Aerospace and Defence

Market Size, Industry Performance and Trends

All aerospace and defence sectors were impacted by the crisis. Yet, each segment is behaving differently. Whilst the aeronautics industry shows a healthy pace of recovery driven by growth in passenger numbers, the defence industry is suffering as budgets are being targeted by cost reduction initiatives and the space sector is benefiting from a global demand for small to medium satellites.

Aeronautics

The overall industry is behaving better than expected, with significant sales volumes achieved in 2012 making for a healthy manufacturing pipeline at all three major manufacturers (Airbus, Boeing and Embraer).
The latest update of the global industry performance shows a CAGR of 8.7% between 2005 and 2009, with updated estimated CAGR of 5.3% for the period 2009 to 2014, i.e. a forecast of $1.19T. Strong order books for all the three main integrators show that this is materializing. Some segments within the industry are likely to experience contraction, such as business jets and rotary wing (highly dependent of defence expenditure).

Defence

The defence expenditure containment is having a significant impact on revenues leading to redundancy programmes affecting most US and European integrators.

A shift to homeland security and resilience has been attempted by a number of the main players. Also, shifts in strategy, from product to service, have secured much needed long term revenue stability. Focus on cuts by procurement bodies is impacting innovation.

Space

The space market is going through significant growth despite the uncertainty that surrounds the industry, with both the institutional market and the private sector showing clear increase in technology acquisitions in 2010. Commercial and export sales are going through a phase of accelerated growth. The overall European market is worth €6.1B a growth of 9.3% over 2009 values. Figures for 2011 are in line with 2010. The industry size is expected to stay stable or contract slightly in the near future. The main trend in the space market is the increase of small satellites launched, leading to a few small integrators getting a real opportunity to challenge the strongly vertically integrated enterprises that dominate the industry.

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We have supported aerospace and defence groups innovating in core processes such as customer support, maintenance and asset management, through process transformation, systems integration or the use of technologies such as advanced condition monitoring, automated data analysis and reporting.

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