Aerospace Parts Manufacturing Market Forecasts to 2030 – Global Analysis By Product (Aerostructure, Insulation Components and Other Products), End User (Military Aircraft, Commercial Aircraft and Other End Users) and By Geography

Aerospace Parts Manufacturing Market Forecasts to 2030 – Global Analysis By Product (Aerostructure, Insulation Components and Other Products), End User (Military Aircraft, Commercial Aircraft and Other End Users) and By Geography

According to Stratistics MRC, the Global Aerospace Parts Manufacturing Market is accounted for $865.50 billion in 2023 and is expected to reach $1,389.90 billion by 2030 growing at a CAGR of 7.0% during the forecast period. Aerospace parts manufacturing is a specialized industry dedicated to producing components and systems essential for aircraft and spacecraft construction. These parts encompass a wide range of materials and technologies, including metals, composites, and advanced polymers. Precision machining, casting, forging, and additive manufacturing are common methods employed in their production. The industry plays a vital role in ensuring the safety, efficiency, and performance of aerospace vehicles, driving innovation and technological advancement in the field.

According to the Stockholm International Peace Research Institute (SIPRI) report, military expenditure increased globally by approximately 2.6% from 2017 to 2018.

Market Dynamics:

Driver:

Defense and military spending

Defense and military spending is a significant driver of the aerospace parts manufacturing market due to the high demand for advanced equipment and technology required for defense purposes. Governments allocate substantial budgets towards upgrading and maintaining their defense capabilities, leading to a constant need for aerospace components such as engines, avionics, and weaponry systems. This consistent demand creates a stable and lucrative market for aerospace manufacturers, incentivizing research and innovation in the sector. Additionally, defense contracts often involve long-term partnerships, providing a reliable revenue stream for companies in the aerospace parts manufacturing industry.

Restraint:

High capital investment

The aerospace parts manufacturing market faces a high capital investment restraint due to the extensive costs associated with developing and maintaining specialized equipment, facilities, and technology required for manufacturing aerospace components. These investments are substantial, encompassing precision machinery, advanced materials, and stringent quality control systems necessary to meet the industry's rigorous standards. Moreover, the long development cycles and regulatory requirements amplify the financial commitment, making it challenging for new entrants to compete effectively.

Opportunity:

Space exploration and satellite technologies

Space exploration and satellite technologies present a significant opportunity. As humanity ventures further into space, there is an increasing demand for sophisticated and reliable components to support these endeavors. From propulsion systems to communication devices, aerospace parts must meet stringent standards for durability and performance in the harsh environment of space. Moreover, the growing satellite industry requires a variety of specialized components for both launch vehicles and satellite platforms. For companies in the aerospace parts manufacturing sector, investing in research and development to meet the evolving demands of space exploration and satellite technologies can lead to lucrative opportunities for growth and expansion.

Threat:

Market volatility

Market volatility poses a significant threat due to its sensitivity to various factors like geopolitical tensions, economic fluctuations, and technological advancements. Demand for aerospace parts heavily depends on global air travel trends, defense budgets, and industry regulations, making it susceptible to sudden shifts. Supply chain disruptions, material cost fluctuations, and currency exchange rates also contribute to volatility. Companies in this sector must navigate these uncertainties with agility and strategic planning to mitigate risks and maintain profitability. Moreover, the long development cycles and high capital investments amplify the impact of market volatility, making it imperative for manufacturers to adopt flexible production processes and robust risk management strategies.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the aerospace parts manufacturing market. With widespread travel restrictions and reduced air traffic, demand for new aircraft plummeted, leading to a decrease in orders for aerospace parts. Many manufacturers faced supply chain disruptions and production delays due to lockdown measures and reduced workforce capacity. Additionally, the financial strain on airlines resulted in deferred maintenance and reduced aftermarket part demand. Overall, the pandemic forced aerospace parts manufacturers to adapt to unpredictable market conditions and prioritize cost-saving measures to weather the storm.

The Aerostructure segment is expected to be the largest during the forecast period

The Aerostructure segment has experienced significant growth due to the increasing demand for lightweight and fuel-efficient aircraft, which has led to higher demand for advanced composite materials used in aerostructures. The rise in air travel, especially in emerging markets, has bolstered the need for new aircraft production and retrofitting of existing fleets, further driving growth in this segment. Additionally, technological advancements, such as additive manufacturing and automation, have also played a crucial role in improving manufacturing processes and reducing production costs, thereby contributing to the growth of the market.

The military aircraft segment is expected to have the highest CAGR during the forecast period

The military aircraft segment has experienced significant growth due to increased defense spending by governments worldwide, geopolitical tensions, and modernization initiatives which have fuelled demand for advanced military aircraft. Technological advancements have led to the development of more sophisticated and capable aircraft, driving the need for specialized parts and components. Additionally, the rise of unmanned aerial vehicles (UAVs) has created new opportunities for aerospace parts manufacturers. As military aircraft become more complex and capable, the demand for high-quality, precision-engineered parts are expected to continue growing, further driving expansion of the aerospace industry.

Region with largest share:

North American region has experienced significant growth in the market due to the increased demand for commercial and military aircraft, advancements in technology driving innovation, and favorable government policies supporting the aerospace industry. North America boasts a robust infrastructure and skilled workforce, attracting investment and driving the expansion of aerospace manufacturing capabilities. Furthermore, strategic partnerships between industry players and research institutions have fostered a conducive environment for research and development, leading to the production of high-quality, cutting-edge aerospace parts.

Region with highest CAGR:

The Asia-Pacific region has seen substantial growth due to the region's burgeoning aviation sector, driven by increasing air travel demand and expanding fleets. The presence of established aerospace manufacturers and suppliers, coupled with a skilled workforce and advanced manufacturing capabilities, has further fueled growth. Moreover, strategic investments in research and development, along with supportive government policies and incentives, have stimulated innovation and technology adoption in the sector. Additionally, this growth trend is expected to continue as the region solidifies its position as a key player in the global aerospace industry, catering to both domestic and international markets.

Key players in the market

Some of the key players in Aerospace Parts Manufacturing market include Airbus, BAE Systems, Boeing, Bombardier, Embraer, General Electric , Honeywell International, Kawasaki Heavy Industries, Leonardo S.p.A., Lockheed Martin, Mitsubishi Heavy Industries, Northrop Grumman Corporation, Pratt & Whitney, Raytheon Technologies Corporation, Rolls-Royce Holdings, Saab AB, Safran, Spirit AeroSystems, Textron Inc. and Thales Group.

Key Developments:

In March 2024, American Airlines (AAL) is buying 260 aircraft from Boeing, Embraer, and Airbus to increase its narrow-body lineup, with an option to add 193 more aircraft. The airline that it is getting 85 of the yet-to-be-certified and long-delayed Boeing 737 Max 10, 90 Embraer E175s, and 84 Airbus A321neos as part of its continued investment to expand premium seats across its narrowbody and regional fleets and support the long-term strength of the airline’s domestic and short-haul international network.

In March 2024, Pratt & Whitney recently announced a $20 million investment to grow its manufacturing capacity in Singapore for the production of Pratt & Whitney GTF engine high-pressure turbine (HPT) disks. The capacity expansion is expected to increase the facility’s workforce by more than 10% over the next two years.

Products Covered:
• Aerostructure
• Insulation Components
• Equipment, System, and Support
• Engines
• Cabin Interiors
• Avionics
• Other Products

End Users Covered:
• Military Aircraft
• Commercial Aircraft
• Business Aircraft
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances