World Aerospace and Defense Industry Market Brief

World Aerospace and Defense Industry Market Brief

The global outlook series on the Aerospace and Defense Industry provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. An easy guide to What, Why, When, How, Where, and Who of an industry, the global outlook series offers a bird’s eye view of the structure, and fundamentals of this complicated industry. The report also provides a window on major regional markets with the primary purpose of offering the reader a prelude to these markets, and their unique traits. Regional markets briefly summarized include the United States, Europe, Germany, Russia, and China, among few others. The report also includes an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 420 companies worldwide.

AEROSPACE AND DEFENSE INDUSTRY GOS-022
A GLOBAL OUTLOOK, SEPTEMBER 2008


CONTENTS


1. Industry Overview 1
Year 2006 Review 1
Civil and Defense Relationships 1
Cyclical Nature of the Industry 2
A Capital-Intensive Industry 2
Aircraft Industry Structure and Organization 2
Middle East and Asia-Pacific Drives in the Airfreight Sector 2
China to Emerge as a Formidable Player 2
Futuristic Aircraft Market 3
Aeronautical Systems: An Insight into the Future 3
Advanced Subsonic Transports and Military Aircraft 3
Table 1: Global Military Aircraft Market (2007): Percentage
Breakdown of Unit Sales for Lockheed Martin, Eurofighter,
Chengdu Aircraft, Boeing, Sukhoi, and Others 3
Supersonic Aircraft 3
Hypersonic/Transatmospheric Vehicles 3
Research & Development in Aircraft Industry 4
Helicopters – Braving Winds of Turbulence 4
Table 2: Global Helicopter Market (2006): Percentage
Breakdown of Revenues for Eurocopter, Agusta Westland,
Sikorsky, Boeing, and Bell Helicopter 5
Military Sector Provides Opportunity to Commercial Aircraft
MRO Market 5
Table 3: Global Military Aircraft (2007): Percentage
Breakdown of MRO Spending by Segment – Field Maintenance,
Airframe Heavy, Component Overhaul, Engine Overhaul, and
Reconstitution/Reset 5
Trends and Issues 5
Technology Binds Global Aviation and Defense Industry 5
Transatlantic Deals Resurface 6
Outsourcing Dictates Future 6
Low Cost Carriers on an Upsurge 6
Airbus Edges Out Boeing in Commercial Aircraft Segment 6
Regional Tensions Increase Military Aircraft Sales 7
Military Transport Aircraft Production Expected to Rise 7
Fractional Ownership – An Emerging Business Option 7
Environmental Issues – Increasing Focus 8
Regulatory Trends in the Aircraft Industry 8
Current Icing Potential – A Tool to Prevent In-Flight Icing 8
NASA Develops New Acoustic Control Technique 9

2. Product Overview 9
Commercial Aircraft 9
Narrow Body Aircraft 9
Wide Body Aircraft 9
General Aviation Aircraft 9
Turboprops 9
Ultra Light Aviation 9
Rotorcraft 10
Military Aircraft 10
Engines and Parts 10
Air-to-Air Missile Sector: Striking it Rich 10
Avionics Systems Hog Limelight After the ‘09/11’ Events 10
Table 4: Global Aerospace Avionics Market (2007): Percentage
Breakdown of Value Sales by Type – Communication Systems,
Integrated Systems, Surveillance Systems, and Navigation
Systems 10
Table 5: World Commercial Air Transport Avionics Market (
2006-2010): Value in US$ Billion 11
UAV Sector Needs Regulatory Body 11
The Airbus A380: A Solution for Traffic Congestion-Related
Problems? 11
Outlook 11
Aircraft & Engine MRO Sector: Competition to Intensify 11
Commercial Aircraft Component MRO Market Undergoing Strategic
Change 12
PMA Market to Reshape the MRO Sector 12
Engine MRO Market 13
Engines Lead the Growth of the MRO Market 13
Table 6: Global MRO Market (2007): Percentage Breakdown of
Spending by Segment – Engines, Line, Components, and
Airframe HM 13

Table 7: Global Commercial Aircraft Engine MRO Market
(2005): Percentage Breakdown by Engine Model – CF6-80C2,
CFM56-3, PW4000-94, CFM56-5C, JT8D-200, RB211-535,
RB211-524GH, CF56-7, V2500-A5, and Others 13

Table 8: Global Commercial Aircraft Engine MRO Market
(2005): Percentage Breakdown by Component – Wheels &
Brakes, Avionics, APU, Engine Fuel & Control, Flight
Controls, Air Conditioning, Equipment/Furnishings, Landing
Gear, and Others 14

Table 9: Global Aerospace Market (2005): Available
Passenger Miles in Millions by Region/Country – USA,
Europe, Asia (including Japan), and Others 14
Asia-Pacific – Offering High Growth Potential 14
The US and European Defense-Related Sectors 15
Table 10: Global Aerospace and Defense Industry (2005):
Percentage Breakdown of Spending by Region/Country – USA,
China, Russia, UK, Japan, France, Germany, and Others 15
Intelligence, Surveillance and Reconnaissance Market 15
Demand for Military Avionics to Increase 15
Table 11: Leading Players in the Global Military Aircraft
Market (2005): Percentage Breakdown of Value Sales for
Lockheed Martin, Eurofighter, Boeing, Irkut, and Others 16

Table 12: Global Military Aircraft Market (2005): Percentage
Breakdown of Value Sales by End-Use Application – Fighter
Attack, Special Mission, Strategic Airlift, Mobility, and
Others 16
Market for Business Jets 16
Business Jet Market: End of Tougher Times? 16
Table 13: Global Commercial Aircraft Market (2005):
Percentage Breakdown by Aircraft Type – Single-Aisle and
Wide-body 17

Table 14: Global Aviation Market (2005): Number of Aircrafts
by Type – Single-Aisle Jets, Twin-Aisle Jets, Regional Jets,
and 747 & Larger Jets 17
Table 15: Global Large Commercial Aircraft Market (2005):
Deliveries by Company – Boeing and Airbus 17
Regional Jet Market Growing 17
Table 16: Global Regional Jet Aircraft Market (2005):
Deliveries by Company – Bombardier and Embraer 17
Table 17: Global Business Jet Market (2005): Percentage
Breakdown of Deliveries for Bombardier/Learjet, Cessna
Aircraft, Gulfstream Aerospace, Raytheon Aircraft, Dassault,
and Others 18

Table 18: Leading Players in the Global Business Jet Market
(2005): Percentage Breakdown of Volume Sales for Bombardier,
Cessna (Textron), Raytheon, Dassault, Gulfstream (General
Dynamics), and Others 18

Table 19: Leading Players in the Global Business Jet Market
(2005): Percentage Breakdown of Value Sales for Bombardier,
Gulfstream (General Dynamics), Cessna (Textron), Dassault,
and Raytheon 18

Table 20: Leading Players in the Global Medium Business Jet
Market (2005): Percentage Breakdown of Volume Sales for
Raytheon, Bombardier, Gulfstream, and Others 18

Table 21: Leading Players in the Global Business Jets
Fractional Ownership Market (2005): Percentage Breakdown of
Sales for NetJets, Flight Options, Flexjet, and Others 19

Table 22: Leading Players in the Global Regional Small Jet
Market (2005): Percentage Breakdown of Volume Sales for
Boeing, Airbus, Embraer, Bombardier, and Others 19
Engine Market – Mirroring Growth 19
Opportunities for Engine Manufacturers 19
Aerospace R&D Expenditure Heading Towards All-time High 19
Table 23: Leading Players in the Global Missile Market
(2007): Percentage Breakdown of Unit Sales for Raytheon,
NORINCO, CNPMIEC, MBDA, Javelin JV, and Others 20

Table 24: Global Missile Market (2007): Percentage Breakdown
of Value Sales by Segment – Air Defense, Air-to-Surface,
Air-to-Air, Anti-Armor, Anti-Ship, and Surface-to-Surface 20

Table 25: Leading Defense Contractors in the Global Missiles
Market (2005): Percentage Breakdown of Value Sales for
Lockheed Martin, Raytheon, Northrop Grumman, General
Dynamics, Motorola, and Others 20
Major Highlights 20
Defense Budgets – A Paradigm Shift 20
Rise of Conglomerates 20
Threat Perceptions – Governments Initiatives 21
Revenue Growth, Orders and Backlog Issues 21
Table 26: Global Aerospace Market (2006): Backlogs in Units
for Large Commercial Aircraft by Region – North America,
Europe, Asia, Middle East, and Others 21

Table 27: Global Regional Aircraft Market (2005): Orders by
Manufacturer (Aircraft Type) in Units for Turboprops –
Bombardier (de Havilland Canada), and ATR (France-Italy) 21

Table 28: Global Regional Aircraft Market (2005): Orders by
Manufacturer (Aircraft Type) in Units for Jet Airplanes –
Bombardier Canadair (Canada), Embraer (Brazil), Avic 1
(China), and RRJ (Russia) 22

Table 29: Global Regional Aircraft Market (2005): Deliveries
by Manufacturer (Aircraft Type) in Units for Turboprops –
Bombardier (de Havilland Canada), and ATR (France-Italy) 22

Table 30: Global Regional Aircraft (2005): Deliveries by
Manufacturer (Aircraft Type) in Units for Jet Airplanes –
Bombardier Canadair (Canada), and Embraer (Brazil) 22
Advanced Guidance/Seeker Technology 22
Active Radar 22
Imaging Infrared Focal Plane Array 23
Command-Inertial Guidance 23
Dual-Mode Seekers 23
Other Technologies 23
High-Speed Data Link Communications Systems to Spell Doom for
Radars 23
What the Future Holds? 24
Air-to-Air Missiles: The Evolving Competitive Landscape 24
Raytheon – The Numero Uno 24
Russia – A Rough Ride 24
Emerging Markets 24
Unmanned Aerial Vehicle – A High Potential Segment 25
Naval Sensors: An Overview 25
Space Market (Launch Vehicles and Satellites) 25

3. Mergers and Acquisitions 26

4. Strategic Corporate Developments 36

5. Product Launches 43

FOCUS ON SELECT REGIONAL MARKETS

1. North American Perspective 45
Table 31: Leading Players in the North American Aircraft
(Military) Coatings Market (2005): Percentage Breakdown of
Sales for Deft, PPG, Dexter, and Others 45

Table 32: Leading Players in the North American Aircraft
(Commercial) Coatings Market: Percentage Breakdown of Sales
for PPG, Dexter, Deft, and Others 45

Table 33: Leading Players in the North American Small Business
Jet Market (2005): Percentage Breakdown of Value Sales for
Cessna, Raytheon, and Bombardier 45

Table 34: Leading Players in the North American Large Business
Jet Market (2005): Percentage Breakdown of Value Sales for
Gulfstream, Bombardier, and Dassault 45

Table 35: Leading Players in the North American Full Flight
Simulators Market (2005): Percentage Breakdown of Value Sales
for Flight Safety International, CAE, Thales Training &
Simulation, and Others 46
Market Outlook 46

1a. United States 46
Table 36: US Aerospace Sector (2002-2006): Value of Aerospace
Shipments and Value of Aircraft & Parts Shipments in US$
Billion 46

Table 37: US Aerospace Sector (2007): Sales in US$ Billion
for Military Aircraft, Engines, Parts and Services; Civil
Aircraft, Engines and Related Components; Space Sector; and
Missiles Sector 47

Table 38: Leading Aviation & Aerospace Companies in the US
(2005): Revenues in US$ Billion for Boeing, Honeywell,
Lockheed Martin, Northrop Grumman, and United Technologies 47

Table 39: Aerospace Equipment Market in the US (2005):
Percentage Breakdown of Sales for DOD, NASA/Other Government,
and Others 47
Losing Its Hold on Global A&D Industry? 47
Trade Between the US and Other Countries 48
Cut Capacity – Need of the Hour in the US Aerospace Sector 48
Aircraft Market 48
Table 40: Aircraft Market in the US (2007): Sales of Civil
and Military Aircraft in US$ Million 48

Table 41: Military Flight Simulation Market in the US (2005):
Percentage Breakdown of Value Sales by Service – Air Force,
Navy, and Army 49
Market Outlook 49
Air Force Contractors 49
Table 42: Leading Air Force Contractors in the US (2005):
Percentage Breakdown of Sales for Lockheed Martin, Boeing,
Raytheon, Northrop Grumman, United Technologies, General
Electric, General Dynamics, Honeywell, Aerospace, and Others 49

Table 43: Leading Government Technology Contractors in the US
(2005): Defense Contract in US$ Million for Northrop Grumman,
Lockheed Martin, General Dynamics, Raytheon, and Boeing 49

1b. Canada 50
Table 44: Aerospace Market in Canada (2007): Percentage
Breakdown of Revenues by Segment – Aircraft and Parts,
Maintenance/ Repair/ Overhaul, Engine and Parts, Avionics &
Electric Systems, Space, Simulation and Training, Sys, and
Others 50

2. A European Perspective 51
Industry in a Transition Phase 51
Table 45: Aerospace Market in Europe (2006): Revenues in
Billion Pounds by Region – UK, France, Germany, Italy, and
Spain 51
Consolidation 51
Weakening US Dollar – A Bane for Airbus 51
The Dominance of European A&D Companies in the Global Market 51
Table 46: SMEs’ Aerospace Sales to Airlines, Armed Forces and
Equipment Suppliers in the European Union (2005): Percentage
Breakdown of Sales by Category – Aircraft, Space, and
Missiles 52
Retention of Skilled Workforce: The Critical Issue 52
Space Industry 52

2a. France 53

2b. Germany 53
Industry in Distress 53
Space Sector: Rebuilding Through Restructuring 53
Germany Calls for Greater Cooperation 54
Synergies Through Coordinated Research Programs 54

2c. Russia 54
On a Come Back Trial 54
Russia Revamps the Defense Industry 54
Table 47: Missiles Market in Russia (2007-2010): Production
of Surface-to-Air Missiles in Units 55

2d. United Kingdom 55
The Irish Market 55

3. Other Markets 55

3a. China 55
Smooth Ride for Aerospace Giants Expected 56
The EU’s Chinese Obsession 56

3b. India 57
Big Time Spender 57

3c. Brazil 57

4. The Middle East 57
The Haven of Defense Sectors 57
Dubai Eyes Global Aerospace Market 57


GLOBAL DIRECTORY