PARIS, June 2015. The global aerospace and defense (A&D) sector added $12.7 billion in revenue in 2014, with the commercial aerospace subsector increasing by $23.7 billion, offset by a $8.2 billion decrease in revenue in the defense sector, according to Deloitte analysts. More key findings from the new Deloitte annual global aerospace and defense sector financial performance study are being presented at Paris Air Show.
Deloitte analysts, including Deloitte Vice Chairman and Global A&D Leader Tom Captain, are releasing the results of the full study at the Paris Air Show. Retired four-star Air Force General Charles Wald, vice chairman and senior advisor to Deloitte’s Department of Defense practice, also is in attendance at the air show.
Initial findings from the “2015 Global Aerospace and Defense Sector Financial Performance Study” follow.
Commercial aerospace subsector in 2014:
- Increased by $23.7 billion
- Set new records for sales totaling 2,888 orders
- Experienced a 6.1 percent increase in deliveries to 1,352
- Experienced a 14.4 percent growth increase in backlogs reaching a record high of 12,175 aircraft
- Achieved revenues of $314.9 billion
Defense sector experienced $8.2 billion decrease from 2013 to 2014
Primary drivers in commercial sector:
· For commercial aircraft sales:
- Increased travel demand, especially in Middle East, India and China
- Replacement of obsolete aircraft with new fuel-efficient models
Primary drivers for defense decline:
· Reduced defense spending had an impact of 2.2 percent (decline) in 2014 revenues
· A&D companies headquartered in the US accounted for $408.5 billion in 2014
· European companies accounted for $222.8 billion in 2014
- Europe represents nearly 33 percent of total global A&D revenues