The report below gives a good overview of the Spring 2022 M&A activity in the Aerospace, Defense & Government Industry Sector. The global Aerospace & Defense industry was valued at $700 billion in 2021, and is expected to reach $755 billion in 2022, growing at a CAGR of 7.8%, during the period 2021-22, as per research published by the Business Research Company. The market is expected to reach $1,047 billion by 2026, as per the same research. Aerospace & Defense companies are reorganizing their operations and recovering from the Covid-19 impact, which had previously resulted in tight containment measures such as social distancing, remote working, and the shutdown of commercial activities, all of which created operational issues. It is expected that aftermarket revenues could recover in 2022, given air travel volume is currently higher than the low levels of 2020. Digital innovation is expected to be the key for revival and growth of the Aerospace & Defense industry. Companies focusing on digital innovation could benefit as the Aerospace and Defense industry recovers, particularly those companies which prioritize greater efficiency in their engineering, manufacturing, and supply chain processes by executing digital solutions. New technologies, changing business models, and increased M&A activity are likely to further accelerate digital transformation and operational efficiency of this industry. Moreover, the increased use of digital technologies such as additive manufacturing could contribute to a more sustainable future due to its cost effectiveness and waste reduction. Aerospace & Defense companies took advantage of the downturn to invest in advanced manufacturing capabilities like smart factory during 2020 and 2021. In 2022, Aerospace & Defense companies are expected to roll out these investments more broadly across their organization and start benefitting from such investments.
Posted by Jim Gerberman.