The global aerospace parts manufacturing market size is expected to reach USD 1,233.2 billion by 2030 registering a CAGR of 4.0%, according to a new report by Grand View Research, Inc. Increasing passenger and freight traffic in emerging economies is driving the demand for next-generation aircraft, which in turn is expected to boost the market growth.
A majority of the aircraft manufacturing companies are integrated across the value chain and are highly active in the parts manufacturing process. These companies have in-house production facilities as well as supplier contracts for the procurement of these parts. The manufacturers are also involved in raw material procurement and designing and quality control of the parts offered by third party suppliers.
The market for aerospace part manufacturing is primarily concentrated in North America and Europe, owing to the presence of major aircraft manufacturers. China and India are expected to emerge as the leading markets in the forthcoming years, owing to the rapid growth of aircraft part manufacturing and export activities. The global trade in components and sub-assemblies has increased by approximately 25% during the past decade. However, the sector still remains consolidated with the top 3 countries including the U.S., Germany, and France, accounting for over 60% of the total aircraft manufacturing.
The market has observed a trend of a collaboration of the major companies entering into a joint venture. This helps the companies to sustain in the highly competitive market in terms of geographical expansion, technological advancements, and lowering the risk of failure. This also aids the companies to easily access the market for gaining long term contracts.
North America dominated the aerospace parts manufacturing market and accounted for the largest revenue share of more than 51% in 2021owing to the presence of key aircraft parts manufacturers and the well-established aircraft manufacturing industry in the region. Ascending demand for new-generation aircraft is expected to boost the market growth in the region over the forecast period. The market in the U.S. is characterized by the ascending demand for landing gear and other support components, on account of the upward trend of replacing old landing gears with advanced systems. In addition, the rising demand for fixed-wing aircraft in the U.S. is anticipated to drive the market over the forecast period.
Asia Pacific is estimated to be the fastest-growing market for aerospace parts manufacturing with a CAGR of 7.3% owing to the rapid expansion of the aviation industry and growth of the Maintenance, Repair, and Overhaul(MRO)sector in the region. This is expected to have a positive impact on regional market growth. The stability of investments in R&D in the aerospace and defense sector in Europe is expected to positively affect the aircraft parts manufacturing industry in the region. The industry also boasts of a highly innovative and cutting-edge research approach. Rapid growth in the production of cabin interior components is anticipated to drive the market growth over the forecast period.
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