Switzerland - Country Commercial Guide
Aerospace and Defense
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Overview

U.S. imports generally account for 25-50% of Swiss imports in the Aerospace and Defense sector. Further opportunities for U.S. exporters exist, as the Swiss Defense Ministry relies on cooperation and expertise from foreign companies, and Swiss aerospace and defense companies are generally open to broadening their base of U.S. suppliers.

Notably, Switzerland chose Lockheed Martin’s F-35A and Raytheon’s Patriot systems in July 2021 as the suppliers in its Air2030 program, with a total budget estimated at approximately $9 billion. The U.S. manufacturers were chosen following a rigorous cost-benefit analysis.

Swiss armed forces supplier RUAG, traditionally a key player in the defense sector, split into two companies on January 1, 2020 – MRO Switzerland, which continues to serve the Swiss armed forces, and RUAG International, which focuses on international sales related to space, aerospace, ammunition manufacturing, and other products and services in the civil and international sectors. Switzerland’s sole aircraft maker, Pilatus Aircraft, develops and produces high-performance single-engine turboprops and private business jets. Over 30 manufacturers in Switzerland are suppliers to the aerospace industry, with many more companies involved in associated industrial processing, services, and operations.

Table: Total Market Size for Aerospace and Defense

 

2018

2019

2020

2021 estimated

Total Local Production1

3,160

3,192

2,979

2,892

Total Exports2

1,848

2,144

1,609

1,881

Total Imports2

3,338

2,642

2,206

2,273

Imports from the US2

1,132

1,415

516

558

Total Market Size

4,650

3,690

2,754

3,284

Exchange Rates

0.978

0.994

0.939

0.914

(total market size = (total local production + imports) - exports)
Units: $ millions

Source:

1 Estimate includes net sales of RUAG, RUAG Space (Beyond Gravity), and Pilatus Aircraft as a proxy for local production in the Aerospace and Defense sector. Annual Report Ruag International 2021 (retrieved on 6/23/2022),  Annual Report Pilatus (retrieved 6/23/2022).

2 Includes Aerospace products (HS Code 88) and arms and ammunition (HS Code 93) as a proxy for defense goods, per the UN Comtrade database (retrieved on 6/23/2022).

Leading Sub-Sectors

Fighter jets, weapon systems, military vehicles, and high-tech and innovative solutions linked to the defense or aerospace.

Opportunities

Opportunities exist for innovative U.S. suppliers in the field of aerospace and defense. Notably, the Swiss Defense Ministry is planning the acquisition of new large helicopters for international peace missions.

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