AEROSPACE PARTS MANUFACTURING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Aerospace Parts Manufacturing Market Size and Trends

The aerospace parts manufacturing market is estimated to be valued at USD 918.7 Bn in 2024 and is expected to reach USD 1,419.2 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.

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The aerospace parts manufacturing market is expected to grow steadily over the next few years. The market is driven by the increasing commercial aircraft fleet size around the world and massive backlogs of aircraft orders with manufacturers. Additionally, the growing demand for lightweight and advanced materials from the aerospace industry is also supporting the growth of this market. Some of the players operating in this market are focusing on developing 3D printing technologies to manufacture complex and customized parts, which is further expected to propel the market forward during the forecast period.

Rising Demand for Spare Parts Due to Increasing Commercial Aviation Activity

The demand for aerospace parts is increasing significantly due to the rising commercial aviation activities across major regions of the world. Many developing economies are experiencing fast economic growth and have emerged as lucrative aviation markets. This is leading to a surge in passenger traffic and aircraft fleet size among commercial airlines. As more planes are pressed into service for commercial operations, the requirement for replacement parts and components is automatically rising. The existing aircraft also need regular maintenance and replacement of worn-out parts to ensure safety and performance. With more number of airplanes plying each day globally, the spares and repairs market is setting for strong growth.

The commercial aviation industry is envisioned to grow steadily in the coming years on the back of emerging middle classes, business travel needs, and improving regional connectivity in developing nations. Low-cost carriers have boosted regional air travel thanks to competitive fares and new routes. Legacy full-service carriers are expanding networks and upgrading fleets to tap emerging opportunities. This is prompting manufacturers to ramp up aircraft production to take orders from major airlines across the world. As the fleet modernization plans of carriers come into effect, the need for original equipment manufacturer (OEM) parts and components is surging. Even the aftermarket or replacement demand sees a rise because of the expansion in flight hours from the existing aircraft.

For instance, according to Airbus SE, a Europe-based multinational aerospace corporation, in 2021, there were almost 22,000 Airbus commercial aircraft in service, and this figure is expected to double by 2041, reaching nearly 45,000 aircraft.

Market Concentration and Competitive Landscape

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Aerospace manufacturers are making rising investments in advanced materials and cutting-edge technologies to produce lightweight as well as more durable and reliable parts for new-generation aircraft. With continuous emphasis on improving fuel-efficiency and emission standards, OEMs are focused on developing game-changing components and composites that can help reduce the overall weight of planes. Alloys with enhanced strength are allowing thinner and more versatile designs. Advanced coating techniques are imparting better resistance to heat and corrosion. Composite materials like carbon fiber that are super strong yet light are gaining widespread adoption replacing traditional aluminum and alloys.

Additive manufacturing or 3D printing is one area attracting major R&D funding from both startups as well as industry stalwarts. These advanced technologies facilitate complex, customized, and optimized designs not possible with traditional techniques. 3D printed parts also enable efficient production with less material wastage. They help streamline supply chains and reduce time-to-market for new products. The aerospace industry is working to certify critical components produced using

For instance, F-35, a fighter jet developed by the Lockheed Martin uses the carbon fiber material in its aircraft parts.  Carbon fiber has about 2 and 5 times less density than aluminum and steel.

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The aerospace parts manufacturing market faces several challenges. Manufacturers must contend with rising costs of raw materials due to high demand from the industry. They also face stiff competition from other parts suppliers. Strict quality and safety standards set by regulatory bodies increase production expenses. Ongoing trade wars and protectionism have disrupted supply chains and export markets. Additionally, the industry is heavily dependent on large aircraft OEMs, leaving parts makers vulnerable to the cyclical nature of orders from a small number of customers.

Market Opportunities: Adoption of Additive Manufacturing

With the commercial aviation industry expected to double its fleet size over the next 20 years, the demand for replacement parts will remain high. The defense sector also provides a steady stream of contracts for strategic components. Emerging technologies in additive manufacturing and smart factories allow firms to develop specialized, complex parts more efficiently.

Insights, by Product - Aerostructure: Meets the Advanced Design Requirements with High Precision Parts

In terms of product, the aerostructure segment is estimated to hold the highest share of 41.1% in 2024 in the aerospace parts manufacturing market owing to its critical importance and intricate design requirements. As aerospace technologies continue to advance, aircraft structures are becoming increasingly complex with lightweight yet robust designs. This drives high demand for aerostructure components that can meet stringent tolerances and deliver precise performance under varying stresses and temperatures.

The aerostructure segment involves manufacturing diverse parts for aircraft frames, wings, fuselages, tails and landing gears. Developing these parts involves technologies like composite machining and metal forming that can craft intricate specifications. Given the safety critical nature of these parts, their manufacturing entails rigorous quality control protocols. This need for consistently high precision parts even for small batch production runs benefits specialized component makers servicing the aerostructure requirements.

Additionally, the segment sees growth due to new aircraft programs involving advanced materials. Composite aerostructure components are seeing wider adoption for meeting weight savings targets. Specialty alloy metal parts are also contributing to more fuel efficient aircraft designs. Sustained investments in designing and certifying such innovative components augurs well for the aerostructure segment over the long term.

Insights, by Aircraft Type - Wide-body aircraft: Driving the Demand for Large Cabins and Cargo Capacity

The wide-body aircraft segment is estimated to hold the highest share of 54.6% in 2024 in the market, owing to their role in long haul aviation. Wide-body twins feature twin aisles and twin engines mounted on underwing pylons or short nacelles mounted below the wing. This configuration allows them to transport high passenger and cargo loads over intercontinental routes.

With expanded global trade and tourism, long haul travel demand continues climbing. Wide-body aircraft thus see strong orders to connect major cities worldwide. Their range and capacity has also opened new non-stop point to point routes that are competitive versus connecting flights. This generates more traffic and in turn, opportunities for components makers serving the wide-body production.

Moreover, many cargo airlines have expanded or refreshed their fleets with modern wide-body freighters. This supplements passenger wide-body demand and also benefits their associated supply chain. Specialized cargo versions of passenger aircraft further fuel the wide-body segment's growth prospects.

Insights, by Application - Commercial Aircraft: Powering Global Mobility Needs

The commercial aircraft segment is estimated to hold the highest share of 50.6% in 2024, driven by the necessity for safe and efficient air transportation worldwide. Commercial aircraft come in different sizes to serve diverse mission requirements for passenger and cargo transport. They constitute the largest portion of global active aircraft fleet.

Consistent traffic upsurges across major economies have kept demand strong for new commercial aircraft deliveries. Low cost carriers have also spurred the demand with their expanding networks and fleet replacements. Additionally, budgets are allocated to modernize aging fleets and lower operating costs through new technology-enabled commercial aircraft programs.

Regions like Asia Pacific are witnessing tremendous growth in both passenger and cargo traffic. This has stimulated the procurement of new commercial narrow and wide-body aircraft to develop air connectivity. Emerging nations are also investing in local airlines that need long term aircraft sourcing plans. The scale of the commercial aviation industry thus makes it vital for the associated aerospace supply chain including parts manufacturers.

Regional Insights

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North America is estimated to hold the largest market share of 41.1% in 2024 in the global aerospace parts manufacturing market for many years owing to the strong presence of leading OEMs and tier 1 suppliers in the region. The U.S. houses the majority of the world's prominent aerospace manufacturers such as Boeing, General Electric Aviation, Honeywell, Lockheed Martin, Northrop Grumman, etc. This has created a robust supply chain ecosystem for aerospace parts in the region. There is a vibrant aftermarket as well with companies focusing on aircraft MRO and components replacement. Large defense budgets of the US government has ensured steady orders for military aviation parts, thus providing momentum to the industry.

Countries like Canada and Mexico are also growing manufacturing and MRO hubs. Presence of emerging technologies clusters around Seattle, Wichita and Montreal has helped North American companies to gain competitive edge in the industry. Proximity to major aviation markets and customer base has cemented North America's position at the top. However, challenges like protectionist policies and likely decrease in defense spending can impact future growth potential.

The Asia Pacific region has emerged as the fastest growing market for aerospace parts manufacturing industry. China with its "Made in China 2025" policy is aggressively promoting domestic aviation manufacturing sector. Companies like Comac, AVIC, and XAC have undertaken large commercial and regional jet development programs. Growing middle-class and rising passenger traffic within China and other Asian countries is driving demand for new aircraft. Countries like India have also opened up their defense aviation manufacturing under 'Make in India' initiative attracting investments from global majors.

Relatively lower labor and production costs compared to the developed markets is allowing Asia Pacific companies to competitively target global markets. Robust infrastructure and economies of scale achieved by Chinese counterparts is helping gain price advantages. If the current growth momentum continues, Asia Pacific is well on its path to replacing Europe as the second largest aviation parts manufacturing base after North America in the coming years.

Market Report Scope

Aerospace Parts Manufacturing Industry News

• In April 2021, Elbit Systems Ltd., an Israel-based international military technology company, acquired BAE Systems Rokar International Ltd. from BAE Systems, Inc., the U.S. headquartered subsidiary of BAE Systems plc for approximately USD 31 million
• In September 2020, Elbit Systems Ltd. announced that its wholly-owned subsidiary, Elbit Systems - Cyclone Ltd., was awarded a contract by Lockheed Martin for the manufacture of complex composite structural assemblies for the F-35 aircraft
• In June 2023, Elbit Systems Ltd. was awarded with a contract by Airbus Helicopters for the Federal Office for Bundeswehr Equipment, Information Technology and In-Service Support, for the provision of Airborne Electronic Warfare (EW) self-protection systems for the CH-53 GS/GE transport helicopters, as part of the platform upgrade program led by Airbus Helicopters

*Definition: The aerospace parts manufacturing market consists of companies that design and manufacture components and parts for aircraft and spacecraft. This includes parts for aircraft structures, engines, avionics, and cabin interiors. Major products include wings, fuselage panels, engine parts, electrical systems, hydraulic systems, landing gear, and various interior parts. The aerospace parts manufacturing industry supports commercial aviation, defense, and space applications. Customers include major aerospace manufacturers, airlines, space agencies, and military forces globally.

Market Segmentation

• Product Insights (Revenue, USD BN, 2019 - 2031)
• • Engines
  • Cabin Interiors
  • Aerostructure
  • Avionics
  • Insulation Components
  • Others
•  Aircraft Type Insights (Revenue, USD BN, 2019 - 2031)
  • Narrow Body aircraft
  • Wide-body aircraft
  • Turboprop aircraft
•  Application Insights (Revenue, USD BN, 2019 - 2031)
  • Commercial Aircraft
  • Business Aircraft
  • Military Aircraft
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
    • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • 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
  • Intrex Aerospace
  • CAMAR Aircraft Parts Co.
  • GENERAL ELECTRIC
  • Honeywell International Inc.
  • Superior Air Parts.
  • Thales
  • PARKER HANNIFIN