NEW YORK, Jan. 9, 2017 /PRNewswire/ -- The global aerospace and defense (A&D) industry is expected to return to growth with sector revenues estimated to grow at 2 percent in 2017, according to Deloitte's 2017 Global aerospace and defense sector outlook.
"After multi-year declines in revenues, the defense sub-sector is expected to grow at 3.2 percent in 2017. This increase is due to continued concerns about global security threats, growth in US defense budgets, as well as higher defense spending in the Middle East, Japan, South Korea and India," said Tom Captain, Deloitte Global Aerospace and Defense Leader.
Commercial aircraft production will likely increase, driven by stable global gross domestic product (GDP), strong airline passenger traffic, and continued airline profitability, supported by lower fuel costs. However, despite an expected increase of 96 additional large commercial aircraft being produced in 2017, continued pricing pressure and product mix changes by airline operators will likely result in only a marginal increase of 0.3 percent in commercial aerospace sub-sector revenues.
The 2017 Global aerospace and defense sector outlook reviews the sector's performance in 2016 and expectations for 2017. It outlines a long-term projection for aircraft production, as well as defense spending by major countries. It also provides perspectives on defense contractor expectations, growth in travel demand driven by wealth creation in Asia and the Middle East, and implications for the commercial aerospace sub-sector.
For more information, read the full report here.
Deloitte Global Consumer & Industrial Products Industry group
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