The aerospace sector has very specific business development challenges. Our aerospace experts and business development teams will bring you an insiders high level of understanding with deep expertise, as well as a range of direct aerospace contacts and industry networks. In short, we will bring you the knowledge and tools in the aerospace sector to support and deliver your international business and trade development goals.
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The aerospace sector* has been one of the greatest sources for innovation and growth for the global economy since its inception. Yet the pace shows no sign of slowing and the 21st century will again be marked by developments in aerospace. Two key drivers for the sector today are the relentless demand for affordable air travel and the rising need for global security.
The global aerospace & defense market had total revenues of $1,070.6 billion in 2010, representing a compound annual growth rate (CAGR) of 6.6% between 2006 and 20103. Among other factors, this has been achieved by use of digital product development, Six Sigma strategies, lean programs, and industry consolidation that resulted in greater economies of scale. Thanks to established efficiencies, aerospace products are of ever better quality and reliability, while also increasingly cost competitive.
Despite the specific challenges posed by the economic crisis, the longer term outlook for the sector remains strong. Operating margins have not recovered to pre-crisis levels, but there are signs of renewed growth. The European aerospace & defense sector grew by 0.6% in 2010 to a value of $224.5 Bn. The sector is expected to reach a value of $287.8 Bn in 2015, an increase of 28.2% since 20103. It is testimony to the sector's resilience that overall margins remained relatively flat during the crisis. Activity in the business jet and the general aviations sectors have already improved. Faster recovery will further necessitate strategic moves towards acquisitions and organic growth. M&A will be led by the need to increase revenues, a greater capacity for companies to borrow in order to finance them, and the need to share resources to generate faster innovations.
In order to keep pace with developments in the aerospace sector, it is important to have access to actual, accurate and complete information and in-depth expertise. We will help you to address all important issues, including trends, key success factors, advancements and innovations, supply and demand development, operational and financial risks, benchmarking, as well as regulations and opportunities for funds and grants.
Some of the key opportunities and trends in the aerospace industry include:
- Aerospace mergers and acquisitions
→ In areas of intelligence, surveillance, reconnaissance, remote control, cyber-security and mission software development.
→ Within the aerospace sub-sectors, where competition is high and the only differentiator is lower pricing. Examples include suppliers of aero-structures, electronic components, engine components, electric power supply and system monitoring1.
- Cyber security, ISR, and precision engagement data fusion technologies
→ The heavy R&D burden and need for innovation in these sectors typically necessitate mergers or collaborative ventures 1.
- Commercial satellite capabilities
→ Driven by innovation.
- Boeing 787 Dreamliner
→ The first Boeing 787 Dreamliner was delivered in October 2011 to All Nippon Airways. This event will bring about positive impacts throughout the entire supply chain. Within the following 2-3 years, the global production of airplanes is expected to achieve a record of 1000 aircraft per year. Within the next two decades, 30 000 new airplanes will be produced and delivered in order to replace ageing aircrafts, as well as to satisfy the growing demand for business, leisure and freight traffic1.
- Space tourism
→ Is becoming increasingly popular, bringing new capital to the aerospace industry.
- European Space Program
→ The situation in the European aerospace industry is particularly interesting. One of the goals set out by the EU is to create a “European Space Programme” by 2014. The programme is likely to include activities such as research and technology development, exploration and exploitation of space, and space activities related to navigation, Earth observation, science and exploration. Economic benefits coming from the implementation of the EU space programme include increases in employment and investments for both direct and indirect space sectors. Proposed objectives related to the exploration of the solar system are to support robotics missions to improve knowledge of the solar system and specifically Mars; to prepare future human flights to beyond the Earth’s orbit towards Mars and other bodies in the solar system, and to exploit the International Space Station for scientific and technological purposes.
→ In order to increase international cooperation with other space agencies (USA, China, India, Russia), to strengthen European leadership, and to fulfil the intended goals, the EU proposes to dedicate 1.8 billion € per year in the period 2014-2020; in addition to the European Space Agency’s own resources. This should transform Europe into one of the major world space players2.
*Aerospace sector includes designing, building, testing, selling and maintaining aircrafts, rockets, missiles, and spacecrafts (spacecrafts are crafts or machines designed for a spaceflight. It includes communication, earth observation, meteorology, navigation or planetary exploration devices.)
1) Deloitte. 2010. U.S. Aerospace&Defense 2011 outlook
2) Space Advisory Group of the European Commission. 2010. Space Exploration, a new European flagship Programme
3) Datamonitor. 2012.