Exclusive extracts from this 69-page-long report:
- Who are the key players?
The defence market is dominated by large- and medium-scale contractors which have extensive system integration skills (including data processing and electronic warfare). Their main activities comprise air, land and naval hardware, armament, C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) and technical support services (training, logistics, modernisation, etc.). Defence contractors commonly engage in space and satellite-related operations. Many participants in the military aircraft business, such as Airbus and Boeing, have significant operations in commercial aircraft. They develop military jets such as special mission aircraft from existing commercial platforms. [...]
Groups analysed in this report include: Lockheed Martin, General Dynamics, Boeing Defense, Space & Security, Northrop Grumman, Raytheon, BAE Systems, Thales, Leonardo SpA, Airbus - Defence and Space and United Aircraft Corporation.
- What are the players' strategies?
As part of a strategic portfolio review, Lockheed Martin has both parted with and increased its interests in different businesses. In 2015-16, the company sold its Information Systems & Global Solutions (€5bn in annual revenue) to Leidos Holdings. Conversely, it acquired Sikorsky, a leading global commercial and military helicopter company, and raised its stake in AWE Management, the operator of the UK's nuclear deterrent programme (€1.4bn in revenue), to 51%. […]
- What are the players' key growth and profitability drivers?
BAE saw a strong rise in 2016 profitability, driven by cost-cutting and helped on by the tumble in the British pound following the Brexit vote. This trend was offset by an impairment charge for Australian shipyard operations. All business divisions, particularly Cyber & Intelligence, posted growth. [...]