Global Aeronautics Report

Aeronautics-Global-Report​​

What to watch ?

  • New competitors from China and Russia, challenging Airbus and Boeing
  • Increasing environmental constraints leading to higher R&D investment requirements 
  • Rapid growth in order books challenging the supply chain (absorption capacity and cash)
  • Airlines’ level of profitability and solvency to finance the acquisition of new planes

AEROnautics Sector Value:
187 bn USD

Aeronautics Sector Risk Rating

Sector-Risk-Low 
Last reviewed: 02/02/16

aeronautics id card

Fragmentation
Fragmentation-1 
Internationalization
Internationalisation-4 
Capital Intensity
Capital-intensity-3 
Profitability
Profitability-4 

Sector risk map: Aeronautics

an order book of more than 9 years of production

The civil aeronautics industry is dominated by Airbus and Boeing. Both companies have large order books that should keep their production lines busy for almost a decade. Long term cycle and the continued attractiveness of existing product lines mean that the order books look set to expand. 
Bombardier and Embraer have fared less well. Their attempt to shift from domestic markets to regional ones puts them in direct competition with the two aeronautic giants. The development of new plane models such as C series and 190 to corner the medium-haul market proves thus challenging. Orders books still have to be secured while very high levels of investment have already been incurred. 
The increase in aircraft production each year and the necessity of internationalization present challenges for the entire supply chain. The level of required investment in capacity production and new technologies (such as composite materials) and for working capital requirements, are very high. This is all the more challenging for small players and thus raises questions regarding the sector’s structure. 

KEY PLAYERS

Country

Role

Sector Risk

UNITED-STATES #1 Producer
#1 Exporter
#2 Importer
Dot-Risk-Medium
FRANCE #1 Importer
#2 Producer
#2 Exporter
Dot-Risk-Low
GERMANY
#3 Producer
#3 Exporter
#3 Importer
Dot-Risk-Low

Strengths

  • Large order book giving a positive and stable long-term outlook
  • High level of profitability
  • Global market is controlled by two major players - Airbus and Boeing 

Weaknesses

  • Implementaton / application of new technologies such as composite materials
  • Undersized suppliers

aeronautics Subsectors insights

Tier 1 suppliers: International companies which can meet financial requirements for their investments

Tier 2 & 3 suppliers: Smaller companies facing difficulties to finance growth, R&D investments and internationalization

Global Sector Reports

picto-aeronautics
Aeronautics
picto-agrifood
Agrifood
picto-automotive
Automotive
picto-chemicals
Chemicals
picto-construction
Construction
picto-energy
Energy
picto-household-equipment
Household Equipment
picto-information-communication-technologies
Information & Communication Technologies
picto-machinery
Machinery & Equipment
picto-metal
Metal
picto-paper
Paper
picto-pharmaceuticals
Pharmaceuticals
picto-retail
Retail
picto-textile
Textile
picto-transportation
Transportation
​​ ​​​​​ ​​​​​​