Next generation US military helicopter manufacturers losing ground to Asia and Europe
• Attack, Transport, and Utility Rotary Wing represents 43% (apx. 16,500 units) of total military aircraft fleets
• MRO spending in 2009 for Military Fleet generated $61 billion (38,500 units), expected to grow to $67.5 billion by 2018
• Rotorcraft market is strong, especially compared to declining sales in other aviation sectors
• 2009 Rotorcraft Export: Europe holds 55% of world market ($1.54 billion) while North America holds 38% ($1.071 billion)
The global aerospace and defense market grew by 9.8% in 2008 to $674.6 billion, and is forecasted to grow to $910 billion by
2013
• In 2008, the European aerospace and defense market generated $184.3 billion in total revenue, the Asian market generated
$124.6 billion, and the U.S. market generated $335.9 billion, capturing 49.8% of the global market
• Projected revenue over the next decade for the rotorcraft industry totals $143 billion for turbine rotorcraft and engine deliveries
- $27 billion for Civil airframe value
- $4 billion for Civil engine value
- $104 billion for Military airframe value
- $8 billion for Military engine value
• In 2009, new-build medium/heavy military rotorcraft revenues will be $6.7 billion, projected to be $10.3 billion in 2018
• Sikorsky Aircraft Corporation is expected to account for apx. 33% of the medium/heavy military rotorcraft market during
10-year forecast period
• Eurocopter experienced 30% decline in sales in 2009; lost civil sales being offset by military and governmental backlog
• Boeing Company’s Integrated Defense System (IDS) expects to generate $34 billion in 2009
• 16% of Boeing Company’s revenue is international sales, primarily from Asia and Middle East (expected to grow 20% by 2011)
Macro Drivers:
• The EU is incorporating airlines into Emissions Trading Scheme (ETS) starting in 2012
• Brazil signed a $1 billion contract for new EC 725 Cougars with Eurocopter in Dec 2008 making the Cougar the standard
medium helicopter for Brazilian Navy, Army and Airforce
• France and Germany have an emerging joint requirement for a Heavy Transport Helicopter with a service entry of 2020
• Turkey will be purchasing a fleet of 12 Mi-28 “Havoc” attack helicopters from Russia, and not the US-made Cobra attack
helicopters originally requested
• By 2015 Russia plans to triple its world market share for non-military helicopters to 15%