The report below gives a good overview of the Spring 2023 M&A activity in the Aerospace, Defense & Government Industry Sector. The size of the global aerospace and defense market was $748.9 billion in 2022 and is expected to reach $1055.2 billion by 2028, growing at a CAGR of 5.9% during the period 2022-28, as per a report published by 360 Market Updates. The aerospace & defense industry is on the road to recovery after the economic downturn caused by the pandemic. The rising demand for air travel is supporting the industry's post-pandemic recovery and growth, but challenges such as inflation, supply chain disruptions, and talent shortages are acting as impediments. Commercial aircraft OEMs and suppliers have benefitted from an increase in demand for new aircraft in recent months. For example, in 2023, Air India placed orders for 470 aircraft from Boeing and Airbus with the goal of capturing 30.0% of the global aviation market by 2027, as per reports by CNBC and Business Today. Despite moderate macroeconomic headwinds, deliveries of new large commercial aircraft are expected to increase by over 20.0% in 2023 compared to 2022, as per a recent report published by Fitch. Defense spending globally is also projected to increase, creating further tailwinds for the sector. For example, UAE is strengthening its air defense by purchasing equipment from South Korea, Israel, and France. Similarly, Saudi Arabia also bought military equipment worth $4.0 billion from China, as per a report by South China Morning Post.
Posted by Jim Gerberman.