Aerospace Parts Manufacturing Market Analysis Report By Product, By End Use And Segment Forecasts From 2020 To 2027

Industry Insights

The global aerospace parts manufacturing market size was worth USD 907.2 billion, in 2019. It is anticipated to register a CAGR of 4.1% over the forecast period. The fueling demand for new-generation, fuel-efficient, and lightweight aircraft, due to the concerns relating to the reduction of greenhouse gases is expected to drive growth.

Over the years, the replacement of in-service aging aircraft is compelled by increasing energy costs that hold a considerable share in the commercial airlines’ operations. Additionally, increasing the need for lightweight aircraft to increase energy efficiency is expected to accelerate market growth.

U.S. holds the leading market for aerospace parts manufacturing due to the existence of eminent players along with huge scope for aircraft Maintenance, Repair, and Overhaul (MRO) activities.

Tier-I suppliers like key structure and system manufacturers are occupied in manufacturing turbines, aero engines, engine propulsion systems, and jets, thereby, facing immense pressure from the Original Equipment Manufacturers (OEMs). Therefore, this industry requires higher consolidation with tier-I of the supply chain due to the increasing mergers & acquisitions to lower the complexity of the supply chain.

The industry has observed a rising trend towards the adoption of lightweight substances for aerospace parts manufacturing, for cost-efficiency and better performance of the structure. Market players are posing an inclination towards lightweight aluminum alloys due to their strength at higher temperatures and resistance from corrosion.

Product Insights

The insulation component was worth USD 22.3 billion in 2019 and is predicted to register the fastest CAGR of 6.3% from 2020 to 2027 due to the increasing replacements of the products.

The rising adoption of composites for producing fuselage to lower fatigue maintenance during high-pressure environments is anticipated to impel the entire cost of aero-structure thus, creating a positive impact on the aerospace parts manufacturing market. The division held the market in 2019 and is predicted to grow significantly over the years.

Cabin interior manufacturing is expected to value USD 117.4 billion by the end of the forecast period due to the increasing usage of lightweight and high-strength materials. This segment has a more simplified structure than airframe parts. However, it possesses mechanical needs mandated by regulatory bodies like smoke, toxicity, and fire limits.

End-use Insights

Commercial aircraft held the dominant position valuing at USD 467.4 billion in 2019. The rising demand for cargo services coupled with better trade relations globally is anticipated to boost the segment growth by 2027.

The demand for business aircraft is projected to increases due to its affordable costs and growing requirement for larger size aircraft. This segment is expected to increase productivity since air travel is more time-saving than other modes of transport. This factor is predicted to be the key driver for its growth.

The rising demand for better composite materials for the production of advanced fighter planes is anticipated to support market growth. Moreover, the increasing demand for aerospace parts by NATO countries for fighter and surveillance aircraft due to security threats has a favorable impact on the segment growth from 2020 to 2027.

Regional Insights

North America held a share of above 50% based on revenue in 2019 due to the existence of major aerospace parts manufacturers along with an established aircraft manufacturing industry. The growth in the U.S. is attributed to the rising demand for support components and landing gear due to the rising replacement rates of conventional landing gear with upgraded systems.

Asia Pacific is expected to account for the fast CAGR of 6.7% from 2020 to 2027. The growth is attributed to the booming aviation industry in this region, thus, increasing the growth of the repair, overhaul service, and maintenance market.

Aerospace Parts Manufacturing Market Share Insights

The industry has observed huge competition due to the increasing penetration of Asian manufacturers. Competition prevails based on the product, technology, and design differentiation. Additionally, market goodwill, on-time delivery, customer service, and price impact the competition.

Industry participants sometimes engage in long-duration supply contracts with aerospace manufacturers. These manufacturers further, control the component manufacturing in the overall value chain, starting from designing to manufacturing the components to provide better quality.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Million Insights has segmented the global aerospace parts manufacturing market report based on product, end-use, and region:

• Product Outlook (Revenue, USD Billion; 2016 - 2027)
    • Engines
    • Aircraft Manufacturing
    • Cabin Interiors
    • Equipment, System, and Support
    • Avionics
    • Insulation Components

• End User Outlook (Revenue, USD Billion; 2016 - 2027)
    • Commercial Aircraft
    • Business Aircraft
    • Military Aircraft
    • Other Aircraft

• Regional Outlook (Revenue, USD Billion; 2016 - 2027)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • UK
        • France
        • Italy
        • Netherlands
    • the Asia Pacific
        • Indonesia
        • Malaysia
        • Philippines
        • China
        • Japan
        • Australia
    • Central & South America
        • Brazil
    • Middle East & Africa