Executive Summary
The aerospace sector is important for Sweden’s economy and competitiveness. Leading companies within this sector include Saab, SAS and the Swedish Space Corporation (SSC). In 2019, Sweden imported $690 million of aircraft, spacecrafts and parts. U.S. imports are frequently used within the Swedish aerospace market and U.S. suppliers clearly dominate this market. U.S. suppliers market share of the Swedish aerospace industry has grown from 29% in 2017 to 79.5% in 2019 and is an area of opportunity for U.S. exporters.
Sweden is active in the space industry, which is an aerospace subsector. Sweden invests $159 million a year in space activities, industry, and international cooperations in space. Esrange, a city located in north Sweden, accommodates one of Europe’s largest civilian satellite ground stations and acts as a hub in the satellite station network. Esrange is presently used by the international scientific community for launching sounding rockets for microgravity and atmospheric research as well as high altitude balloons for astronomy, atmospheric research and drop tests of space and aerial vehicles.
During 2020, Luleå University of Technology (LTU) has tailored and kicked-off a new program called RIT2021 (A program whose purpose is to establish Sweden as a leader in the space industry) which aims to stimulate business between the established space industry and regional small and medium enterprises interested in entering the space market.
The second subsector of Swedish aerospace is the aviation industry. Aviation industry creates 90,000 jobs in Sweden and an additional 100,000 jobs in tourism, trade, investments, etc. Swedish aviation industry is more research-intensive than most other industries. The research environment is based on collaboration between companies, public actors and academia. Technical breakthroughs and innovations that take place in aviation research are largely spread to other areas and other industries. One reason is that the willingness and ability to absorb and try new technology and competence is high. Small and medium sized U.S. companies can benefit from the technologically focused environment since technological breakthroughs within the industry are shared.
Market Entry
Sweden’s major buyers often prefer to operate directly with the seller without going through a middleman, primarily to save on costs. It is common in Sweden for foreign exporters to use consultants to advise on market trends. In the sales process, it is common that the exporter offers to assist in the required certification procedures and prepares the appropriate documentation including manuals, pilot instructions.
In order to be registered in Sweden, new aircraft need to be approved and certified by the European Aviation Safety Agency (EASA). The requirements are similar to those in the U.S.
Current Market Trends and Demand
Space
Commercial infrastructure (products related to development, operation and launches of satellites) has since 2013 increased in demand. The industry accounted for $85 billion in 2013 and has increased to $125 billion in 2016, an increase of 47%.
Aviation
In the aviation industry, the market demand for aircraft and aircraft parts is closely linked to the volume of airline passenger traffic. In 2019, there were 40.2 million airline passengers with the majority flying from Stockholm-Arlanda and Gothenburg-Landvetter. The number of passengers traveling by international flights has increased annually except for in 2019 when the current environmental trend resulted in a 4% decrease of passengers. Between 2017/2018, the volume of passengers traveling by international flights increased by 2%. Travelers traveling outside of Europe increased by 9%, implying trends and increased demand in travelling with long-distance flights. Meanwhile, demand for domestic flights has decreased over the last years.
The largest single buyer of U.S. aircraft and parts is the SAS Group. In addition to SAS, there are several airlines operating in Sweden: TUI Fly Nordic, Malmo Aviation, Novair, West Air Sweden, Wizz Air, Ryanair and BRA.
2019 market share, international flights (latest figures ) includes:
• SAS—24.4 percent
• Norwegian—19 percent
• Ryanair—8 percent
• Other—49.6 percent
2019 market share, domestic flights (latest figures ) includes:
• SAS—49.2 percent
• Norwegian—18.7 percent
• BRA—29.7 percent
• Other—2.4 percent
Helicopters
There are 24 helicopter airports in Sweden and 21 civilian helicopter airlines operating.
U.S. suppliers of helicopters exceeding 2000 kg have a market share of 66% in 2019, an increase from 49% in 2017. Swedish defense uses U.S. imported helicopters.
Opportunities
Space
LTU is launching a Business Development program called RIT2021, a collaborative EU funded project with the objective to create sustainable growth in the Swedish space industry. The goal is to help small and medium enterprises tap the aerospace market, increase awareness of opportunities and needs within the industry as well as connecting companies to potential buyers. This program can present opportunities for small and medium sized U.S. companies. The Swedish aerospace industry is experiencing growth and has an ongoing need for subcontractors in manufacturing, construction, transport, IT, project management, staffing, etc.
Aviation
There are several areas and trends within the Swedish aviation industry that present opportunities for U.S. companies. Categories that have increased in value (U.S. imports) between 2017-2019 are aircrafts not exceeding 2000 kg (+45%) and aircrafts exceeding 15 000 kg (+820%).
Total Swedish import on aircrafts not exceeding 2000 kg has had a high annual growth of 5-10% over the last 3 years. The market share of U.S. suppliers has additionally increased from 63% in 2017 to 77% in 2019, implying that U.S. suppliers grows in degree of reputation on the Swedish market.
Total imports of aircrafts exceeding 15 000 kg has had a significant growth between 2017/2018 and has gone down by 19% in 2019. Even if the total import market is relatively unstable, U.S. supplier’s market share has increased from 26% in 2017 to 84% in 2019. U.S. suppliers of aircrafts exceeding 15 000 kg can benefit from these indicators, since they are supported by higher demand and trends within long-distance and international flights.
Trade Events
Aerospace Technology Congress
04 - 09 Sep 2022, Stockholm Waterfront Conference Centre, Stockholm, Sweden
Aerospace Technology Congress with the theme is sustainable aerospace innovation in a globalized world.
Contact
Johan Björkman
Embassy Location: Stockholm
Commercial Specialist
johan.bjorkman@trade.gov
+46 (0) 8 783 53 56
