Rendezvous at the Paris Air Show
Aerospace and Defense Radar 2011: Growth is once again top priority
At this year's Paris Air Show, our experts presented reports on the aerospace and defense business and on the business aviation industry.
The 49th International Paris Air Show at the Le Bourget exhibition center was a grand affair: From June 20 to 26, the world's oldest and largest air show hosted more than 2,100 international exhibitors. Roland Berger's aviation, aerospace and defense experts seized the opportunity to network with current and potential clients – and to introduce them to two brand new studies about their respective industries.
Aerospace and Defense Radar 2011: Growth is once again top priority
"As far as the European aerospace industry is concerned, the crisis in civil aviation is past, and growth is now top priority," said Stéphane Albernhe during a business breakfast on June 22. Presenting the 4th edition of the European Aerospace & Defense Top Management Issues Radar, the global head of the Aerospace & Defense Practice Group said that businesses expect to get back to their pre-crisis growth rates very soon.
The Radar is based on a survey which involved 52 companies and 110 top executives representing a broad range of segments in six countries (France, UK, Germany, Italy, Spain, Belgium). The survey captured views on two hot topics, both strategic and operational: How do A&D players intend to adapt their growth strategy in the new post-crisis landscape? And will A&D companies be able to transform their outstanding order books into profitable revenues?
In terms of growth, structured program management, international market strategies and more efficient research and development are key factors. However, the promising prospects in the aerospace industry are overshadowed by the budget cuts in the public sector. The outlook for U.S. and European defense spending matched the weather at the Paris Air Show: cold, wet and volatile. This is why any new future strategy will go hand in hand with expanding service and product portfolios and opening up new market segments. As for service provision, OEMs that offer platforms still have some catching up to do. According to Partner Manfred Hader, "So far, only 12% of their sales comes from service. That is likely to change soon, because OEMs want to tap into the business potential in service too. That means they need to adjust their business models accordingly."
The 49th International Paris Air Show at the Le Bourget exhibition center was a grand affair: From June 20 to 26, the world's oldest and largest air show hosted more than 2,100 international exhibitors. Roland Berger's aviation, aerospace and defense experts seized the opportunity to network with current and potential clients – and to introduce them to two brand new studies about their respective industries.
Aerospace and Defense Radar 2011: Growth is once again top priority
"As far as the European aerospace industry is concerned, the crisis in civil aviation is past, and growth is now top priority," said Stéphane Albernhe during a business breakfast on June 22. Presenting the 4th edition of the European Aerospace & Defense Top Management Issues Radar, the global head of the Aerospace & Defense Practice Group said that businesses expect to get back to their pre-crisis growth rates very soon.
The Radar is based on a survey which involved 52 companies and 110 top executives representing a broad range of segments in six countries (France, UK, Germany, Italy, Spain, Belgium). The survey captured views on two hot topics, both strategic and operational: How do A&D players intend to adapt their growth strategy in the new post-crisis landscape? And will A&D companies be able to transform their outstanding order books into profitable revenues?
In terms of growth, structured program management, international market strategies and more efficient research and development are key factors. However, the promising prospects in the aerospace industry are overshadowed by the budget cuts in the public sector. The outlook for U.S. and European defense spending matched the weather at the Paris Air Show: cold, wet and volatile. This is why any new future strategy will go hand in hand with expanding service and product portfolios and opening up new market segments. As for service provision, OEMs that offer platforms still have some catching up to do. According to Partner Manfred Hader, "So far, only 12% of their sales comes from service. That is likely to change soon, because OEMs want to tap into the business potential in service too. That means they need to adjust their business models accordingly."
The market for turbojet business aircrafts will pick up speed in 2011
Business Aviation 2020: On the runway to recovery
As the second Roland Berger study presented during the Paris Air Show demonstrated, the long-term prospects in the business aviation industry are as promising as those for the aerospace sector. However, the recovery will take its time.
Principal Jörg Wahler and Senior Consultant Holger Lipowsky, the authors of "Business Aviation 2020", estimate that after the severe downturn in 2009 and 2010, the market for turbojet business aircrafts will pick up speed in 2011 and continue to grow at an annual average rate of 6.9%. For 2020 they forecast a total market size of USD 30.7 m. Along with other industry experts they expect that new aircraft sales will recover once pre-owned inventory and prices have returned to normal levels.
The study, which outlines the development of the business aviation aircraft industry for the next 10 years, says that future market growth will be driven mainly by the global economic upturn. New business aircraft programs focusing on the reduction of fuel consumption and environmental impact are also likely to foster growth. With an estimated growth rate of 20.4%, China is expected to outperform the market, but North America and Europe will remain by far the largest markets for business aircrafts.
As the second Roland Berger study presented during the Paris Air Show demonstrated, the long-term prospects in the business aviation industry are as promising as those for the aerospace sector. However, the recovery will take its time.
Principal Jörg Wahler and Senior Consultant Holger Lipowsky, the authors of "Business Aviation 2020", estimate that after the severe downturn in 2009 and 2010, the market for turbojet business aircrafts will pick up speed in 2011 and continue to grow at an annual average rate of 6.9%. For 2020 they forecast a total market size of USD 30.7 m. Along with other industry experts they expect that new aircraft sales will recover once pre-owned inventory and prices have returned to normal levels.
The study, which outlines the development of the business aviation aircraft industry for the next 10 years, says that future market growth will be driven mainly by the global economic upturn. New business aircraft programs focusing on the reduction of fuel consumption and environmental impact are also likely to foster growth. With an estimated growth rate of 20.4%, China is expected to outperform the market, but North America and Europe will remain by far the largest markets for business aircrafts.
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