Trends in the Aerospace and Defense Industry have been shifting lately; what was once a primarily domestic industry has started to become global in nature. As highly populated nations such as China and India become more open to global markets, international suppliers will seek to fill their demands. What are some of the things we can expect to see from the global Aerospace and Defense market in the near future?
For one, the market is rapidly shifting to the east: China, India, and the Middle East are expected to be large markets for A&D products, as well as play a role in participating in the supply chain. In the case of China, the Chinese population is expected to grow by nearly 600 million in the next 20 years, which is expected to drive commercial aircraft demand up to nearly 3,500 in the next two years or so. Currently, there are around only 100 commercial airlines in China at the moment, and that number is expected to increase into the thousands over the next decade. China is expected to become a large market for aerospace products as well as a major player in production.
In India, expected growth is high as well. India is becoming one of the largest defense spenders in the world, currently with the third-largest defense budget in Asia. From 2009-2010, India has earmarked US$35 billion for national defense, $11.5 billion of which is going towards new weapons equipment and systems. This number is expected to increase to $45 billion in 2012, making India one of the largest and most attractive defense markets in the world. India, like China, is also experiencing a rapid upward swing in population, and the same demand for commercial aircraft that China is experiencing is expected for India as well.
In the Middle East, the United Arab Emirates emerges as just one of the prime markets for global A&D expansion. The UAE has invested a significant amount of resources in building an aerospace industry. There have been multiple announcements of joint ventures, as well as industrial developments for the manufacturing of aerospace components. The UAE is also a significant and continually-growing buyer of defense products such as intelligence surveillance, helicopters, tactical fighters, and missile defense. It, along with China and India, indicate a future for Aerospace and Defense that is much more global in scope.