Aerospace Parts Manufacturing Market Size, Share & Trends Analysis Report By Product (Engines, Aircraft Manufacturing, Cabin Interiors, Equipment, System, & Support, Avionics), By Aircraft Type, By Region, And Segment Forecasts, 2023 - 2030

Aerospace Parts Manufacturing Market Size, Share & Trends Analysis Report By Product (Engines, Aircraft Manufacturing, Cabin Interiors, Equipment, System, & Support, Avionics), By Aircraft Type, By Region, And Segment Forecasts, 2023 - 2030

Aerospace Parts Manufacturing Market Growth & Trends

The global aerospace parts manufacturing market size is expected to reach USD 1,233.24 billion by 2030 registering a CAGR of 4.0%, according to a new report by Grand View Research, Inc. The expansion in air passenger and air freight volume across the globe against the backdrop of economic growth in emerging countries and considerable developments in commercial aviation are the key drivers for aerospace parts manufacturing market.

The number of passengers flying per year has continued to ascend, fueled by affordable ticket prices, frequency of flights, and route availability. This is to positively impact on the aerospace parts manufacturing market over the coming years. Aviation is carbon intensive and one of the fastest growing sectors in terms of greenhouse emissions. Increasing demand for air transportation and decreasing marginal fuel efficiency are likely to put pressure on aerospace industry to reduce the greenhouse emissions.

Growth and improvement in emerging economies coupled with the increase in per capita income are expected to drive the demand for passenger and air freight over the forecast period, consequently resulting in surged demand for aerospace parts manufacturing. Moreover, the aging fleet, technological advancements, increased need for efficient aircraft, and aircraft designed for specific missions such as space missions are expected to drive the demand for new aircraft, thereby boosting the demand for aerospace parts manufacturing.

The increased defense spending to reduce the operational costs and improve the efficiency of aircraft is anticipated to create opportunities for innovation, which, in turn, is expected to boost the technological advancements in aerospace parts manufacturing market. Additionally, energy costs continue to be the most significant expense in aircraft operations, thus impelling the replacement of more in-service aircraft with fuel-efficient aircraft. This is further anticipated to present tremendous opportunities to the aircraft and aero engine manufacturers.

Aerospace parts manufacturers purchase raw materials either directly from suppliers or through third party suppliers under competitively priced supply contracts or bidding arrangements. Parts manufacturers procure raw materials from suppliers to produce customized components for their clients. They enter into long-term contracts with material suppliers to maintain a robust supply. The manufacturers of the complex aerospace parts, such as aero engines, have their own supply chain within the market.

Aircraft manufacturers provide the flexibility of customization to their major customers such as large airlines in order to differentiate the brands and fulfill operational requirements. Airlines then add or modify the pre-qualified components offered by the suppliers. Airlines enter into definitive agreements with aerospace parts manufacturers for the supply and maintenance of their products. In addition, major market suppliers such as Safran Group offer their engines to the airlines and simultaneously offer maintenance, repair, and overhaul services.

Aerospace Parts Manufacturing Market Report Highlights

• On the basis of product, aircraft manufacturing is dominated the aerospace parts manufacturing industry in 2022 with the revenue share of 51.5%. However, manufacturing of insulation components represent the strongest growth and is expected to continue the trend in the near future. Additive manufacturing is gaining attraction, owing to its benefits, such as low-cost and reduction in errors.
• Based on aircraft type, commercial aircrafts dominated the market including passenger, freight, and cargo aircraft. The global commercial passenger and cargo fleet are expected to grow in line with the annual number of passengers, which is expected to double over the next two decades.
• Based on the region, North America contributes the largest share to the market, accounting for more than 50.5% of the total market in 2022, owing to the presence of key aerospace parts manufacturers coupled with the huge aircraft manufacturing industry in the region.
• The Asia Pacific region is estimated to be the fastest growing market for aerospace parts manufacturing industry due to growing development in the aviation industry in the region driven by the economic growth of Japan, China and other markets. Moreover, growth in passenger traffic is forecasted to drive the market growth over the forecast period.
• The aerospace parts manufacturing companies are integrated into the value chain from earlier stages of material purchase and design process. Aircraft manufacturing companies work closely with suppliers to monitor technological trends as well as to anticipate any changes in component availability and pricing.

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