The Aerospace Market in Canada

A Hot Tip about Aerospace in Canada

Posted on: 13 Jan 2010

Summary

The Canadian aerospace industry is robust, dynamic and poised for a bright future, offering many opportunities for U.S. aerospace suppliers. In 2008, the Canadian aerospace production totaled $22.6 billion, making it the fifth largest aerospace market worldwide. Numerous industry estimates indicate that between 2009 and 2018, global demand for commercial aircraft will be at over 25,000 aircraft valued at $3 trillion dollars. Canada is best positioned to take off with this renewed global demand for commercial aircraft since approximately 80 percent of its aerospace production is for commercial use. In the meantime, while Canadian companies are facing the same global slowdown, they are working through healthy backlogs and launching new product development programs. U.S. aerospace suppliers have captured a large share of Canada's aerospace market; most Canadian aerospace companies purchase over 50 percent of their inputs from the United States, generating export revenues of about 7 billion dollars for U.S. firms. Canada is a great market offering many opportunities for U.S. suppliers, particularly in aircraft, parts, and aircraft maintenance, repair and overhaul (MRO).

 

Market Demand

Last year, Canada's aerospace production was $22.6 billion, making it the fifth largest aerospace market in the world. Many Canadian firms, demonstrating their world renowned excellence, continue to hold significant shares of global aerospace markets. Here are examples of the market shares captured by Canadian firms:

- 31% of the global market for regional aircraft

- 30% of the global market for small gas turbine engines

- 70% of the world market share for visual flight simulators

- 30% of the world market for civil helicopters

- 30% of the world market for landing gears, including 60% of new large aircraft landing gear

 

As a result of this continued international success, Canada is an excellent market for U.S. suppliers of aerospace products and services. U.S. aerospace inputs are necessary for Canadian companies to meet their production demands. Many Canadian aerospace leaders, while currently experiencing a slowdown in sales and production, are planning their recovery strategies and investing in new product development programs. In 2008, investment in Canada's aerospace sector totaled $1.9 billion. Companies are also re-evaluating current suppliers, and are looking for potential new suppliers and partners for next generation products. This is the right time for U.S. suppliers to search for new opportunities.

 

While it is difficult to estimate how the market will fair in the next 48 months, industry predictions expect the market demand for 2010 will be flat as firms work through their backlogs and restructure to adjust to current market conditions. We are likely to see some signs of a take-off towards the end of 2010 and into 2011. Numerous industry estimates indicate that between 2009 and 2018, the world demand for commercial aircraft will be for over 25,000 aircraft valued at over $3 trillion dollars. Of this total, 21,560 aircraft worth $1.49 billion are single aisle aircraft or regional jets, two areas where Canada holds a significant portion of the global market.

 

By Gina Bento

Read the full market research report


Posted: 13 January 2010

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