by The aerospace parts manufacturing market involves the production of components and parts that go into aircraft, space vehicles, satellites, missiles and other aerospace applications. Key product types include engine parts, aircraft structural parts, cabin interior parts, fuselage parts, avionics and more. Aerospace parts have to meet stringent quality and safety standards due to factors like high speeds, extreme environmental conditions and human safety requirements. Additive manufacturing or 3D printing technologies are reshaping aerospace parts production by enabling greater design flexibility, part consolidation and complex geometries at lower costs.
The Global Aerospace Parts Manufacturing Market is estimated to be valued at US$ 918.7 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the aerospace parts manufacturing market include Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd, Teijin, Lockheed Martin Corporation, Triumph Group, Inc, Safran , JAMCO Corporation, Rolls-Royce plc.
Key opportunities: Growing commercial aircraft deliveries, rising demand for military aircraft and space programs, and adoption of additive manufacturing will drive significant opportunities in the market over the coming years.
Technological advancements: Additive manufacturing technologies like 3D printing are enabling the production of complex aerospace parts with design freedoms not possible before. This is improving performance, reducing costs and lead times.
Market Drivers
Increasing air passenger traffic: Continued passenger traffic growth of around 5% annually is driving aircraft OEMs to ramp up production rates. This is fueling the demand for various aircraft parts and components.
Advancements in aviation technology: Developments in aircraft materials, engines, avionics and other systems require advanced component designs. This spurs innovation in aerospace parts manufacturing.
Current Challenges in Aerospace Parts Manufacturing Market
The aerospace parts manufacturing industry is currently facing challenges such as rising raw material costs, supply chain disruptions, geopolitical tensions, talent crunch and shortage of skilled labor. With the prices of aluminum, titanium and other critical raw materials rising significantly, input costs have increased substantially for manufacturers. The COVID-19 pandemic severely impacted the global supply chains as major suppliers were located in various parts of the world. Finding alternatives and establishing local supply networks has become crucial. Trade wars and political instability in certain regions have made sourcing and exports difficult. There is a shortage of engineers, mechanics and technicians with expertise in aerospace manufacturing. Attracting and retaining top talent requires competitive compensation packages.
SWOT Analysis
Strength: Established global players with decades of expertise and reputation for quality and reliability. Technological leadership in design, engineering and production processes.
Weakness: Heavy reliance on few large OEM customers makes revenues vulnerable to business cycles and demand fluctuations. High fixed costs due to capital intensive nature of operations.
Opportunity: Growth in commercial aircraft deliveries and modernization programs by militaries. Rising MRO services market with aging fleets. Expanding into new segments like space travel and urban air mobility.
Threats: Threat of new entrants and competition increasing. Rising vulnerability to trade barriers and geopolitical tensions affecting global supply chains.
Geographical Regions
North America accounts for the largest share currently, with the presence of major OEMs and Tier 1 suppliers. However, Asia Pacific is expected to witness the fastest growth due to expandingAerospace Parts Manufacturing Market Regional Analysis footprint of Airbus and Boeing. China is aggressively promoting its commercial and defense aerospace programs which is scaling up procurement of parts from local suppliers.
Western Europe represents an important market concentrated around countries like UK, Germany and France. Strong aerospace cluster benefits parts suppliers through established supply linkages and support infrastructure. Countries like Mexico and Brazil have emerged as leading export hubs for aircraft components targeting North American and some European OEMs.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
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