U.S. Aerospace Parts Manufacturing Market (2024 - 2030)

Market Size & Trends

The U.S. aerospace parts manufacturing market size was estimated at USD 424.23 billion in 2023 and is expected to grow at a CAGR of 1.7% from 2024 to 2030. The market is driven by the increasing demand for U.S. based high quality aircraft parts throughout the world. This is due to the presence of established players such as The Boeing Company, United Aircraft Technologies, and Lockheed Martin Corporation in the country.

The U.S. is the largest aerospace & defense market, with manufacturing facilities of all major industry players established in the country. Manufacturers of aerospace & defense systems are making strong gains from the export of manufactured goods, which has led to a rise in the rate of manufacturing. Imports of aerospace & defense systems are also experiencing considerable growth, resulting in a positive trade balance in the U.S. aerospace and defense industry. Aircraft parts sourced from the U.S. includes wings, fasteners, fuselages. The global aerospace parts manufacturing market heavily relies on the U.S. market due to its strong legacy and technological ability to produce high quality products.

The U.S. market is characterized by the increasing demand for landing gear and other support components in an aircraft. This is due to the continuous replacement of old landing gear with new and advanced systems. Thus, the continuous process is expected to positively impact the market growth over the forecast period. Furthermore, the rising demand for fixed wing aircraft is anticipated to drive aerospace parts manufacturing market in the U.S. Furthermore, aircraft market is characterized by the presence of established players offering innovative products, such as Oxford Performance Materials offering additive manufacturing solutions that complement the market development. This is anticipated to drive the demand for aerospace materials used for efficient operations.

Market Characteristics & Concentration

The market is highly concentrated with established players leading the growth. The pace of the market is moderate, and the growth is accelerating. The market is characterized by established players with a strong financial base, as a result the barriers of entry are high. Moreover, the aircraft manufactures usually opt for reliable suppliers with high goodwill on account of past product procurement, making it difficult for the new entrants to establish their business. The innovation in 3D printing is expected to mold new product portfolio in the market.

The impact of regulation is positive on the market. Stringent government regulations regarding the emissions and increasing fuel prices has led growth for fuel-efficient aircraft, which reduces the amount of emissions, thereby reducing the overall environmental impact. Thus, lightweight aerospace parts are being manufactured, further boosting the market growth.

Limited number of manufacturers and customized product requirements, with products being order-specific, the market faces almost no threat of substitution. However, use of emerging technologies such as additive manufacturing, also known as 3D printing, for manufacturing of low-cost, sustainable aircraft parts is increasing at a significant rate. This technology may replace the traditional manufacturing process for aircraft components in future.

Product Insights

The aircraft manufacturing segment dominated the market with a revenue share of 58% in 2023. This segment comprises the manufacturing and assembly of a complete aircraft, including aero structure. The U.S. market is extremely favourable for the aircraft manufacturing owing to the increased number of aging fleets in the region. With the increasing per capita income, more people are preferring air travel over other mode of transports. This has increased pressure on the airlines making them replace aging aircrafts with new fuel efficient aircrafts.

The avionics segment is expected to witness the fastest CAGR of 3.8% during the forecast period. Avionics demand follows overall aircraft parts manufacturing. Advanced avionics are used to incorporate screens in the aircraft which helps in displaying pictures of the flight routes and other necessary data during the flight. These parts help in increasing the safety and utility of the aircraft. Avionics encompasses electronic aircraft systems, such as fly-by-wire or fly-by-light flight controls, system monitoring, anti-collision system, and pilot interface systems including communication, flight management systems, navigation, and weather forecast.

Aircraft Insights

The commercial aircraft segment dominated the U.S. aerospace parts manufacturing market with a revenue share of over 50% in 2023. To reduce the carbon emissions, several changes are being made in the structure of commercial aircrafts. This is expected to boost the manufacturing of lightweight aerospace parts over the forecast period. Moreover, with improved trade relations globally, there is an increase in the demand for cargo services, is also expected to further drive the market growth.

The businesses aircraft segment is anticipated to expand at the fastest CAGR of 3.0% during the forecast period. The propelling need for business aircraft is due to its benefits over other aircrafts such as enhanced productivity and efficiency. Business aircraft is also preferred since it helps boost productivity as air travel is faster than other modes of travel. This is expected to drive the demand for business aircraft over the forecast period.

Key U.S. Aerospace Parts Manufacturing Company Insights

With large number of companies in the market offering suitable products for the manufacturing of aircraft, the market is highly competitive. The aircraft parts manufacturers strive to attain long term supply contracts with aircraft manufacturers, thereby increasing the rivalry in the market. The market players scoring these contracts gain a competitive edge over the other players.

Recent Development

• In March 2024, Pratt & Whitney announced that Icelandair has selected GTF engines to power up to 35 new Airbus A320neo family aircraft. The collaboration also comprises a mix of lease and purchase of A321XLR and A321LR aircraft. With this collaboration Icelandair becomes the first-time GTF customer.

• In February 2024, Collins Aerospace, an RTX business, has been selected by Air India for providing a full suite of avionics hardware for the airline’s expanding Boeing 737 MAX fleet.

U.S. Aerospace Parts Manufacturing Market