USD 913.13 Billion
Report ID:
SQMIG20A2152 |
Region:
Global |
Published Date: June, 2025
Pages:
197
|Tables:
69
|Figures:
69
Global Aerospace Parts Manufacturing Market size was valued at USD 913.13 Billion in 2023 and is poised to grow from USD 949.66 Billion in 2024 to USD 1299.67 Billion by 2032, growing at a CAGR of 4.0% in the forecast period (2025-2032).
The global aerospace parts manufacturing market is witnessing significant growth driven by the increasing demand for commercial and defense aircraft, advancements in manufacturing technologies, and rising investments in space exploration. Meanwhile, defense modernization programs are boosting the demand for specialized parts in military aircraft.
The market is significantly being driven by the increased demand for air travel around the world. It includes the expanding need for commercial aircraft to carry the increasing number of passengers around the world. The middle class is steadily growing in emerging economies, especially in nations like China and India. With more discretionary income and a greater desire for air travel because of this demographic transition, airlines are compelled to either increase their fleets or replace ageing aircraft with newer, more fuel-efficient models.
The aerospace parts manufacturing market benefits from these programs as it supplies critical components required for defense equipment manufacturing. Therefore, contributing to drive the market growth.
Regionally, North America and Europe continue to lead due to strong aerospace ecosystems and the presence of key manufacturers, while Asia Pacific is emerging as a high-growth region owing to rising air traffic, regional manufacturing initiatives, and expanding defense budgets. However, challenges such as complex regulations, high capital requirements, and geopolitical uncertainties remain key restraints for market players.
Market snapshot - 2025-2032
Global Market Size
USD 913.13 Billion
Largest Segment
Aerostructure
Fastest Growth
Avionics
Growth Rate
4.2% CAGR
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Global aerospace parts manufacturing market is segmented based on product, type and region. By product, the market is segmented into engines, aerostructure, cabin interiors, equipment, aircraft manufacturing, system and support, avionics and insulation components. By end-use, market is segmented into commercial aircraft, business aircraft, military aircraft and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
As per global aerospace parts manufacturing market analysis, the aerostructure segment holds a dominant share in the market due to the extensive demand for primary structural components such as fuselage, wings, and empennage. These components require advanced materials and precision engineering, contributing significantly to the overall aircraft cost. The high frequency of maintenance and replacements, along with OEM production, keeps this segment at the forefront.
As per global aerospace parts manufacturing market outlook, avionics is the fastest-growing segment, driven by the rapid integration of digital flight control systems, advanced navigation technologies, and next-gen cockpit displays. The push toward automation, enhanced safety, and fuel efficiency is prompting airlines and defense sectors alike to invest heavily in modern avionics systems, especially for new-generation aircraft and retrofit programs.
The commercial aircraft segment dominated the aerospace parts manufacturing market in 2024, accounting for the highest market share. This dominance is primarily driven by the surge in global passenger and cargo traffic. According to industry trends, commercial airlines are rapidly expanding and upgrading their fleets to meet growing travel demand, especially across emerging economies in Asia-Pacific, the Middle East, and Latin America. In parallel, air cargo demand has seen consistent growth, fueled by e-commerce expansion, pharmaceutical logistics, and just-in-time manufacturing supply chains. This has spurred increased production of freighter aircraft and aftermarket parts, boosting demand for structural components, engines, avionics, and interiors.
As per global aerospace parts manufacturing market forecast, the military segment in the aerospace parts manufacturing market is growing due to growing demand for strategic defense capabilities. Military aircraft are crucial for modern defense operations, not only for combat but also for logistical support. Their ability to transport troops, armored vehicles, helicopters, and heavy equipment makes them indispensable for global military readiness, peacekeeping missions, and rapid deployment scenarios.
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North America leads the aerospace parts manufacturing market due to the presence of established aerospace OEMs, strong defense contracts, and a well-developed aviation ecosystem. The region is marked by a focus on innovation, digital manufacturing, and sustainability in aircraft components.
The United States is the global hub for aerospace production, with major players like Boeing, Lockheed Martin, Raytheon, and GE Aviation driving innovation. High defense spending, the need for commercial fleet upgrades, and significant R&D investment in next-gen aviation technologies support strong market growth. Additionally, the U.S. government’s backing of space exploration and drone manufacturing contributes to a diversified component demand.
As per regional analysis, Canada plays a strategic role in the aerospace supply chain, particularly in regional aircraft manufacturing and MRO services. Bombardier and Pratt & Whitney Canada are among the top contributors. Government initiatives supporting aerospace innovation and export potential further solidify Canada’s position in the global market.
Asia-Pacific is witnessing rapid expansion in the aerospace parts sector, driven by rising air travel, growing defense budgets, and increasing domestic manufacturing capabilities. Regional airlines' demand for narrow-body aircraft and infrastructure development is pushing up production volumes.
As per regional outlook, Japan focuses on high-precision aerospace components and materials. Companies like Mitsubishi Heavy Industries and Kawasaki Aerospace are deeply involved in both commercial and defense aviation. Japan's emphasis on innovation and collaboration with U.S. aerospace firms sustains growth in specialized part manufacturing.
South Korea is emerging as a significant player with a focus on military aircraft parts and UAV components. Korean Aerospace Industries (KAI) and other local firms are increasingly participating in international aerospace programs, backed by government R&D funding and defense modernization plans.
As per industry analysis, Europe maintains a stronghold in the aerospace parts manufacturing market due to its technological leadership, sustainability initiatives, and collaborative ventures. The region is heavily involved in developing eco-friendly components and next-gen aircraft platforms.
Germany is a critical aerospace hub in Europe, specializing in high-quality mechanical and structural components. Airbus and other suppliers dominate the landscape, with a strong focus on automation, additive manufacturing, and precision machining.
The U.K. is known for its strength in aerospace engines, led by Rolls-Royce, and its robust supply chain for avionics and subsystems. Post-Brexit strategies and increased global trade partnerships are shaping the future of its aerospace manufacturing sector.
Italy plays a key role in defense and civil aerospace parts, supported by Leonardo and a network of SMEs. It has a strong focus on rotorcraft components and participates actively in European and international aviation consortiums, enhancing its export competitiveness.
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Advances in Aerospace Technology
Growing Demand for Fuel Efficient Engine Systems
Geopolitical Conflicts and Increased Trade Restrictions
Ensuring Safety and Quality in Addition to Regulatory Requirements
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The aerospace parts manufacturing industry is highly competitive and characterized by the presence of both established industry giants and specialized component suppliers. Companies compete on technological innovation, product quality, cost-efficiency, and long-term contracts with major aircraft OEMs (Original Equipment Manufacturers) such as Boeing and Airbus.
As per market strategies, a significant strategic move in 2024 includes Collins Aerospace (a unit of RTX Corporation) collaborating with Iberia Maintenance to jointly develop advanced nacelle systems for next-generation narrow-body aircraft. This partnership strengthens Collins’ aftermarket presence in Europe and aligns with sustainability goals by focusing on lighter, fuel-efficient components.
Startups in the aerospace parts manufacturing market are playing a pivotal role in reshaping traditional production methods through innovation, automation, and advanced materials. Emerging players like Relativity Space and Isar Aerospace are pioneering next-generation manufacturing approaches such as additive manufacturing and vertical integration.
Relativity Space: Founded in 2015 and based in Long Beach, California, Relativity Space is redefining aerospace parts manufacturing through its groundbreaking use of additive manufacturing. The company aims to automate and simplify the production of complex aerospace components by using large-scale 3D printing to build everything from rocket engines to structural components. Its proprietary Stargate printers allow them to manufacture with fewer parts, faster timelines, and increased design flexibility.
Isar Aerospace: Founded in 2018 and headquartered in Munich, Germany, Isar Aerospace focuses on delivering cost-efficient, reliable access to space by building launch vehicles for small satellites. What sets Isar apart is its vertically integrated manufacturing model—developing and producing most of the components for its Spectrum launch vehicle in-house. This control over the manufacturing process enhances quality, reduces costs, and shortens production cycles. Isar is contributing to Europe's independent access to space while simultaneously driving innovation in aerospace parts production, particularly in propulsion systems and lightweight structural components.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to SkyQuest analysis, the industry is opting for lightweight materials to improve the cost-efficiency and environmental performance of the aircraft. Hence, high-strength, lightweight, and fiber-reinforced composite materials are vital for the aircraft manufacturing industry. Moreover, increasing demand for lightweight and fuel-efficient aircraft to reduce greenhouse gas (GHG) emissions is positively influencing the industry demand. Expansion in air passenger and air freight volume worldwide against the backdrop of economic growth in emerging countries and considerable developments in commercial aerospace are expected to drive industry growth. Moreover, increasing demand for lightweight and fuel-efficient aircraft to reduce greenhouse gas (GHG) emissions is positively influencing the industry demand. Expansion in air passenger and air freight volume worldwide against the backdrop of economic growth in emerging countries and considerable developments in commercial aerospace are expected to drive industry growth.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 913.13 Billion |
Market size value in 2032 | USD 1299.67 Billion |
Growth Rate | 4.0% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Aerospace Parts Manufacturing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Aerospace Parts Manufacturing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Aerospace Parts Manufacturing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Aerospace Parts Manufacturing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
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Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Global Aerospace Parts Manufacturing Market size was valued at USD 913.13 Billion in 2023 and is poised to grow from USD 951.48 Billion in 2024 to USD 1322.34 Billion by 2032, growing at a CAGR of 4.2% in the forecast period (2025-2032).
The aerospace parts manufacturing industry is highly competitive and characterized by the presence of both established industry giants and specialized component suppliers. Companies compete on technological innovation, product quality, cost-efficiency, and long-term contracts with major aircraft OEMs (Original Equipment Manufacturers) such as Boeing and Airbus. 'Airbus ', 'Boeing ', 'Dassault Aviation', 'General Electric ', 'Safran', 'Rolls-Royce Holdings', 'Lockheed Martin', 'Raytheon Technologies Corporation ', 'Thales Group', 'BAE Systems ', 'Spirit AeroSystems', 'Bombardier ', 'Mitsubishi Heavy Industries ', 'Kawasaki Heavy Industries '
Technological innovation remains a key driver of transforming the aerospace parts manufacturing market. The integration of lightweight composite materials, such as carbon-fiber-reinforced polymers, is significantly reducing aircraft weight, leading to better fuel efficiency, increased payload capacity, and lower emissions. These materials are also corrosion-resistant and durable, enhancing the lifespan and performance of critical components like wings, fuselage sections, and interior panels.
Additive Manufacturing Revolutionizes Component Production: The adoption of additive manufacturing (3D printing) is reshaping how aerospace components are designed and produced. This trend allows manufacturers to create lighter, more complex parts with fewer materials and reduced waste. It also shortens production cycles and enables rapid prototyping, which is especially beneficial for custom or low-volume parts. Companies like Relativity Space and GE Aerospace are heavily investing in this technology to enhance efficiency and innovation.
How is North America Sustaining Its Leadership in Aerospace Parts Manufacturing?
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Report ID: SQMIG20A2152
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