Global aerospace and defense revenues likely to rise during 2017, say analysts
NEW YORK. The global aerospace and defense (A&D) sector is likely to experience stronger growth in 2017, following multiple years of positive yet subdued growth, say analysts with multinational professional-services firm Deloitte.
In its market report, "2017 Global Aerospace and Defense Industry Outlook," Deloitte forecasts that A&D sector revenues will likely grow by about 2 percent in 2017.
Defense subsector revenues, according to the report, are likely to grow at a much faster 3.2 percent in 2017, as defense spending in the U.S. has returned to a growth position, following multiyear declines in defense budgets.
On the defense side, Deloitte sees a resurgence of global security threats, expected increases in U.S. defense budgets, and higher defense spending from other major regional powers such as Japan and India as likely promoting global defense subsector revenue growth in the near future. The report calls out in particular an upside for U.S. defense expenditures, given the outcome of the recently concluded U.S. elections. In addition to promises to boost the number of troops, the newly installed administration has signaled its intentions to add more aircraft and ships, which will drive revenue growth at large defense prime contractors over the next few years.
For further information about the data contained in the market report, visit the Deloitte website.