Market outlook

The Group forecasts that demand for military engines will be worth US$160 billion over the next 20 years. This outlook was moderated, slightly based on US and European budget pressures.

The largest single market is expected to be the US, followed by Europe and the Far East. Within Asia, demand will be dominated by Japan, South Korea and India. Trends are driven by the scale of defence budgets and geopolitical developments around the world.

As in the Group’s other business sectors, programme lives are long and there is a significant opportunity to support equipment with aftermarket services, estimated at US$270 billion over the same period. Customers’ budget constraints and their need to increase the value they derive from their assets have accelerated the move in this direction.