April 16, 2024
Aerospace Parts Manufacturing Market

Aerospace Parts Manufacturing Market is Estimated to Witness High Growth Owing to Rising Aircraft Procurement

The aerospace parts manufacturing market involves the design, development, production, and integration of aircraft parts and components. Key products include engine components, aircraft fuselage, wings, hydraulic and pneumatic systems, avionics, and landing gear. Aircraft parts play a significant role in ensuring safety, reliability, and overall performance. The growing aviation industry and rising aircraft procurement globally have increased the demand for highly-engineered and lightweight components.

The Global Aerospace Parts Manufacturing Market is estimated to be valued at US$ 918.7 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the Aerospace Parts Manufacturing Market are Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd, Teijin, Lockheed Martin Corporation, Triumph Group, Inc, Safran , JAMCO Corporation, Rolls-Royce plc. Key players are focusing on partnerships, mergers and acquisitions to expand their product portfolio and presence in emerging markets.

The aerospace parts manufacturing market provides significant opportunities owing to the increasing aviation industry in Asia Pacific and Middle East regions. Countries like India and China are projected to drive 40% of new aircraft demand over the next 20 years. This rising demand from developing economies will spur growth for aerospace part suppliers.

With global aircraft fleet expected to double by 2035, aerospace part manufacturers are expanding their facilities globally to establish themselves near aircraft assembly sites. Major players have announced investments and expansion plans across regions like North America, Europe, Asia Pacific and Middle East to closely support aircraft OEMs and MRO services.

Market drivers

The main driver for the aerospace parts manufacturing market is the rising aircraft procurement primarily driven by passenger air travel and air cargo. Increased military expenditures from major countries have also augmented the demand for military aircraft and related components. According to Airbus estimates, 39,210 new aircraft will be required over the next 20 years valued at $5.8 trillion. This rising procurement of commercial and military aircraft and the need for subsequent maintenance is a significant growth driver.

PEST Analysis

Political: The aerospace parts manufacturing market is regulated by organizations such as the Federal Aviation Administration in the US and European Aviation Safety Agency in Europe. Regulations regarding safety, airworthiness, and emissions govern this industry.
Economic: Economic growth and demand from commercial and defense aviation drive spending on aircraft manufacturing and parts. Economic cycles that impact the airline and aerospace industries can influence the financial performance of parts manufacturers.
Social: Preferences for air travel versus other modes of transportation impact demand for aircraft and parts over the long run. Developing economies with growing middle classes are increasing their air transportation needs.
Technological: Advancements in aircraft designs, engine technologies, composite materials, and avionics require continuous innovation in parts manufacturing. Additive manufacturing and automation are being adopted to improve production efficiency and meet tighter tolerances.

The North American region accounts for over 35% of the global market value, driven by strong demand from the US for both commercial and military aircraft. Major aviation companies like Boeing, Lockheed Martin, GE Aviation and Raytheon have large manufacturing and supply chain presence in the US and Canada.
The Asia Pacific region saw the fastest value growth over the forecast period, increasing at a CAGR of over 8%. Countries like China, India and Japan are investing heavily in both domestic aviation industries and military capabilities. Demand for aircraft from low-cost carriers in Asia is supporting greater indigenous production and imports of key aerospace parts from global suppliers.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research.
2. We have leveraged AI tools to mine information and compile it.