Aircraft Manufacturing Global Market Report 2024

The aircraft manufacturing market size has grown strongly in recent years. It will grow from $434.45 billion in 2023 to $461.34 billion in 2024 at a compound annual growth rate (CAGR) of 6.2%. Historical growth can be attributed to the expansion of commercial air travel, the global expansion of air transport, regular replacement cycles, the emergence of low-cost carriers, and the influence of environmental regulations.

The aircraft manufacturing market size is expected to see strong growth in the next few years. It will grow to $588.06 billion in 2028 at a compound annual growth rate (CAGR) of 6.3%. Forecasted growth is due to sustainable aviation demand, emerging market expansion, UAM, global collaborations, and enhanced passenger experience. Key trends include digitalization, electric/hybrid aircraft innovation, technology advancements, fuel efficiency demand, and advanced avionics/connectivity integration.

The anticipated surge in air passenger traffic is set to act as a catalyst for the growth of the aircraft manufacturing market in the foreseeable future. Air passenger traffic, a quantification of the individuals transported by airlines or through airports within a specified timeframe, serves as a pivotal gauge of the demand for air travel. This metric is influenced by various factors including economic conditions, evolving consumer preferences, travel restrictions, and competition among airlines. The escalating demand for air travel and the concurrent increase in passenger traffic have opened avenues for the expansion of the aircraft manufacturing industry. This growth stems from airlines' requirements for augmenting their fleets to accommodate the surging demand, enabling them to introduce new routes and services. Consequently, this burgeoning demand propels the necessity for new aircraft orders. As an example, Eurostat's air transport statistics in December 2022 indicated a substantial rise in air passenger numbers, soaring from 216 million in 2020 to 373 million in 2021. This upward trend in air passenger traffic signifies a driving force behind the forward momentum of the aircraft manufacturing market.

The escalation in geopolitical tensions is poised to act as a significant driver for the growth of the aircraft manufacturing market in the foreseeable future. Geopolitical tensions, characterized by conflicts, rivalries, or disputes among nations or regions, often stemming from territorial, resource, power, or ideological issues, have a profound impact on aircraft manufacturing dynamics. These tensions tend to prompt nations to fortify their defense capabilities, resulting in an increased demand for military aircraft, including fighter jets, reconnaissance planes, and strategic bombers. The perceived imperative for modernization, bolstering strategic airlift capacities, and augmenting surveillance capabilities in response to geopolitical uncertainties motivates governments to invest in new and advanced aircraft. This heightened demand, in turn, stimulates growth within the aerospace and defense industry. For example, in March 2022, the U.S. Department of State and The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) escalated pressure on Russia by imposing sanctions on numerous Russian elites and their family members. These measures targeted specific properties of these individuals as blocked assets, aiming to sanction Russian intelligence-directed disinformation outlets. This action followed earlier sanctions in January 2022, identifying Russian agents involved in activities aimed at destabilizing the Ukrainian government, building upon sanctions imposed in April 2021 for Russian-backed efforts to influence U.S. elections. Such geopolitical developments tend to drive nations to invest in advanced aircraft technology. Thereby stimulating growth in the aircraft manufacturing market within the aerospace and defense sector.

Prominent players within the aircraft manufacturing market are strategically focusing on developing novel solutions, such as the establishment of electric aircraft manufacturing plants, aimed at securing a competitive edge in the industry. Electric aircraft are aerial vehicles propelled by electric propulsion systems that rely on electric motors for thrust. A noteworthy example occurred in October 2023 when Beta Technologies, a leading US-based aerospace company, inaugurated an advanced electric aircraft production facility situated at the Patrick Leahy Burlington International Airport. Spanning an area of 188,500 square feet, this cutting-edge facility is engineered to operate at net-zero energy levels and incorporates sustainable technologies. Its primary purpose is the manufacturing of BETA's range of all-electric aircraft, including models such as the ALIA CTOL and the ALIA VTOL, catering to both military and commercial markets. Emphasizing sustainability, the facility incorporates features such as geothermal wells, rooftop solar panels, and a keen focus on efficiency and human-centered design. BETA adopts a balanced manufacturing approach that encompasses vertical integration along with collaborations with leading aerospace suppliers. The company's strategic blueprint includes plans to scale production to manufacture up to 300 aircraft annually, showcasing its commitment to innovation and leadership in the burgeoning realm of electric aircraft manufacturing.

Prominent companies within the aircraft manufacturing market are strategically prioritizing collaborative efforts to deliver dependable services to their clientele. Strategic collaboration refers to the symbiotic partnership between independent entities, working in tandem to attain shared objectives that align with their individual strategic aims. An exemplar of this approach was witnessed in June 2023 when Capgemini SE, a France-based information technology company, announced a collaborative venture with Amazon Web Services Inc. (AWS), a US-based cloud computing entity. This collaboration resulted in the unveiling of a pioneering technology platform named Lifecycle Optimization for Aerospace during the International Paris Air Show. The primary goal of this collaborative initiative is to revolutionize the aviation industry by integrating circular economy principles, automating inspection processes, and optimizing the lifecycle analysis of aircraft components. Leveraging AI and machine learning functionalities hosted on AWS's Cloud infrastructure, the platform aims to elevate maintenance efficiency, prolong the usability of serviceable parts, and facilitate informed decision-making to foster sustainable practices within the industry. This strategic alliance between Capgemini and Amazon Web Services stands as a testament to their commitment to innovation and customer-centric solutions within the aircraft manufacturing sector.

In March 2022, Textron Inc., a US-based aircraft company, successfully acquired Pipistrel for an undisclosed sum. This strategic acquisition marked Textron's expansion into the electric aviation market and broadened its aircraft portfolio significantly. Leveraging Pipistrel's innovative technology and expertise, Textron aims to develop and introduce electric-powered aircraft, capitalizing on the acquired company's capabilities. Pipistrel d.o.o., headquartered in Slovenia, specializes in manufacturing gliders and light aircraft equipped with both electric and combustion engines.

Major companies operating in the aircraft manufacturing market report are The Boeing Company, Lockheed Martin Corporation, Airbus SE, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Leonardo S.p.A., Textron Aviation Inc. , Kawasaki Heavy Industries Aerospace Company, Commercial Aircraft Corporation of China Ltd. (COMAC), Gulfstream Aerospace Corporation, Dassault Aviation, Bombardier Inc., United Aircraft Corporation , Mitsubishi Aircraft Corporation, Embraer S.A., Saab AB, Irkut Corporation, Korea Aerospace Industries Ltd. (KAI), Sukhoi Company , Piaggio Aero Industries S.p.A. , Arianespace SA, Piper Aircraft Inc., Fokker Technologies Holding B.V., Diamond Aircraft Industries GmbH, Antonov State Company, Hindustan Aeronautics Limited , Hawker Beechcraft Corporation , Pilatus Aircraft Ltd., ATR - GIE Avions de Transport Régional.

North America was the largest region in the aircraft manufacturing market in 2023. Asia-pacific is expected to be the fastest-growing region in the global aircraft manufacturing market report during the forecast period. The regions covered in the aircraft manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aircraft manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The principal product categories in aircraft manufacturing include gliders, helicopters, ultra-light aircraft, passenger aircraft, unmanned aerial vehicles (UAVs) and drones, as well as blimps or airships. Gliders are aircraft without engines, designed for unpowered flight. The diverse range of aircraft types also includes freighter aircraft and passenger aircraft, each serving various applications such as military and defense, civil aviation, commercial freight transport, and other specialized uses within the aerospace industry.

The aircraft manufacturing market research report is one of a series of new reports that provides aircraft manufacturing market statistics, including aircraft manufacturing industry global market size, regional shares, competitors with a aircraft manufacturing market share, detailed aircraft manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the aircraft manufacturing industry. This aircraft manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The aircraft manufacturing market consists of sales of cargo plane, military plane, and jet aircraft. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.