Aerospace collectively refers to the atmosphere and outer space; it’s a diverse industry with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astronautics and the research, design, production, operation, or maintenance of aircraft and spacecraft involves the work of numerous organizations.
Aerospace technology, then, refers to the construction, testing, and maintenance of aircraft and space vehicles. Technicians may be involved in the assembly, service, testing, operation, and repair of systems associated with dependable and reusable space launch vehicles and related ground support equipment.
Aerospace industry, assemblage of manufacturing concerns that deal with vehicular flight within and beyond Earth’s atmosphere. (The term aerospace is derived from the words aeronautics and spaceflight.) The aerospace industry is engaged in the research, development, and manufacture of flight vehicles, including unpowered gliders and sailplanes (see gliding), uncrewed aerial vehicles (UAVs), lighter-than-air craft (see balloon; airship), heavier-than-air craft (both fixed-wing and rotary-wing; see airplane; military aircraft), missiles (see rocket and missile system), space launch vehicles, and spacecraft (crewed and uncrewed).
Character of the industry
Technological progress is the basis for competitiveness and advancement in the aerospace industry. The industry is, as a result, a world leader in advancing science and technology. Aerospace systems have a very high value per unit weight and are among the most complex, as measured by the number of components in finished products. Consequently, it is economically and politically prestigious for a country to possess an aerospace industry. Among the world’s largest manufacturing industries in terms of monetary value of product output and employment, the aerospace industry is characterized by a relatively small number of large firms and numerous international partnerships at every level.
For the major aerospace countries, their own military establishments and, in some cases, foreign militaries constitute the largest customers. The next most important buyers are the world’s commercial airlines, primarily American, European, and Asian–Pacific Rim carriers. The three largest markets for aircraft are North America, which is dominated by the United States; the Asia-Pacific region, which is dominated by China, and Europe.
The United States possesses the world’s largest aerospace industrial complex. As of 2017, American companies constituted just under half of the global aerospace industry. Although their own government is the major procurer of military systems, American firms are also the dominant supplier of both military and civil aerospace hardware to the rest of the world. Today, non-American companies seek a larger portion of the global market and challenge American dominance.
Russia retains a large aerospace industry. After the breakup of the Soviet Union in 1991, Russia acquired most of the highly competent Soviet design bureaus. Partnerships with American and European firms were initiated, and Russia entered Western markets for the first time.
Western Europe’s aerospace industry has become a strong global player, with France, the United Kingdom, and Germany particularly active. Through the success of cooperative programs such as the Airbus line of commercial transports and the Ariane family of space launch vehicles, the European industry has gained considerable experience in the development and manufacture of almost the entire range of aerospace systems.
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In the Asia–Pacific Rim region, China has the leading aerospace industry, but—compared with the United States and western Europe—its capabilities are still limited. China has made development of an indigenous aviation industry a national priority and has partnerships with a number of foreign ventures in both aircraft and spacecraft systems. The country also has developed space launchers, small satellites, and craft intended for crewed spaceflight. Japan has a thriving aerospace industry with an emphasis on military aircraft, and Japanese companies also perform as key subcontractors to firms in the United States and Europe.
The interests of the U.S. aerospace industry are represented through the Aerospace Industries Association of America (AIA), an aerospace-industry-funded organization whose membership consists of the major companies in the field. The AIA provides a forum for technical and policy issues concerning the industry and serves as a lobbying agent for the common interests of its members. Its parallel in Europe is the Aerospace and Defence Industries Association of Europe (ASD). Based in Brussels, ASD interfaces with member countries as well as the European Union. In addition, Europe has several organizations at the national level. Other notable associations are the Society of Japanese Aerospace Companies (SJAC) and the Aerospace Industries Association of Canada (AIAC).
The worldwide reduction in acquisitions of aerospace defense systems after the end of the Cold War in the early 1990s has prompted many manufacturers in the United States, Europe, and Russia to shift toward a more balanced mix of military and civil products. Some firms have adapted military aerospace hardware for civilian use or have sought nonaerospace markets for their expertise. To remain profitable, many companies have engaged in an almost continuous process of consolidations, mergers, divestitures, and international joint ventures and partnerships. Nevertheless, they all have been affected to some degree by the following developments: the ever-increasing costs of producing complex new aircraft and spacecraft, the globalization of the economy, the volatile level of government spending on defense-related projects, the state of commercial air travel and its needs, and the commercialization of space and the prospect of its low-cost access. These are the factors determining the size and scope of the aerospace industry today.
Malaysian Aerospace Industry
Malaysian aerospace industry to generate RM16b in 2019
The growth in the Malaysian aerospace industry is gaining momentum.
The country’s exports of aircraft parts and components have more than tripled from RM2.88 billion in 2014 to a record high of RM8.48 billion in 2018. The growth is mainly driven by expansion of aerospace manufacturing activities. Last year’s export growth was at 20.7%.
Among the locally manufactured aerospace products for export include fan cowl, fan casing, thrust reverser, forward leading edge, aircraft door, avionics equipment and carbon brakes.
The industry generated a total revenue of RM14.4 billion in 2018, up 6.7% from RM13.5 billion in 2017, according to the international trade and industry ministry (Miti).
Its minister Datuk Darell Leiking was quoted by Bernama as saying that the government aims to generate up to RM16 billion in revenue from the aerospace industry this year.
This would be driven by the vibrant and thriving aerospace industry in the Asia-Pacific region, which is expected to have the highest growth in new aircraft delivery for the next decade, he said.
“We would like to see a larger revenue this year.
“(To achieve this,) the government is looking to have better coordination between the National Aerospace Industry Coordinating Office (Naico) and other agencies in providing a better business environment for the industry,” Leiking was quoted by Bernama as saying.
In a statement yesterday, Miti said the aerospace manufacturing sub-sector contributed 48% revenue of RM6.97 billion, an increase of 8.3% compared with 2017. Whereas the maintenance, repair and overhaul (MRO) sector recorded RM6.68 billion, representing 46% of the total revenue.
Airbus, which expects Malaysia to remain as its focal point in its supply chain, is looking to increase the value of its supply, source and MRO operations here to US$550 million (RM2.24 billion) a year by 2023, driven by robust demand for aircraft in the region.
Last year, the French aircraft manufacturer’s Malaysian operations were valued at US$400 million, according to Airbus Asia Pacific president Jean-Marc Nasr, who spoke to the local media on Monday. Nationwide, the group currently employs 4,000 people, and wants to raise the number to 5,200 in four years.
Another French jet maker Dassault Aviation has chosen the Sultan Abdul Aziz Shah Airport in Subang to build its MRO hub in Southeast Asia instead of the Seletar Airport in Singapore due to the space available for expansion.
Dassault Asia-Pacific president Jean-Michel Jacob told Malaysian media that although Seletar also offers comprehensive infrastructure for business jet MRO operations, Subang has more space available for future growth.
“It also helps that the Malaysian government has identified aerospace “as a strategic industry with wide potential to help the country’s industrialisation and technological development”, said Jacob at the media briefing on Monday.
In terms of investments, 11 aerospace projects with total investments of RM816.3 million were approved in 2018 of which 41% were foreign investments. The approved projects are expected to generate a total of 2,442 employment opportunities.
“The industry managed to maintain its positive growth since the implementation of the Blueprint 2030 led by Naico, Miti.
“About 24,500 highly skilled workers are currently serving the industry,” said the ministry.
Singapore’s Aerospace Industry
Singapore is number 1 in Asia MRO and more. We are Asia’s leading one-stop solutions provider for aircraft maintenance, repair and overhaul (MRO) needs, contributing 10% to global MRO output. Anchored by home-grown enterprises and MNC partners, we offer comprehensive nose-to-tail services. Our excellent connectivity and infrastructure also make us a world-class base for aerospace firms’ regional distribution centres.
The 320-ha Seletar Aerospace Park hosts integrated activities like manufacturing, aftermarket services and R&D.
Singapore Aerospace Industry New-to-market American firms should consider partnering with Singapore firms knowledgeable in aircraft industry networks.
Singapore’s aerospace industry has maintained a leading position in the Asia-Pacific market. Growing by a compounded annual growth rate of 8.6% over the past two decades and a total annual output of more than $8.0 billion, the Singapore aerospace industry is a key economic driver for Singapore. As a one-stop center for all maintenance, repair, and overhaul (MRO) services and a large precision engineering suppliers, Singapore has captured over 10% of the global MRO market.
Many American exporters use agents or distributors to serve the Singapore market and other markets in Southeast Asia. Finding prospective partners usually presents no problem as Singapore firms are aggressive when it comes to representing new products and typically respond enthusiastically to new opportunities. Because of the relatively small size of the Singapore market, potential partners often ask to cover regional territories. With a strong history of trade, Singaporean companies are particularly successful in taking products to the region. New-to-market firms should consider partnering with Singapore firms knowledgeable in aircraft industry networks.
Singapore enjoys excellent connectivity and an efficient supply chain. It is further strengthening its infrastructure to ride future growth trends. The Seletar Aerospace Park is a centerpiece of this effort. Spanning 300ha, the dedicated aerospace park will host an integrated cluster of activities including aerospace MRO; design and manufacture of aircraft systems, components, and light aircraft; business and general aviation activities; and a regional aerospace campus for aerospace education, research and training.
Singapore’s MRO business segment is robust. Backed by a pool of over 130 aerospace companies, Singapore has become the leading aviation hub in Asia-Pacific today, contributing over a quarter of the region’s MRO output. Leading players such as ST Engineering Aerospace and SIA Engineering Company carry out comprehensive nose-to-tail MRO services. Singapore is also a center for regional parts distribution and warehousing.
Prior to the COVID-19 pandemic, Singapore Changi Airport’s passenger traffic has grown steadily in the past decade, with an average per annum growth of 5.4%. Barring any unforeseen circumstances caused by the COVID-19 situation, and based on the earlier projection of strong aviation growth over the next 20 years, particularly in the Asia-Pacific region, demand for air travel is expected to increase and traffic at Changi Airport is anticipated to grow in tandem. Singapore is particularly well-equipped to capture the demand from aviation-related services from this market given its MRO hub status, which will translate into greater opportunities for American suppliers to sell to this lucrative market.
Besides MRO services, sales prospects for products related to aircraft repair and overhaul, such as repair equipment for landing gears and nacelle, brake linings, tires, engines and fuel systems, avionics systems and equipment, fan blades, test equipment, etc., will likely remain strong over the next few years. Going forward, besides strengthening the MRO cluster, the aerospace manufacturing and R& D segments will also be further developed. Products designed and manufactured in Singapore include engine casings, engine gears, valves, seat actuators, and electrical power systems, among others.
