Aerospace Parts Manufacturing Market

Aerospace Parts Manufacturing Market Outlook (2023 to 2033)

Worldwide demand for aerospace parts manufacturing has reached a market value of US$ 910 billion in 2023 and is extrapolated to rise at 3.6% CAGR through 2033. The global aerospace parts manufacturing market is this expected to surpass the trillion-dollar mark to reach US$ 1,297 billion by 2033-end.

Air travel has gained popularity as the most preferred method of travel around the world and this has only increased exponentially in recent years. A growing number of air passengers resulted in high demand for aircraft manufacturing, which is anticipated to be the primary factor driving the market for aerospace parts over the coming years.

The supply-demand gap is a crucial factor that currently affects the airplane component manufacturing industry and is expected to continue to do so over the coming years as well. Aircraft manufacturers are focusing on expanding their production capacity to fulfil the supply-demand gap and clear the backlog of deliveries that are piling up and putting them at risk.

Growing air freight, flourishing travel industry, changing standards of living, high demand for lightweight aircraft, growing adoption of next-gen advanced aircraft in military applications, and supportive government initiatives to promote advancements in the aerospace industry are other prospects that could potentially uplift the demand for aerospace precision components going forward.

The aerospace industry took a major blow in 2020 with the advent of a global pandemic caused by the coronavirus. The pandemic led to the grounding of almost all international flights and rendered aircraft useless for months on end resulting in huge losses for airline companies. Supply chain management issues due to halted trade also created difficulties for airplane manufacturers and delayed the delivery of multiple aircraft by months if not years.

Increasing demand for next-generation, fuel-efficient aircraft is projected to offer new moneymaking opportunities for airplane component manufacturers around the world through 2033. On the contrary, the high costs of manufacturing are projected to hamper market development across the forecast period.

More insights regarding global demand, local supply, opportunities, trends, and restraints have been discussed thoroughly in this recently revised aerospace parts manufacturing market research study by Fact.MR, a market research and competitive intelligence provider.

Report Attributes	Details
Aerospace Parts Manufacturing Market Size (2023)	US$ 910 Billion
Projected Market Value (2033F)	US$ 1,297 Billion
Global Market Growth Rate (2023 to 2033)	3.6% CAGR
Market Share of Commercial Aircraft (2022)	>50%
Asia Pacific Market Growth Rate (2023 to 2033)	7.1% CAGR
North America Market Share (2022)	~50%
Key Companies Profiled	Safran Group GE Aviation Diehl Aviation Boeing Intrex Aerospace Lufthansa Technik AG Honeywell International Inc. Liebherr International AG Thales Group Dassault Group Textron Inc. Raytheon Technologies Corp. Rolls Royce plc CAMAR Aircraft Parts Company Parker Hannifin Corp. Mitsubishi Heavy Industries Ltd.

Which Opportunity Can Aircraft Component Manufacturers Cash In On?

“Application of 3D Printing in Manufacturing Airplane Parts”

3D printing has been gaining popularity in the manufacturing industry for the past few years owing to its ease of use and efficacy in reducing overall costs of manufacturing. Automotive parts are being manufactured using 3D printing and have proven that they are as good as traditionally manufactured components while being highly affordable.

3D printing of aviation parts is a trend that is catching on in the global aerospace industry and is projected to open up new avenues of opportunity for established as well as new aircraft component manufacturers as they try to fulfil the growing demand for 3D-printed airplane parts.

What is the Focal Point of Interest for Start-ups?

“Capital Raise & Transformation of Supply Chain Management to be Prime Concerns for New Market Entrants”

New aerospace parts manufacturing providers are focusing on optimizing the supply chain management of the industry to create innovative solutions and services that improve efficiency and productivity in the aerospace manufacturing industry vertical.

• In January 2023, Advisory Aerospace OSC, a start-up providing software and analytics for complex product manufacturers announced that it had recently secured US$ 1 million from the National Science Foundation as a grant which was part of efforts to improve the United States’ manufacturing capacity.
• In March 2022, Hadrian Automation, a machining parts start-up based in Los Angeles announced that it had raised US$ 90 million in a new capital raise round that was led by Andreessen Horowitz and Lux Capital. The company focuses on building automated factories to revolutionize the aerospace supply chain.

New aerospace part suppliers are also focusing on expanding their business scope by obtaining new contracts and supplying parts to different organizations and establishments.

• ST Advanced Composites, an India-based aerospace and defense part manufacturer bagged a contract in 2020 to supply structural components and satellites for a UAE-based space agency. The company aims to make more products under the ‘Make in India’ campaign launched by the government of India to support new companies and start-ups in the country.

This recently updated Fact.MR aerospace parts manufacturing market research analysis provides a complete overview of how new developments by start-ups are changing product standards and pricing trends on a global and local level.

Country-wise Insights

Why Should Aerospace Component Manufacturers Invest in APAC?

“Growing Air Fleet to Create Bankable Market Opportunities”

Urbanization and globalization are two key trends that are expected to influentially shape the demand for aerospace parts manufacturing in Asian countries throughout the forecast period. The rising number of airplanes, growing per capita disposable income, increasing medical tourism activity, and rising number of air travelers are other prospects that bolster demand for aerospace parts manufacturing in countries such as Japan, China, India, and Korea over the next ten years.

Supportive government initiatives to promote the development of the aviation industry are also expected to create an opportune market for aerospace parts suppliers. The substantial growth of the Maintenance, Repair, and Overhaul (MRO) market in the aforementioned countries is also projected to uplift aerospace parts manufacturing demand going forward.

Why are Airplane Parts Companies Expected to Target Europe?

“Presence of Robust Industrial Infrastructure and Efficient Automotive Parts Manufacturing Industry Attracting Key Companies”

Europe is known for its efficient industrial infrastructure and automotive manufacturing industry. Both of the aforementioned aspects create an opportune scenario for aerospace parts manufacturing and hence provide a highly attractive growth scope across the forecast period in the European region. Germany is anticipated to be a prime market in this region and is projected to lead the demand for airplane manufacturing components in the region.

The presence of key aircraft component manufacturers such as Rolls Royce in the United Kingdom is also anticipated to uplift market development in Europe over the coming years. Moreover, the rapid rise in the production of cabin interiors for airplanes in European countries is also projected to bolster market growth in the future.

Which Factor Influentially Sculpts Aerospace Manufacturing in the United States?

“Escalating Demand for Next-generation Aircraft”

The United States is the prime country for aircraft manufacturing in the world and this makes it a highly lucrative market for aerospace parts and components. High investments in the aerospace and defense industry by the government of the United States are also expected to open up new avenues of opportunities for aircraft component manufacturers in the future. The presence of key aircraft parts suppliers such as Boeing and Airbus is also projected to uplift market growth in the country over the next ten years.

Rising focus on research & development of next-gen aircraft with advanced technologies and quick adoption of advanced aviation technologies are also anticipated to influentially shape demand for aerospace parts manufacturing in the country going forward. 3D printing of aviation parts is gaining popularity in the United States and this trend is projected to have a significant impact on the aerospace manufacturing industry in the country.

Category-wise Insights

Which Aircraft Type Accounts for High Demand for Aerospace Component Manufacturing?

“Commercial Aircraft to Pilot Market Development through 2033”

Based on aircraft type, the aerospace parts manufacturing market is segmented into commercial aircraft, business aircraft, military aircraft, and other aircraft.

An increasing number of passengers travelling by air and a growing volume of air freight are prime factors that are anticipated to bolster growth in the commercial aircraft segment over the coming years. Low airfares, rising per capita disposable income, and the flourishing tourism industry across the world are other prospects that favor demand for commercial aircraft parts and components in the future. Moreover, the frequent launch of new airline services is also anticipated to offer attractive growth opportunities for commercial aircraft manufacturers through 2033.

Commercial aircraft accounted for more than 1/2 of the global market share in 2022 and is projected to maintain its dominant stance over the next ten years. The increasing number of high-net-worth individuals is slated to spur demand for business aircraft going forward and create new revenue generation scope for established as well as aspiring aerospace parts manufacturing companies.

Competitive Landscape

Top aerospace parts manufacturing companies are focusing on collaborations and partnerships to expand their business scope and bolster manufacturing capacity to maximize profits.

• In October 2022, Boeing India, the Indian arm of the world-renowned aircraft manufacturer, and Mishra Dhatu Nigam Limited (MIDHANI), an Indian government-run organization announced that they were working together to develop raw materials for aerospace components in India.

Key Segments of Aerospace Parts Manufacturing Industry Research

• By Product Type :

  • Engines
  • Aircraft Manufacturing
  • Cabin Interiors
  • Equipment, Systems, & Support
  • Avionics
  • Insulation Components

• By Aircraft Type :

  • Commercial Aircraft
  • Business Aircraft
  • Military Aircraft
  • Other Aircraft

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA