Commercial aviation has weathered many downturns in the past, yet the recovery has followed quickly and the industry has been reliably returned to its long-term growth rate of approximately 5 percent per year. Despite uncertainties, 2011 passenger traffic rose to about 6 percent above 2010 levels. It can be expected that this trend would continue over the next 20 years, with world passenger traffic growing by approximately 5 percent annually. Also expansion of emerging-market economies will foster a growing need for efficient transport of goods. It can be estimated that air cargo will grow approximately 5 percent annually through 2031. Boeing has projected a long-term demand for 34,000 new airplanes over the next 20 years, valued at around $4 trillion. These new airplanes will replace older, less efficient airplanes, benefiting airlines and passengers and stimulate growth in emerging markets and innovation in airline business models. Approximately 23,240 airplanes (68 percent of new deliveries) will be single-aisle airplanes, reflecting growth in emerging markets, such as China, and the continued expansion of low-cost carriers throughout the world. The twin-aisle segment will also increase, from a 19 percent share of today's fleet to a 23 percent share in 2031. The 7,950 new twin-aisle airplanes will allow airlines to continue expansion into more international markets. According to Airbus forecast, Latin American airline traffic will grow by more than 6% per year in the next 20 years, the second highest growth rate in the world after the Middle East and ahead of Asia Pacific. Overall, the region’s traffic is expected to triple in the next 20 years. In India 2012 marked a decade of full-fledged entry of the private sector in defence production with 100% equity and 26% foreign direct investment.

In the defence sector, the financial crisis that started in 2008 has led to austerity measures and defence budget cuts across the west. Whereas the rise of the rest, especially growing economies like China, India, Brazil, Turkey and others have created an tremendous shift in the global defence industrial sector. The changes induced by the financial crisis coupled with changes in defence technology and the changing nature of war, has affected the defence market as well as the defence industry in unexpected ways. The budget constraints mean lesser demand which invariably means less growth opportunity for conventional weapons manufacturers in the coming years. However, opportunity exists for companies who are willing to take risk and invest in upcoming sectors like cyber security, unmanned systems and C4ISR. The advent of embedded systems and computers and communication technology has led to the shift from OEMs being the lead contractor to system integrators leading the way. Moreover, for the first time in this sector defence research has lagged behind its civilian counterparts, thus paving the way for technology adaptation from commercial applications. Thus system integrators should be on the lookout for viable COTS technology by preventing duplication of R&D costs and reducing the product price. Defence industries have to concentrate on providing value for money and on providing innovative and competitive support services as support services for maintaining the capability of the existing inventory are expected to cover a major part of the defence expenditure in the coming years. The above changes in the defence industry landscape will lead to increased merger and acquisition activity, joint development and joint production through consortiums, Licensing and technology transfer agreements and other forms of cooperation on governmental, industrial, institutional and organizational levels in a national and international scale. Companies who desire to excel ought to be proactive in reading and understanding the market place, should be well informed in the industry developments and must have the capability and intelligence in place to overcome any technological challenges. They must also be willing to adapt to changing business environments and adapt effective strategies geared towards growth.   see less

Commercial aviation has weathered many downturns in the past, yet the recovery has followed quickly and the industry has been reliably returned to its long-term growth rate of approximately 5 percent per year. Despite uncertainties, 2011 passenger traffic rose to about 6 percent above 2010 levels. I ....see more

Custom Market Research Services

We will customize the research for you, in case the report listed above does not meet with your exact requirements. Our custom research will comprehensively cover the business information you require to help you arrive at strategic and profitable business decisions.

Please visit http://www.marketsandmarkets.com/knowledge-process-outsourcing-services.asp to specify your custom Research Requirement