The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...

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The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
The Aerospace and
 Defence Industries
Association of Europe

                         2020
               Facts & Figures
The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
Words from the President

                                              The issue at stake is not
                                              only our industries’ short-
                                              term economic success,
                                              but Europe’s long-term
                                              technological sovereignty
                                              and competitiveness.
                                                                                        2019. Despite a mild recovery in sum-       recovery and is indispensable in achiev-
                                                                                        mer 2020, air traffic in Europe remains     ing Europe’s post COVID-19 priorities,
                                                                                        poised to drop by at least 60% by com-      leading us back to industrial leadership
                                                                                        parison to last year. Airlines grounded     and strong international competitive-
ASD President, Alessandro Profumo,
CEO of Leonardo                                                                         (almost) their entire fleets and still      ness through a full involvement in
                                                                                        suffer dramatic losses of revenue, with     essential processes such as the digital
                                                                                        immediate knock on effects on the           transformation, the implementation of
                                                                                        entire civil aviation value chain.          the Green Deal and the future of global
                                                                                                                                    trade.
Dear reader,                                                                            The impact on aeronautics has
                                                                                        consequences also on the other ASD          A strong and sustainable European
ASD represents the interests of the        in 2019 and the outlook we had at            sectors, as supply chains and tech-         aerospace, defence, and security
European aerospace, defence and            the time. In the aftermath of the            nologies are intertwined between aer-       industry is at the heart of a strong,
security industries. Our membership        COVID-19 crisis, those figures have          onautics, space, defence and security.      united, technologically independent and
consists of more than 3,000 companies      become the very benchmark we should          The issue at stake is not only our in-      resilient Europe. This is also to the
of all sizes with more than 890,000        target and, if possible, exceed for a full   dustries’ short-term economic success,      benefit of EU citizens and future gene-
highly skilled employees across Europe.    recovery.                                    but Europe’s long-term technological        rations. To continue its success story
These companies are at the core of                                                      sovereignty and competitiveness. What       in a fast-changing world and to fully
European competitiveness, since their      The pandemic represents an unpre-            we need now is unfaltering support by       exploit its strength for the benefit of our
high-tech activities trigger spill over    cedented crisis and has led to a sharp       national and European institutions, and     economies and citizens, it needs, more
effects on several supply chains and       downturn of the world economy. Air           a general recognition of our industries     than ever, a strong partnership with the
economic sectors.                          traffic was one of the first and hardest     as an indispensable asset for European      EU and its Member States.
                                           hit sectors. By mid-April 2020, at the       economy.
The present edition of the ASD Facts &     peak of the crisis, flights were reduced
Figures, including all supporting texts,   by almost 90% in Europe and world-           Aeronautics, defence, space and             ASD President
illustrate the success of our industries   wide if compared to the same period in       security can play a key role for Europe’s   Alessandro Profumo
The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
EXPORTS 2019

Major trends in the European                                                                                                                                   CIVIL AERONAUTICS 73%
                                                                                                                                                                               €109bn

aerospace and defence industry                                                                                                                                                MILITARY
                                                                                                                                                                      AERONAUTICS 15%
                                                                                                                                                                                €22bn
As a major pillar of the European economy, the European
aerospace and defence industry reinforced its position as                                                                                                             LAND & NAVAL 12%
global leader in the market in 2019.                                                       890,000 highly-skilled                                                               €18bn

                                                                                            employees in Europe
                                                                                                                                                                         Total exports
                    TURNOVER 2019                     EMPLOYMENT 2019                                                                                                          €149bn
CIVIL AERONAUTICS 50%                                              CIVIL AERONAUTICS 46%
€130bn                                                                          405,000
MILITARY AERONAUTICS 18%                                                                   sectors, blurring traditional civil and      tary demand, as well as a stronger com-
€48bn                                                                  LAND & NAVAL 31%    military boundaries along its eco-           petition, economic uncertainties and
LAND 17%                                                                        280,000    system. These flexibility and devel-         complex security challenges.
€42bn                                                                                      opments are considered within Facts
                                                                              MILITARY     & Figures traditional methodology,           This is the result of sustained competi-
NAVAL 10%                                                              AERONAUTICS 18%     as such the new baseline shall not           tiveness driven by significant efforts in
€26bn                                                                           160,000    be directly comparable with previous         Research and Development (R&D) and
CIVIL SPACE 4%                                                                             editions.                                    efficiency improvements of industrial
€11.5bn                                                                        SPACE 5%                                                 processes through digitalisation and
MILITARY                                                                         47,400    Overall, the sector delivered strong         cutting-edge technologies. Fostering
SPACE 0.5%                                                                                 economic performances with increased         innovation and technologies is essential
€1.5bn                     Total turnover                           Total employment       deliveries, export orders and backlog        in order to deliver sustainable and com-
                                  €260bn                                     890,000       in most segments, in a global context        petitive products and services that are
                                                                                           marked by the growth of civil and mili-      sold worldwide.
Despite continued economic and political     crucial for growth within the EU. In 2019,
uncertainties, the aerospace and defence     the sector sustained its leading role in
industries continue to expand, following     exports, amounting to €149bn. In this
                                                                                               TURNOVER €bn                                                      EMPLOYMENT
the growth trend of recent years. Year       context, our industry generated a pos-
to year sales growth for the industry as     itive net trade balance to the European                     60% sales increase and +186,000 jobs (2011-2019)
                                                                                               300                                                                         900,000
a whole amounted to 5.2%, with total         economy. As our members are Hi-Tech
revenue reaching €260bn. The number          manufacturers, our industry is deeply             250                                                                         850,000
of employees also increased to 890,000       involved in the current technological
workers marking new records for the          transformation such as digitalisation,            200                                                                         800,000

companies represented by ASD.                artificial intelligence (AI) and green
                                                                                               150                                                                         750,000
                                             technologies. Therefore, its know-how
The European aerospace and defence           and capabilities gain a broader scope             100                                                                         700,000
industries plays a crucial role in leading   than in the past, with new neutral tech-
                                                                                                50                                                                         650,000
global innovation and generating high-       nologies and dual-use applications (i.e.
skilled jobs. Our industry is amongst top    R&D, platforms, services and support)
leaders on the global markets which is       fertilise transversally also in other                   2011   2012   2013   2014   2015    2016   2017    2018   2019
The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
E U RO P E A N C IVIL A E RO NAU TIC S SEC TO R

Civil aeronautics
REVENUE    EXPORTS   JOBS
                            European civil aeronautics sector
                            Supporting 405,000 jobs across Europe, the civil aeronautics
  €           €             sector is a world leader, generating high-skilled jobs, innovation

130bn      109bn     405k   and sustainable growth in the EU.

                            Supporting 405,000 jobs across              flying objects, manned and unmanned,
                            Europe, the civil aeronautics sector is     along the life-cycle, i.e. the complete
                            a world leader, generating high-skilled     range of categories of commercial
                            jobs, innovation and sustainable growth     aircraft, business jets, regional jets,
                            in the EU.                                  general aviation, combat aircraft and
                                                                        trainers, as well as a broad range of
                            In 2019, the civil aeronautics sector       transport aircraft and rotor-wings,
                            continued its growth with revenue           training and simulation services,
                            increasing by 3% to €130bn. This sector     Maintenance Repair & Overhaul (MRO)
                            remains by far the leading sector in        and air traffic management ground
                            aerospace and defence and accounts          systems.
                            for 50% of total industry revenue. The
                            increasing global demand for mobility
                            and the replacement of older aircraft,
                            which use more kerosene, with the
                            latest low-noise, fuel-saving genera-
                            tion of aircraft continue to be the major
                            drivers of growth.

                            In 2019, civil aeronautics exports
                            increased to €109bn, accounting for
                            83% of aeronautics exports. In general
                            terms, exports provide an important
                            net trade balance to the European
                            economy.

                            The activities of the civil aeronautics
                            sector, including large companies as
                            well as a great variety of small and
                            medium-sized enterprises (SMEs), are
                            spread across Europe and are concen-
                            trating a full spectrum of technologies
                            and integrated capabilities. The civil
                            aeronautics sector includes all certified
The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
EUROP EA N C I V I L A E R O NAU T I CS S EC TOR                                                                                                        E U RO P E A N C IVIL A E RO NAU TIC S SEC TO R

      Future challenges                                                                         European industry is playing a leading
                                                                                                role to develop the future green tech-
      In 2019, nearly 4.5 billion passengers                                                    nologies for civil aviation. The support
      were carried by the world’s airlines.                                                     from the EU institutions through EU
      While air transport carries around 0.5%                                                   funded research programmes such as
      of the volume of world trade shipments,                                                   Clean Sky and SESAR are essential in
      it is over 35% by value – meaning                                                         this context. If Europe wants to meet
      that goods shipped by air are very                                                        its climate targets, it will be essential
      high value commodities, often times                                                       to safeguard funding for civil aviation
      perishable or time-sensitive. Over 66                                                     research in the future Horizon Europe
      million jobs are supported worldwide                                                      Programme through providing at least
      in aviation and related tourism. Of this,                                                 €5 bn of public funding. European
      10.2 million people work directly in the                                                  industry has started research on
      aviation industry (*source ATAG).                                                         electrification and hybridisation of civil
                                                                                                aircraft along other potential options
                                                    of fuel per 100 passenger kilometres.
                                                                                                to reduce civil aviation emissions in         SESAR Airspace Architecture Study.
      If aviation were a country, it would rank
                                                                                                the longer term (including research on        Solutions to make aircraft movements
      20th in the world in terms of gross           The civil aviation industry is very much
                                                                                                hydrogen-based aircraft).                     emission-free when taxiing could also
      domestic product (GDP), generating            aware that more needs to be done to
                                                                                                                                              be deployed faster based on economic
      $704.4 billion of GDP per year, con-          decarbonise, in particular since aviation
                                                                                                Moreover, improving the efficiency of         incentives for equipped aircraft such
      siderably larger than some members            continues to grow as result of economic
                                                                                                the European Air Traffic Management           as for example modulation of airport
      of the G20 (and around the same size          growth and global trade (aviation is
                                                                                                (ATM) System through the deployment           charges.
      as Switzerland). By 2036, it is forecast      expected to double in the next 20
      that aviation will directly contribute                                                    of SESAR solutions and the imple-
                                                    years). The civil aviation industry
                                                                                                mentation of a Digital European Sky           Europe should also become a centre of
      $1.5 trillion (compared to $1.5 trillion in   became the first in the world to agree
                                                                                                also has the potential to reduce CO2          excellence on sustainable alternative
      2018) to the world GDP (*source ATAG).        a comprehensive approach for reducing
                                                                                                emissions by around 10%. In this con-         fuels for aviation based on a strong
                                                    its emissions. It is based on the ‘four
                                                                                                text, it will be essential to incentive the   European energy policy which should
      Worldwide, flights produced 915 million       pillar strategy’ of technology, opera-
                                                                                                quicker deployment of new technology          incentivise the development and
      tons of carbon dioxide (CO2) in 2019.         tions, infrastructure and a global mar-
                                                                                                in line with the recent report from the       deployment of those alternative fuels
      Globally, humans produced over 43             ket-based measure (CORSIA) setting a
                                                                                                EU Wise Person Group on ATM and the           which have the potential to drastically
      billion tons of CO2. The global aviation      goal to half net aviation CO2 emissions
                                                                                                                                              reduce civil aviation emissions.
      industry therefore produces around 2%         by 2050 (compared to 2005).
      of all human-induced CO2 emissions
                                                                                                                                              Finally, the EU should continue to work
      (*source ATAG).
                                                                                                                                              through the International Civil Aviation
                                                                                                                                              Organization (ICAO) to develop ambi-
      Civil aviation has shown a track record
                                                                  EXPORT                                                                      tious global environmental standards
      of reducing its environmental footprint.
                                                            CIVIL AERONAUTICS                                                                 for international civil aviation. This
      The current generation of jet aircraft

                                                             +12%
                                                                                                                                              includes the implementation of the
      are 80% more fuel efficient per seat
                                                                                                                                              first ever sectorial reduction scheme,
      kilometre than the first jets build in the
                                                                                                                                              CORSIA, as well as a global CO2 aircraft
      1960s. Each new generation of aircraft
                                                                                                                                              certification standard.
      typically reduces CO2 emissions by                    COMPARED TO 2018
      around 15-20%. Newer generation of
      aircraft generally burn around 3 litres
The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
E U RO P E A N D E F E NC E SEC TO R

Defence
                           European defence sector
REVENUE   EXPORTS   JOBS
                           The defence sector remains essential as a contributor to our security and
  €         €              economic prosperity. In 2019, it supported roughly 440,000 high-skilled
                           jobs in Europe.
116bn     40bn      440k
                           Mirroring the differences in national                39.6% operate in the land domain, 30.5%
                           defence spending, the European                       in air, 18.7% in naval, 7.8% in cyber, 3.4%
                           defence technological and indus-                     in space).
                           trial base is concentrated in the six
                           so-called “Letter of Intent (LoI) coun-              In 2019, the European defence industry
                           tries” - France, Germany, Italy, Spain,              generated a turnover of €116bn. Out of
                           Sweden and the United Kingdom (UK).                  this total, €93.2bn came from compa-
                           Smaller platform manufactures, equip-                nies located in the LoI countries. Overall,
                           ment suppliers and sub-suppliers as                  the European defence industry accounts
                           well as niche producers exist also in                for more than 20% of the global defence
                           other parts of the EU. The total number              turnover, which is far behind the United
                           of SMEs doing business in defence is                 States (US) global market share (almost
                           estimated at 2,000 to 2,500 (of which                60%).

                           EUROPE’S TOP 10 DEFENCE COMPANIES 2019
                                                            2019                    2019                  Revenue         Ranking
                                                       Defence Revenue          Total Revenue          from Defence      Worldwide
                                                       (in millions dollars)   (in millions dollars)

                            #1 BAE Systems                $21,033.27                $23,370.3             90%                 #7

                            #2 Airbus                     $11,266.57              $78,916.36              14%                #12

                            #3 Leonardo                   $11,109.27              $15,429.55              72%                #13

                            #4 Thales                      $9,251.68              $20,596.61              45%                #16

                            #5 Dassault                    $5,708.84                $8,171.48             70%                #22

                            #6 Rolls Royce                 $4,260.53                $4,260.53             24%                #27

                            #7 Safran                      $4,413.05              $27,581.55              16%                #28

                            #8 Naval Group                 $4,155.14                $4,155.14            100%                #30

                            #9 Rheinmetall AG              $3,942.46                $7,001.73             56%                #33

                           #10 Babcock International       $3,233.92                $6,220.17             52%                #39

                           Source: Defense News
The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
EUROP EA N DE F E NCE S ECTO R                                                                                                                                E U RO P E A N D E F E NC E SEC TO R

                                     TURNOVER DEFENCE 2019                                      The European defence industry – an indispensable
                                 AERONAUTICS 41%                                                element of Europe’s strategic autonomy
                                          €48bn

                                       LAND 36%
                                          €42bn                                                 Military aeronautics

                                      NAVAL 23%
                                                                                                European air power must be able to         Employment in the military aeronautics
                                          €26bn                                                 support all missions and to operate in     sector stands slightly above 160,000
                                                                                                a joint and collaborative environment.     jobs, which accounts for 36% of total
                                                                                                Air power superiority requires a strong    defence employment.
                                   Turnover defence €116bn                                      industrial base that must be constantly
                                                                                                sustained to remain at the technologi-
                                                                                                                                           Land and naval
                                                                                                cal edge.

                                                                                                                                           The combined turnover of the European
     In 2019, defence industry supported                     EMPLOYMENT DEFENCE 2019
                                                                                                                                           land and naval industry went up by 11%
     more than 440,000 jobs in Europe.
                                                                                 LAND & NAVAL                                              from €61bn in 2018 to €68bn in 2019.
     Around 160,000 of them were at-                                                     64%                                               Both sectors increased their export
     tributable to military aeronautics, the
                                                                                                                                           volumes from €13bn in 2018 to €18bn
     remaining 280,000 to the land and
                                                                                                                                           in 2019. Employment was at 280,000
     naval sectors. Recent trends show that
                                                                                                                                           units in 2019, which represents 63% of
     defence companies face a shortage of
                                                                                 AERONAUTICS                                               the total defence employment.
     skilled labour. The main reasons for this                                           36%
     are the high pace of technological inno-
                                                                                                                                           The land defence sector is of strategic
     vation and increasing competition with
                                                                                                                                           importance for future military capa-
     other sectors for younger high-skilled
                                                                                                                                           bilities. Land forces represent a vital
     workers.
                                                                Employment defence 440,000                                                 contributor to operational supremacy,
                                                                                                The European military aeronautics sec-     and both the EU and the North Atlantic
     Military exports have reached €40bn
                                                                                                tor produces a broad range of manned       Treaty Organization (NATO) consider
     in 2019. Out of this total, €22bn come
                                                             EXPORT DEFENCE 2019                and unmanned aircraft systems, from        ground combat capabilities as one
     from military aeronautics and €18bn
                                                                                                combat aircraft and drones to transport    of their main priorities. In 2019, the
     from the land and naval sectors. Given                                  AERONAUTICS 55%
                                                                                                aircraft and helicopters. It consists of   European land defence sector gener-
     the high development costs of most de-                                            €22bn
                                                                                                companies of all size, from prime con-     ated a turnover of €42bn, which rep-
     fence systems and the relatively small
                                                                                                tractors to tier-3 sub-suppliers which     resents 36% of total European defence
     size of European home markets, these
                                                                                                provide components and raw material.       revenues. The sector has a diverse
     exports are crucial for European indus-                                     LAND & NAVAL
                                                                                                                                           product portfolio, spanning from main
     try to reach the production volumes                                                 45%
                                                                                       €18bn    In 2019, the European military aero-       battle tanks to families of armoured
     which are necessary to maintain com-
                                                                                                nautics sector generated a turnover of     vehicles, artillery, guided ammo, inte-
     petitive per-unit prices.
                                                                                                €48bn. Out of this, €22 bn derive from     grated systems and components for
                                                                                                exports, which accounts for more than      the battlefield, protection of soldiers
                                                                                                half of total European defence exports.    and infrastructures, etc. The largest
                                                                   Total export defence €40bn
The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
EUROP EA N DE F E NCE S ECTO R                                                             E U RO P E A N D E F E NC E SEC TO R

     European land prime contractors are       rely on tier-1 suppliers. The lower tiers
     located in France, Germany, Italy and     of suppliers consist of a broad range
     UK, although important industrial         of companies of different size and
     capabilities are present also in other    activities but many of them generate
     Member States.                            only a small part of their revenues on
                                               the defence market.

                                               Future challenges

                                               Defence systems have always relied
                                               on the most advanced technologies,
                                               which for decades were mainly
                                               designed and developed in the military
                                               sphere (e.g. advanced sensors, secure
                                               communications, stealth technology).
                                               However, future warfare will be
                                               characterised more and more by a
                                               system architecture approach, which
                                               takes advantage of new emerging and
                                               disruptive technologies (e.g. AI,
                                               quantum computing, 5G, biotech-
                                               nology, human augmentation, novel
                                               materials) that are mainly driven by
                                               huge investments in the commercial
                                               sector. Although the defence industry
                                               will not be at the forefront of devel-
                                               opments in such technologies, it is
                                               indispensable to adapt and translate
                                               them into military systems that meet
     The European naval industry generated     the requirements of armed forces.
     in 2019 revenues of €26bn, which rep-
     resents 23% of total European defence     The increasing importance of com-
     revenues. The sector produces the full    mercially driven technologies is likely
     spectrum of vessels, including aircraft   to have an impact also on the struc-
     carriers and nuclear submarines. In       ture of the defence industrial and
     Europe, there are six prime contractors   technological base. It will bring new
     which have the full responsibility to     entrants into the military sector and
     design, integrate and build military      cause defence companies to adapt
     ships. For the design and develop-        their strategies to meet the need to
     ment of combat systems and combat         incorporate these new technologies
     management systems, most of them          into the products they develop.
The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
RE SE A RC H & D E VE LO P ME NT (R& D)

Research & Development
        TOTAL R&D
       INVESTMENT        Research & Development (R&D)
                         Research, technology and innovation are instrumental
       €18bn+            for a sustainable and competitive future.

                         The European aeronautics and defence       In 2019, the R&D investments in the US
                         industries is driven by significant        (from industry and government) were
                         activities and investments in R&D.         more than four times higher than in
                         R&D refers to the activities companies     Europe. If this long-term investment
                         or public stakeholders undertake to        gap persists between Europe and other
                         improve or develop new products and        regions of the world, this will add fur-
                         services. While R&D encompasses            ther difficulties in maintaining Europe’s
                         the whole research and development         leadership.
                         process, from upstream research to
                         the final product or service, whereas
                         Research and Technology (R&T)
                         focuses on the first phases (study of
                         mature technology components (up to
                         TRL 6) that will allow the project to be         RESEARCH & DEVELOPMENT
                         launched and developed with a lower              INVESTMENTS EU27/NON-EU
                         level of risk).                                  (UK, NORWAY, TURKEY) 2019

                         In 2019, the R&D expenditure on aero-                                            EU27 67%
                         nautics and defence from both industry
                         and governments is estimated at a lev-
                         el of €18bn, with a possible 40:60 split
                         between civil and military activities.                                        NON-EU 33%
                                                                                             (UK, NORWAY, TURKEY)
                         For European industry to stay ahead in
                         a fast-changing and global innovation
                         race, the support of national govern-
                         ments and the EU is essential.

                         The investment gap between the EU
                         and the US is massive when it comes
                         to aerospace and defence-related R&D.
The Aerospace and Defence Industries Association of Europe - 2020 Facts & Figures - AeroSpace and Defence ...
RE SE A R C H & D E V E LO P M E NT ( R &D)                                                                                                            RE SE A RC H & D E VE LO P ME NT (R& D)

                                                                                              the high complexity of its products and   sizes are being developed at a very
                                                                                              systems and is subject to significantly   high technological maturity level. So
                                                                    R&D
                                                                                              long R&D cycles (of up to 20 years) all   far, Clean Sky results confirm an overall
                                                            CIVIL AERONAUTICS
                                                                                              of which require long term and large      potential to reduce CO2 emissions by

                                                             €8bn
                                                                                              investments.                              32%, and noise by 50% to 86%. These are
                                                                                                                                        being achieved as the technologies are
                                                                                              The long development cycles and the       applied to commercial products, while,
                                                           Invested by private and            high technological risks that charac-     at the same time, the programme’s
                                                             public stakeholders              terise the aeronautics industry require   partners are innovating further to
                                                                                              cooperation between all the key actors    increase the performance of aircraft.
                                                                                              along the supply chain (private and
                                                                                              public organisations) to reinforce and    SESAR is delivering a catalogue of solu-
                                                                                              streamline research.                      tions to modernise the management of
                                                                                                                                        air traffic in Europe, ensuring the safety
                                                                                              European public-private partnerships      and sustainability of European air
                                                                                              (PPPs) such as Clean Sky and SESAR        travel and aviation. When deployed, the
       R&D in civil aeronautics                   the technologies and procedures that        are delivering substantial socio-eco-     60 solutions already delivered should
                                                  will be available will allow a 75% reduc-   nomic impacts.                            increase airspace capacity by 34% and
       In 2019, it is estimated that an amount    tion in CO2 emissions per passenger                                                   decrease flight time by an average of
       of €8bn were invested in civil aeronaut-   kilometre, and a 90% reduction in NOx       Clean Sky develops innovative,            30%, resulting in reduced delays on
       ics R&D activities by private and public   emissions, with the perceived noise         cutting-edge technology aimed at          all EU flights (95% of flights staying
       stakeholders. Most of the investment       from aircraft operations being reduced      reducing CO2 emissions and noise          within their time plan), and lead to a
       comes from an increasing value as well     by 65%. These are relative to the capa-     levels produced by aeroplanes and         2.3% decrease of fuel burn and CO2
       as number of private investors (suppli-    bilities of typical new aircraft in 2000.   helicopters. To this end, more than       emissions per flight.
       ers and customers) while government        Today’s aircraft and engines are more       30 main demonstrators of different
       support is increasingly marginal,          fuel-efficient than earlier generations:
       confirming a descent trend.                it is estimated that fuel consumption
                                                  per passenger/km has been reduced by
       According to the European Commission,      70% since the 1970s.
       every Euro invested in aeronautics R&D
       creates an equivalent additional value     The societal demand for air travel is
       in the economy annually thereafter.        booming (with an average increase of
       Indeed, it enables the development of
       sustainable and competitive products
                                                  5% each year), and constant research is
                                                  critical to further reduce the emissions
                                                                                              R&D is the main driver
       and services, while maintaining and        of the next generation of aircraft.         to achieve the ambitious
       creating high-skilled jobs in Europe.      Competitiveness is the key driver for
                                                  taking the lead on green technology at
                                                                                              sustainability targets the
       R&D is the main driver to achieve the      international level and ensuring solu-      sector is committed to
       ambitious sustainability targets the       tions and pathways are affordable and
       sector is committed to. The Flightpath     can be integrated by the whole sector.
       2050 roadmap aims are that by 2050,        The aeronautics sector is marked by
RESE A R C H & D E V E LO P M E NT ( R & D)                                                  R&D DEFENCE TOTAL
                                                                                           Invested by governments

      R&D in defence

      Investments in defence R&D and (its      1% of the total defence budget on R&T
                                                                                            €10bn
      subset) R&T are key factors for the      and account together for 85% of the                €6bn
      success of industry and its capacity     total defence R&T spending in Europe.           AERONAUTICS
      to design and develop the next-gene-
      ration capabilities of Europe’s armed    The concentration of R&T activity in               €4bn
      forces. Combined European invest-        a few countries and the fact that the          LAND AND NAVAL
      ment in defence R&D amounts to           collective benchmark for R&T funding
      roughly €10bn, mainly from national      (2% of defence budget, as defined by
      governments as key customers.            EDA and as part of the Permanent
      Private investments are very limited     Structured Cooperation (PESCO) com-
      and concern only lower complexity or     mitments) has never been reached,
      lower value research. Defence R&D        raise concerns about Europe’s long-
      spending in Europe remains highly        term capacity to cope with emerging
      concentrated, with France and the UK     security challenges and to gain strate-
      alone accounting for more than half of   gic technological advantages.
      the total (followed by Germany, Italy,
      Spain and Sweden).                       To reverse this trend and foster
                                               European collaboration, the EU has put
      Despite a general increase in defence    forward several initiatives to support
      spending, investments in defence R&T     the European defence industrial base.
      remains low in percentage of the over-   Via the Preparatory Action on Defence
      all defence budget. According to the     Research (PADR) and European De-
      European Defence Agency (EDA), only      fence Industrial Development Pro-
      four Member States spent more than       gramme (EDIDP), EU resources
                                               have been allocated, for the first
                                               time ever, to boost collaborative
                                               defence R&D. In 2019, the firs nine
                                               EDIDP calls for proposals were
                                               launched, addressing various capa-
                                               bilities needs such as multipur-
                                               pose unmanned ground systems, air
                                               combat capabilities, future naval plat-
                                               forms, and Command and Control (C2).
                                               In addition, a specific call was launched
                                               to encourage the participation of SME.
                                               EDIDP and PADR prepare the ground
                                               for the fully-fledged European Defence
                                               Fund (EDF) under the next Multi-
                                               Annual Financial Framework (MFF)
                                               2021-2027.
Words from the Secretary General                                                            About ASD
In 2019, the European aerospace and                                                         ASD is the voice of European Aeronautics, Space, Defence and Security
defence sector reached a new record:                                                        Industries, representing over 3,000 companies and actively supporting the
sales grew by 5.2% to total revenues of
€260bn, making our industry a key con-
                                                                                            competitive development of the sector in Europe and worldwide.
tributor to European wealth. I would like
to thank the 890,000 employees of our
companies for their commitment and
passion that are behind this success                                                        Methodology
story.
                                                                                            The ASD Facts & Figures result from          systems, platforms and components,
Looking at these figures today is dra-                                                      the contribution of the National Associ-     while electronics and missiles are
matic. Shortly after our companies                                                          ations that are members of ASD, with         embedded transversally.   
closed their books for 2019, they were                                                      ASD as a coordinator. In 2019, ASD
overwhelmed by COVID-19. Civil aero-         ASD Secretary General, Jan Pie                 National Associations members were           Process coordination and data analysis
nautics was particularly hard hit. The                                                      spread across 18 European countries.         were performed by Fabrizio Braghini,
demand for new civil aircraft slowed         At the same time, the links between our                                                     Chairman of the ASD Data Analysis
down drastically, and it is totally          sectors can be turned into an advan-           The data published in this industrial        Committee. Pierre Lionnet, ASD-
unclear if and when air traffic will reach   tage. Defence and security markets are         overview takes into account the              Eurospace Research Director provided
pre-COVID levels again.                      not big enough to compensate for the           following factors: exchange rate fluctu-     space data and advice.
                                             implosion of the commercial business.          ations, different statistical accounting
This has dramatic consequences for all       However, since they are (mainly) public        in the UK, unconsolidated data for aero-     All photos used in this brochure belong
our sectors. Civil aeronautics, defence,     markets, the EU and its Member States          nautics and defence and consolidated         to ASD members.  
security and space have multiple strong      can use their procurement and research         data for space. The analysis was con-
links and form in many ways a common         budgets to support these two stra-             ducted using a consolidated process
ecosystem. Most companies of this            tegic sectors directly. This would also        based on crosschecks. The perimeter
ecosystem have activities in more than       contribute to stabilising the civil aviation   of this analysis is different from that
one of these sectors and are part of         sector until the global commercial             of the EU, the EDA or the NATO. Due
complex supply chains that span across       market recovers .                              to membership changes in ASD and its
all EU Member States and beyond.                                                            members, any year to year comparison
                                             This industry is and will remain of            should be considered in terms of trends
The links between our sectors offer both     strategic importance for Europe. There         and order of magnitude. A few non-ASD
risks and opportunities: given its eco-      will be a time after the pandemic,             associations’ data are included in order
nomic weight, a complete breakdown           and our companies will contribute to           to complete the full picture.
of civil aeronautics would undermine         making Europe emerge from this
the basis of the ecosystem as a whole        crisis more resilient and more sovereign,      The definition of aeronautics in-
and, thereby, drag down defence, space       more digital and greener.                      cludes civil and military aeronautics.       * Austria, Belgium, Bulgaria, Czech Republic,
and security as well. This would also                                                       The definition of defence combines all       Denmark, Finland, France, Germany, Greece,
damage the industrial basis of Europe’s      ASD Secretary General                          sectors, i.e. military aeronautics, space,   Italy, Norway, Poland, Portugal, Spain, Sweden,
aspired technological sovereignity.          Jan Pie                                        land and naval. Each sector combines         The Netherlands, Turkey, and the United Kingdom.
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