Market Trends of Aerospace and Defense Materials Industry
This section covers the major market trends shaping the Aerospace & Defense Materials Market according to our research experts:
Increasing Demand for the Commercial Aircraft Segment
- The increasing air travel rates, particularly in the emerging economies of North America and Latin America, and the rising disposable incomes around the world have been driving the growth of commercial aircraft globally.
- The manufacturers are focusing on solutions to meet the need to reduce weight and increase fuel efficiency. The materials used in commercial aircraft include aluminum alloys, steel alloys, titanium alloys, and composite materials.
- The growth in the total demand for commercial aircraft is expected to increase over the next few years with the strong passenger travel demand in the Middle Eastern and Asia-Pacific regions.
- According to Boeing, there is a need for more than 41,000 new deliveries, which are valued at over USD 6 trillion, due to the growth in air travel and old aircraft replacements, over the coming 20 years.
- According to Airbus, in the first three quarters of 2020, Airbus booked a total of 300 net commercial aircraft orders compared with 127 net orders in the equivalent 2019 period. In 2020, Airbus delivered a total of 566 commercial aicraft, and it has orders for 383 commercial aircraft.
- The rising air traffic across ASEAN countries is also likely to spur the demand for commercial aircraft, with an increasing focus on tourism and travel and low airfares.
- Therefore, the increase in air traffic and commercial aircraft production expansion by global manufacturers is expected to boost the demand for aerospace and defense materials during the forecast period.
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The North American Region to Dominate the Market
- The North American region is expected to be one of the promising markets for aerospace and defense materials during the forecast period.
- The aerospace sector in the United States is the largest in the world. The export of aerospace components to countries, such as France, China, and Germany, along with robust consumer spending in the United States, is driving manufacturing activities in the US aerospace industry.
- The US defense budget is continuously increasing as a result of rising global tensions and the country's desire to equip the armed forces with modern platforms. The country contributes to around 35% of the total spending on the defense sector. Defense spending amounted to USD 714 billion in FY 2020, and it is expected to increase to USD 733 billion in FY 2021.
- The American military is still the most powerful in the world. The country's leading defense industry companies are still global leaders in weapons innovation and production.
- Estimated US military spending during October 2020 through September 2021 is USD 934 billion. Military spending is the second-largest item in the federal budget after Social Security. This figure is more than the amount of USD 705 billion outlined by the Department of Defense.
- The country's defense firms are looking for growth opportunities through foreign military sales (FMS). The growth is likely to be driven by the supply of helicopters, missiles, and other carriers to the Middle Eastern countries.
- Therefore, the growing aerospace and defense sector in the United States is expected to boost the demand for the market studied during the forecast period.
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