Market Research Logo

Aerospace Industry - UK - October 2015

Aerospace Industry - UK - October 2015

“The UK has invested in innovation and built on its established institutional knowledge to ensure a highly developed aerospace sector, enabling it to attract investment both domestically and internationally on high-value work packages. For the UK to continue to compete globally, continued investment in high-value design, skills, innovation and capacity is vital.”

– Lewis Cone, B2B Analyst

This report answers the following key questions:

What are the key determinants driving the aerospace industry?
Was the market affected by the financial crisis and how has it recovered since? Has there been any structural changes as a consequence?
How has the government influenced and shaped the development of the sector?
What are the key issues the UK industry needs to address to maintain its global position in an ever-competitive market?
How have companies adapted to cost and environmental pressures?
What does the future hold for the UK aerospace industry?


EXECUTIVE SUMMARY
Market size
Figure 1: UK aerospace equipment turnover, 2010-2014, (£ billion at MSP)
Figure 2: UK aerospace equipment turnover, by sector, 2010-2014, (£ billion at MSP)
Market trends
Figure 3: Regional analysis of global air passenger traffic development, 2011-2015*, five-year average, (%
change in RPK)
Figure 4: Forecast development of the global airline fleet, by aircraft type, 2014 and 2034, (% of total)
International trade
Figure 5: UK imports of aerospace equipment, 2010-2014, (£ million at CIF)
Figure 6: UK exports of aerospace equipment, 2010-2014, (£ million at FOB)
Market factors
Stagnation in global defence spending levels affecting growth opportunities
Emerging markets pose threat to UK’s leading industry position
ATI launches first aerospace technology strategy to help boost productivity and investment
Global middle-class population growth makes it a key target market
Companies
Forecast
The number of mainline jet deliveries is forecast to exceed 30,000 over the next two decades
Figure 7: Forecast world mainline jet deliveries, by type, 2015-2034, (Number)
Asia-Pacific expected to have the largest airplane fleet in the world by 2034
Figure 8: Forecast world airplane fleet, by region, 2014 and 2034, (% of total)
Defence expenditure limits predicted to marginally increase over the next three years
Figure 9: Forecast UK DEL on defence, 2015/16-2017/18, (£ million)
What we think
KEY INSIGHTS
Can the UK maintain its industry-leading position?
How are companies responding to the drive for sustainability and efficiency in the aerospace
manufacturing process?
Where are the key development opportunities for the industry?
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
UK ECONOMY
Key points
Overview
Figure 10: UK GDP, 2004-2015, (% quarterly growth and GDP in £ billion)
Figure 11: Quarters after GDP peak, 1979, 1990 and 2008, (Number of quarters and GDP as % of predownturn
peak)
Inflation
Interest rates
House prices
Consumer spending
Manufacturing
Business investment
Figure 12: UK GFCF 2003-15, (£ million)
Imports
Exports
MARKET FACTORS
Key points
Stagnation in global defence spending levels affecting growth opportunities
Demand from commercial airlines continues to drive industry development
Emerging markets pose threat to UK’s leading industry position
Outsourcing providing a challenge to UK aerospace companies
EU referendum
ATI launches first aerospace technology strategy to help boost productivity and investment
Other factors
UK TURNOVER
Key points
Figure 13: UK aerospace equipment turnover, 2010-14, (£ billion at MSP)
Figure 14: UK aerospace equipment turnover, 2010-2014, (£ billion at MSP)
Figure 15: UK aerospace equipment turnover, by sector, 2010-14, (£ billion at MSP)
Figure 16: UK aerospace equipment turnover, by sector, 2010-2014, (£ billion at MSP)
MARKET TRENDS
Key points
Civil aerospace
Figure 17: Regional analysis of global air passenger traffic development, in RPK, 2011-2015, (% annual
change)
Figure 18: Regional analysis of global air passenger traffic development, 2011-2015*, five-year average, (%
change in RPK)
Figure 19: Forecast development of the global airline fleet, by aircraft type, 2014 and 2034, (Number of
aircraft)
Figure 20: Forecast development of the global airline fleet, by aircraft type, 2014 and 2034, (% of total)
Figure 21: World mainline jet deliveries, by model and manufacturer, 2000, 2011-2014 and partial-year
2015, (Number)
Figure 22: World mainline jet deliveries, by manufacturer, 2000, 2011-2014, (Number)
Figure 23: Large commercial aircraft net orders, 2014 and partial-year 2015, (Number)
Figure 24: Regional aircraft deliveries, by model, 2011-2014, (Number)
Figure 25: Deliveries of business aircraft, by manufacturer, 2010-2014, (Number of aircraft)
Figure 26: Deliveries of business aircraft, 2010-2014, (Number)
Defence
Figure 27: The UK defence departmental expenditure limits and defence spending, 2010/11-2014/15, (£
million)
Figure 28: UK defence departmental expenditure limits and defence spending, 2010/11-2014/15, (£ million)
Figure 29: The UK defence departmental capital expenditure limits, 2011/12-2015/16, (£ million)
Figure 30: The UK defence departmental cash resource expenditure limits, 2011/12-2015/16, (£ million)
Figure 31: The UK defence annually managed expenditure limits, 2009/10-2013/14, (£ million)
Figure 32: MoD equipment expenditure, 2011/12-2015/16, (£ million)
Figure 33: MoD equipment expenditure, 2011/12-2015/16, (£ million)
Figure 34: MoD research & development expenditure outturn, 2008/09-2012/13, (£ million)
Figure 35: UK defence expenditure by industry, 2009/10-2013/14, (£ million)
Figure 36: MoD major equipment projects, as at 31 March 2014, (£ million)
Figure 37: Defence aircraft and spacecraft expenditure outturn in the UK, 2009/10-2013/14, (£ Million)
Figure 38: Defence aircraft and spacecraft expenditure outturn in the UK, 2009/10-2013/14, (£ million)
Figure 39: Forward available fleet by aircraft type for the UK armed forces, 2010-2014, (Number)
PFI
Figure 40: MoD PFI projects, 2014, (Year and £ million)
INTERNATIONAL TRADE
Key points
Overview
Imports
Figure 41: UK imports of aerospace equipment, 2010-2014, (£ million at CIF)
Figure 42: UK imports of aerospace equipment, 2010-2014, (£ million at CIF)
Segmentation
Figure 43: Segmentation of UK imports of aerospace equipment, by type, 2010-2014, (£ million at CIF)
Exports
Figure 44: UK exports of aerospace equipment, 2010-2014, (£ million at FOB)
Figure 45: UK exports of aerospace equipment, 2010-2014, (£ million at FOB)
Segmentation
Figure 46: Segmentation of UK exports of aerospace equipment, by type, 2010-2014, (£ million at CIF)
Figure 47: Identified orders of UK exports of defence aircraft and equipment, 2010-2014, (£ million)
Figure 48: Identified orders of UK exports of defence aircraft and equipment, 2010-2014, (£ million)
Figure 49: UK aerospace equipment trade balance, 2010-2014, (£ million)
Figure 50: UK aerospace equipment trade balance, 2010-2014, (£ million)
INDUSTRY STRUCTURE
Key points
Industry development
Industry structure
Figure 51: Analysis of the changes in the structure of the manufacture of air and spacecraft and related
machinery industry, 2011-2015, (Number of factories and businesses)
Figure 52: Analysis of the changes in the structure of the repair and maintenance of aircraft and spacecraft
industry, 2011-2015, (£000 and number of companies)
Structure by employment
Figure 53: Analysis of the employment structure of the manufacture of air and spacecraft and related
machinery industry, 2014 and 2015, (Number of outlets and outlet employment size)
Figure 54: Analysis of the employment structure of the repair and maintenance of aircraft and spacecraft
industry, 2014 and 2015, (Number of outlets and outlet employment size)
Structure by turnover
Figure 55: Analysis of the financial structure of the manufacture of air and spacecraft and related machinery
industry, 2014 and 2015, (£000 and number of businesses)
Figure 56: Analysis of the financial structure of the repair and maintenance of aircraft and spacecraft
industry, 2014 and 2015, (£000 and number of businesses)
COMPANY PROFILES
AGUSTAWESTLAND
Figure 57: Financial analysis of AgustaWestland, 2010-2014, (£ Million)
Company outlook
AIRBUS OPERATIONS
Figure 58: Financial analysis of Airbus Operations, 2010-2014, (£ million)
Company outlook
BAE SYSTEMS
Figure 59: Financial analysis of BAE Systems, 2010-2014, (£ Million)
Company outlook
COBHAM
Figure 60: Financial analysis of Cobham, 2010-2014, (£ million)
Company outlook
GE AIRCRAFT ENGINE SERVICES
Figure 61: Financial analysis of GE Aircraft Engine Services, 2010-2014, (£ million)
Company outlook
GKN
Figure 62: Financial analysis of GKN, 2010-2014, (£ Million)
Company outlook
GKN AEROSPACE SERVICES
LOCKHEED MARTIN (UK)
Figure 63: Financial analysis of Lockheed Martin (UK), 2010-2014, (£000)
Company outlook
ROLLS-ROYCE
Figure 64: Financial analysis of Rolls-Royce, 2010-2014, (£ Million)
Company outlook
SHORT BROTHERS
Figure 65: Financial analysis of Short Brothers, 2010-2014, (£000)
Company outlook
TURBO-UNION
Figure 66: Financial analysis of Turbo-Union, 2010-2014, (£000)
Company outlook
Figure 67: Profiled companies’ turnover, 2010-2014, (£ million)
FORECAST
Key points
Industry outlook
Figure 68: Forecast world mainline jet deliveries, by type, 2014-2033 and 2015-2034, (Number)
Figure 69: Forecast world mainline jet deliveries, by type, 2015-2034, (Number)
Figure 70: Forecast world airplane fleet, by region, 2014 and 2034, (Number)
Figure 71: Forecast world airplane fleet, by region, 2014 and 2034, (% of total)
Business jet market anticipates stable growth
Other aircraft demand forecasts
Market drivers for civil aerospace sector
Government and industry collaboration is keeping the industry at the forefront of strategy development
Research and development
Largest passenger growth will be seen in emerging markets
Global middle-class population growth makes it a key target market
Low-cost carriers are becoming more dominant in the industry due to ongoing economic fragility in many
regions
Airport capacity concerns
Replacement aircraft demand to remain a main driver in the development of the civil aerospace market
Climate change is driving industry innovation that will benefit both the environment and aerospace
companies
Air defence equipment forecast
Figure 72: Forecast UK DEL on defence, 2015/16-2017/18, (£ million)
Figure 73: Forecast UK DEL on defence, 2015/16-2017/18, (£ million)
FURTHER SOURCES AND CONTACTS
Trade associations
Trade magazines
Trade exhibitions
UK B2B
Trade research
Informal
Formal
Desk research
Consumer research
Sampling and weighting
Definitions
Qualitative Research
Further Analysis
Statistical forecasting

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report