2019 Aerospace & Defense Study

According to a report by AlixPartners, the global Aerospace and Defense (A&D) industry spent close to $126 billion on 436 M&A transactions in 2018. 2019 is set to be another record year, led by the recently announced merger of United Technologies and Raytheon, expected to have a combined market value of $166 billion.

Global defense spending is up 2.6%, with the US alone accounting for 36% of the total, or $634 billion, up 4.6%. The US is set to increase its defense budget by another 7% in 2019 (FY2020). Spending in Europe was up 2.6%, while Central and Eastern Europe (excl. Russia) spent 13% more than in 2017.

A clear weak spot in the defense sector was helicopters, with total deliveries in 2018 down 10.6% to 1,520 and far below 2014 levels, when oil prices were above $100/barrel.