Market Trends of Singapore Aerospace And Defense Industry
The MRO Segment is Expected to Dominate the Market During the Forecast Period
Singapore, a key hub for aircraft maintenance, repair, and overhaul (MRO) in Asia-Pacific, commands a significant share of the global MRO output. Major players are establishing new regional facilities to bolster their presence with expanding opportunities. For instance, in February 2022, Collins Aerospace inked a long-term MRO agreement with Singapore Airlines and Scoot, focusing on the former's 55 Boeing 787 aircraft fleet. Under its FlightSense program, Collins Aerospace will deliver comprehensive support, including high-performance pool access, maintenance services, and reliability upgrades. Similarly, the same month, Safran Electronics & Defense Services Asia announced its Singapore site's capability to conduct maintenance and repair operations on landing gear control systems, from business jets to civilian aircraft. Notably, Safran Electronics & Defense Services Asia holds territorial rights for these repairs across Asia-Pacific, Europe, and the Middle East and Africa.
Driven by rapid economic growth and the rising preference for low-cost carriers, Singapore is witnessing a surge in passenger traffic and aircraft movements. This uptick in fleet and aircraft activity will escalate the demand for MRO services, which are crucial for ensuring aircraft safety and airworthiness.
The Defense Sector is Expected to Witness Significant Growth During the Forecast Period
Amid escalating concerns over Chinese military activities, Singapore is ramping up its defense capabilities. The nation initiated fresh defense procurements across various military segments, which are set to be executed by manufacturers in the coming years. These endeavors are poised to bolster the country's defense and inject substantial revenue into the market, paving the way for enhanced growth prospects. In March 2022, Singapore unveiled its procurement roadmap, aligning with its SAF 2040 vision. This blueprint encompasses a series of procurements and upgrades, some already in progress and others slated for the near future. Singapore is charting new territory by introducing a fourth service branch within its Armed Forces, specifically tailored to counter digital threats.
Further underlining its commitment to digital defense, Singapore formally launched its fourth military branch, the Digital and Intelligence Service (DIS), in November 2022. The DIS is dedicated to combatting contemporary digital threats and harnessing cutting-edge technologies. By consolidating the nation's military capabilities, the DIS aims to fortify Singapore's stance against a spectrum of security challenges, especially those emanating from the digital realm. Comprising a service headquarters, a joint intelligence directorate, a joint digital and C4 organization, and cyber-staff departments, the DIS's establishment was a pivotal move to propel Singapore's defense sector toward a notable growth trajectory in the coming years.
