March 17, 2015 source deloitte.com
Growth for commercial aerospace; defense decline continues
According to our 2015 Global aerospace and defense industry outlook, the industry is likely to grow around 3 percent. This increase is due to the continued strength of the commercial aerospace sector from rising passenger travel demand and production of next generation fuel-efficient aircraft.
Based on information in the Outlook, the commercial aerospace sector is expected to set new records for aircraft production in 2015 with revenue growth close to 8 percent. The accelerated replacement cycle of obsolete aircraft with next generation fuel-efficient aircraft, and growing passenger travel demand, especially in the Middle East and the Asia-Pacific region, are key drivers behind this trend.
Over the next few years, the defense sector will likely be challenged in two major ways: how to grow profitably in a declining market and what actions are necessary to cut costs in order to maintain acceptable financial performance. Many defense companies are addressing these challenges by branching out into adjacent markets, focusing on foreign military sales, and investing in next generation product development.
2015 Global Aerospace & Defense Outlook Download the report