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South African Aerospace and Defence Industry Looks to Untapped Markets At its Doorstep Finds Frost & Sullivan - African continent emerges as strong potential market for South African aerospace and defence industry
South African Aerospace and Defence Industry Looks to Untapped Markets At its Doorstep Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2012/10/18 - African continent emerges as strong potential market for South African aerospace and defence industry.

   
 
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South Africa boasts a well developed aerospace and defence industry. Steadily increasing local demand for air travel, including low-cost air travel, will provide growth to the aerospace industry. At the same time, relatively untapped markets in the rest of Africa will offer new opportunities for the defence industry.

Frost & Sullivan's Economic Research and Analytics (ERA) study, Economic 360 for South Africa: Growth Prospects and Emerging Opportunities in the Aerospace and Defence Industry, includes an assessment of industry segments, an evaluation of key trends and growth patterns, and opportunities for the industry.

The aerospace manufacturing industry is dominated by a few major participants in the public and private sectors. It has strong ties to companies in the European Union (EU), and is currently involved in deals with Airbus and Boeing. The aerospace industry is expected to show growth in the forecast period due to increased demand for air travel and the entrance of new, low-cost airlines.

"Growth in the middle class and financial sector within South Africa has boosted the demand for airlines and budget airlines operating domestically," explained Frost & Sullivan's Industry Analyst Craig Parker. "Expansion into the rest of Africa will provide growth opportunities as tourism, business and airport infrastructure develops in Sub-Saharan Africa."

The South African defence industry is dominated by two public companies, with smaller inputs from private companies that usually do not specialise in weapons manufacture. The industry is highly dependent on international contracts for weapons development and sales.

A high degree of regulation characterises the industry as regulatory compliance is mandatory for international companies seeking to deal with South Africa. For example, regulation requires a foreign seller of defence commodities or services to undertake defence-related business in South Africa on a reciprocal basis.

"Military weapon exports from South Africa are set to rise in the forecast period," concluded Parker. "South African arms manufacturers need to leverage opportunities on the African continent, as many countries become potential export markets due to the adjustment in their conflict status."

If you are interested in more information on this study, please contact Samantha James, Corporate Communications, at samantha.james[.]frost.com.

Economic 360 for South Africa: Growth Prospects and Emerging Opportunities in the Aerospace and Defense Industry is a "must have" executive level decision-making guide that provides a focused analysis of this industry by analysing the economic climate of South Africa. Besides enabling decision makers to assess the impact of non-market forces on industry performance, it also helps in identifying new market opportunities. This service provides a strong base for preparing contingency plans based on probable scenarios. In addition, investors can assess the industry-specific risk factors as well as conduct a more in-depth micro research on the South African aerospace and defence market.

Frost & Sullivan's Country Industry Forecast research provides a unique country-specific perspective on various industries. The valuable Country-Industry Linkage includes in-depth analyses and forecasts.

The Frost & Sullivan Economic Research and Analytics team provides research focused on timely and critical socio-economic, econometric, demographic, political, and regulatory information for specific countries by industry. It produces research services, economic impact articles, and economic updates that discuss relevant and critical economic trends.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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South African Aerospace and Defence Industry Looks to Untapped Markets At its Doorstep Finds Frost & Sullivan

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