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Aerospace and defense cross-border joint ventures
Precise, guided, and complex
As aerospace and defense joint ventures continue to be an important vehicle for international expansion, how can companies plan for both complexity and success?
- Navigating a complex terrain
- Business planning considerations
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This change in policy positions the world’s biggest defense importer to become a key aerospace and defense manufacturing hub.
Navigating a complex terrain
Many nations are investing in science and technology and proudly tout their aerospace and defense progress. As a result, A&D companies focusing on international expansion are doing so through cross-border joint ventures (JVs) to create value.
With the US and European A&D sectors maturing, companies from these regions are increasing their focus on international growth opportunities in markets such as India, China, and the Middle East. Over the last 10 years, commercial and military aerospace businesses in India remained the leading segments, within aerospace or defense, to establish cross-border JVs. Similarly, China has seen cross-border JVs in the commercial aerospace segment, followed by commercial avionics. The Middle East has experienced large numbers of JVs in commercial aerospace, as well as weapons-related JV formations. Going forward, India, China, and the Middle East will likely lead the way in attracting JV activity, with other geographical regions following (Eastern Europe, Southeast Asia, etc.).
With India relaxing its defense sub-sector foreign direct investment (FDI) rules, entering into its A&D market is now easier. This change in policy positions the world’s biggest defense importer to become a key aerospace and defense manufacturing hub.
In the Middle East, oil price volatility, regional tensions, and the recognition of the multiplier effect of an A&D sector base are collectively expected to drive JV formation activities. China continues to make impressive progress in building a formidable A&D industrial base.
However, A&D companies and their executives need to keep key issues in mind while entering into international JVs, including geopolitical alliances, end markets, supply chains, and regulatory compliance and structure.
Business planning considerations
Report highlights include:
- Lists of cross-border joint ventures in aerospace and defense, by region
- Public policy developments and emerging trends
- Offset frameworks and intellectual property rights rules by market
- India and China lead the pack, followed by the Middle East, in cross-border joint venture activity
- Cross-border joint venture activity trends by A&D segment: Commercial and military aerospace remain focus areas
- How can joint ventures plan for complexity and success?
Download the report
The A&D sector today stands in front of powerful growth trends in technology development, manufacturing processes, global competition, complex security patterns, and cross-industry innovation, all while facing a geopolitical landscape that is ever-changing and uncertain. Cross-border JVs stand to offer impressive channels to create new markets, products, and services. Success with cross-border JVs will demonstrate the efforts of various contributors, limited to not just the JV partners but potentially government bodies and policies, and financing and technology development institutions.