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Boeing Brand Soars Above Competitors

16 July 2018
This article is more than 2 years old.

· Boeing’s brand value cruises close to US$20 billion as commercial aircraft sales grow

· Safran stands out among stable top 10 with 33% brand value increase

· Rockwell Collins sees record growth with M&A-powered brand value doubling

· AviChina is first Chinese brand to ever enter Brand Finance Aerospace & Defence 25 ranking

· Great year for aerospace and defence industry as brand values grow by more than 20% on average

The top aerospace and defence brands benefited from a strong year, with all but one of the top 25 brands recording increases in their brand value, according to a new report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. Brands in the sector grew by an average of 22% between 2017 and 2018, much faster than in other industries. The league table has also seen three new entrants, including AviChina (brand value at US$0.9 billion) – the first ever representative of its country to enter the Brand Finance Aerospace & Defence 25 ranking.

Savio D’Souza, Director, Brand Finance, commented:

“This was a great year for aerospace and defence brands with a strong commercial jet market and increased planned defence spending in both the USA and globally. The brands are growing bigger and are building up capacity for expansion, as is the case with UTC taking over Rockwell Collins and with Boeing’s new deal with Embraer. Across the sector, we have seen steady growth, yet the balance of power remains very much the same as few brands in the league table change ranks. Time will show if Chinese competition will be able to challenge incumbent leaders.”

Boeing brand soars

Boeing’s performance (brand value up 22% to US$19.9 billion) cemented the brand at the top of the industry ranking, slightly increasing the lead ahead of Airbus (up 19% to US$11.0 billion).

2017 was a good year for new commercial aircraft sales, with Boeing passing the 1,000-order mark for the 787 Dreamliner and securing a US$15.1 billion 40 aircraft deal with the UAE. Production of the twin-aisle 777x commenced in December last year. A new joint venture with Brazil’s Embraer (up 4% to US$1.0 billion) will further increase Boeing’s passenger jet making capabilities.

Whilst Boeing and Airbus have gone head-to-head in commercial aircraft for a few years, Boeing has traditionally fared better in defence, securing many US Air Force, Navy and NASA contracts. Other American brands, known for their defence services more than Boeing, each posted modest but solid gains, including Lockheed Martin (up 9% to US$8.3 billion), General Dynamics (up 5% to US$4.7 billion), and Northrop Grumman (up 10% to US$4.5 billion).

Safran jumps rungs

French brand Safran (up 33% to US$4.3 billion) enjoyed the biggest brand value growth amongst the top ten brands in the 2018 ranking, coinciding with their announcement of an acquisition of Zodiac Aerospace. The merger, which will create the world’s third-largest aviation supplier, was approved by the European Commission, and is likely to drive increased revenue growth in coming years, leading to a significant increase in their 2018 brand value.

Rockwell Collins sees record growth

Further down the leader board, Rockwell Collins (up 112% to US$1.8 billion) more than doubled its brand value, becoming the industry’s fastest-growing brand of 2018. The brand has had an extremely strong year, with Rockwell Collins’ total revenue rising to a record US$6.8 billion. In addition, it has been increasingly able to extend its brand into new services by an aggressive M&A program, including its acquisition of B/E Aerospace last year. It is now being acquired by United Technologies (up 14% to US$3.4 billion) and the new ownership structure is bound to have an even more transformative impact on the brand.

View the full Brand Finance Aerospace & Defence 25 2018 report here

ENDS

Note to Editors

Every year, leading independent brand valuation and strategy consultancy Brand Finance values the world’s biggest brands. The 10 most valuable chemicals brands are included in the Brand Finance Aerospace & Defence 25 league table.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is assessed through a balanced scorecard of factors (such as marketing investment, stakeholder equity, and business performance) and used to determine what proportion of a business’s revenue is contributed by the brand.

Additional insights, more information about the methodology, as well as definitions of key terms are available in the Brand Finance Aerospace & Defence 25 2018 report.

Brand Finance helped craft the internationally recognized standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671.

Data compiled for the Brand Finance league tables and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.

Media Contacts

Konrad Jagodzinski
Konrad Jagodzinski
Communications Director
Brand Finance
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Florina Cormack-Loyd
Florina Cormack-Loyd
Senior Communications Manager
Brand Finance
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