Increasing global tensions and civilian aviation demand will accelerate demand for this market toward 2021. The global aerospace & defense market had total revenues of $865.6bn in 2016, representing a compound annual growth rate (CAGR) of 2.2% between 2012 and 2016. In comparison, the Asia-Pacific market increased with a CAGR of 8.4%, and the US market declined with a compound annual rate of change (CARC) of -1.9%, over the same period, to reach respective values of $228.0bn and $345.6bn in 2016. 

Global demand for civilian aircraft has grown, most notably in developing Asian economies. Defense spending has increased in some countries, but for the most part developed economies have been neglecting their military budgets due to budget constraints.

Defense spending is on the rise globally. The Trump administration has committed to spending more, while major regional powers such as Saudi Arabia, Russia, and China all improve capabilities, prompting similar reactions in neighboring countries. Eastern Europe, the middle East, and the South China Sea are potential flashpoints for conflict in the forecast period.