Gearing up: Increased military spending is expected to augment private sector gains

The Aircraft, Engine and Parts Manufacturing industry has changed significantly over the five years to 2017. During the five-year period, the industry's commercial segment rapidly grew, with demand increasing due to climbing global air travel and fleet replacement. On the other hand, the defense segment has been hit by declining US defense spending, partially offsetting strong commercial demand. Nonetheless, due to surging commercial demand, industry revenue is expected to increase. Over the five years to 2022, industry revenue is forecast to continue rising. Global and domestic demand for commercial aircraft will continue to drive revenue growth. Moreover, the defense market is anticipated to pick up as production of key industry platforms, such as the F-35, picks up...purchase to read more.

Industry Statistics & Market Size
Revenue
$240bn
Annual Growth 12-17
3.8%
Forecast Growth 17-22
Profit
Employment
376,856
Businesses
1,795

Industry Threats & Opportunities

  • Strong global and domestic demand for commercial aircraft will drive growth
  • While domestic demand for military aircraft declined, international demand boomed
  • Industry operators can expect a more tempered market compared with the previous five years
  • Industry Report - Industry Locations Chapter

    When choosing location industry operators look at several factors including, government incentives, a source of skilled labor and locations of universities that do basic research. Suppliers tend to set up facilities near major original equipment manufacturers' factories to cut down on transportation costs, thereby forming manufacturing hubs. Defense contractors commonly spread their operations across multiple states to gain support from legislatures and government officials when it comes to contracts.The WestThe West region accounts for 27.1% of industry establishments. California has by far the largest aerospace sector in the country with multiple manufacturers having facilities there. The...purchase to read more.

    Additional Insights for the Aircraft, Engine & Parts Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aircraft, Engine & Parts Manufacturing Industry are

  • Economies of scope
  • Well-developed internal processes
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Demand from air transportation and Federal funding for defense in the Aircraft, Engine & Parts Manufacturing industry impact industry performance..

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    What's in this report

    What is the Aircraft, Engine & Parts Manufacturing Industry?

    Companies in this industry manufacture and overhaul complete aircraft, develop prototypes and convert aircraft. The industry also includes the manufacture, conversion and overhaul of aircraft engines and propulsion systems. Additionally, the industry makes related parts and auxiliary equipment. For information on guided missiles, space vehicles and related equipment, which are excluded from this industry, see Space Vehicle and Missile Manufacturing industry (IBISWorld report 33641b).

    Industry Products
  • Aircraft
  • Aircraft engines and engine parts
  • Other aircraft parts and auxiliary equipment
  • Industry Activities
  • Manufacturing and rebuilding aircraft
  • Manufacturing aircraft engines and engine parts
  • Manufacturing aircraft auxiliary parts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from air transportation
  • Federal funding for defense
  • NATO defense spending
  • Trade-weighted index

  • Current Performance
  • Commercial segment soars
  • Defense segment nosedives
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Civil segment moderates
  • Defense segment levels out
  • Profit and other trends
  • Table: Aircraft, Engine & Parts Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aircraft, Engine & Parts Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Aircraft, Engine & Parts Manufacturing
  • Aircraft, Marine & Railroad Transportation Equipment Wholesaling
  • International Airlines
  • Domestic Airlines
  • Charter Flights

  • Key Selling Industries
  • Circuit Board & Electronic Component Manufacturing
  • Computer Manufacturing
  • Computer Peripheral Manufacturing
  • Engine & Turbine Manufacturing
  • Iron & Steel Manufacturing
  • Molybdenum & Metal Ore Mining
  • Semiconductor & Circuit Manufacturing

  • Products & Services
  • Aircraft
  • Other aircraft parts and auxiliary equipment
  • Aircraft engines and engine parts
  • Chart: Aircraft, Engine & Parts Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Civil demand
  • Volatile demand for military aircraft

  • Major Markets
  • Exports
  • Domestic civil market
  • Domestic defense market
  • Chart: Major Market Segmentation for the Aircraft, Engine & Parts Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Aircraft, Engine & Parts Manufacturing

  • Basis of Competition
    Commercial marketDefense marketEngine manufacturersExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aircraft, Engine & Parts Manufacturing Industry

  • Industry Globalization
    The Boeing Company, GE Aviation, Lockheed Martin Corporation, United Technologies Corporation,
  • Table: The Boeing Company - financial performance
  • Table: GE Aviation - financial performance
  • Table: Lockheed Martin Corporation - financial performance
  • Table: United Technologies Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aircraft, Engine & Parts Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Aircraft, Engine & Parts Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Federal Funding for Defense (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    787
  • The Boeing Company's 787 class of commercial passenger aircraft that experienced production delays before beginning service and has since suffered equipment failures and a global grounding.
  • Large Commercial Aircraft
  • Large commercial aircraft are the largest category of commercial planes and can carry large amounts of passengers.
  • Original Equipment Manufacturer (Oem)
  • OEMs assemble complete aircraft, which they sell under their name. Examples include Boeing, Lockheed Martin Corporation and Northrup Grumman Corporation.
  • Unmanned Aerial Vehicles (Uav)
  • Aircraft that fly without a human crew on board.
  • What Our Customers Say

    Why buy this report?

    The Aircraft, Engine & Parts Manufacturing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    This report on Aircraft, Engine & Parts Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aircraft, Engine & Parts Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aircraft, Engine & Parts Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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