Defensive Maneuvering: Defense spending by the United States and Western Europe will be limited

Over the five years to 2017, the Global Military Aircraft and Aerospace Manufacturing industry has suffered a setback as Western defense budgets began to shrink. Skyrocketing debt caused by the global recession forced countries, such as the United States and United Kingdom, to spend less on procurement of military aircraft, missiles and satellites. In the coming years, defense spending by the United States and Western European nations will continue to be pressured, limiting their spending on industry products, with many programs reduced in scope, delayed or canceled. However, climbing non-NATO defense spending will continue to provide more funding for the procurement of industry products, offsetting pressured spending by Western nations...read more.

Industry Statistics & Market Size
Revenue
$255bn
Annual Growth 12-17
0.3%
Forecast Growth 17-22
Profit
Employment
1.0m
Businesses
3,636

Industry Threats & Opportunities

  • Defense spending by Western nations will continue to be pressured, which will limit their spending and cause programs to be reduced in scope, delayed or canceled
  • Non-NATO defense spending on military aerospace products has come under pressure
  • US industry operators will be under pressure due to budget issues
  • Industry Report - Industry Key Buyers Chapter

    The Global Military Manufacturing and Aerospace Manufacturing industry has low market concentration. In 2017, the four largest players will account for just over 30.0% of industry revenue. Due to the global scope of this industry it is extremely difficult for any one company to gain large share of industry revenue. Expansion into different countries is often limited, because governments typically prefer to buy from their own suppliers to prevent dependence. However, the industry is still dominated by a few large contractors because of the resources it requires to develop and manufacture advanced military equipment such as fighter jets and bombers. The remaining manufacturers, who make up the majority of businesses, usually act as component suppliers to the contractors. Ove...purchase to read more.

    Additional Insights for the Global Military Aircraft & Aerospace Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Global Military Aircraft & Aerospace Manufacturing Industry are

  • Prompt delivery to market
  • Ability to expand and curtail operations rapidly in line with market demand
  • Well-developed internal processes
  • IBISWorld analysts also discuss how external factors such as NATO defense spending and GDP of the European Union in the Global Military Aircraft & Aerospace Manufacturing industry impact industry performance..

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    What's in this report

    What is the Global Military Aircraft & Aerospace Manufacturing Industry?

    Companies in this industry manufacture complete military aircraft, missiles or space vehicles, along with associated parts and services. Industry operators also develop prototypes of aerospace products, convert aircraft (i.e. conduct major modifications to systems) and complete aircraft or propulsion system overhaul and rebuilding (i.e. periodically restoring aircraft to original design specifications).

    Industry Products
  • Aircraft and parts
  • Missiles
  • Space systems
  • MRO and other services
  • Avionics and electronic systems
  • Industry Activities
  • Manufacturing military aircraft, missiles and space vehicles
  • Manufacturing military aerospace engines, propulsion units, auxiliary equipment or parts
  • Developing and making military prototypes
  • Military aircraft conversion
  • Military complete aircraft or propulsion system overhaul and rebuilding
  • Manufacturing military space launch vehicles
  • Maintenance and post-sale servicing of manufactured products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • NATO defense spending
  • GDP of the European Union
  • Regulation for the Global Military Aircraft and Aerospace Manufacturing industry
  • World price of steel

  • Current Performance
    Western demand shrinksGlobal demand risesRecent volatilityOther trends
  • Chart: Revenue Growth

  • Industry Outlook
    Western spending stabilizesGlobal demand remains strong, but increasingly pressuredGrowing participation
  • Table: Global Military Aircraft & Aerospace Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Global Military Aircraft & Aerospace Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Global Cargo Airlines
  • Global Public Administration and Defence

  • Key Selling Industries
  • Global Commercial and Service Machinery Manufacturing
  • Global Computer Hardware Manufacturing
  • Global Iron and Steel Pipe and Tube Manufacturing
  • Other Global Manufacturing
  • Other Global Mining and Quarrying

  • Products & Services
  • Aircraft and parts
  • Avionics and electronic systems
  • MRO and other services
  • Missiles
  • Space systems
  • Chart: Global Military Aircraft & Aerospace Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • United States
  • Other
  • Europe
  • China
  • Russia
  • Chart: Major Market Segmentation for the Global Military Aircraft & Aerospace Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Global Military Aircraft & Aerospace Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Global Military Aircraft & Aerospace Manufacturing Industry

  • Industry Globalization
    Lockheed Martin Corporation, The Boeing Company, Airbus Group,
  • Table: Lockheed Martin Corporation - financial performance
  • Table: The Boeing Company - financial performance
  • Table: Airbus Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Global Military Aircraft & Aerospace Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Global Military Aircraft & Aerospace Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Non-NATO defense spending (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    European Aeronautic Defence And Space Company
  • (EADS) A consortium of European companies that manufacture aircraft.
  • European Aviation Safety Agency (Easa)
  • The agency that regulates the aviation industries in Europe.
  • Fifth-Generation Jet Fighter
  • The most advanced generation of fighter aircraft.
  • What Our Customers Say

    Why buy this report?

    The global economy presents its own set of opportunities and threats for businesses in a range of industries. IBISWorld’s Global Military Aircraft & Aerospace Manufacturing global market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies globally and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Global Military Aircraft & Aerospace Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Global Military Aircraft & Aerospace Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Global Military Aircraft & Aerospace Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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