Transportation is a hotbed of activity, and an industry vertical that is garnering as much attention as it is investment. By drilling down into different market segments, we see positive numbers and continued innovation.
The automotive sector continues its strong progression, with global automotive sales reaching a record high in 2013, with more than 82 million sold and a growth rate of more than seven percent year over year. Early predictions indicate potential annual global auto sales will hit 85 million this year; we will have to wait and see.
Railways in the United States are gaining much-needed upgrades, whereas the United Kingdom is investing in replacing aging locomotives and railcars. China is investing in a high-speed rail network, while work continues on rail transportation in the Middle East and Africa.
Passenger aircraft continues to be a high point in the military and aerospace (mil/aero) industry. The commercial aviation and commercial aerospace sectors are overachievers, frankly – helping to boost the entire industry even while other market segments remain flat or even decline.
The good news – and there is much of it in the world of transportation today – is that automotive, rail, and aviation are all performing well. Further, market analysts predict continued good health and even growth; e.g., most forecasts predict compound annual growth rates in the range of four to seven percent. This mil/aero geek is optimistic about the future, especially considering that associations, OEMs, and suppliers across the industry are collaborating and talking about maximizing technology transfer – good news for the market, global community, and traveling public.