Continued growth for aerospace, defense despite economic slowdown
Revenues for electronics /C4ISR companies in the U.S. defense market are projected to be worth $298 billion in 2015; Europe and the United States account for more than 80 percent of the world’s aerospace and defense revenues
The global aerospace and defense industry has witnessed significant growth in the last fifteen years. The 9/11 terrorist attacks, the SARS outbreak, and the Asian financial crisis plagued the global aviation industry in the recent past, and the global economic slowdown and volatile oil prices are challenges for the present. There will be continued growth in aviation in the future, however, driven by burgeoning demand for domestic and international air travel in emerging economies, growing dominance of low-cost carriers, deregulation of airspace, and growing popularity of global hubs particularly in the Middle East. The credit crisis in the United States, and its after shocks in the global financial markets, are a cause of worry for the aerospace industry, especially for civilian aviation.
The new report says that with a defense budget of more than $480 billion in 2008, United States is the world’s largest defense market. Defense electronics /C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) continue to account for a growing share of annual expenditure worldwide. The United States is, by far, the world’s largest aerospace and defense market, with revenues projected to be worth $298 billion in 2015, as stated by Global Industry Analysts, Inc. Europe is the second largest market with an estimated share of about 27 percent. Together, Europe and the United States account for more than 80 percent of the world’s aerospace and defense revenues. Aircraft products and services represents the largest product segment and is projected to exceed $350 billion by the year 2014. Through 2015, demand for MRO services worldwide is expected to register handsome growth primarily fueled by robust expansion in developing and emerging markets in Asia-Pacific, Latin America and Eastern Europe. The market for C4ISR is forecast to grow at a robust pace of 6.9 percent through 2010 while the market for missiles is projected to register a CAGR of 6.5 percent. The space equipment market is estimated at about $ 61.2 billion in 2008.
The global aerospace and defense industry has a three-tier structure. Boeing and Airbus continue to fight for market superiority in large commercial aircraft while Embraer and Bombardier dominate smaller commercial aircraft. Boeing and Airbus are traditional competitors in the global Narrow-body and Wide-body commercial aircraft market. Key industry participants include Arianespace, AgustaWestland, B/E Aerospace, BAE Systems, Ball Aerospace & Technologies Corporation, Bell Helicopter Textron, Bombardier, Embraer-Empresa Brasileira de Aeronáutica S.A., European Aeronautics Defense and Space Company EADS N.V., Airbus S.A.S, Eurocopter Group, Finmeccanica, GE-Aviation, Goodrich Corporation, Gulfstream Aerospace Corporation, Hawker Beechcraft, Honeywell International, Irkut, Israel Aircraft Industries, Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Company, Rolls-Royce, Pratt & Whitney, Snecma, Sikorsky Aircraft Corporation, Thales, and The Boeing Company among others.
The report titled “Aerospace and Defense Industry: A Global Strategic Business Report” published by Global Industry Analysts, Inc., provides a comprehensive review of world market trends and drivers, market sizing data, industry issues and challenges. The study presents extensive commentary on the aviation/defense industry, hard-to-find statistical facts, product segmentation, competitive assessment, market shares, new product introductions, strategic corporate activity and key player profiles. The study offers market data analytics in dollar terms for major regional markets such as United States, Canada, Japan, Europe (France, Germany, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific, Middle East, and Latin America. Key product segments analyzed include Aircraft Products & Services; Missiles; Modeling, Simulation & Training Equipment; C4ISR & Related Equipment; Space Equipment; and GPS (Geotechnologies).
For more details about this research report, please visit
http://www.strategyr.com/Aerospace_And_Defense_Industry_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
