New data from Brand Finance indicates Airbus is gaining on Boeing in the race for title of world’s most valuable Aerospace & Defence brand
March 12, 2024 (LONDON) - Boeing remains the world’s most valuable aerospace and defence brand, despite an 8% decline in brand value to USD16.2 billion, according to new data from Brand Finance, the world’s leading brand valuation consultancy. Airbus remains second ranked with a brand value of USD16.1 billion but gains on Boeing, propelled by a 12% increase in brand value since the 2023 ranking. Brand Finance data indicates the Airbus brand is showing resilience and strength as it is again the world’s strongest Aerospace & Defence brand, with a Brand Strength Index (BSI) score increase of two points, maintaining its AAA- rating.
Savio D’Souza, Director, Brand Finance, commented:
"Resilience is an emerging theme of the 2024 Aerospace & Defence Brand Ranking, with Boeing and Airbus top ranked. For Boeing specifically, this is a remarkable outcome, given the pressing reputational and financial hurdles the company currently faces. The forward look for top ranked brands is optimistic, given the healthy order backlogs, rising demand across different functions within the sector, and economic environments post-pandemic.”
SpaceX makes its debut into the top 10 ranked Aerospace & Defence brands with a brand value of USD3.5 billion. According to Brand Finance research, SpaceX’s strong operating margins has positively contributed to its BSI, scoring well in terms of higher price premium scores. Brand Finance analysts have found this financial health signals SpaceX's robust market positioning and its ability to command a premium based on brand strength alone. As SpaceX continues to push the boundaries of space technology and exploration, its brand value is likely to further ascend, underpinned by innovative breakthroughs and expanding global reach.
Hanwha Aerospace has become the fastest-growing brand in this year’s ranking, up 33% to USD927 million. Rheinmetall AG (brand value up 31% to USD1.5 billion) and AviChina (brand value up 22% to USD1.5 billion) are two distinct but thriving sectors within the broader aerospace and defence landscape. Both brands underscore the importance of strategic market positioning, operational excellence, and the ability to adapt to evolving market dynamics. Rheinmetall’s focus on defence technology and armament production and AviChina’s emphasis on civil aviation growth exemplify two different pathways to enhancing brand value within the A&D sector. Bombardier (up 22% to USD1.3 billion) also surged in terms of brand value on the back of a rise in private jet sales in key markets.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
