Wipro Report on Aerospace Manufacturing
Aerospace Manufacturing Transfer Systems
Wipro Thought Leadership
WIPRO TECHNOLOGIES
Table of Contents
01 Aerospace Industry 03 Aerospace Manufacturing Outsourcing
06 Aerospace Manufacturing Transfers Process
10 Transition Management Platform
12 Appendix
Aerospace Manufacturing Transfer Systems
1000 900 800 6.17%
USD Billion
700 600 500 400 300 200 100 0 2008 2009E 2010E 2011E 2012E 2013E Aerospace Market1 Defence Market1
Projected Global Market
1.0 Aerospace Industry
Global Aerospace and Defence Market has reached a value of USD 674.6 Billion in 2008 and reports forecast that this figure would go up to USD 910 billion in 2013 based on a year on year increase of 6.17%. Within the aerospace and defence market the defence market accounts for almost 70% of the market value. Aerospace is a highly globalized industry since customers are geographically dispersed (airlines, governments) and have similar product needs and are able to look globally for suppliers who can meet their needs.
manufacturers are outsourcing more and more of the subsystem value chain since they want to shorten development time by increased focus on higher value added portion. Buyers have a great deal of bargaining power and airlines or even countries can combine orders and ask for concession from the prime contractors. Since the switching cost for the buyer of airplanes is low the buyer power in the market place is increased. Interestingly, sub component manufacturers who have carved a niche for themselves have the best margins in the value chain.
1.2 Product Life cycle
The lead times in aircraft manufacturing are typically very long. According to Boeing, building a commercial jet aircraft takes about a year on an average. Since aerospace industry is very design intensive, on an average an OEM takes about five years to design a completely new model. The tooling requirements are very critical and can be almost one third to two thirds of the total
Wipro Thought Leadership
WIPRO TECHNOLOGIES
Table of Contents
01 Aerospace Industry 03 Aerospace Manufacturing Outsourcing
06 Aerospace Manufacturing Transfers Process
10 Transition Management Platform
12 Appendix
Aerospace Manufacturing Transfer Systems
1000 900 800 6.17%
USD Billion
700 600 500 400 300 200 100 0 2008 2009E 2010E 2011E 2012E 2013E Aerospace Market1 Defence Market1
Projected Global Market
1.0 Aerospace Industry
Global Aerospace and Defence Market has reached a value of USD 674.6 Billion in 2008 and reports forecast that this figure would go up to USD 910 billion in 2013 based on a year on year increase of 6.17%. Within the aerospace and defence market the defence market accounts for almost 70% of the market value. Aerospace is a highly globalized industry since customers are geographically dispersed (airlines, governments) and have similar product needs and are able to look globally for suppliers who can meet their needs.
manufacturers are outsourcing more and more of the subsystem value chain since they want to shorten development time by increased focus on higher value added portion. Buyers have a great deal of bargaining power and airlines or even countries can combine orders and ask for concession from the prime contractors. Since the switching cost for the buyer of airplanes is low the buyer power in the market place is increased. Interestingly, sub component manufacturers who have carved a niche for themselves have the best margins in the value chain.
1.2 Product Life cycle
The lead times in aircraft manufacturing are typically very long. According to Boeing, building a commercial jet aircraft takes about a year on an average. Since aerospace industry is very design intensive, on an average an OEM takes about five years to design a completely new model. The tooling requirements are very critical and can be almost one third to two thirds of the total