The A&D industry is getting the necessary thrust from the expanding demand for commercial aircrafts and recovering defence budgets. The increasing passenger traffic has encouraged the aircraft manufacturers to beef up the production of Low Cost Carriers (LCCs). Replacement demand is another important growth contributor to the industry. There have been strategic collaborations and M&A between the suppliers and aircraft OEMs. The technical advancements laid the foundation for strategic alliance between OEMs and trusted technology providing mid-sized companies. The supply chain in A&D is now more inclusive due to vertical integration, consequently controlling the margins earned by OEMs. The Maintenance, Repair and Overhaul (MRO) service providers are concentrated in Asia Pacific region, being labour-intensive in nature. The defence segment shows a stable growth and countries namely China, India, France, Japan and United Kingdom depict a brighter picture based on expansion in defence spending. The nerve of market indicates that the defence companies should be investing more in technology. Companies such as Lokheed Martin, Northrop Grumman, Boeing, Airbus and few others have gauged it right are making sure of influx of funds for the cause of technology. Apart from the efforts made by manufacturers, the operators are ensuring efficient and uninterrupted service to the customers. The use of drones by operators is helpful to keep a vigil on the airplanes. A curtain raiser to autonomous military machines will change the war scenario and we will get to witness more robots and unarmed vehicles in future. These facts suggest that the A&D industry is currently at an interesting juncture and navigating towards a robust future.

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