INDUSTRY SECTOR | Aerospace & Defense
Commercial Aerospace and defense industry is one of the hardest hit industry globally. Analysts and researchers expect recovery of Aerospace and defense industry in 2021
COVID-19 pandemic has led to a dramatic reduction in passenger traffic and aircraft demand. This is capital intensive industry and need a lot of financial resources to get it going. Defense industry may seem stability in 2021 whereas Commercial aerospace sector is expected to recover slowly to pre–COVID-19 levels by 2024.
Aerospace and Defense industry will be on the road to recovery as orders for new commercial aircrafts to improve during mid of this decade. With substantial defense procurement budgets and growing middle-class population, in post pandemic era Asian countries such as India and China are emerging as key markets for the US and European companies. There is expectation the M&A activity in the industry to be driven by consolidation in the tier-one and tier-two suppliers as they aim to achieve economies of scale and increase industry assets utilization. Large OEMs are likely to continue their hunt for smaller companies to improve their portfolio and also create joint ventures to gain international assignments.
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