Aircraft Manufacturing Market Forecasts to 2030 – Global Analysis By Aircraft Type (Helicopters, Commercial Aircrafts, Passenger Aircraft and Military Aircrafts), Product (Gliders, Ultra-Light, Unmanned aerial vehicles & drones, Helicopters, Passenger, Bl

Aircraft Manufacturing Market Forecasts to 2030 – Global Analysis By Aircraft Type (Helicopters, Commercial Aircrafts, Passenger Aircraft and Military Aircrafts), Product (Gliders, Ultra-Light, Unmanned aerial vehicles & drones, Helicopters, Passenger, Blimps (Airship), Engines, Cabin Interiors, Aircraft, Equipment, System, & Support, Insulation Components and Avionics), Application, End User and By Geography

According to Stratistics MRC, the Global Aircraft Manufacturing Market is accounted for $933.37 billion in 2023 and is expected to reach $1228.26 billion by 2030 growing at a CAGR of 4.0% during the forecast period. Aircraft manufacturing is a labor-intensive industry that generates significant employment opportunities in fields such as engineering, manufacturing, and materials science. It contributes significantly to the overall economy by generating income, creating demand for goods & services, and stimulating innovation & technological advancement. It is a significant contributor to global trade, as aircraft and their components are exported to countries around the world, promoting global economic growth and development.

According to the Bureau of Transportation Statistics, the US airlines & foreign airlines in the US carried over 1,052.8 million service passengers in 2019, an increase of 3.9% when compared to 2018. Thereby, these factors are fostering industry growth across North America.

Market Dynamics

Driver

Development of Technology

Manufacturers of aircraft are utilising machine-learning methods, such as artificial intelligence (AI), to improve the quality, efficiency, and safety of their products. In order to improve decision-making, machine learning algorithms collect data from machine-to-machine and machine-to-human interactions. These developments aid in lowering production costs and enhancing efficiency. Additionally, it is anticipated that rising R&D activities and increasing use of cargo aircraft by the e-commerce sector will offer the market plenty of growth opportunities.

Restraint

High cost

Aircraft manufacturing is a capital-intensive industry that requires significant upfront investments in research and development, production facilities, and the manufacturing process itself. The high costs associated with aircraft design, testing, certification, and production can be a barrier to entry for new competitors and can limit the ability of existing manufacturers to expand their operations. Thus, these factors hinder market demand.

Opportunity

Rising global air travel and modernising the fleet

The demand for air travel has been steadily increasing over the years, driven by factors such as rising disposable incomes, expanding middle classes in emerging economies, and the growing tourism industry. This trend has created a demand for new aircraft, both in the commercial and private sectors. Moreover, Many airlines are looking to replace their aging fleets with newer, more fuel-efficient aircraft. This is driven by the need to reduce operating costs, comply with stricter environmental regulations, and enhance passenger comfort. Aircraft manufacturers have an opportunity to supply new, advanced models that offer improved efficiency and performance.

Threat

Environmental issues

The aviation industry faces increasing pressure to reduce its environmental footprint due to concerns about climate change and air pollution. Stricter emissions regulations and sustainability goals may require manufacturers to develop and produce more fuel-efficient and eco-friendly aircraft. Adapting to these requirements can involve significant investments in research and development, as well as changes in manufacturing processes.

Covid-19 Impact

The COVID-19 pandemic has had a significant impact on the aircraft manufacturing industry. The pandemic induced a substantial decline in the demand for air travel, which resulted in fewer orders for new aircraft and a delay in the fulfilment of existing orders. As a result, several aircraft producers were compelled to decrease their output, pull back on their employees, and look for government support. Moreover, different facets of the aircraft manufacturing business have been impacted by the pandemic in various ways. Airlines have cancelled or delayed orders for new aircraft because of the uncertainty surrounding the epidemic, negatively impacting commercial aircraft makers like Boeing and Airbus. Additionally, because of how the epidemic has affected supply networks and the pandemic's disruption of supply chains, it has become more challenging for manufacturers to get essential parts and supplies. Many aircraft manufacturers have established additional health and safety procedures in response to the pandemic to safeguard their employees and maintain commercial operations.

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

The Avionics segment is estimated to hold the largest share. Advanced avionics are generally used to incorporate screens that allow pictures of the flight routes as well as necessary flight instrument data. Avionics are developed to improve the safety and efficiency of an aircraft and its components. It includes electronic aircraft systems like fly-by-wire or fly-by-light flight controls, system monitoring, anti-collision systems, and pilot interface systems that include communication, navigation, flight management systems, and weather forecasting. The demand for avionics frequently follows that of the entire aerospace manufacturing industry, and it is anticipated to rise in parallel with the rising demand for aircraft.

The Military and Defence segment is expected to have the highest CAGR during the forecast period

The Military and Defence segment is anticipated to have lucrative growth during the forecast period. The military and defence segment of the aircraft manufacturing market plays a crucial role in providing cutting-edge technology and capabilities for national security and defence purposes. This segment involves the design, development, and production of advanced military aircraft, including fighter jets, transport planes, helicopters, unmanned aerial vehicles (UAVs), and surveillance systems. Furthermore, it encompasses various aspects such as high-performance engines, advanced avionics, stealth technology, weapon system integration, and robust communication systems. It is highly competitive and driven by the need for superior performance, enhanced situational awareness, and mission effectiveness. These features are propelling segment demand.

Region with largest share

Asia Pacific commanded the largest market share during the extrapolated period. The overall industry has significantly benefited from various emerging markets such as India, China, Japan, and others. The Asia-Pacific region is experiencing a surge in air travel as a result of rapid economic and income growth. To accommodate the rising demand for air travel, airlines in these developing countries are also rapidly increasing and placing massive orders for aircraft. Additionally, it is projected that the region's demand for military aircraft will rise as countries develop their capacity for aerial combat.

Region with highest CAGR

North America is expected to witness profitable growth over the projection period. The rising demand for new-generation aeroplanes is responsible for enormous market share in North America. A significant industry player's presence in the area is also projected to create enormous prospects for market expansion. Investments are envisaged as a result of the participation of significant aircraft and component producers like Boeing. Furthermore, the region's airlines' efforts to expand their destination networks and modernise their aircraft fleets are expected to fuel the market for aircraft production.


Key players in the market

Some of the key players in the Aircraft Manufacturing Market include Textron Inc., Embraer S.A., Leonardo S.P.A., Raytheon Technologies Corporation, General Dynamics Corporation, Lockheed Martin Corporation, Commercial Aircraft Corporation of China,Ltd., Dassault Aviation, Boeing, Airbus, Bombardier Inc., GE Aviation, United Technologies Corporation, Cessna Aircraft Company, Dassault Falcon, Gulfstream Aerospace, Piaggio America Inc., Hawker Beechcraft Corp., Pilatus Business Aircraft Ltd and Safran Group.

Key Developments

In July 2023, Jamco Corporation announced the co-development of Venture – its premium class seats with reverse herringbone configuration under its collaboration with KLM Royal Dutch Airlines (KLM). These seats are implemented in KLM’s B777 Fleet’s World Business Class (WBC) and are curated with comfort and sustainability in mind while limiting the airline’s operational costs.

In July 2023, Safran entered into a general term agreement with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) for the maintenance of Auxiliary Power Unit Generators. This 5-year agreement also includes Power By the Hour contract. As per these contracts, Safran Electrical & Power will mend the Auxiliary Power Unit Generators in its facility in Pitstone, UK.

In July 2023, Collins Aerospace announced the commencement of operational service of its MS-110 Airborne Multispectral Reconnaissance System. The company also unveiled its plans to deliver over 16 sensors to international Fast-Jet operators.

In June 2023, Rolls-Royce announced the development of its new small gas turbine for powering hybrid-electric flight The turbogenerator system was aimed at complementing the company’s Electrical Propulsion portfolio with ascendable power offerings in the range of 500kW to 1200kW, thereby enabling an additional range on sustainable aviation fuels and later, via hydrogen combustion.


Aircraft Types Covered
• Helicopters
• Commercial Aircrafts
• Passenger Aircraft
• Military Aircrafts

Products Covered
• Gliders
• Ultra-Light
• Unmanned aerial vehicles & drones
• Blimps (Airship)
• Engines
• Cabin Interiors
• Aircraft
• Equipment, System, & Support
• Insulation Components
• Avionics

Applications Covered
• Military and Defense
• Freight
• Civil
• Commercial (Freight)
• Agriculture
• Experiments & prototypes
• Other Applications

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