Aerospace Parts Manufacturing Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Aerospace Parts Manufacturing Market Trends and Insights

Growth in Worldwide Air Passenger Traffic

Passenger traffic rebounded sharply in 2024 and continues climbing in 2025, forcing airlines to add capacity and upgrade fleets. Airbus shipped 766 aircraft in 2024 and still holds a EUR 629 billion (USD 746.15 billion) backlog, underscoring long-dated demand visibility. Meanwhile, the B737 MAX line is stabilizing at 25 units per month, with further upside planned as supply bottlenecks clear. Asia-Pacific remains the pivot for incremental growth, as China alone is expected to triple its active fleet by 2042—an expansion that cascades across engines, aerostructures, and cabin systems. High utilization also lifts the aftermarket because more cycles translate into heavier maintenance, repair, and overhaul workloads.

Fleet Modernization Efforts to Enhance Fuel Efficiency

Airlines are retiring older airframes in favor of next-generation models equipped with high-bypass engines, advanced composites, and more-electric architectures. Ceramic matrix composites in hot sections elevate allowable temperatures and trim weight, enabling double-digit efficiency gains over legacy platforms.^{[1]GE Aerospace Commentary, “Ceramic Matrix Composite Advances,” financialmodelingprep.com} Lightweight materials, including advanced ceramics, are registering a 7.75% CAGR growth—outpacing the broader aerospace parts manufacturing market as operators strive to lower cost per available seat-mile. Around three-quarters of commercial fleets will require interior refits every six to seven years, creating sustained pull for cabin components even as new deliveries rise. Environmental regulations further accelerate replacement cycles as carriers look to cut carbon intensity per passenger.

Expansion of Global Defense Procurement Programs

Rising geopolitical tensions have prompted NATO members and several Asia-Pacific governments to elevate defense outlays. CPI Aerostructures’ order backlog swelled to USD 510 million, while Astronics reported 41.60% quarterly growth in its military-oriented avionics line. Programs spanning next-generation fighters and unmanned aerial systems drive demand for complex structures, advanced electronic warfare modules, and thermal-resistant materials. The defense channel acts as a countercyclical buffer, partly insulating the aerospace parts manufacturing market from commercial downswings. It often requires high-margin specialized components with lengthy lifecycles.

Rising Adoption of Lightweight and Advanced Materials

Suppliers push composite fabrication, additive manufacturing, and ceramic matrix technologies deeper into serial production. New insulation materials address stricter thermal and acoustic requirements in AAM vehicles and more-electric airframes. TIGHITCO and InsulTech are rolling out battery-friendly liners that withstand higher heat loads without weight penalties. OEMs also experimented with bio-based polymers and recyclability schemes to align with emerging circular economy mandates. Such transitions increase value per shipset and diversify revenue streams away from traditional metallic content.

Escalating Certification and Compliance Costs Across International Programs

The path to FAA, EASA, and other regulatory approvals is becoming longer and costlier. Achieving FAA Part 21 clearance on a complex assembly can exceed USD 1 million, while parallel EASA and Transport Canada submissions multiply documentation and testing requirements. Greater scrutiny after recent safety incidents has added several months to typical approval cycles, a delay that strains smaller suppliers’ cash flows. Compliance costs also weigh on innovation because new designs face an increasingly expensive validation hurdle, potentially stalling time-to-market for promising technologies.

Global Shortages of Skilled Labor and Associated Capital Investment Burdens

Precision machining, composite lay-up, and inspection roles remain chronically understaffed. Companies are investing in automation—CNC machining centers priced between USD 2 million and USD 5 million—to compensate, but such outlays raise fixed-cost structures and lengthen payback periods. Demographic shifts exacerbate the problem as veteran technicians retire faster than technical colleges can replenish the pipeline, causing a structural constraint on the aerospace parts manufacturing industry’s growth potential.

Segment Analysis

By Product Type: Engines Anchor Revenue While Insulation Components Accelerate

Engines generated the largest slice of the aerospace parts manufacturing market size, delivering 36.52% of 2024 sales as airlines and defense forces prioritized propulsion efficiency and reliability. High shop-visit volumes and rate hikes on single-aisle programs support a steady spare-parts stream, while next-generation geared turbofan and open-fan concepts promise richer bill-of-materials per unit. The segment benefits from multi-decade service agreements that lock in recurring revenue and shield suppliers from short-term traffic shocks.

Though much smaller in absolute value, insulation components are on track for a 7.94% CAGR—well ahead of industry growth. Demand stems from more-electric architectures that generate localized heat and urban air-mobility designs requiring tight acoustic footprints. Specialized players like TIGHITCO have introduced lightweight, fire-resistant blankets for battery compartments and avionics bays. As regulatory bodies tighten cabin noise and thermal performance rules, the aerospace parts manufacturing market share captured by insulation providers will likely increase.

Note: Segment shares of all individual segments available upon report purchase

By Material: Metals Retain Dominance as Advanced Ceramics Surge

Metallic content accounted for 46.23% of 2024 revenue, reflecting titanium’s ubiquity in engines, aluminum’s prevalence in primary structures, and high-strength steels in landing gear. Howmet Aerospace reported USD 3.735 billion in 2024 engine-product sales, exemplifying the scale in forged and precision-cast alloys.^{[2]Howmet Aerospace Investor Relations, “2024 Form 10-K Highlights,” howmetaerospace.com} While metals are indispensable, suppliers grapple with titanium bottlenecks and price volatility, sparking interest in regional processing and recycling initiatives.

Advanced ceramics and ceramic matrix composites exhibit the fastest expansion at a 7.75% CAGR, leveraged by GE Aerospace’s serial production of CMC turbine shrouds and nozzles that permit hotter operating temperatures. The aerospace parts manufacturing market size attributed to these materials is still modest but rising swiftly as design teams chase higher thrust-to-weight ratios.

By Aircraft Type: Commercial Dominates, AAM Gains Altitude

Commercial aviation delivered 63.24% of the 2024 aerospace parts manufacturing market revenue as carriers restored capacity and pursued fuel burn reductions. Airbus targets 75 A320-family units per month by 2027, while the B737 MAX assembly line approaches its pre-crisis cadence, reinforcing visibility for Tier-1 and Tier-2 suppliers. Although smaller in unit terms, widebody programs contribute higher value per frame through complex structures and premium systems content.

AAM posts the highest growth at a 9.57% CAGR, reflecting aggressive investment in electric vertical take-off and landing (eVTOL) prototypes, regional hybrid aircraft, and cargo drones. Though volumes are embryonic, the nascent ecosystem demands bespoke propulsion, lightweight structures, and rapid-certification pathways—areas where nimble suppliers can secure early mover advantages. Over time, AAM’s share of the aerospace parts manufacturing market is poised to climb as certification milestones and infrastructure build-outs converge.

Note: Segment shares of all individual segments available upon report purchase

By End User: OEMs Command Scale as Aftermarket Ensures Resilience

OEMs accounted for 70.11% of the market revenue in 2024 and are expected to grow at a CAGR of 6.76% during the forecast period, buoyed by firm delivery schedules and rate increases on flagship platforms. Long-term purchase agreements, risk-sharing production models, and substantial capital barriers solidify their position at the top of the aerospace parts manufacturing market. Consolidation—epitomized by Boeing’s pending Spirit AeroSystems acquisition—furthers vertical integration, enabling tighter cost and quality oversight.

While smaller, the aftermarket is a profit stabilizer, with lifetime value often exceeding original sale proceeds. As global flight hours climb, airlines allocate larger budgets toward maintenance, repair, and overhaul. Providers secure Parts Manufacturer Approval (PMA) to enter competitive niches previously locked down by OEM-mandated proprietary parts.

Geography Analysis

North America accounted for 36.54% of 2024 revenue, underpinned by Boeing, Lockheed Martin, and a dense network of systems integrators clustered in Washington, California, and the Southeast.^{[3]PitchBook Data, “Boeing Company Profile 2025,” pitchbook.com}Mexico’s emergence as a cost-competitive nearshoring hub deepens regional self-sufficiency, complementing USMCA trade benefits and shortening logistics loops. Capital spending remains robust, exemplified by Howmet Aerospace’s USD 321 million program to expand high-temperature alloy production. FAA certification frameworks and ITAR regulations shape workflow complexity and nurture a mature quality-assurance culture that sustains export competitiveness.

Asia-Pacific is the fastest-growing region at 7.01% CAGR, anchored by China’s ambition to triple its fleet by 2042 and India’s policy push to localize aerospace manufacturing. Singapore’s high-value MRO ecosystem and South Korea’s component expertise add depth, while Southeast Asian nations court Tier-3 suppliers with tax incentives. Domestic champions such as AVIC and Hindustan Aeronautics absorb technology transfers and replicate best-in-class processes, gradually boosting regional content in global supply chains. Talent shortages and evolving regulatory alignments remain execution hurdles.

Europe maintains significant weight through Airbus and an array of specialty houses—Safran in engines, Rolls-Royce in propulsion, and Diehl in interiors. Airbus alone delivered EUR 69.2 billion (USD 82.10 billion) in 2024 revenue and is scaling A320 output to 75 units monthly. EASA environmental mandates spur material innovation and life-cycle analyses, while Brexit reshapes trade protocols between the UK and continental suppliers. The Middle East and Africa show selective strength, most notably in Gulf carrier fleet additions and associated MRO ventures, yet political and fiscal uncertainties temper broader uptake.