Perspectives

2014 Global Aerospace and Defense Industry Outlook

Expect another record year for commercial aerospace and continued declines in defense

The commercial aerospace sector is expected to continue its significant revenue and earnings growth, with record setting production both at the platform level, as well as in the supplier base. On the other hand, continued declines in revenue and earnings are expected for the global defense sector.

2014 Global Aerospace & Defense Industry Outlook: Key findings

  • Revenue growth in the 5 percent range is expected for the overall Aerospace and Defense (A&D) industry in 2014.
  • Global revenues for defense companies are on a downward trend, declining 1.3 percent in 2012 and 1.9 percent in 2011. It is anticipated for 2013, global revenues for defense companies will track to similar levels in the past two years, around an estimated minus 2.5 percent.
  • Global defense spending is declining, resulting mainly from reduced armed conflict in Iraq and Afghanistan and affordability concerns in many traditional militarily active governments. However, defense spending is increasing in several areas of the globe, especially in the Middle East, India, China, Russia, South Korea, Brazil, and Japan.
  • 2014 will likely bring high single to double-digit levels of growth in the commercial aerospace sub-sector.
2014 Global A&D Industry outlook

Global Aerospace & Defense industry trends

The industry has changed the very nature of the ways consumers travel by commercial aircraft, communicate via satellites, shop over the internet, conduct armed conflict when necessary, and assist with humanitarian missions to far reaches of the globe.

The A&D industry is expected to continue to develop game changing technologies that will offer improvements in these other areas.

For commercial aerospace, there will continue to be a need over the long term to bring more people all over the globe closer together physically via safe, cost effective, and efficient air travel.

For defense, there is a need to continue improvements to recognise, encounter, and contain aggression in manner that increasingly keeps the war fighter out of harm's way.

Technology innovation is the key to advancements in the industry, in order to address current markets and to create demand in markets that have yet to be discovered. 

2014 Global A&D Industry outlook infographic
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