2017 Global Aerospace and Defense Industry Outlook

The 2017 Global aerospace and defense outlook by reviews the industry’s financial performance in 2016 and expectations for 2017

2017 Global Aerospace and Defense Operating Earnings and Margin and

The analysis by Deloitte outlines a long-term forecast for aircraft production, as well as an analysis of global defense spending. It also provides perspectives on defense contractor expectations, growth in travel demand driven by wealth creation in Asia and the Middle East, and observations on what travel demand means for the commercial aerospace sub-sector.

This year’s outlook finds global aerospace and defense industry revenues expected to resume growth, driven by higher defense spending.

Trends forecast a return to growth
Global Aircraft Production by 2035
Global Aircraft Production by 2035

The global aerospace and defense industry is likely to experience stronger growth in 2017. Following multiple years of positive but a subdued rate of growth, the report forecasts the sector revenues will likely grow by about 2.0 percent in 2017.

The global A&D sector revenue rebound is attributed to a number of factors in both the commercial aerospace sub-sector and the defense sub-sector. Key findings are as follows:

Commercial aerospace sub-sector analysis
  • Stable global gross domestic product (GDP) growth, relatively lower commodity prices including crude oil, and strong passenger travel demand, especially in the Middle East and Asia Pacific regions, will likely drive the commercial aerospace sub-sector growth.
  • Despite an expected increase of 96 additional large commercial aircraft being produced in 2017, continued pricing pressure and product mix changes by airline operators will likely result in only a marginal increase of 0.3 percent in commercial aerospace sub-sector revenues.
Defense sub-sector analysis
  • Defense sub-sector revenues are likely to grow at a much faster 3.2 percent in 2017 as defense spending in the US has returned to growth after multi-year declines in defense budgets, and future growth many be driven by the new US administration’s increased focus on strengthening the US military.
Top 25 Military Spending Nations
Top 25 Military Spending Nations
  • Rising global tensions have led to increasing demand for defense and military products in the Middle East, Eastern Europe, North Korea, and the East and South China Seas. This is in turn resulting in increased defense spending globally, especially in the United Arab Emirates (UAE), Saudi Arabia, South Korea, Japan, India, China, Russia.

You can reach the full report here below.

 

Source: 2017 Global Aerospace and Defense Industry Outlook

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Trends in Aerospace and Defense Mergers and Acquisitions

A healthy Aerospace and Defense M&A market

The evolving focus of Aerospace and Defense M&A

According to the study by Deloitte ,in the aerospace and defense industry, mergers and acquisitions (M&A) as we know them have recently changed. Instead of megamergers for the purpose of cost savings and synergies, current aerospace and defense M&A activity focuses on acquisitions that deliver new products and offer expansion into markets such as Asia, the Middle East, and beyond.

Key Findings.

  • Near-term aerospace and defense M&A is likely to focus on growth.
  • Megamergers are likely to decrease in frequency while acquisitions of smaller targets could increase.
  • Acquisitions will be used to gain new capabilities, access emerging technologies, and geographic expansion.
  • Joint ventures and partnerships could replace outright mergers and acquisitions in some instances.

Source: Trends in aerospace and defense mergers and acquisitions

2016 Global #Aerospace and #Defense Sector Outlook

 

UK Aerospace Industry Outlook Report 2015

You can download the report here:

 

A Guide to Canada’s Aerospace Industry

Race to Space and More Drive the Aerospace and Defense Market in 2015

Aerospace and Defense Market insight by Mathew Griswold from Stanton Chase International.

 

You can download the report from my slideshare:

All  About Helicopters: Civil vs Military, Fleet Growth, Deliveries by Region and Type

Helicopter 2015 Data Insıght by Flightglobal

You can download the file from my slideshare here: