2011 Midyear outlook for the global aerospace and defense sector
A new report by Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry Group, 2011 Midyear outlook for the global aerospace and defense sector, indicates a sense of unease in defense and optimism in commercial aerospace.
According to the report, it is anticipated that there will be an upswing in sales and production in commercial aircraft, principally due to the popularity of single-aisle aircrafts, for which rate increases have been announced. With the introduction of new single-aisle manufacturers, as well as next generation twin-aisle commercial aircraft products, suppliers worldwide are expected to increase production.
Regarding the global defense market, defense budgets in traditional markets are under pressure with lower budgets anticipated for the next few years. However, the report outlines technology requirements to address new adversaries and market opportunities in remotely piloted vehicles, cyber security, intelligence, surveillance, reconnaissance, mission operations, system integration, data fusion, directed energy, precision strike, and energy security.
India in particular represents a near-term opportunity for global defense contractors. With increasing security requirements for more sophisticated weapons systems, overseas players could leverage programs within the Indian aerospace, defense, and security industries to gain a cost advantage.