Product Code: 69354
The Global Aerospace and Defense Materials Market is projected to register a CAGR of over 3% during the forecast period (2021-2026).
The aerospace and defense sectors are negatively impacted by COVID-19. The aircraft manufacturing companies faced a decline in orders as the travel bans are imposed in many countries thus decreasing the growth of the market studied. Controlling the coronavirus pandemic is crucial to reviving commercial aircraft demand. Most transport aircraft requirements are driven by discretionary air travel, and the commercial aerospace supply chain must focus on survival until people feel comfortable traveling and governments allow it. In October 2020, Airbus declared that it has delivered 57 commercial aircraft in September 2020 (14 in April, 24 in May, 36 in June, 49 in July, and 39 in August) versus 71 aircraft over the same period in 2019. From start of the year 2020 to October 9, Airbus has delivered a total of 341 aircraft (18 A220s, 282 A320 Family, 9 A330s, and 32 A350s), which is a reduction of around 40% compared to the same period in 2019 (571 aircraft deliveries). Besides, the defense sector is continued to grow as the governments continued to fund the defense departments.
- Over the medium term, the major factor driving the market studied increasing demand for aircraft in Asia-Pacific and the Middle-East countries.
- On the flip side, unfavorable conditions arising due to the COVID-19 outbreak is hindering the growth of the market.
- North America is expected to dominate the global aerospace and defense materials market over the forecast period.
Key Market Trends
Increasing Demand for 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 are aluminum alloys, steel alloys, titanium alloys, and composite materials, among others.
- 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 East 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 aicrafts and has orders of 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.
The North America Region to Dominate the Market
- The North America 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 is expected to increase to USD 733 billion in FY 2021.
- The American military is still the most powerful in the world. Its leading defense industry companies are still global leaders in weapons innovation and production.
- Estimated U.S. military spending during the period 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 alone.
- 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.
The global aerospace and defense materials market is consolidated. The major companies of the market studied include TORAY INDUSTRIES INC., Solvay, Teijin Carbon Europe GmbH, Alcoa Corporation, and ATI, among others.
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Increasing Demand for Aircraft in Asia-Pacific and the Middle-East
- 4.1.2 Other Drivers
- 4.2 Restraints
- 4.2.1 Unfavorable Conditions Arising Due to COVID-19 Outbreak
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Material Type
- 5.1.1 Aluminum Alloys
- 5.1.2 Steel Alloys
- 5.1.3 Titanium Alloys
- 5.1.4 Super Alloys
- 5.1.5 Composite Materials
- 5.1.6 Others
- 5.2 Aircraft Type
- 5.2.1 Commercial
- 5.2.2 Military
- 5.2.3 Business and General Aviation
- 5.2.4 Others
- 5.3 Geography
- 5.3.1 Asia-Pacific
- 126.96.36.199 China
- 188.8.131.52 India
- 184.108.40.206 Japan
- 220.127.116.11 South Korea
- 18.104.22.168 Rest of Asia-Pacific
- 5.3.2 North America
- 22.214.171.124 United States
- 126.96.36.199 Canada
- 188.8.131.52 Mexico
- 5.3.3 Europe
- 184.108.40.206 Germany
- 220.127.116.11 United Kingdom
- 18.104.22.168 Italy
- 22.214.171.124 France
- 126.96.36.199 Rest of Europe
- 5.3.4 South America
- 188.8.131.52 Brazil
- 184.108.40.206 Argentina
- 220.127.116.11 Rest of South America
- 5.3.5 Middle-East and Africa
- 18.104.22.168 Saudi Arabia
- 22.214.171.124 South Africa
- 126.96.36.199 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 Alcoa Corporation
- 6.4.2 Arconic
- 6.4.3 ATI
- 6.4.4 Constellium
- 6.4.5 Hexcel Corporation
- 6.4.6 Novelis Inc.
- 6.4.7 SGL Carbon
- 6.4.8 Solvay
- 6.4.9 Teijin Carbon Europe GmbH
- 6.4.10 thyssenkrupp Aerospace Germany GmbH
- 6.4.11 TORAY INDUSTRIES, INC.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Government Spending on Defense
- 7.2 Other Opportunities