Industrial Products & Construction
Delivering innovative, practical knowledge and experience to help companies in the fields of Industrial Products, Aerospace & Defense and Construction improve overall business performance. Global Industrial Products & Construction is part of the Global Energy, Resources & Industrials industry group.
2018 Global aerospace and defense industry outlook
On a solid profitable growth path
The global aerospace and defense (A&D) industry is forecasted to experience a significant increase in revenues in 2018 after a year of subdued growth.
- Commercial aircraft sector revenues expected to grow 4.8 percent as production levels are likely to be robust while the defense sector revenues are likely to record 3.6 percent growth as the US defense budget returns to growth after experiencing multi-year declines.
- The spiraling demand for passenger travel is driving commercial aircraft production and is responsible for the record high backlog of 14,215 units at the end of 2017.
- Global defense spending is anticipated to grow at a CAGR of about 3.0 percent over the 2017–2022 period, crossing US$2 trillion by 2022.
- In 2018, global M&A activity is expected to remain strong in the aerospace sector, driven by pricing pressures from aircraft OEMs and their expansion of high-margin aftermarket services. This has pushed suppliers to consolidate for scale and cost effectiveness.