“The global Aerospace Industry is set to reach USD 368.7 Bn by the end of 2022 with a CAGR of 6.24% from USD 347 Bn in 2021”.
It is common knowledge that the Aerospace industry was one of the “worst-hit” industries during 2020-2021 and suffered massive damages to both its customer base as well as operational excellence. As the world moves into 2022, the Aerospace & Defense industry is seen to be much better in shape than earlier post-COVID expectations, which is a positive indicator for the industry.
Even though forecasts point to some turbulence in the aerospace market until about 2024, the emerging trends of this market are set to rebuild the industry from scratch.
- Development of Electric Aircrafts
- Integration of Autonomous Flight Systems
- Development of Electric Propulsion
- Utilizing Smart Materials
- Integrating Low-risk Digital technologies such as A.I. and RPA
- Re-evaluation of the APAC region’s aerospace needs
If we assess each trend individually and divide them into categories, we arrive at four fundamental segments that will enhance the industry in the following decade. These four segments comprise Autonomy, Connectivity, Smart Mobility, and Manufacturing.
The graphic below indicates each segment and its relevance in 2022 as far as use cases and key technologies are concerned.
Challenges to each segment
High demand for air travel, a backlog of new aircraft orders, emerging technologies, and a resurgence in the business aircraft sector are some of the major challenges across the aerospace industry. However, if we break them down and associate them with each key segment discussed above, the challenges widen.
- Keeping Airspace safe with Fully Autonomous Drones.
- Integration of the right software for autonomous navigating systems to handle dynamic environments such as airports.
- Providing data services and proper bandwidth connectivity without compromising aircraft security and safety.
- A common network for the aircraft and the passengers could be a risk, as aircraft information systems include sensitive flight data.
- Maintaining increasingly diverse airspace while keeping air traffic moving safely.
- Flying costs are 12 times higher compared to driving.
- The supply chain struggles to keep pace with emerging technologies such as automation, robotics, and standardization.
- Inventory management is a time-consuming process that needs to be streamlined through a software.
Drivers of Growth
Key players in the sector include Lockheed Martin, Raytheon Technologies, Northrop Grumman, Thales S.A., and Leonardo S.p.A. These companies are keen to collaborate and accelerate critical advantages through cutting-edge technology, strategy, and solutions.
For example, Lockheed Martin Corporation is focusing on digital transformation by leveraging software development and improving manufacturing capabilities for advanced defense and commercial solutions. Other firms, including Raytheon Technologies and Northrop Grumman, are also engaged in driving digital solutions and enhancing manufacturing capabilities.
Please download the Snippets to access detailed insights on key players and their business intentions in relation to the Aerospace industry.
Service Providers Overview
Service providers are offering SAP Solutions, Design and Development solutions in the aerospace industry and supporting manufacturers in transforming from federated avionics systems architecture to the Integrated Modular Avionics (IMA) architecture.
Here is a brief overview of the top service providers in the industry:
- Capgemini is helping aerospace manufacturers optimize production, operations, and collaboration by innovative engineering, manufacturing, sustainment & supply chain solutions.
- TCS is providing Design and Analysis Support and is involved in cutting-edge design work, including airframes, engine components, and aircraft interiors.
And many more service providers such as IBM, Tech Mahindra, and NTT DATA are involved in driving the implementation of innovative aviation tech across broad use cases.
Key Focus and Opportunity Areas
Since this is a re-developing market post the impact of the pandemic, the opportunities in this industry are endless. Most opportunities are segmented into categories we discussed at the beginning and technologies to focus on. Let us explore these opportunities and what they mean for service providers.
- Autonomy: Internet of Things, Artificial Intelligence, and Edge Computing will remain the key focus areas that will drive technology-based applications.
- Connectivity: Predictive Aircraft Maintenance and Aircraft Cybersecurity are offering massive long-term opportunities in Aerospace Industry.
- Smart Mobility: Electric aircraft, Hybrid aircraft, and Air Taxis will remain the key focus areas that will drive technology-based IoT and A.I. applications.
- Manufacturing: 3D printing, IoT, and Artificial Intelligence-based solutions are offering massive long-term opportunities in the Aerospace Industry.
By using Sales Intelligence platforms such as Draup for Sales, service providers can identify niche outsourcing opportunities before they become mainstream.
Draup leverages data from over 4000+ sources which is then fed to our custom machine learning models that extract actionable insights for sales leaders across domains.
Download the Snippets to gain a comprehensive view of the Aerospace ecosystem and detailed insights on service provider opportunities.