The ratings for this year reflect the quickly shifting investment landscape in the worldwide civil and military aviation industries as they aim to adapt to an economy that has transformed substantially as a result of the European conflict and the ongoing issues connected with the pandemic. This image contrasts with our statistics on the domestic aerospace and defense (A&D) industry in the United States, which shows extraordinary resilience in the face of both predicted and unforeseen market shifts.
The main trends of previous years
In 2021 and 2022, travel demand recovered in two ways: passenger demand increased in large domestic markets such as the United States, Brazil, and China, but long-distance international travel - both business and leisure - remained weak. Similarly with 2021, 2022 was a year of recovery for civil aviation producers following a drop in 2020 that ended a decade of unstoppable development. Yet, a complete recovery to pre-pandemic levels of output appears to be a long way off. Persistent supply chain issues keep going to weaken leading equipment manufacturers' efforts to complete lots of new orders from carriers looking to grow, revitalize, and/or "green up" their fleets.
The global defense industry's main trend over the last decade - and its projected trajectory for the next decade - has been steady growth.
Despite COVID-19 era's shocks to demand and supply chain, as well as the uncertainties of the present inflationary time, this year's state ratings illustrate the extraordinary resilience of the US civil aviation industry. Several states are actively discussing the need for workforce development - expansion, diversification, education, and (re) retraining - as well as the measures being put in place to meet this demand.
States with well-developed US armed forces supply networks, particularly those that have recently invested in R&D capacity-building, should expect considerable growth in 2023 and beyond. The competition between the leading states for attracting investments in the space sector and startups in the field of green aviation demonstrates the growing focus on public-private collaboration and the development of new technologies that cross the boundaries between civil, defense, and space fields. If, in previous decades, discoveries from NASA and military R&D most likely passed into civil aviation, the reverse is now just as likely. The pressing need to decarbonize all areas of aviation means that, while it is difficult to anticipate which technologies will dominate, the rate of change is certain to accelerate.
Boeing & Airbus
Orders and deliveries from Boeing and Airbus are increasing in the sphere of business travel. Similarly with 2021, 2022 was a year of recovery for civil aviation manufacturers following the downturn in 2020 that ended a decade of unstoppable expansion. Yet, a restoration to pre-pandemic levels of output looks to be a long way off.
Both Boeing and Airbus are still dealing with supply chain challenges as they try to complete a slew of new orders from airlines looking to expand, update, and/or modernize their fleets. For the third year in a row, Airbus surpassed Boeing in both net orders and deliveries in 2021.
Delta announced an order for 100 737 Max 10 aircraft in July. We are optimistic that the model will be approved by regulators; delivery is scheduled for 2025, with an option for an additional 30 aircraft. The jets will be bigger in capacity and use 20-30% less fuel than the planes they will replace. Corporate purchases of private aircraft increased dramatically in 2022, with spending in the industry reaching a ten-year high.
In terms of business travel, the volume of corporate purchases of private aircraft increased considerably in 2022, reaching a ten-year high.