Aerospace Parts Manufacturing Market Report 2026

The aerospace parts manufacturing market size has grown strongly in recent years. It will grow from $1.02 trillion in 2025 to $1.07 trillion in 2026 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to growth in global aircraft production programs, increasing demand for aircraft engine upgrades and replacements, expansion of commercial aviation fleets driving component manufacturing needs, rising military procurement of advanced propulsion systems, adoption of advanced forming processes such as rubber pad forming and hydroforming to enhance manufacturing efficiency.

The aerospace parts manufacturing market size is expected to see steady growth in the next few years. It will grow to $1.28 trillion in 2030 at a compound annual growth rate (CAGR) of 4.6%. The growth in the forecast period can be attributed to rising production of next-generation aircraft requiring complex engine and propulsion components, increasing integration of lightweight and composite-compatible aerospace parts, growing demand for sustainable and fuel-efficient propulsion technologies, expansion of maintenance repair and overhaul (mro) activities boosting replacement part manufacturing, advancement in digital manufacturing technologies such as additive manufacturing for aerospace components. Major trends in the forecast period include increasing adoption of advanced composite materials, rising demand for lightweight aircraft components, growth in aftermarket manufacturing for mro operations, expansion of modular aircraft component manufacturing, integration of additive manufacturing for parts production.

An increase in passenger traffic is expected to drive the aerospace parts manufacturing market in the coming years. Passenger traffic refers to the total number of individuals using an airport, including those boarding and disembarking aircraft. It is calculated by dividing the number of passenger miles traveled by the total distance traveled during a specific period. As passenger traffic rises each year, more aircraft will be needed, resulting in greater demand for aerospace parts manufacturing. The growth in passenger traffic will therefore support market expansion. For example, in January 2024, the International Air Transport Association (IATA), a Canada-based trade association for global airlines, reported that international air traffic increased by 41.6% in 2023 compared to 2022, while total air traffic (measured in revenue passenger kilometers) grew by 36.9% over the same period. Thus, the rise in passenger traffic is fueling the aerospace parts manufacturing market.

Major companies in the aerospace parts manufacturing market are focusing on developing advanced technologies, including AI-enabled solutions, to improve production precision, enhance workflow efficiency, and reduce operational challenges. AI-enabled solutions involve software, systems, or devices incorporating artificial intelligence technologies such as machine learning, natural language processing, or computer vision to analyze data, automate tasks, and support intelligent decision-making. For instance, in January 2023, Plataine Ltd., an Israel-based provider of AI-enabled manufacturing optimization technologies, launched FabricOptimizer, an AI-powered nesting and defect-management tool designed for aerospace production environments. The system automatically reviews various cutting patterns and material quantities to create the most efficient cut plan for individual kits. By improving material utilization and reducing manual errors, rework, and scrap, FabricOptimizer enables full process automation and helps manufacturers address workforce limitations, supply chain obstacles, and sustainability goals.

In May 2024, Precision Aerospace Holdings, a U.S.-based supplier of precision components and assemblies for the aerospace and defense sector, acquired Owens Machine and Tool Company for an undisclosed amount. This acquisition enhances Precision Aerospace Holdings’ capabilities in multi-axis CNC machining of titanium and nickel alloys, broadens its expertise in high-precision machining and tooling solutions, and supports continued growth within aerospace and defense supply chains. Owens Machine and Tool Company is a U.S.-based manufacturer specializing in precision-machined components and tooling for aerospace and industrial uses.

Major companies operating in the aerospace parts manufacturing market are RTX Corporation, General Electric Company, Airbus SAS, Honeywell International Inc., Mitsubishi Heavy Industries Ltd., BAE Systems plc, Safran S.A., Eaton Corporation plc, Freudenberg & Co. KG, Rolls Royce plc, Bombardier Inc., MTU Aero Engines AG, Spirit AeroSystems Holdings Inc., Embraer S.A., GKN Aerospace Ltd., Woodward Inc., Hexcel Corporation, Triumph Group, Panasonic Avionics Corporation, Jamco Corporation, Kellstrom Defense Aerospace Inc., Intrex Aerospace, Aequs Private Limited, CAMAR Aircraft Parts Company, Lycoming Engines, Aero Engineering & Manufacturing Co., Engineered Propulsion System Inc., Superior Air Parts Inc., Aviant Aerospace Inc.

North America was the largest region in the aerospace parts manufacturing market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global aerospace parts manufacturing market report during the forecast period. The regions covered in the aerospace parts manufacturing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the aerospace parts manufacturing market by increasing the cost of imported metals, precision components, and electronic systems used in engines, avionics, and aerostructures. These added costs particularly affect propulsion system components, aerostructure assemblies, and avionics segments, with regions such as North America, Europe, and Asia-Pacific experiencing notable supply chain disruptions. Despite these challenges, tariffs are also stimulating domestic production investments and encouraging localized sourcing strategies, creating long-term resilience and new opportunities for regional manufacturers.

The aerospace parts manufacturing market research report is one of a series of new reports that provides aerospace parts manufacturing market statistics, including aerospace parts manufacturing industry global market size, regional shares, competitors with a aerospace parts manufacturing market share, detailed aerospace parts manufacturing market segments, market trends and opportunities and any further data you may need to thrive in the aerospace parts manufacturing industry. This aerospace parts manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Aerospace parts manufacturing involves the production of various components essential for aircraft, including aircraft engines, propulsion systems, auxiliary equipment, and their respective parts. Companies engaged in aerospace parts manufacturing are involved in various activities such as manufacturing, development, sale, testing, and maintenance of airplanes. Their primary focus is on creating the necessary aerospace components required for the construction and assembly of aircraft. This industry plays a critical role in the aviation sector by ensuring the production and supply of high-quality parts that contribute to the overall performance, safety, and functionality of aircraft.

Aerospace parts manufacturing encompasses the production of key products, including engines, aerostructures, cabin interiors, equipment, systems and support, avionics, and insulation components. Engines serve as devices that convert fuel energy into mechanical energy, powering the motion of aircraft. The major applications of these aerospace components include interior and propulsion systems, catering to diverse end-users such as commercial aircraft, business aircraft, military aircraft, and other sectors. This industry plays a crucial role in providing essential components that contribute to the functionality and performance of various types of aircraft, meeting the needs of a wide range of end-users in the aviation sector.

The countries covered in the aerospace parts manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The aerospace parts manufacturing market includes revenues earned by rubber pad forming and hydroforming. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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