Search Results for "Aerospace Industry Profile Reports"

About the Aerospace Industry

The global aerospace and defence market was valued at $920 billion in 2009, with defense the largest market within the overall total. Defense accounts for 72% of the total and is worth $660 billion. The remainder is accounted for by the civil aviation sector. The US is by far the largest aerospace and defence market, accounting for nearly 60% of the global aerospace and defence market value. Europe accounts for 22% and Asia Pacific 19%. The global aerospace and defence market is forecast to be valued at nearly $1,200 billion in 2014.

In 2009, global military expenditure rose to $1,536 billion. This enormous amount tops a decade of continuous growth of military budgets around the world: since 2000, military spending increased by 49% to an all time high in 2009.

The large commercial aircraft market is characterised by a duopoloy between Airbus and Boeing. Airbus slightly leads the market with revenues of around $36.6 billion (2009) with Boeing on revenues of $34.4 billion (2009). The Airbus A320 and Boeing's 737 planes, which are manufactured in various sizes between 100 and 200 seats, dominate the largest part of the commercial jet market. Analysts forecast demand for nearly 25,000 new commercial jets in the 100-200 seat range, which is 70% of all jet deliveries and worth $3,000 billion over the next two decades.

According to Boeing, the global aircraft fleet will grow from about 19,400 planes in 2010 to more than 39,500 by 2030. The need to replace older, less efficient airplanes will account for 40 percent of the projected market for new airplanes. The 2011 forecast anticipates 13,360 airplanes will be replaced over the next 20 years. This reflects rising fuel prices and the increasing economic burden of using older, less capable, and less efficient airplanes. At this replacement rate, 85 percent of the fleet operating in 2030 will have been delivered after 2011.

The fastest growing market will be for twin-aisle airplanes. This segment is expected to grow at an average annual rate of 4.4 percent. The twin-aisle fleet will grow from 3,640 airplanes in operation today to 8,570 airplanes in 2030. In 20 years, much of the in-service fleet will be newer aircraft, such as the Boeing 787 and 777, which offer more passenger comfort, improved efficiency, and better environmental performance than the airplanes they replace.

There is expected to be modest growth in the large aircraft fleet over the long term. The number of large airplanes in the fleet will grow from about 770 today to 1,140 in 2030. Nearly all the gain in large aircraft is coming from the freighter market. The number of large passenger airplanes in operation today is around 450. The large airplane passenger fleet will remain at approximately that level over the long term.

Among the 33,500 airplanes to be delivered over the next 20 years, 23,370 will be single-aisle airplanes. (This is 70 percent of the total number of aircraft, and 48 percent by value.) In addition to growth in this sector of the industry, the demand for new single-aisle airplanes is due to a need to replace older aircraft, such as 737 Classics, early A320s, and MD-80s/90s. It is expected that there will be a wave of single-aisle retirements starting around 2016 as a number of airplanes become 25 years old-a typical retirement age for jet aircraft.

The imminent introduction of the Boeing 787 Dreamliner, and later of the Airbus A350, is driving the resurgent demand for twin-aisle airplanes, as these new airplanes offer significant efficiency improvements over the aircraft they are replacing. Over the next 20 years, 7,330 new twin-aisle deliveries are expected. This represents 22 percent of total deliveries, or 43 percent of total market value. About 40 percent of the demand for twin aisles will come from the Asia Pacific region. Increasing liberalization and the region's vast geography will promote the opening of new air routes between a growing number of origins and destinations.

Approximately 43 percent of large airplane deliveries over the next 20 years are expected to go to Asia, with China and Southeast Asia accounting for most of the delivery demand. The Middle East, with its already substantial backlog of aircraft in this category, accounts for another 22 percent of the large airplane market. The 820 new large airplanes (such as the 747-8 Intercontinental and the A380) forecast to be delivered worldwide represent only 2 percent of total airplane deliveries. Yet with a value of US$270 billion, large airplanes account for 7 percent of the total market value. Nearly half of those airplanes are already on order. A substantial portion of large airplane demand is for freighters, due to their efficiency in serving this market.

Leading Companies in the Global Aerospace and Defence Market

The Boeing Company

The Boeing Company (Boeing) is an aerospace company. Boeing is engaged in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services. The Company operates in five segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network & Space Systems (N&SS), Global Services & Support (GS&S), and Boeing Capital Corporation (BCC). Boeing's Other segment includes the activities of engineering, operations and technology (EO&T), and shared services group (SSG), as well as intercompany guarantees provided to BCC. In July 2010, the Company acquired Narus, which is a provider of network traffic and analytics software. On August 5, 2010, the Company acquired Argon ST, Inc. (Argon). In December 2010, Boeing completed the acquisition of the business and operations conducted by Summit Aeronautics Group in Helena, Montana.

EADS

EADS NV is a Dutch company specialized in the aerospace, defense and related services. It is organized into four divisions: Airbus (including Airbus Commercial and Airbus Military), Eurocopter, Astrium and Cassidian. Airbus is an aircraft supplier, whose Airbus commercial product line comprises families of aircraft ranging from 107 to 525 seats, while Airbus Military produces special mission aircraft dedicated to specialized military and security tasks. Airbus Military also manufactures medium and light military transport aircraft and is responsible for the European heavy military transport A400M project. Eurocopter is active in the civil and military helicopter market. Astrium designs and manufactures satellites, orbital infrastructures and launcher systems and provides space services. Cassidian focuses on EADS' defence and security activities. Other businesses include turboprop manufacturer ATR, aerostructure and aircraft seat business Sogerma and EADS North America.

Lockheed Martin Corporation

Lockheed Martin Corporation is a global security company engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products. The Company also provides a range of management, engineering, technical, scientific, logistic, and information services. It serves both domestic and international customers with products and services that have defense, civil, and commercial applications, with its principal customers being agencies of the United States Government. The Company operates in four business segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. On November 22, 2010, it completed the divestiture of Enterprise Integration Group (EIG). In April 2011, the Company completed the divestiture of its Pacific Architects and Engineers Incorporated (PAE) business to Lindsay Goldberg, LLC. In September 2011, the Company acquired QTC Holdings Inc.

BAE Systems

BAE Systems plc (BAE Systems) is a global defense and security company. The Company delivers a range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and support services. The Company has five segments: Electronics, Intelligence & Support, Land & Armaments, Programmes & Support, International and HQ & Other Businesses. The Company operates in Australia, India, the Kingdom of Saudi Arabia, the United Kingdom and the United States. On July 13, 2010, the Company acquired of Atlantic Marine Holding Company (Atlantic Marine). On October 19, 2010, the Company acquired OASYS Technology, LLC (OASYS). In April 2011, the Company completed the acquisition of the outstanding equity of Fairchild Imaging, Inc. In June 2011, the Company sold Saab AB. In July 2011, the Company sold its regional aircraft asset management business. In September 2011, the Company sold its Advanced Ceramics business.

General Dynamics

General Dynamics Corporation offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; military and commercial shipbuilding, and communications and information technology. General Dynamics operates through four business groups: Aerospace, Combat Systems, Marine Systems, and Information Systems and Technology. In May 2010, the Company acquired EBV Explosives Environmental Company. In July 2011, the Company acquired Network Connectivity Solutions, Corp. On July 22, 2011, the Company acquired Fortress Technologies, Inc. In September 2011, the Company acquired Vangent Holding Corp. In November 2011, the Company acquired Metro Machine Corp., an East Coast surface-ship repair company.

Northrop Grumman

Northrop Grumman Corporation (Northrop Grumman) is an integrated enterprise consisting of businesses that cover the entire security spectrum, from undersea to outer space and into cyberspace. The Company operates in four segments: Aerospace Systems, Electronic Systems, Information Systems and Technical Services. In April 2009, the Company acquired Sonoma Photonics, Inc., as well as assets from Swift Engineering's Killer Bee Unmanned Air Systems product line. In December 2009, the Company sold its Advisory Services Division (ASD). In March 2010, the Company separated its Shipbuilding business through a spin-off of its subsidiary, Huntington Ingalls Industries, Inc.

Raytheon

Raytheon Company, together with its subsidiaries, is a technology company and specializes in defense, homeland security and other government markets. The Company provides electronics, mission systems integration and other capabilities in the areas of sensing, effects and command, control, communications and intelligence systems (C3I), as well as a range of mission support services. It serves both domestic and international customers, principally as a prime contractor on a portfolio of defense and related programs for government customers. The Company operates in six business segments: Integrated Defense Systems (IDS), Intelligence and Information Systems (IIS), Missile Systems (MS), Network Centric Systems (NCS), Space and Airborne Systems (SAS), and Technical Services (TS). During the year ended December 31, 2010, the Company acquired three companies: Compucat Research Pty, Trusted Computer Solutions Inc. and Technology Associates Inc (AST).

United Technologies

United Technologies Corporation (UTC) is a provider of technology products and services to the building systems and aerospace industries worldwide. The Company's operating units include businesses with operations throughout the world. Otis, Carrier and UTC Fire and Security serve customers in the commercial and residential property industries worldwide. arrier also serves commercial, industrial, transport refrigeration and food service equipment customers. Pratt and Whitney, Hamilton Sundstrand and Sikorsky serve commercial and government customers in both the original equipment and aftermarket parts and services markets of the aerospace industry. Hamilton Sundstrand, Pratt and Whitney and UTC Fire and Security also serve customers in certain industrial markets. During the year ended December 31, 2010, its commercial and industrial sales were approximately 57% of the net sales. In September 2011, the Company sold Chubb Guarding Services Singapore Pte Ltd.

Finmeccanica

Finmeccanica SpA is an Italy-based industrial holding company which produces helicopters for military and civil use; defense electronics and security, which makes air, airport and costal traffic managements systems; aeronautics, which makes tactical airlifters, combat aircraft and air vehicles for both civil and military applications; space, making and positioning telecommunications, Earth observation and remote sensing satellites for civil and use; defense systems, which design and produces defense systems; energy, offering systems and components for power generation; transportation, offering transport solutions and signaling systems; and other activities like satellite telephony and investment services. Its Subsidiaries include DRS Technologies Inc, Alenia Aeronautica SpA, Ansaldo STS SpA, Selex Sistemi Integrati SpA, Telespazio Holding Srl, Alenia North America Inc, Augusta SpA and Augusta US among others.

General Electric Company

General Electric Company (GE) is a diversified technology and financial services corporation. The products and services of the Company range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. Effective January 28, 2011, it held a 49% interest in a media entity that includes the NBC Universal businesses. Its segments include Energy Infrastructure, Technology Infrastructure, NBC Universal, GE Capital and Home & Business Solutions. Effective January 1, 2011, it reorganized Technology Infrastructure segment into three segments: Aviation, Healthcare and Transportation. On February 1, 2011, it acquired Dresser, Inc. On February 3, 2011, it acquired Wellstream PLC. In September 2011, it launched a new entity, Research Circle Technology Inc. (RCT). In October 2011, the Company's GE Energy Financial Services unit bought a 58% interest in Lightfoot Capital Partners L.P.

L-3 Communications

L-3 Communications Holdings, Inc. (L-3) is a prime contractor in Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) systems, aircraft modernization and maintenance, and government services. L-3 is also a provider of a range of electronic systems used on military and commercial platforms. The Company's customers include the United States Department of Defense (DoD) and its prime contractors, United States Government intelligence agencies, the United States Department of Homeland Security (DHS), United States Department of State (DoS), United States Department of Justice (DoJ), allied foreign governments, domestic and foreign commercial customers, and select other United States federal, state and local government agencies. The Company operates in four segments: C3ISR, Government Services, Aircraft Modernization and Maintenance (AM&M) and Electronic Systems. On December 22, 2010, the Company acquired FUNA International GmbH (FUNA).

Safran

Safran SA is a France-based high-technology company which supplies systems and equipment for aerospace, defense and security. The Aerospace Propulsion division provides engines, turbines and parts for aircraft, helicopters, missiles and rocket boosters for civil, military and spatial markets through several subsidiaries, including Snecma and Turbomeca. The Aircraft Equipment division produces landing gear, wheels and carbon brakes, aircraft engine nacelles and airborne power electronics through its subsidiaries, including Messier-Bugatti-Dowty and Aircelle. The Defense division include the subsidiary, Sagem, and makes systems and equipment for inertial navigation, avionics, optronics, tactical drones and other defense applications to be used on military transport and combat aircraft, helicopters, warships, submarines, armored vehicles and artillery systems. The security division offers solutions for biometric identification, secure documents and the detection of dangerous substances.

Honeywell International

Honeywell International Inc. (Honeywell) is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions for homes, business and transportation. The Company operates in four business segments: Aerospace, Automation and Control Solutions, Specialty Materials and Transportation Systems. In May 2010, the Company acquired Akuacom, an automated demand response technology and services for the smart grid. In June 2010, Honeywell International Inc. acquired Matrikon Inc. On July 21, 2010, the Company acquired E-Mon, LLC. In October 2010, the Company acquired Sperian Protection (Sperian).

Thales

Thales SA is a France-based electronics company providing services for the aerospace, defense and security markets worldwide. The Company operates in 50 countries through its divisions, including Aerospace, specialized in onboard equipment, electronics and systems for the civil and military markets; Space, offering solutions combining space and terrestrial technologies; Air Systems, engaged in the design and delivery of airspace safety and security solutions; Land and Joint Systems, providing services for land forces; Naval, which supplies equipment and systems for surface combatants and submarines and acts as a systems integrator, and Security Solutions and Services, providing mission-critical information systems for safety and security markets. The Company is active in a number of countries across Europe, Africa, Asia, North and South America, as well as Oceania. As of December 31, 2010, Dassault Aviation held a 25.89% stake in the Company's shareholdings.

Bombardier

Bombardier Inc. is a manufacturer of transportation solutions. The Company operates in the transportation industry under two manufacturing segments: aerospace (through BA) and rail transportation (through BT). The Company is engaged in designing, manufacturing and supporting of aviation products for the business, commercial, specialized and amphibious aircraft markets. The Company is engaged in designing, manufacturing and supporting rail equipment and systems. During the fiscal year ended January 31, 2011 (fiscal 2011), the Company delivered a total of 307 aircraft in the 20- to 149-seat category. In December 2010, the Company began delivery of the CRJ1000 NextGen aircraft. In January 2011, the Company also launched a maintenance repair and overhaul customer Website for operators of Bombardier aircraft (www.mro.aero.bombardier.com). In May 2010, the Company launched Flexjet Connect. At December 31, 2010, the Company had 81 business aircraft in the light and medium categories.

Rolls Royce Group plc

Rolls-Royce Holdings plc, formerly Rolls-Royce Group plc is a provider of power systems and services for use on land, at sea and in the air. The Company operates in four segments: civil aerospace, defense aerospace, marine and energy. The civil aerospace is engaged in development, manufacture, marketing and sales of commercial aero engines and aftermarket services. The defense aerospace is engaged in development, manufacture, marketing and sales of military aero engines and aftermarket services. The marine segment is engaged in development, manufacture, marketing and sales of marine propulsion systems and aftermarket services. During the year ended December 31, 2010, it acquired ODIM ASA. In June 2011, Daimler AG and Rolls-Royce Holdings PLC had secured around 94% interest in Tognum AG-DJ. In September 2011, the Company acquired R Brooks Associates. In September 2011, the Company acquired R Brooks Associates.

Textron

Textron Inc. is a multi-industry company engaged in aircraft, defense, industrial and finance businesses to provide customers with products and services globally. The Company conducts its business through five operating segments: Cessna, Bell, Textron Systems and Industrial, which represent its manufacturing businesses, and Finance, which represents its finance business. In June 2010, the Company acquired MillenWorks.

Goodrich

Goodrich Corporation (Goodrich) is a supplier of aerospace components, systems and services to the commercial and general aviation airplane markets. It is a supplier of systems and products to the global defense and space markets. Its business is conducted globally with manufacturing, service and sales undertaken in various locations throughout the world. Its products and services are principally sold to customers in North America, Europe and Asia. It has three segments: Actuation and Landing Systems, Nacelles and Interior Systems, and Electronic Systems. Its products include actuation systems, landing gear, aircraft wheels and brakes, nacelles, interiors, engine control systems, intelligence surveillance and reconnaissance systems, sensor systems and power systems. On September 22, 2010, it acquired the cabin management assets of DeCrane Holdings Co. In May 2011, it acquired Microtecnica S.r.l. In October 2011, the Company acquired Winslow Marine Products Corporation.

ITT Corporation

ITT Corporation (ITT) is a global engineering and manufacturing organization. ITT's operates in more than 60 countries, and sales presence in more than 125 countries. It designs, manufactures and sales a range of engineered products. Its products and services provide solutions in three markets, which include global defense and security, water and fluids management, and motion and flow control. ITT's business consists of three segments: Defense & Information Solutions, which is a United States aerospace and defense contractor delivering advanced systems and providing technical and operational services; Fluid Technology, which is a supplier of pumps and systems to transport and control water and other fluids, and Motion & Flow Control, which is a manufacturer of highly engineered critical components for multiple growth markets. In June 2011, it acquired ITT Cannon Korea Ltd. In September 2011, it acquired YSI Incorporated. In September 2011, it acquired YSI Incorporated.