"The UK aerospace industry is the second largest aerospace industry in the world, behind the US. The civil aerospace sector is expected to continue to drive the UK aerospace industry, boosted by increased demand for new aircraft from emerging markets in Asia." 

- Claudia Preedy, Industrial Analyst

Growth in demand for replacement aircraft in Western economies is also anticipated, as a result of an ageing fleet and an increased requirement for more fuel efficient aircraft. On the contrary, demand for aerospace equipment in the defence sector has been subdued in recent years, due to defence spending cuts by key governments. Defence budgets will be subject to further cuts over the next three years. The regions with moderate growth potential for defence aerospace equipment demand over the coming years include China, Russia, India, Saudi Arabia, the UAE and Brazil.