In 2017 global aerospace and defense industry has shown progressive growth in the industry. Following that, in 2018 it is expected that it will show up with a strong growth of 4.1 percent. In 2017 the industry showed growth of 2.1 percent. As the Global GDP (Gross Domestic Product) is recovering itself, it has made stable commodity prices including the crude oil.
Also, it has shown growth in passenger travel demand. In which three regions, Asia-Pacific, the Middle East, and Latin America, are going to bring growth in commercial flight. In 2017, the backlog of commercial flight is remaining at its all-time high of 14000 units that was the current annual production of 9 and a half year. It will increase from 100 units in 2018.
2018 Forecast of Aerospace and Defense Industry:
• Global A&D industry revenue projected to grow 4.1 percent in 2018
• Commercial aircraft sector revenues expected to grow 4.8 percent as production levels are likely to be robust
• Defense sector revenues likely to record 3.6 percent growth as the US defense budget returns to growth after experiencing multi-year declines
• Commercial aircraft sector’s operating profits estimated to be up 18.5 percent, whereas, the defense sector is expected to experience a 10.2 percent increase in operating profits.
5 Trends Reshaping Aerospace and Defense Industry:
AI can possibly turn into a coworker for human in aerospace and defense industry. Not just that it can play a central role in the organization. This is the thinking of not just a few but 83% of Aerospace and defense industry executives.
VR and AR, these are the two best option when it comes to eliminating the distance between people, information and machine. 96% of executives think that it can fill the gap between customer and employee.
With 80% of aerospace and defense firms increasingly using data to drive critical and automated decisions, it’s little surprise that 73% also believe that those same automated systems create new data risks including fake data, data manipulation, and inherent bias.
Not only do 64% of respondents say that the size of their ecosystem has at least doubled in the past two years, but 90% expect to be exchanging more data with these partners within two years than they do today.
93 percent of aerospace and defense executives believe that the next generation of intelligent solutions is moving into physical environments.