Categories | Aerospace and Defence

Aerospace and Defence

The Aerospace and Defense Industry primarily focuses on two major sectors:

  • Aerospace, which primarily encompasses the production, sale, and administration of commercial aircraft.
  • Defense, which focuses on the country's requirement for military weapons and frameworks intended to function ashore, on land, and in the air.

The sector has taken advantage of advanced technologies such as big data, distributed computing, artificial intelligence, and the Internet of Things (IoT) to gain a competitive advantage in optimising efficiency and lowering costs. The Aerospace and Defense market research aims to provide a comprehensive picture of the aforementioned segments. Because the aerospace and defence industries have a longer lifespan, companies are forced to keep large inventories. Variable market dynamics, on the other hand, pose significant challenges for these players, as high stocks make them incapable of responding quickly to market changes. The aerospace and defence industries are heavily reliant on macroeconomic factors and are primarily governed by government agencies. It is divided into five key segments: commercial and military aircraft, space systems, ground defence, and shipbuilding. The industry is experiencing moderate growth, which is primarily hampered by a large number of sole-source suppliers, long lead times, financial constraints, order backlogs leading to extensive inventories, and cyber threats. Furthermore, certain factors such as current lending rates and low demand for aftermarket services are expected to have a negative impact on the sector, beginning with the supply chain of tier 2 and 3 companies. Our team has distinguished itself in the market as a strategic team that is solely focused on the Aerospace and Defense industry and has a unique understanding of market opportunities and constraints. This will assist the client in gaining an understanding of the Aerospace and Defense industry, as well as the possibility of establishing a base and expanding.

Airbus announced the development of three concept aircraft that will run on hydrogen fuel in September 2020. The planes are scheduled to be operational by 2035. In addition, Airbus discovered a new testing facility in Germany that will be used to test these aircraft in the future.

AeroDelft unveiled the latest prototype for the unmanned Phoenix PT aircraft, which is expected to be powered by liquid hydrogen, in March 2021. The aircraft will have a maximum range of 500 kilometers and will be able to fly for seven hours.

Urban Aeronautics Ltd. announced in January 2021 that it had reached an agreement to provide four CityHawk VTOL aircraft to Hatzolah Air for emergency medical service (EMS) applications. Hatzolah Air will also serve as Urban Aeronautics' official sales representative and distribution channel to other EMS and rescue organisations around the world, according to the company.

Eaton Corporation announced the signing of an agreement to acquire Cobham Mission Systems, a subsidiary of Cobham plc, in February 2021. Eaton will pay USD 2.83 billion for CMS, including USD 130 million in tax benefits, according to the terms of the agreement.

Boeing and the US Navy flew the MQ-25 T1 test asset with an aerial refueling store (ARS) for the first time in December 2020, marking a significant milestone in the development of the unmanned aerial refueling tanker.

Raytheon Technologies Corporation was selected by the US Air Force in June 2020 to participate in an IDIQ contract worth more than USD 950 million to develop an Advanced Battle Management System (ABMS) to connect military platforms around the world. The ABMS is expected to transform the US Air Force's future battlespace.

Raytheon Technologies Corporation received a USD 551 million contract from the US Army in March 2020 for the manufacture and delivery of the Patriot air and missile defence system to the Kingdom of Bahrain.

Lockheed Martin Corporation was awarded a contract worth more than USD 75 million by Consortium Management Group (CMG) in April 2020 to begin the second phase of development for the US Army's multi-function electronic warfare air large (MFEW-AL) program. The company will create components for the MFEW-AL system, which will provide battlefield commanders and warfighters with combined cyber and electromagnetic spectrum capabilities.

The Spanish Navy awarded Lockheed Martin Corporation a contract worth more than USD 519 million in April 2020 for providing sensor and radar equipment using the Aegis Combat System (ACS). The ACS detects, tracks, and destroys targets and missiles using a combination of computer and radar systems.

The effects of Covid-19 on the aviation industry are manifesting themselves in a variety of ways, ranging from a sudden drop in passenger traffic to the world's increased reliance on air cargo operations. With the global halt in international travel, the industry has suffered significant economic and job losses. Passenger volumes at airports around the world have dropped by more than 90%, forcing airlines to ground their passenger fleet. The global air freight industry has lost nearly 50-55 percent of its cargo capacity that is checked in these passenger planes as a result of the widespread grounding of passenger planes. The following are some of the industry's major challenges:

  • Disrupted supply chain
  • Difficulties with funding
  • Low demand resulting in downsizing of manufacturing facilities
  • Reduced profitability over the financial year

According to the International Air Transport Association, the industry will require a cash infusion of up to $200 billion, as well as financial support, to get through this economic downturn.