The aerospace and defense industry is expected to grow by 5 percent in 2014, according to a new study from Deloitte.

The continued decline of defense spending into 2014 will likely force new revenue streams for the aerospace and defense (A&D) industry that may include innovations in intelligence surveillance, reconnaissance and precision strike technologies, and cyber security. This is according to the Deloitte Touche Tohmatsu Limited (DTTL) 2014 Global Aerospace and Defense Outlook, which also projects the industry to repeat a modest growth of 5 percent, mirroring the growth rate of the past two years.

“It is anticipated that global revenues for the defense sector will track to similar levels as in the past two years, particularly in the U.S. and Europe,” said Tom Captain, DTTL Global Aerospace and Defense Sector Leader.

The commercial aerospace sector is expected to again set records for production of aircraft, due to the accelerated replacement cycle of obsolete aircraft with next generation fuel-efficient aircraft, and growing passenger travel demand, especially in the Middle East and the Asia Pacific regions.

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