A Deloitte report says the global defense and aerospace sector recorded a 3.8 percent growth rate in 2015 and generated $674.4 billion in total revenues.
The consulting firm said Thursday revenue in the worldwide defense subsector rose 1.7 percent – or $5.8 billion — from the previous year driven by increases in military expenditures.
Deloitte’s 2016 Global Aerospace and Defense Sector Financial Performance Study is based on the analysis of 2015 sales revenues, operating earnings and other financial performance indicators of 100 defense and aerospace firms worldwide.
The global aerospace subsector reached $325 billion in revenues in 2015, representing a 6.3 percent increase from the previous year.
Original equipment manufacturers posted a 3.3 percent increase in aircraft deliveries and a 3.4 percent growth in aircraft backlogs.
“The current backlog suggests future years of sector industrial stability despite a drop in new commercial aircraft sales orders in 2015 after a three-year surge,” said Tom Captain, Deloitte's vice chairman and U.S. and global aerospace and defense sector leader.
“Growth in travel demand, primarily in China, India and the Middle East, as well as the need for next generation fuel-efficient aircraft continued to drive demand.”
The European aerospace and defense sector has surpassed the U.S. A&D sector in revenue growth due to market competition, defense spending growth and continued rise in the production of commercial aircraft, according to the study.