Aircraft Manufacturing Market Report 2025

The aircraft manufacturing market size has grown strongly in recent years. It will grow from $451.77 billion in 2024 to $478.65 billion in 2025 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to commercial air travel growth, globalization of air transport, replacement cycles, rise of low-cost carriers, environmental regulations.

The aircraft manufacturing market size is expected to see strong growth in the next few years. It will grow to $607.65 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to demand for sustainable aviation, rapid growth in emerging markets, urban air mobility (am), strategic alliances and global collaboration, focus on passenger experience. Major trends in the forecast period include digitalization and industry 4.0, technological innovation in electric and hybrid aircraft, technological advancements, increased demand for fuel efficiency, growing market for electric and hybrid aircraft, integration of advanced avionics and connectivity.

The growth of the aircraft manufacturing market is expected to be fueled by the increasing air passenger traffic in the future. Air passenger traffic refers to the number of passengers transported by airlines or airports over a specific time frame. It serves as a vital indicator of demand for air travel, which is influenced by factors such as economic conditions, consumer preferences, travel restrictions, and competition among airlines. The heightened demand for air travel and the surge in passenger traffic have opened up opportunities for the aircraft manufacturing sector, as airlines need more aircraft to expand their fleets and introduce new routes and services, thereby increasing the demand for new aircraft orders. For instance, in January 2024, the International Air Transport Association, a Canada-based trade association, reported that in 2023, traffic rose by 41.6% compared to 2022. By December 2023, international traffic had increased by 24.2% compared to December 2022. Thus, the growth in air passenger traffic is set to drive the aircraft manufacturing market in the future.

The escalation in geopolitical tensions is poised to act as a significant driver for the growth of the aircraft manufacturing market in the foreseeable future. Geopolitical tensions, characterized by conflicts, rivalries, or disputes among nations or regions, often stemming from territorial, resource, power, or ideological issues, have a profound impact on aircraft manufacturing dynamics. These tensions tend to prompt nations to fortify their defense capabilities, resulting in an increased demand for military aircraft, including fighter jets, reconnaissance planes, and strategic bombers. The perceived imperative for modernization, bolstering strategic airlift capacities, and augmenting surveillance capabilities in response to geopolitical uncertainties motivates governments to invest in new and advanced aircraft. This heightened demand, in turn, stimulates growth within the aerospace and defense industry. For example, in March 2022, the U.S. Department of State and The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) escalated pressure on Russia by imposing sanctions on numerous Russian elites and their family members. These measures targeted specific properties of these individuals as blocked assets, aiming to sanction Russian intelligence-directed disinformation outlets. This action followed earlier sanctions in January 2022, identifying Russian agents involved in activities aimed at destabilizing the Ukrainian government, building upon sanctions imposed in April 2021 for Russian-backed efforts to influence U.S. elections. Such geopolitical developments tend to drive nations to invest in advanced aircraft technology. Thereby stimulating growth in the aircraft manufacturing market within the aerospace and defense sector.

Prominent players within the aircraft manufacturing market are strategically focusing on developing novel solutions, such as the establishment of electric aircraft manufacturing plants, aimed at securing a competitive edge in the industry. Electric aircraft are aerial vehicles propelled by electric propulsion systems that rely on electric motors for thrust. A noteworthy example occurred in October 2023 when Beta Technologies, a leading US-based aerospace company, inaugurated an advanced electric aircraft production facility situated at the Patrick Leahy Burlington International Airport. Spanning an area of 188,500 square feet, this cutting-edge facility is engineered to operate at net-zero energy levels and incorporates sustainable technologies. Its primary purpose is the manufacturing of BETA's range of all-electric aircraft, including models such as the ALIA CTOL and the ALIA VTOL, catering to both military and commercial markets. Emphasizing sustainability, the facility incorporates features such as geothermal wells, rooftop solar panels, and a keen focus on efficiency and human-centered design. BETA adopts a balanced manufacturing approach that encompasses vertical integration along with collaborations with leading aerospace suppliers. The company's strategic blueprint includes plans to scale production to manufacture up to 300 aircraft annually, showcasing its commitment to innovation and leadership in the burgeoning realm of electric aircraft manufacturing.

Prominent companies within the aircraft manufacturing market are strategically prioritizing collaborative efforts to deliver dependable services to their clientele. Strategic collaboration refers to the symbiotic partnership between independent entities, working in tandem to attain shared objectives that align with their individual strategic aims. An exemplar of this approach was witnessed in June 2023 when Capgemini SE, a France-based information technology company, announced a collaborative venture with Amazon Web Services Inc. (AWS), a US-based cloud computing entity. This collaboration resulted in the unveiling of a pioneering technology platform named Lifecycle Optimization for Aerospace during the International Paris Air Show. The primary goal of this collaborative initiative is to revolutionize the aviation industry by integrating circular economy principles, automating inspection processes, and optimizing the lifecycle analysis of aircraft components. Leveraging AI and machine learning functionalities hosted on AWS's Cloud infrastructure, the platform aims to elevate maintenance efficiency, prolong the usability of serviceable parts, and facilitate informed decision-making to foster sustainable practices within the industry. This strategic alliance between Capgemini and Amazon Web Services stands as a testament to their commitment to innovation and customer-centric solutions within the aircraft manufacturing sector.

In March 2022, Textron Inc., a US-based aircraft company, successfully acquired Pipistrel for an undisclosed sum. This strategic acquisition marked Textron's expansion into the electric aviation market and broadened its aircraft portfolio significantly. Leveraging Pipistrel's innovative technology and expertise, Textron aims to develop and introduce electric-powered aircraft, capitalizing on the acquired company's capabilities. Pipistrel d.o.o., headquartered in Slovenia, specializes in manufacturing gliders and light aircraft equipped with both electric and combustion engines.

Major companies operating in the aircraft manufacturing market include The Boeing Company, Lockheed Martin Corporation, Airbus SE, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Leonardo S.p.A., Textron Aviation Inc., Kawasaki Heavy Industries Aerospace Company, Commercial Aircraft Corporation of China Ltd. (COMAC), Gulfstream Aerospace Corporation, Dassault Aviation, Bombardier Inc., United Aircraft Corporation, Mitsubishi Aircraft Corporation, Embraer S.A., Saab AB, Irkut Corporation, Korea Aerospace Industries Ltd. (KAI), Sukhoi Company, Arianespace SA, Piper Aircraft Inc., Diamond Aircraft Industries GmbH, Antonov State Company, Hindustan Aeronautics Limited, Pilatus Aircraft Ltd., ATR - GIE Avions de Transport Régional.

North America was the largest region in the aircraft manufacturing market in 2024. Asia-pacific is expected to be the fastest-growing region in the global aircraft manufacturing market report during the forecast period. The regions covered in the aircraft manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aircraft manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Aircraft manufacturing is the comprehensive procedure that encompasses the conception, development, and fabrication of aircraft. This intricate process involves a spectrum of activities, spanning from engineering and design to the final stages of assembly and testing. Aircraft, which are specialized machines engineered for air travel, have the capacity to transport people or cargo. This category includes various types of aerial vehicles, such as airplanes, jets, helicopters, and other aircraft designed for navigating through the airspace.

The principal product categories in aircraft manufacturing include gliders, helicopters, ultra-light aircraft, passenger aircraft, unmanned aerial vehicles (UAVs) and drones, as well as blimps or airships. Gliders are aircraft without engines, designed for unpowered flight. The diverse range of aircraft types also includes freighter aircraft and passenger aircraft, each serving various applications such as military and defense, civil aviation, commercial freight transport, and other specialized uses within the aerospace industry.

The aircraft manufacturing market research report is one of a series of new reports that provides aircraft manufacturing market statistics, including aircraft manufacturing industry global market size, regional shares, competitors with a aircraft manufacturing market share, detailed aircraft manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the aircraft manufacturing industry. This aircraft 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.

The aircraft manufacturing market consists of sales of cargo plane, military plane, and jet aircraft. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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