AEROSTRUCTURES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Aerostructures Market Size and Forecast – 2024 - 2031

The global Aerostructures Market is estimated to be valued at USD 65.43 Bn in 2024 and is expected to reach USD 87.32 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.

Key Takeaways of the Aerostructures Market:

• Empennages are expected to account for 44.3% market share in 2024.
• Commercial aircraft segment currently holds a leading market share accounting to 51.9% market share in 2024.
• North America is a dominant market and is expected to account for 42.1% market share in 2024.
• Asia Pacific is the fastest growing market with 34.3% market share in 2024.

Market Overview

The aerostructures market is expected witness positive growth during the forecast period. Core factors such as growing commercial and military aircraft deliveries along with demand for lightweight and durable materials in aircraft components will support the growth of the market. Major OEMs are focusing on development of advanced alloys and composites to manufacture lightweight and high strength aerostructure parts which is encouraging suppliers to invest in R&D and boosting production capabilities. Also, upgradation of existing fleet and increase in MRO services are projected to offer potential opportunities during the forecast period.

Segmental Insights

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Component Insights: Empennages Account for a Leading Market Share in the Forecast Period

By Component, empennages are expected to account for 44.3% market share in 2024 in the aerostructures market. The key factor driving demand for this segment is the increasing focus on aerodynamic efficiency of aircraft. Empennages consists of vertical and horizontal stabilizers, play a crucial role in aircraft steering and stability. Aerospace manufacturers are consistently working to refine empennage designs for reducing drag and improving fuel efficiency. This has led to greater incorporation of advanced composite materials in rudders, elevators and stabilizers.

Platform Insights: Commercial Aircraft Contributes Highest Market Share Due to Booming Air Passenger Traffic

By Platform, the commercial aircraft segment currently holds a leading market share accounting to 51.9% market share in 2024. Surging global air travel and passenger volumes over the past decade have fueled the demand for new commercial aircraft. The commercial aviation industry is projected to require over 40,000 new airplanes worth USD 6.8 trillion in the next 20 years to sustain this traffic growth. This massive procurement of commercial jets is propelling the aerostructures requirements.

Regional Insights

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Dominating Region: North America

North America is a dominant market and is expected to account for 42.1% market share in 2024. The industry growth can be attributed to factors such as the region's thriving aviation industry and strong presence of leading aerospace companies. Major aircraft manufacturers like Boeing have major production facilities and supply chains established in the region, driving significant demands for structural components. Government agencies have also provided support through favorable R&D funding and regulatory conditions.

Fastest-Growing Region: Asia Pacific

The Asia Pacific region exhibits the fastest growth and is expected to contribute 34.3% market share in 2024 led by countries seeking to expand their aviation sectors and domestic capabilities. Countries have unveiled initiatives promoting local assembly and production of aircraft. Leading global firms have consequently increased partnerships and investments to capitalize on the opportunities arising. The region has also emerged as an important manufacturing base, contributing to the growth of its supply chains.

Aerostructures Market Outlook for Key Countries

United States Aerostructures Market Trends

 The US aerostructures market has been experiencing significant changes in trends over the past few years that are impacting demand dynamics. With more airlines upgrading their fleets to newer, more fuel-efficient aircraft models like the Boeing 737 MAX and Airbus A320neo, this is driving increased requirements for advanced lightweight composite materials and complex integrated systems in components.

China Aerostructures Market Trends

The China aerostructures market has seen significant changes in recent years driven by trends within the domestic commercial aviation sector. As Chinese airlines continue to rapidly expand their fleets to meet rising local demand, there is a growing need for new aircraft to service these routes. Major carriers such as Air China, China Southern Airlines, and China Eastern Airlines have placed large orders with Airbus and Boeing totalling almost 2,000 new narrowbody and widebody planes through 2023.

India Aerostructures Market Trends

The India aerostructures market is experiencing significant growth due to rising demand in the commercial aerospace segment. Major global aircraft manufacturers have been increasingly sourcing aerostructure components from India to support their production lines. For example, Boeing has partnered with several tier-1 Indian suppliers to procure parts for its 737, 777 and 787 programs.

Japan Aerostructures Market Trends

This shift towards composite materials is occurring alongside a broader industry-wide push for aircraft electrification. All-electric or hybrid-electric propulsion concepts are being explored by Boeing, Airbus, and Japanese startup SkyDrive as a way to eliminate kerosene emissions over the long term. Some Japanese companies have gained expertise in carbon fiber composite manufacturing for automotive and transportation applications that is now being adapted for aerospace. For example, Toray Industries supplies carbon fiber to major airplane manufacturers and is developing ultralight composite batteries for aircraft electric taxiing systems and auxiliary power units.

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• November 2024: Turboprop aircraft manufacturer ATR decided to discontinue the development of a new model designed for short runways, opting instead to focus on its existing aircraft portfolio. This decision was made to concentrate resources on current models and core competencies.
• November 2024: Italian aerospace company Leonardo planned discussions with unions regarding the future of its Grottaglie plant, which primarily supplies Boeing's 787 program. Due to production delays, a significant portion of the plant's workforce faced furloughs, prompting a strategic review to explore new business opportunities and potential restructuring.
• July 2024: Boeing announced USD 4.7 billion all-stock deal to acquire Spirit AeroSystems, aiming to enhance manufacturing resilience and streamline operations. This acquisition led to the division of Spirit's assets, with Airbus taking over certain facilities and Textron acquiring the V-280 fuselage program.
• July 2024: Textron, the parent company of Bell Helicopter, moved to acquire the fuselage-making program for the V-280 Valor military aircraft from Spirit AeroSystems. This strategic move aimed to consolidate Textron's position in the military aircraft sector, particularly following the V-280's selection for the U.S. Army's future long-range assault aircraft program.

Top Strategies Followed by Aerostructures Market Players

• Established Players: Established players in the aerostructures market focus heavily on research and development to drive innovation. Companies like Airbus and Boeing annually invest billions of dollars into designing high-performance materials and manufacturing technologies. Their R&D efforts are centered around developing lighter, stronger, and more durable aerostructure components to improve fuel-efficiency and sustainability.

         In addition, these leaders form strategic global partnerships with major suppliers to consolidate their market position.

• For example, Airbus collaborates closely with thousands of partners worldwide to outsource over 50% of the manufacturing work for each commercial aircraft.
• Mid-sized Players: Mid-sized players capitalize on cost-effective solutions. Firms like Spirit AeroSystems and GKN Aerospace focus on delivering budget-friendly structural parts and assemblies targeted towards price-sensitive customers. They emphasize lean manufacturing techniques and operational efficiencies to minimize expenses. These companies also pursue collaborative ventures to augment production capabilities.
• For instance, Spirit AeroSystems recently joined hands with another firm to build a new facility for composite aerostructures manufacturing in Germany.
• Small Players: Small-scale manufacturers thrive by niche specialization. New entrants target specialized markets left untapped by giants. For instance, Denham Aerospace manufactures complex aerostructure components using specialized 3D printing technologies. Another startup, Anthropic, applies artificial intelligence to develop novel aircraft cabin interiors. These niche players also leverage latest technologies like robotics and automation solutions to cut costs and gain a foothold. Some partner with startups locally to facilitate market access and product trials initially on a smaller scale.

Emerging Startups: Aerostructures Industry Ecosystem

• Innovation: The growing scope of innovative technologies is enabling new startups in the domain. For example, Anthropic develops AI-powered aircraft structural analysis tools to facilitate safer and more efficient aircraft design. Another startup, Cubicwise, applies 3D simulation software to research advanced composite materials. Their technologies could transform aerostructures manufacturing in the coming years through personalized structural analysis and smart materials.
• Sustainable Solutions: Sustainability-focused startups are also emerging. A company like Vega builds eco-friendlier, animal-free composite materials using mycelium cultivation. Additionally, Magnitude produces high-performance recycling technologies to convert end-of-life composite parts into raw materials. Their sustainable solutions can significantly lower the industry's carbon footprint over the long run.
• Niche Specialization: Some startups collaborate with partners to enter niche application areas. UltraSafe Nuclear designs micro-nuclear power units for hybrid-electric airplanes through research alliances. Similarly, ElectroCore builds specialized unmanned aircraft systems, partnering with defense organizations on specialized applications.

Market Report Scope

Market Dynamics

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Aerostructures Market Growth Factors- Rise in the Demand for Lightweight and Durable Aircraft Components

The aviation industry has been placing increasing emphasis on fuel efficiency and reducing carbon emissions in recent years. Airlines are under constant pressure to lower operating costs and flyers have become more environmentally conscious. In response, aircraft manufacturers have been focusing their R&D efforts on developing lighter yet durable components that can help aircraft save on fuel.

The aerostructures play a vital role in meeting this objective as they account for a significant portion of the total aircraft weight. Materials such as carbon fiber reinforced polymers (CFRP) have allowed the production of airframe parts that are 10-20% lighter compared to traditional aluminum alloys. CFRP offer higher strength-to-weight ratios and are increasingly replacing metallic components in wings, fuselages, tails and other sections.

Aerostructures Market Opportunities: Development of Integrated Aircraft Components for Market

One of the major opportunities in the aerospace structures market is the development of integrated and more intelligent aircraft components. With the aviation industry aiming for increased aircraft efficiency and redundancy, manufacturers are exploring methods to integrate multiple structural and system components into single modular units. This paves way for designing ‘smart’ components embedded with advanced materials and technologies. For example, integrating electrical systems, fuel lines and structural frames into electrical wing components can significantly reduce part counts.

Adopting 3D printing and additive manufacturing techniques enables embedding intelligent sensors within printed structural skins for real-time damage monitoring. Development of such multifunctional, condition-based components can drive new revenue streams for tier 1 suppliers. It also allows aircraft designers to reduce weight and optimize aircraft performance. This presents a huge market potential for innovative component manufacturers.

Aerostructures Market Challenge - Volatility in Raw Material Prices

One of the major challenges faced by the aerospace industry worldwide is the volatility in the prices of raw materials. Aircraft OEMs and their supply chain heavily rely on raw materials such as aluminum, titanium and composites for manufacturing airframes and aircraft components. However, the prices of these materials fluctuate frequently depending on various economic and geopolitical factors.

Given that a single aircraft requires thousands of kilograms of raw materials, even a small increase in raw material costs can significantly impact the profit margins of manufacturers. This makes it difficult for OEMs and suppliers to adopt an appropriate pricing and sourcing strategy. The price volatility also poses challenges in accurately estimating the production costs and quoting competitive prices to airlines. With raw material costs accounting for a major portion of the overall costs, proper risk-hedging strategies need to be developed to mitigate the effect of volatile commodity prices on the long-term aircraft programs.

Analyst Opinion (Expert Opinion)

• The aerostructures market continues to grow driven by increasing aircraft deliveries worldwide. Growing passenger traffic is prompting airlines to expand their fleets which is increasing demand for aircraft components like fuselages and wings. Lightweight composite materials are gaining greater acceptance in aerostructures offering opportunities for component manufacturers to deliver fuel-efficient designs. Aftermarket services for aircraft maintenance is another driver providing recurring revenue streams.
• However, geopolitical tensions and protectionist policies pose a challenge to global supply chains in the aerostructures industry. Strict regulatory standards and certification requirements add to time and cost for component manufacturers further restraining market growth. Overcapacity among some suppliers following a slowdown in aircraft orders during the pandemic is an issue being addressed.
• North America remains the dominant region for aerostructures led by the US while Asia Pacific has emerged as the fastest growing market led by China. Major original equipment manufacturers are localizing more production there to address the growing demand from Chinese and other Asian carriers. Cost competitiveness is prompting companies to shift or expand manufacturing footprint to regions like Mexico and Central Europe as well. Consolidation among suppliers is anticipated to continue to help achieve economies of scale and efficiencies.

Market Segmentation

• By Component Insights (Revenue, USD, 2019 - 2031)
• • Empennages
  • Flight Control Surfaces
  • Doors & Skids
  • Nacelles & Pylons
  • Others
• By Platform Insights (Revenue, USD, 2019 - 2031)
• • Commercial Aircraft
  • Military Aircraft
  • Business Aircraft
  • Advanced Air Mobility
• Regional Insights (Revenue, USD, 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
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Airbus SE
  • Bombardier Inc.
  • AAR CORP.
  • Cyient Limited
  • Elbit Systems Ltd.
  • GKN Aerospace
  • Leonardo SpA
  • Spirit AeroSystems Inc.
  • Saab AB
  • Triumph Group, Inc.
  • The Boeing Company