2021 aerospace and defense industry outlook has been saved
2021 aerospace and defense industry outlook
Exploring commercial aerospace and defense industry trends
Global aerospace and defense (A&D) industry revenue is expected to begin to recover in 2021 after a difficult year in 2020. This recovery will likely be uneven across the two key sectors—commercial aerospace and defense. Explore six aerospace and defense industry trends that companies can expect in the year ahead.
The commercial aerospace industry could remain challenged, while the defense sector is expected to be stable
The commercial aerospace industry has been significantly affected by the COVID-19 pandemic, which has led to a dramatic reduction in passenger traffic and, in turn, affected aircraft demand. As a result, the commercial aerospace sector is expected to recover slowly, as travel demand is not expected to return to pre–COVID-19 levels before 2024. The defense sector, on the other hand, is expected to remain stable in 2021, as most countries have not significantly reduced defense budgets and remain committed to sustaining their military capabilities. However, given the disruption in the complex global supply chain, some defense programs could face minor cost increases and schedule delays in 2021.
Podcast: 2021 aerospace and defense industry outlook
Six aerospace and defense industry trends
Aerospace and defense industry outlook: Expect to focus on restructuring, cost reduction, and supply chain transformation in 2021
While the aerospace and defense industry, particularly the commercial aerospace industry, is expected to face near-term challenges, the defense sector is expected to remain stable and weather the pandemic’s disruption. In 2021, commercial aerospace manufacturers are likely to focus on restructuring and cost reduction to position themselves for profitable growth in the long term. The industry is also likely to take advantage of the pandemic and its subsequent drop in demand to transform supply chains. A&D companies could also pursue M&A opportunities to build scale and capture greater value. Long-term growth prospects for the A&D industry remain strong. The space sector, together with technological developments such as advanced air mobility, hypersonics, electric propulsion and hydrogen-powered aircraft, are likely to drive future growth for the industry.
Energy and industrials trends in 2021
Our industry outlook collection, covering oil, gas, and chemicals; power, utilities, and renewables; and industrial products and construction, evaluates sector landscapes to help executives better plan for success and unforeseen challenges.
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