Overview
Industry further established by growth in output; recognized as a global aviation hub
In the period of time since Changi Airport first opened in 1981, Singapore has fulfilled its goal of becoming a global aviation hub. With over 500 awards, Changi Airport is extensively recognised as one of the world’s best transnational airports, while Singapore Airlines has become an extensively reputed brand.
Singapore has developed a leading aerospace industry that includes manufacturing, engineering, exploration and development (R&D), maintenance, repair and overhaul (MRO), and other aerospace related services. At present, the country has some of the largest and most diverse aerospace companies in Asia, with over 130 aerospace firms making Singapore their home.
The industry has maintained a commanding position in the Asia-Pacific market, making it a key driver of the country’s overall economic growth, recording a compound annual growth rate (CAGR) of 8.6 % over the last two decades and reaching a total annual output of more than USD 8.0 billion. As a one-stop center for all conservation, repair and overhaul (MRO) services and large precision engineering suppliers, Singapore has captured over 10% of the global MRO market. In the last two decades, Singapore’s aerospace engineering industry has expanded at an average rate of 10%.
Strict regulations within the industry support performance and maintain quality; government initiatives and joint ventures boost competition
Singapore’s aerospace industry is tightly regulated. Any failure to comply with norms could have significant impacts, ranging from forfeitures to suspension of business licenses. Conformity assessment, therefore, plays a crucial part in the safety, quality and performance of aircraft and aeronautics factors.
With regards to government support, the International Directorate of Accreditation (IDA) provides a delegation scheme for confirmation and verification bodies for the reduction and removal of greenhouse gasses. This is in support of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), initiated by the International Civil Aviation Organization (ICAO). Furthermore, apart from general ISO regulations, aeronautics suppliers must be AS9100 certified.
Prominent players in the market are SIA Engineering Company, Singapore Technologies Engineering Ltd, Rolls- Royce Holdings plc, Raytheon Technologies Corporation and Airbus SE. Additionally, the growing joint ventures of local and international players for transfer of technology and development of new product lines will help companies increase their presence in the country.
Singapore’s strengths in MRO, perfection engineering and electronics enable large corporations in the country to manufacture some of the most complex components like avionics computers and engine fan blades, supported by the country’s strong intellectual property governance.
The robust satellite capability of the small country has also allowed it to launch 13 small satellites since 2011. With ongoing tie ups with companies and exploration institutions, Singapore aims to further develop its satellite capabilities and produce new openings in space.
The government is encouraging companies to invest in new setup and automation for best-in-class installations as well as to consolidate capabilities to drive process enhancement. Under the RIE2025 plan, the government will support various strategic exploration initiatives similar to the Singapore Aerospace Programme, to influence science and technology in addressing prospective challenges in important areas of the aerospace industry, such as advanced manufacturing and sustainability
Key Trends
Investment in automation set to improve productivity; new technologies to be explored
Aerospace companies in Singapore are now focusing more on automation, and looking into new technologies to enhance productivity and performance. Singapore Aerospace Manufacturing (SAM), a global precision engineering group, is investing in advanced automation equipment as well as software and engineering capabilities to upgrade current lines to manufacture future generation aircraft components. It expects productivity to increase by up to 30% through increased effectiveness and trustability of its manufacturing processes.
Companies are also exploring new technologies to enable them to have better, data-driven opinions. ST Aerospace, a company engaged in aerospace maintenance and engineering services, has embarked on a digital and productivity change action known as Smart MRO, which sees it adopting a myriad of advanced technologies. Drones equipped with 3D scanners check aircraft fuselages for disfigurement. The company is also adopting other forms of advanced technology, similar to augmented reality, AI and automation, under Smart MRO. In addition, it is looking at ways of going paperless in its work processes.
The industry is on the edge of rapid-fire growth. According to the Singapore Economic Development Board (EDB), global fleet size is projected to double over the next two decades. Furthermore, one-third of all worldwide aircraft deliveries are expected to go to Asia in a span of 20 years, according to aircraft manufacturers Boeing and Airbus. Similarly, by 2031, the size of Asia-Pacific’s fleet is anticipated to triple to roughly 13,500 aircrafts.
Industry maintains its position in the global market, despite challenges brought by the pandemic
Nearly two years into the COVID-19 pandemic, the worst could be over for Singapore’s aerospace industry, which continues to be a market leader in the Southeast Asian region. Global aircraft product and conservation, repair and overhaul (MRO) spending shrank by 40% in 2020. However, as a result of the challenges faced during the pandemic, Singapore’s aerospace industry wasn't spared, as its output contracted by 26% in 2020.
Despite these challenges, the Singapore aerospace industry remains flexible and is seeing signs of recovery, with the industry growing by 8.8% in 2021.
Research and development in sustainability to fuel growth within the industry
There are three crucial focus areas where R&D can contribute to growth in the industry:
1. Digital services - As aircraft, engines and components are becoming increasingly digitized, there are openings to influence the collected data to produce new services related to optimization of flight operations, workflow operation and intelligent systems health monitoring.
2. Autonomy - Autonomous technologies will help companies enhance pilot decision making, and eventually improve the trustability and safety of aircraft systems and flight operations.
3. Sustainability - There is a growing interest in sustainability within the aerospace industry as companies work together to reduce aeronautics’ impact on the environment, and one of these approaches is to explore indispensable energy systems similar to electric propulsion. Advancements in sustainability are key to ensuring environment-friendly air travel and are expected to contribute significantly to the sector’s emissions reduction strategy.
To further ameliorate Singapore’s aerospace capabilities, the focus will be on value-added systems that will resolve industry challenges. One project tackles heat damage, which happens when airplanes are exposed to atmospheric conditions similar to lightning during flights. Boeing is uniting with scientists at A*STAR’s SIMTech to develop a laser tool system that is able to quickly identify heat damage by checking how fast heat dissipates across the panel.
Key Statistics
- As of 2018, Singapore’s aerospace industry boasted 7% annual growth and an employment growth rate of 4% each year.
- Since 2014, Singapore’s aerospace industry exports were up 18.5% year on year to close to USD 22,782.67 million.
- In 2016, advanced manufacturing and engineering were identified as a key technological focus area, with a record SGD 19 billion (USD 13.3 billion) said to be invested in the research and development of these areas over the next five years.
- Changi Airport’s nine airfreight terminals have an annual capacity of 3 million tons per year, as of 2016.
- In 2016, the industry employed 20,000 highly skilled workers & industry aligned talent, with 80% of them being locals.
- In 2016, the industry’s total output reached over SGD 8 billion, amongst the largest in Asia; MRO accounted for 90%, while manufacturing accounted for 10%.
- In 2016, globally, more than 100 airlines flew to some 380 cities in about 90 countries and territories worldwide. Each week, about 7,000 flights landed or departed from Changi Airport, with more than 58.7 million passengers passing through the airport during the year.
