Fly on: Rising demand from airlines and freight companies will help drive growth

Over the past five years, economic growth has led to increased air travel and freight volumes. As a result, demand for industry services has increased, with industry revenue expected to climb at an annualized rate of 2.3% to $51.8 billion over the five years to 2018, including a 0.3% increase in 2018 alone. As the economy expanded and consumers spent more money on air travel, air traffic and airline revenue increased, leading to greater demand for replacement parts. Over the five years to 2023, industry revenue is forecast to grow an annualized 0.7% to $53.5 billion. Rising demand from airlines and freight companies will help drive this growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$52bn
Annual Growth 13-18
2.3%
Forecast Growth 18-23
Profit
Employment
36,904
Businesses
2,518
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Airlines, freight companies and the military buy industry products to repair and replace parts for aircraft, ships and trains
  • Increased consumer spending, retail sales and manufacturing activity led to higher freight volumes
  • The global commercial aircraft fleet is expected to maintain growth due to rising air travel
  • Industry Report - Starting a New Business Chapter

    Overall, the Aircraft, Marine and Railroad Transportation Equipment Wholesaling industry has moderate barriers to entry. Purchasing larger and more expensive products, like engines, requires a lot of capital. The equipment needed to transport and store these goods is also expensive. Large customers like airlines and militaries demand a high level of service and quick delivery, meaning that new entrants may have difficulty obtaining the capacity to sell to such organizations. However, participants that focus on used parts and sell smaller ticket items like fasteners require less capital and capacity.Companies that sell aerospace and defense products also must contend with strict regulation. The...purchase to read more.

    Additional Insights for the Aircraft, Marine & Railroad Transportation Equipment Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aircraft, Marine & Railroad Transportation Equipment Wholesaling Industry are

  • Provision of superior after-sales service
  • Having a good technical knowledge of the product
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Federal funding for transportation and Federal funding for defense in the Aircraft, Marine & Railroad Transportation Equipment Wholesaling industry impact industry performance..

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    What's in this report

    What is the Aircraft, Marine & Railroad Transportation Equipment Wholesaling Industry?

    This industry wholesales transportation equipment and supplies, including aircraft and aircraft parts and equipment, boats and marine equipment and railroad cars and railroad equipment. It does not wholesale marine pleasure craft engines and parts, motor vehicle-related transportation equipment or electronic navigational equipment (e.g. sonar or radar).

    Industry Products
  • New aircraft equipment, parts and supplies
  • Used aircraft equipment, parts and supplies
  • New aircraft
  • New aircraft engines and engine parts
  • Marine machinery, equipment and supplies
  • Other equipment and services
  • Industry Activities
  • Wholesaling aeronautical equipment and supplies
  • Wholesaling aircraft engines and parts
  • Wholesaling aircraft
  • Wholesaling boats (except pleasure)
  • Wholesaling locomotives
  • Wholesaling marine supplies (except pleasure)
  • Wholesaling navigational instruments (except electronic)
  • Wholesaling railroad cars
  • Wholesaling railroad equipment and supplies
  • Wholesaling ships
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for transportation
  • Federal funding for defense
  • Demand from air transportation
  • Freight transportation services index

  • Current Performance
  • Initial turbulence
  • The industry gains altitude
  • Competition and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Continued growth
  • Obstacles remain
  • Consolidation and profit
  • Table: Aircraft, Marine & Railroad Transportation Equipment Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aircraft, Marine & Railroad Transportation Equipment Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Aircraft, Engine & Parts Manufacturing
  • Ship Building
  • International Airlines
  • Domestic Airlines
  • Charter Flights
  • Rail Transportation
  • Ocean & Coastal Transportation
  • Aircraft Maintenance, Repair & Overhaul

  • Key Selling Industries
  • Aircraft, Engine & Parts Manufacturing
  • Boat Building
  • Engine & Turbine Manufacturing
  • Train, Subway & Transit Car Manufacturing

  • Products & Services
  • New aircraft equipment, parts and supplies
  • Used aircraft equipment, parts and supplies
  • New aircraft
  • Other equipment and services
  • New aircraft engines and engine parts
  • Marine machinery, equipment and supplies
  • Chart: Aircraft, Marine & Railroad Transportation Equipment Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Defense spending
  • Commercial airline demand and air travel
  • Parts wear and tear cycle
  • Industry regulations

  • Major Markets
  • Export sales
  • Businesses for end use in their own operation
  • Other customers
  • Wholesale establishments
  • Manufacturers
  • Government bodies
  • Chart: Major Market Segmentation for the Aircraft, Marine & Railroad Transportation Equipment Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, utilities, depreciation and marketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Aircraft, Marine & Railroad Transportation Equipment Wholesaling

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aircraft, Marine & Railroad Transportation Equipment Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Aircraft, Marine & Railroad Transportation Equipment Wholesaling 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, Marine & Railroad Transportation Equipment Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total US commercial aircraft fleet (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Discretionary Spending
  • Spending budgeted by the federal government that is subject to change, as opposed to entitlements, for which there must be funding.
  • Maintenance-Repair-Overhaul
  • MRO companies are hired by airlines, freight companies and the government to maintain, repair and overhaul their aircraft, ships and trains.
  • Throughput
  • The movement of inputs and outputs through a production process.
  • Wholesale Bypass
  • A trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    The Aircraft, Marine & Railroad Transportation Equipment Wholesaling industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Aircraft, Marine & Railroad Transportation Equipment Wholesaling:
    • 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, Marine & Railroad Transportation Equipment Wholesaling 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, Marine & Railroad Transportation Equipment Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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