2019 global aerospace and defense industry outlook

Executive summary

In 2018, the global aerospace and defense (A&D) industry recuperated and experienced a solid year as passenger travel demand strengthened and global military expenditure continued to rise. The industry is expected to continue its growth trajectory in 2019, led by growing commercial aircraft production and strong defense spending.

This outlook reviews the performance of the A&D industry in 2018 and forecasts its growth in the coming years. It also outlines performance across major A&D markets and discusses trends that will impact the industry.

Key findings:

• The commercial aircraft order backlog is at its peak of more than 14,000—with about 38,000 aircraft expected to be produced globally over the next 20 years.
• Geopolitical tensions are continuing to intensify and demand for military equipment is on the uptick, driving defense spending across the globe.
• Changes in the international trade agreements likely to disrupt the global supply chain and increase costs.
• M&A activity to remain strong as pressure on suppliers to reduce costs and increase production rates continues.
• Though A&D industry growth is primarily led by the United States, few other regions including China, France, India, Japan, the Middle East, and the UK, will be contributing to the industry’s performance in the near term.