The total size of the global aerospace industry including regional jet, commercial aerospace, defense, space, and general aviation is a several hundred billion dollar market. Given the size of the market and its prospects for long-term development, the aerospace industry represents a highly attractive opportunity for OEMs, material suppliers, engine suppliers and part suppliers. Broadly, the aerospace market can be segmented into the following categories as shown below.
Military alliances continue to evolve and create new opportunities for North American and European companies outside their home markets. Defense exports from the EU and North America have increased with the dramatic speed in recent years to Turkey, Pakistan, Singapore, the Baltic States, the UAE, Qatar, Malaysia and Japan. As to Asia pacific, if the gross domestic products of China and India continue to increase faster than those of other regions, deal activity and values are also likely to continue increasing in Asia and Oceania. From 2008 to 2009, the combined share of worldwide deal value for Asia and Oceania rose from 6 per cent to 16 per cent. Here is a chart for the growth in defense spending of difference countries.
Aerospace and defense companies are investing in new markets to pursue the customers and relationships that will help drive sales growth over at least the next 20 years. In some long-lived programmes, the sales generated by the operations and sustainment of products may extend the project life to 40 years or more.
For more aerospace and defense companies, the customer base, sources of production, and research and development are already international. Some markets, which are believed to have below average intellectual property protection, are also the most attractive for aerospace and defense investments. For instance, business executives across many industries believe China, India and Poland have below average intellectual property protection. These three markets, however, also have some of the best overall risk profiles for manufacturing investments based on indicators such as political stability, regulatory effectiveness, rule of law and sovereign debt. Other countries with higher-risk but still attractive investment profiles, such as Turkey, Brazil and Mexico, are perceived to have even weaker IP protection.
Most companies would benefit from increasing the pace of globalization only if they overcome a number of challenges:
- The management expansion of offset requirements
- Increased in financial risk
- Different interpretations of business ethics across culture
- The cost and complexity of export control compliance
- The potential loss of intellectual property
Critical to success in the aerospace market is knowledge of market trends, product mix shifts, customer needs and effective market strategies. We provided a high-level platform for customers, suppliers and competitors creates complete visibility across the whole value chain of the aerospace industry and helping our customers make confident business decisions.