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Press Release Source: Teal Group


Teal Group Predicts 36,896 Aircraft Worth $1.012 Trillion Will be Built Between 2005 and 2014
Friday December 9, 6:00 am ET


WASHINGTON, Dec. 9 /PRNewswire/ -- Some 36,896 military and civil aircraft worth $1.012 trillion are expected to be built throughout the world between 2005 and 2014, Teal Group VP-Analysis Richard Aboulafia said today. The military component of this forecasted market is worth $311.5 billion, while the civil sector is valued at $701.4 billion. These numbers are all in 2005 dollars.
"The industry is firing on both cylinders," said Aboulafia. "This first simultaneous civil and military market upturn in decades is giving most primes a strong boost. While some segments are weak, the supplier base has the diverse program exposure necessary to enjoy this growth."

The Teal Group forecast numbers exclude uninhabited aircraft (UAVs), non-turbine aircraft, maintenance, overhaul, upgrades, and research. If all of these are included, the industry would be worth about $3 trillion to the world's economy over the next 10 years, the analysis shows.


Additional Teal Study Findings

-- Over half of the new build market -- $570.6 billion -- comprises
commercial transports (including regional aircraft). Fighters are
second, worth $141.8 billion.

-- "Compare these numbers with the last ten years (1995-2004), which saw
deliveries of 30,575 aircraft worth $820.5 billion (also in 2005
dollars)," said Aboulafia. "Despite the cyclical ups and downs, this
represents 23% growth."

-- Boeing's jetliner product line rejuvenation is leading to growing
market success. Boeing's success, coupled with Lockheed Martin's F-35
and broad US defense export market dominance, means great things for
the US's share of the industry. US primes are gaining global market
share, largely due to their successful embrace of globalization.

-- "Europe looks set to retain its market share during our forecast
period," said Aboulafia, "although European industrial restructuring
has not reached its ultimate conclusion. And if Boeing's lead
accelerates, or if the F-35 fulfills its most ambitious expectations,
Europe's share could erode."

-- Numerous macroeconomic trends are hurting non-traditional producers
(those outside the US and Europe). "These 'emerging' producers will
actually have a smaller share of the market by the end of our forecast
period," concluded Aboulafia, "although thanks to increased outsourcing
by the US and European primes, many non-traditional players will still
prosper."



The Teal Group is an aerospace and defense market analysis firm based in Fairfax, Virginia USA.

B757200ER

WHO is going to GROW, and WHEN?

THAT is the question...

Octobersky

When it comes to military growth, saying it in $ Dollar figures is misleading. B2's cost several Billion a piece. So, 300 odd billion World Wide in Miliary sales is nothing. Some of the figures include subcomponents.