PwC: Does the future of aerospace & defence lie in ‘intelligent’ avionics
20/6/2011 9:54
• Groundbreaking composite technologies take aerospace to new heights
• Defence budgets in mature markets will be cut but productivity must still improve
• Industry pushed to build lighter, safer, greener fleet to regain competitiveness
Aircraft around the world could soon be fitted with groundbreaking intelligent avionic systems, so smart, that they could enable the vehicle to operate with greater safety and more fuel efficiency.
In the aerospace & defence report A&D Insights: Gaining Technological Advantage, ‘ intelligent, integrated avionics’ is just one of the emerging technologies that industry leaders will be looking at in the fight to stay competitive. The report warns however that unless funding continues to support research and development (R&D), the industry could be left on the runway as other sectors take off.
PwC Global Aerospace & Defence Leader, Neil Hampson said:
“Governments will continue to hold the purse strings not only on military budgets but on some adjacencies too. Breakthroughs in areas such as biofuel will require collaboration across the supply chain and succeeding in promising new markets, such as smart grids, will also need that support. Innovation must be at the heart of where A&D companies place their bets and our research shows that companies remain focused on investing in new technologies.”
Leaders from the world’s top aerospace and defence (A&D) organisations contributed to the report. Technology in the industry is now so fast-paced that it could soon be possible to have several layers of tiny embedded devices in aircraft, ‘wireless sensors’ which can then communicate wirelessly to back up an aircraft’s avionics system.
Adjacent markets such as smart grids are also looking promising for some defence companies, as they seek to take advantage of new technologies to help confront challenges in the energy sector. The US, by example, awarded $3.4bn in smart grid grants in 2009, but as the market develops, opportunities in managing and securing the grids will grow. As energy networks become more automated, they could also become more potentially vulnerable to attack, so cyber security solutions are vital, the report states.
Composite technology is also developing at break-neck speed. One source values the global aerospace market in composites at $41.8bn over the next ten years. Composites that repair themselves may not be so science-fiction and the race to manufacture smarter, lighter materials will be an opportunity for military aircraft, unmanned aerial vehicles and commercial aircraft.
The comprehensive paper covers a host of top priorities and issues facing the industry, and says continued R&D funding must remain part of a firm’s growth strategy if it is to stay competitive. The US government, for example, will fund over $80bn in defence-related research this year. A look at the top 20 A&D companies in the sector showed most held R&D spending steady in 2009 and 2010.
Emerging markets which traditionally have taken a back seat are now gaining pace on the mature markets of the US, UK, France and Germany.
The report highlights that over the past decade, India received the largest number of R&D investments, with US second, and also had the second largest number of manufacturing investments. Adding talent to the mix means that India is now producing as many graduate engineers as the US, and China produces more engineering and technology PhDs than either the US or India.
Budget squeezes across Europe will also constrain the industry. France intends to cut its planned defence spending by 3.5bn Euros between 2011 and 2013, and the revised budget for this year will now be 30.15bn Euros. Deciding where to invest will be crucial to firms.
PwC global aerospace & defence leader, Neil Hampson, added:
“There can be no doubt that A&D companies will need to excel in researching, developing and commercialising new and emerging technologies. Succeeding in adjacent markets requires new product directions to be aligned with government priorities. Companies will also need to collaborate both within and beyond the industry. There will be risks, but the industry must be ready and able to work together.”
• Defence budgets in mature markets will be cut but productivity must still improve
• Industry pushed to build lighter, safer, greener fleet to regain competitiveness
Aircraft around the world could soon be fitted with groundbreaking intelligent avionic systems, so smart, that they could enable the vehicle to operate with greater safety and more fuel efficiency.
In the aerospace & defence report A&D Insights: Gaining Technological Advantage, ‘ intelligent, integrated avionics’ is just one of the emerging technologies that industry leaders will be looking at in the fight to stay competitive. The report warns however that unless funding continues to support research and development (R&D), the industry could be left on the runway as other sectors take off.
PwC Global Aerospace & Defence Leader, Neil Hampson said:
“Governments will continue to hold the purse strings not only on military budgets but on some adjacencies too. Breakthroughs in areas such as biofuel will require collaboration across the supply chain and succeeding in promising new markets, such as smart grids, will also need that support. Innovation must be at the heart of where A&D companies place their bets and our research shows that companies remain focused on investing in new technologies.”
Leaders from the world’s top aerospace and defence (A&D) organisations contributed to the report. Technology in the industry is now so fast-paced that it could soon be possible to have several layers of tiny embedded devices in aircraft, ‘wireless sensors’ which can then communicate wirelessly to back up an aircraft’s avionics system.
Adjacent markets such as smart grids are also looking promising for some defence companies, as they seek to take advantage of new technologies to help confront challenges in the energy sector. The US, by example, awarded $3.4bn in smart grid grants in 2009, but as the market develops, opportunities in managing and securing the grids will grow. As energy networks become more automated, they could also become more potentially vulnerable to attack, so cyber security solutions are vital, the report states.
Composite technology is also developing at break-neck speed. One source values the global aerospace market in composites at $41.8bn over the next ten years. Composites that repair themselves may not be so science-fiction and the race to manufacture smarter, lighter materials will be an opportunity for military aircraft, unmanned aerial vehicles and commercial aircraft.
The comprehensive paper covers a host of top priorities and issues facing the industry, and says continued R&D funding must remain part of a firm’s growth strategy if it is to stay competitive. The US government, for example, will fund over $80bn in defence-related research this year. A look at the top 20 A&D companies in the sector showed most held R&D spending steady in 2009 and 2010.
Emerging markets which traditionally have taken a back seat are now gaining pace on the mature markets of the US, UK, France and Germany.
The report highlights that over the past decade, India received the largest number of R&D investments, with US second, and also had the second largest number of manufacturing investments. Adding talent to the mix means that India is now producing as many graduate engineers as the US, and China produces more engineering and technology PhDs than either the US or India.
Budget squeezes across Europe will also constrain the industry. France intends to cut its planned defence spending by 3.5bn Euros between 2011 and 2013, and the revised budget for this year will now be 30.15bn Euros. Deciding where to invest will be crucial to firms.
PwC global aerospace & defence leader, Neil Hampson, added:
“There can be no doubt that A&D companies will need to excel in researching, developing and commercialising new and emerging technologies. Succeeding in adjacent markets requires new product directions to be aligned with government priorities. Companies will also need to collaborate both within and beyond the industry. There will be risks, but the industry must be ready and able to work together.”
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