Global aircraft deliveries are off to a strong start in 2019. In fact, this is the highest amount since 2015. Gross orders did fall in February of this year, but order books and the backlog of aircraft have remained high.
This success is promising, especially considering the industry success of 2018. Both passenger travel and global military expenditure were strong, and that growth is expected to continue in 2019. Because of the rise in oil prices lately, the demand for fuel-efficient aircraft is continuing to increase.
Due to the cancellation of A380 orders earlier this year, there has been a decrease in widebody aircraft orders and backlog. On the other hand, engine backlog is at a record high, and there has been an increase in engine deliveries and orders, as well.
The main concern with this high demand for aircraft material is that manufacturers must increase production rates to compensate for the growing amount of orders and backlog. The increase in production will ideally cause growth in the sector, but supply chain interruptions could result in a failure to meet demand.
Aerospace and Defense Around the Globe
The Aerospace & Defense industry is led by the United States, but areas like China, France India, the Middle East, Japan and the United Kingdom will also likely contribute to growth in 2019.
China is expected to require over 7,600 new commercial aircraft over the next 20 years, which is worth $1.2 trillion USD. France also plans to boost spending on this industry, increasing the budget by 40% over the next six years. By 2025, India is expected to be the third-largest aviation market, and they’re planning to supply 478 million passengers by 2036.
The United Kingdom Aerospace & Defense industry has seen a bit of disruption, including a decrease in the value of aerospace manufacturing last year, because of Brexit-related uncertainties.
Technology is quickly improving, especially in the commercial industry, which will continue to propel the industry in a positive direction. Across the globe, forward-thinking and the anticipation of customer needs is imperative for the success of the aerospace industry.