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Aircraft, Engine & Parts Manufacturing in Europe - Market Size, Industry Analysis, Trends and Forecasts (2025-2030)

EU-C303 December 2025 Spotlight Report

Revenue

€227.0bn

2020-2025 0.6 %
2025-2030 X.X %

Employees

983k

2020-2025 4.7 %
2025-2030 X.X %

Businesses

4,143

2020-2025 5.8 %
2025-2030 X.X %

Wages

€XX.Xbn

2020-2025 X.X %
2025-2030 X.X %

Aircraft, Engine & Parts Manufacturing in Europe industry analysis

Aircraft manufacturing is a highly globalised industry, with large-scale manufacturers operating in many different locations, each specialising in a stage or product in the production process. For example, Airbus SE, which accounts for around a quarter of the European market, manufacturers commercial wings in North Wales while focusing on fuselage production in South France and Germany. Due to the globalised nature of the industry, manufacturers generate a significant proportion of their revenue from exports. Over the five years through 2025, revenue is expected to grow at a compound annual rate of 0.6% to €227 billion, including a forecast hike of 3.3% in 2025, when profit is set to inch up thanks to falling input costs.

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Industry Statistics and Trends

Aircraft, Engine & Parts Manufacturing in Europe key trends

France dominates European Aircraft manufacturing.

 

According to Eurostat, France’s aircraft, engine and part manufacturing revenue accounts for around half of the market. Airbus SE and Safran SA have many manufacturing facilities across France.

Higher global travel expenditure boosts orders from commercial airlines.

 

Global air passenger numbers are set to rise in the coming years, driving orders for new aircraft. For example, Airbus forecasts demand for 40,850 new passenger and freighter aircraft deliveries between 2023 and 2042.

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Aircraft, Engine & Parts Manufacturing in Europe

Industry Revenue

Total value and annual change from 2012-2030. Includes 5-year outlook.

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Aircraft, Engine & Parts Manufacturing in Europe market size (2020-2025)

Industry revenue has grown at a CAGR of 0.6 % over the past five years, to reach an estimated €227.0bn in 2025.

Trends and Insights

Rising air passenger numbers advance orders from global airlines

  • European aircraft manufacturers, especially France’s Airbus, rely heavily on large contracts from commercial airlines, with deals often worth billions of euros. Airbus dominates the European commercial aircraft sector, competing directly with Boeing. Airbus’s success is due to the company's ability to cater to both short-haul and long-haul markets with its narrow-body and wide-body aircraft families. Narrow-body aircraft like the A220 and A320neo serve regional and medium-range routes, while wide-body planes like the A330, A350 and A380 are designed for long-haul international flights.

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Aircraft, Engine & Parts Manufacturing in Europe outlook (2025-2030)

Market size is projected to grow over the next five years.

Sustainability and fuel efficiency drives future orders

  • The EU is driving green aviation through regulations and industrial partnerships, including funding to support manufacturers like France-based Airbus and Italy-based Learnado. The European Green Deal and Climate Law include aviation as part of broader decarbonisation targets, aiming for net zero by 2050. Policies like the Sustainable and Smart Mobility Strategy and the Zero Pollution Action Plan establish binding guidelines for cleaner aviation in the years to come. The ReFuelEU Aviation Regulations, implemented in 2023, require airlines operating in Europe to increase their use of sustainable aviation fuel (SAF). SAF blending mandates start at 2% in 2025, rising to 70% by 2050, promoting future demand for greener aircraft technologies.

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Revenue

€227.0bn

2020-2025 0.6 %
2025-2030 X.X %

Employees

983k

2020-2025 4.7 %
2025-2030 X.X %

Wages

€XX.Xbn

2020-2025 X.X %
2025-2030 X.X %

European Leaders & Laggards

Europe Job Growth CAGR: 4.7 % *
  • Job Growth

Top 5 Countries

  1. Sweden +35.5%
  2. Hungary +25.7%
  3. Luxembourg +24.3%
  4. Latvia +23.2%
  5. Cyprus 0.0%

Bottom 5 Countries

  1. Greece -21.8%
  2. Norway -10.5%
  3. Slovakia -5.4%
  4. North Macedonia -3.8%
  5. France -1.8%

* CAGR values are for the years 2020-2025.

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Biggest companies in the Aircraft, Engine & Parts Manufacturing in Europe

Company
Market Share (%)
2025
Revenue (€m)
2025
Profit (€m)
2025
Profit Margin (%)
2025
Airbus SE
75,070.0
6,292.4
8.4
Safran SA
29,540.0
3,590.0
12.2
Rolls-Royce plc
19,820.0
1,170.0
5.9

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Aircraft, Engine & Parts Manufacturing in Europe

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Top Questions Answered in this Report

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What is the market size of the Aircraft, Engine & Parts Manufacturing industry in Europe in 2025?

The market size of the Aircraft, Engine & Parts Manufacturing industry in Europe is €227.0bn in 2025.

How many businesses are there in the Aircraft, Engine & Parts Manufacturing industry in Europe in 2025?

There are 4,143 businesses in the Aircraft, Engine & Parts Manufacturing industry in Europe, which has grown at a CAGR of 5.8 % between 2020 and 2025.

Has the Aircraft, Engine & Parts Manufacturing industry in Europe grown or declined over the past 5 years?

The market size of the Aircraft, Engine & Parts Manufacturing industry in Europe has been growing at a CAGR of 0.6 % between 2020 and 2025.

What is the forecast growth of the Aircraft, Engine & Parts Manufacturing industry in Europe over the next 5 years?

Over the next five years, the Aircraft, Engine & Parts Manufacturing industry in Europe is expected to grow.

What does the Aircraft, Engine & Parts Manufacturing industry in Europe include?

Commercial aircraft and Aircraft engines are part of the Aircraft, Engine & Parts Manufacturing industry in Europe.

Which countries have the most businesses in the Aircraft, Engine & Parts Manufacturing industry in Europe?

The European country with the most businesses in the Aircraft, Engine & Parts Manufacturing industry is United Kingdom.

How competitive is the Aircraft, Engine & Parts Manufacturing industry in Europe?

The level of competition is high and steady in the Aircraft, Engine & Parts Manufacturing industry in Europe.

Related Industries

This industry is covered in 37 countries

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Table of Contents

About this industry

Industry definition

Companies in this industry manufacture complete aircraft and spacecraft, engines, propulsion units and other related equipment and parts, including military and civil aircraft and guided missiles. The manufacture of instruments and appliances for measuring, testing and navigation and the manufacture of launching devices for ground and aircraft carrier take-offs aren't included in the industry.

Related Terms

WIDE-BODY AIRCRAFTSPACECRAFTA350

What's included in this industry?

Commercial aircraftAircraft enginesAircraft equipmentDefence aircraftBusiness jets and other small planesHelicoptersSpace equipment

Companies

Airbus SESafran SARolls-Royce plc

Industry Code

ISIC 2006

303 - Manufacture of air and spacecraft and related machinery in Europe

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Performance

Key Takeaways

Rising air passenger numbers advance orders from global airlines

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Revenue Highlights

Trends
  • Revenue
  • 2025 Revenue Growth
  • Revenue Volatility

Employment Highlights

Trends
  • Employees
  • Employees per Business
  • Revenue per Employee

Business Highlights

Trends
  • Businesses
  • Employees per Business
  • Revenue per Business

Profit Highlights

Trends
  • Total Profit
  • Profit Margin
  • Profit per Business

Current Performance

Charts
  • Revenue in the Aircraft, Engine & Parts Manufacturing in Europe industry (2012 -2030)
  • Employees in the Aircraft, Engine & Parts Manufacturing in Europe industry (2012 -2030)
  • Business in the Aircraft, Engine & Parts Manufacturing in Europe industry (2012 -2030)
  • Profit in the Aircraft, Engine & Parts Manufacturing in Europe industry (2012 -2030)
Analysis

What's driving current industry performance in the Aircraft, Engine & Parts Manufacturing in Europe industry?


Outlook

Analysis

What's driving the Aircraft, Engine & Parts Manufacturing in Europe industry outlook?


Volatility

Analysis

What influences volatility in the Aircraft, Engine & Parts Manufacturing in Europe industry?

Charts
  • Industry Volatility vs. Revenue Growth Matrix

Life Cycle

Analysis

What determines the industry life cycle stage in the Aircraft, Engine & Parts Manufacturing in Europe industry?

Charts
  • Industry Life Cycle Matrix

Products and Markets

Highlights

Trends
  • Largest Market
  • Product Innovation

Key Takeaways

Rising defence spending amid global tensions raises defence aircraft volumes. The Russia-Ukraine conflict has driven up defence spending among EU member states and NATO members, boosting defence aircraft order volumes.

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Products and Services

Charts
  • Products and Services Segmentation
Analysis

How are the Aircraft, Engine & Parts Manufacturing in Europe industry's products and services performing?

Analysis

What are innovations in the Aircraft, Engine & Parts Manufacturing in Europe industry's products and services?


Major Markets

Charts
  • Major Market Segmentation
Analysis

What influences demand in the Aircraft, Engine & Parts Manufacturing in Europe industry?


International Trade

Highlights

  • Largest Importer
  • Smallest Importer
  • Total Imports into Europe
  • Largest Exporter
  • Smallest Exporter
  • Total Exports into Europe
Heat maps
  • Industry Concentration of Imports by Country
  • Industry Concentration of Exports by Country
Data Tables

Value and annual change (%) included

  • Number of Imports and Exports by European Country (2025)

Geographic Breakdown

Business Locations

Heat maps
  • Share of Total Industry Revenue by Region (2025)
  • Share of Total Industry Enterprises by Region (2025)
  • Share of Total Industry Employment by Region (2025)
  • Share of Total Industry Wages by Region (2025)

Industry Geographic Breakdown

Data Tables

Values and annual change provided for 37 European countries:

  • Revenue (2025)
  • IVA (2025)
  • Enterprises (2025)
  • Employment (2025)
  • Exports (2025)
  • Imports (2025)

Competitive Forces

Highlights

Trends
  • Concentration
  • Competition
  • Barriers to Entry
  • Substitutes
  • Buyer Power
  • Supplier Power

Key Takeaways

Defence contracts are dominated by a few European companies. Airbus, BAE Systems, Leonardo, Safran and Thales are a small cluster of defence contractors approved by the EU, NATO and UK government.

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Supply Chain

Charts

Buyer and supply industries

Companies

Market Share

Charts
  • Industry Market Share by Company (2020-2025)

Companies

Data Tables

Top 10 companies by market share:

  • Market share (2025)
  • Revenue (2025)
  • Profit (2025)
  • Profit Margin (2025)

Data Tables
  • Countries of operation for Airbus SE
  • Countries of operation for Safran SA
  • Countries of operation for Rolls-Royce plc
  • Countries of operation for Dassault Aviation SA
  • Countries of operation for Thales SA
  • Countries of operation for BAE Systems plc
  • Countries of operation for Leonardo SpA
  • Countries of operation for ArianeGroup
  • Countries of operation for Saab AB
  • Countries of operation for Thyssenkrupp Industrial Solutions AG

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Manufacturers must comply with EU Aviation Safety Agency Regulations (EASA). These regulations ensure all European commercial aircraft manufacturers comply with airworthiness rules.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Aircraft, Engine & Parts Manufacturing in Europe industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Steel prices ease, bringing down costs for aircraft manufacturers. The sharp drop in steel prices from 2023 and higher semiconductor production is reducing purchase costs.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Aircraft, Engine & Parts Manufacturing in Europe industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.