities have increased significantly. The global Aerospace & Defense industry is likely to continue to witness increased M&A in the forthcoming years. Suppliers will continue to be under pressure from OEMs to reduce cost and improve production rates.
The U.S. remains a major market for the Aerospace & Defense industry. In 2018, the industry experienced growth acceleration with small to mid-sized companies gaining healthily. In Europe, the industry witnessed a modest growth in 2018. We can expect, aggressive growth strategies by companies that are aiming to consolidate their market position in region.
For companies operating the global Aerospace & Defense, investment in technological innovation and development to novel Aerospace & Defense solution will be vital for future growth. At the same time, companies must focus in improving manufacturing capacity to drive efficiency. The global Aerospace & Defense industry is unlikely to witness any major downturn in the medium term, with most of the growth coming from fast-developing countries.
The Some Major Kay Players covered in this Industry are
Wise Guy Reports is part of the Wise Guy Consultants Pvt. Ltd. and offers premium progressive statistical surveying, market research reports, analysis & forecast data for industries and governments around the globe. Wise Guy Reports features an exhaustive list of market research reports from hundreds of publishers worldwide. We boast a database spanning virtually every market category and an even more comprehensive collection of market research reports under these categories and sub-categories.
Name: Norah Trent
Email: Send Email
Address: Office No. 528/524, Amanora Chambers, Magarpatta Road, Hadapsar Pune, Maharashtra 411028
Phone: +1 (339) 368 6938 (US) +44 208 133 9349 (UK)