Steadily improving air traffic across the globe has been boosting the growth prospects of the  Zacks Aerospace-Defense Equipment industry stocks. However, persistent supply-chain issues may negatively impact the operating results of the industry players. Nevertheless, valuable mergers and acquisitions are projected to improve economies of scale for the concerned stocks. Solid growth projections for the airline industry should bolster aerospace-defense equipment stocks' growth. Some key players from this industry that appear well-poised are TransDigm Group (NYSE: TDG), Heico Corp. (NYSE: HEI), Moog Inc. (NYSE: MOG-A) and AAR Corp. (NYSE: AIR). About the Industry The Zacks Aerospace-Defense Equipment industry comprises firms that manufacture various vital components for the aerospace-defense space, ranging from aerostructures, space shuttles, propulsion systems, aircraft engines, defense electronics, missile and radar systems to flight test equipment, structural adhesives, instrumentation and control systems, communication products and many more. Some of these companies also offer integrated simulation and training services to the U.S. defense force. While the majority of the revenues are generated from the production of the aforementioned accompaniments, the industry players also generate revenues by providing notable aftermarket support and services like maintenance, repair and overhaul activities to aerospace and defense players. 3 Trends Shaping the Future of the Aerospace-Defense Equipment Industry New M&As Instill Hopes: Rising competition has historically prompted industry majors to expand their product lines through valuable mergers and acquisitions (M&As). In April 2024, Curtiss-Wright Corporation completed the acquisition of WSC, Inc. for $34 million. The buyout is expected to expand Curtiss-Wright's portfolio of advanced commercial nuclear technologies utilized in the modernization of existing power plants and the design of new power plants, such as Advanced Small Modular Reactors. In February 2024, BAE Systems completed its acquisition of Ball Aerospace for $5.55 billion. This transaction must have offered BAE Systems a robust platform for accelerating its space strategy, apart from enhancing its product portfolio with other critical defense components. Such consolidations should improve economies of scale for the industry as a whole, with the players having access to diversified business models, which in turn should bolster their revenue growth. Impressive Air Traffic View Boosts Prospects: World air travel data has been on a steady growth trajectory for the past few months, driven by pent-up passenger demand. Per a report published by the International Air Transport Association (IATA) in December 2023, air passenger revenues are expected to witness a solid 12% year-over-year improvement in 2024, whereas revenue passenger kilometers (RPKs) growth is estimated ...