Market Trends of Singapore Aerospace And Defense Industry
MRO Segment Dominates the Market During the Forecast Period
Singapore is a leading aircraft maintenance, repair, and overhaul (MRO) hub for airlines in the Asia-Pacific region and contributes about 10% to global MRO output. With the growing opportunities in the country's MRO sector, several major players are opening new facilities in the region to increase their presence. For instance, in February 2022, Collins Aerospace entered a long-term maintenance, repair, and overhaul (MRO) agreement with Singapore Airlines and Scoot to support the Singapore Airlines Group fleet of 55 Boeing 787 aircraft. Through its FlightSense program, the company will provide the airlines with full lifecycle support for high-performance pool access, maintenance services, and reliability upgrades. Similarly, in February 2022, Safran Electronics & Defense Services Asia announced that it would carry out maintenance and repair operations on landing gear control systems, such as tire pressure and brake temperature monitoring, for aircraft ranging from business jets to civilian aircraft at its Singapore site. Safran Electronics & Defense Services Asia's territorial rights to perform these repairs cover Asia-Pacific, Europe, and the Middle East and Africa.
Rapid economic growth and the increasing popularity of low-cost carriers are propelling the country's increasing passenger traffic and aircraft movements. This increase in fleet and aircraft movements is expected to further boost the demand for maintenance, repair, and overhaul services to ensure aircraft safety and airworthiness.
Defense Sector is Projected to Show Significant Growth During the Forecast Period
With increasing threats due to Chinese military aggression, Singapore has been investing in improving its defense capabilities at a steady pace over the coming years. As part of this, the country has begun new defense procurements in various sectors of its military. These procurements are expected to be fulfilled by the manufacturers over the forecast period, driving considerable revenue influx into the market and thereby increasing market growth opportunities.
In March 2022, Singapore disclosed its new procurement plans in pursuit of the SAF 2040 vision. This plan includes several procurements and upgrade programs that the country has undertaken or will undertake in the coming years. As part of this, the country will also be establishing a fourth service branch for the Singapore Armed Forces (SAF) to better defend the country against threats in the digital domain.
Also, in November 2022, Singapore announced the inauguration of its fourth military branch - the Digital and Intelligence Service (DIS) that will focus exclusively on combating modern threats in the digital domain as well as leveraging emerging technologies in this domain. The DIS will more tightly integrate the Singaporean military's capabilities to deal with a range of security threats, including those from the digital domain. It includes a service headquarters, a joint intelligence directorate, a joint digital and C4 organization, and cyber-staff departments. Due to such developments, the country's defense sector is expected to witness a significant growth rate during the forecast period.
