Aerospace Parts Manufacturing Market size was valued at USD 1.4 billion in 2023 and is set to reach USD 2.4 billion by the end of 2036, expanding at around 4.5% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of aerospace parts manufacturing is estimated at USD 1.5 billion.
The aerospace parts manufacturing market growth is driven by the global demand for satellite-based services in applications such as defense, navigation, communication, and earth observation. The market’s growth prospects are marked by strategic initiatives that cater to growing satellite demand. For instance, the Asia Pacific Satellite Communications Council (APSCC) in December 2023 announced the partnership of Thai Aerospace Industries (TAI) and Rivada Space Networks for a secure and reliable connectivity service in military, commercial, and general aviation. Additionally, this increased demand drives the revenue share for aerospace companies such as Stanley Black & Decker Inc., and Boeing engaged in satellite manufacturing and associated technologies.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
4.5% |
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Base Year Market Size (2023) |
USD 1.4 billion |
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Forecast Year Market Size (2036) |
USD 2.4 billion |
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Regional Scope |
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Product (Aircraft Manufacturing, Engines, Aerostructure, Cabin Interiors, Equipment, System, and Support, Avionics, Insulation Components)
Aircraft manufacturing segment is predicted to capture around 51.4% aerospace parts manufacturing market share by the end of 2036. Significant growth in the revenue share is driven by the manufacturing of complete aircraft including engines, wings, airframes, and various integral components. In addition, this segment covers the creation of aircraft prototypes, major modifications to existing aircraft, and overhauls and rebuilds of entire aircraft.
A recent report published by the U.S. Government Accountability Office in March 2024 states that since 2020, air travel has increased, which has raised the demand for new aircraft and parts for existing fleets among airlines. Additionally, the construction and assembly of civil aircraft, including big commercial aircraft, business jets, and regional aircraft, is known as aircraft manufacturing. Growth in this sector will fuel the customized avionic systems value in the near future.
End user (Commercial Aircraft, Business Aircraft, Military Aircraft)
The commercial aviation segment in the aerospace parts manufacturing market is expected to be the fastest-growing segment with a staggering CAGR during the forecast period. The production of parts intended specifically for use in commercial aircraft is referred to as the commercial segment in the aerospace parts manufacturing industry. This covers the production of parts for commercial aircraft, including passenger and cargo aircraft. Airbus in 2024 published a report predicting about 42,000 new aircraft deliveries by the next 20 years. Furthermore, commercial aircraft and its parts are expected to grow as a result of better international trade relations leading to a rise in the demand for cargo services.
Our in-depth analysis of the aerospace parts manufacturing market includes the following segments:
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Product |
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End User |
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North America Market Statistics
The aerospace parts manufacturing market in North America is set to hold the largest size of USD 271.3 billion during the forecast period. The growth in this region is poised due to the increased defense spending as this region is highly favorable in aircraft manufacturing. According to a report published by the Peter G. Peterson Foundation in 2024, defense spending grew by USD 55 billion between 2022 and 2023.
The increasing per capita income in the U.S. is acting as a growth factor for the aerospace parts manufacturing market share in this country. CEIC 2022 estimated that the annual per capita household income surpassed USD 39,167 in December 2022 as compared to 2021 data. Moreover, the need for the operating airlines to generate revenue and operate with reduced efficiency is partly due to the aging fleet of aircraft.
In Canada, an increasing factor contributing to the growth of this industry is the rise in air travel and the number of travelers. According to the International Air Transport Association, Canadian Air Transport is predicted to grow by 51% in the next 20 years. Credited to this, by 2037 about 39 million passengers will be added and can cross this country’s GDP by USD 73.3 billion.
APAC Market Analysis
Asia Pacific will also encounter huge growth in the aerospace parts manufacturing market share during the forecast period with a notable size and will account for the second position. The increase in international travel in this country will act as a growing factor for this sector. IATA published a report in July 2024 predicting that there had been an increase of more than 22% in Asia Pacific airlines and about a 22.9% increase in passenger capacity.
Increasing disposable income in China is contributing to the growth of the aerospace parts manufacturing market in this country. According to the State of China in July 2024, the national per capita disposable income surpassed USD 2900 in the first half of 2024.
There is an increased international air travel demand in Japan along with a high need for international freight which is expected to be a growth factor for the slated revenue share. According to a recent report by the Japan National Tourism Organization in 2024, there has been an increase in visitors, crossing 46.3% as compared to the data of 2019.
The aerospace parts manufacturing market growth is predicted to grow led by these companies occupying a lucrative share. Most of these companies are engaged in strategic collaborations, partnerships, and joint ventures to strengthen their customer reach. With the increasing demand for air travel, various companies are adapting to the latest trends and are set to be the major key players in this sector.
Some of the key players include:
Author Credits: Dhruv Bhatia
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