Aerospace Market Report 2025

The aerospace market size has grown strongly in recent years. It will grow from $329.6 billion in 2024 to $348.31 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to increased demand for air travel technological advances, emerging economies, changes in social behavior, and low interest rates.

The aerospace market size is expected to see steady growth in the next few years. It will grow to $422.22 billion in 2029 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period can be attributed to growing demand for commercial use of drones, emerging economies, and rapid advances in technology. Major trends in the forecast period include a focus on using smart materials to manufacture aircraft, investing in virtual reality (VR) technologies to enhance manufacturing efficiency, leveraging multiphysics simulations to reduce complexity in the manufacturing process, building their machine learning capabilities, and deploying to improve aircraft safety and quality and manufacturing productivity, installing advanced features such as advanced avionics, cabin noise reduction, variable frequency power generators and high-efficiency air filters, and focusing on mid-sized twin-engine planes that can travel long distances rather than jumbo jets, invest in cloud-based development platforms.

The overall economic growth in emerging economies is anticipated to have a positive effect on the commercial aircraft manufacturing market. Increased disposable income, stemming from this economic growth, is expected to boost the demand for air travel. For instance, in April 2024, the International Monetary Fund, a US-based financial agency, projected that the global economy would sustain a growth rate of 3.2% in both 2024 and 2025, consistent with the pace observed in 2023. Additionally, developed economies are expected to experience stable growth during the forecast period, while emerging markets are predicted to continue growing at a slightly faster rate than their developed counterparts. This stable economic growth is likely to lead to increased investments in national security, thereby propelling the aerospace market during the forecast period.

The escalating demand for commercial aircraft stands as a significant catalyst propelling the aerospace market's expansion. Commercial aircraft, specifically designed for transporting passengers or cargo for profit, play a pivotal role in the aerospace industry. This industry encompasses the comprehensive process of aircraft and spacecraft design, manufacturing, and maintenance. Commercial aircraft continuously drive innovation within the aerospace sector, with companies continuously developing new technologies to enhance aircraft performance, reduce operational expenses, and ensure utmost safety standards. Notably, Airbus SE, a Netherlands-based aerospace corporation, reported delivering 661 commercial aircraft to 84 customers in 2022, marking an 8% increase from the 611 units sold in 2021. Hence, the burgeoning demand for commercial aircraft emerges as a key driver propelling the aerospace market's growth.

Aircraft manufacturers are increasingly leveraging machine-learning techniques, including artificial intelligence (AI), to enhance aircraft safety and quality while boosting manufacturing productivity. These machine learning algorithms gather data from both machine-to-machine and machine-to-human interfaces, utilizing data analytics to facilitate informed decision-making. Such technologies optimize manufacturing operations and help reduce costs. For instance, in July 2024, GE Aviation employed machine learning and data analytics to detect faults in engines, resulting in extended component life and lower maintenance expenses. Additionally, Boeing has effectively developed machine-learning algorithms for aircraft design and to automate factory operations.

Major players in the aerospace market are increasingly focusing on establishing technology hubs, such as Izon, to enhance their competitive position. Aerospace technology hubs are strategic geographic locations that bring together technology-based companies, startups, and other organizations engaged in the aerospace sector. For example, in September 2024, Honeywell, a US-based multinational conglomerate specializing in technology and manufacturing across various sectors, including aerospace, launched an innovation hub at Arizona State University’s Tempe campus in collaboration with the Ira A. Fulton Schools of Engineering. This partnership aims to equip students with essential engineering skills to tackle the critical challenges facing the aerospace industry. The creation of the Honeywell Innovation Hub underscores the company's commitment to aligning its portfolio with three significant megatrends, including advancements in aviation.

Helicopter manufacturing companies are increasingly adopting carbon fiber reinforced plastic composite (CFRP) materials in producing helicopter parts due to their advantageous properties. CFRP materials offer heightened strength compared to conventional metal parts while simultaneously reducing the overall weight of the helicopter. Additionally, CFRP materials exhibit enhanced corrosion resistance, making them a desirable choice for helicopter components. Leveraging these properties, helicopters constructed with CFRP materials can manage higher loads effectively. Noteworthy helicopter manufacturers utilizing CFRP materials include industry giants such as Airbus, Boeing, and Sikorsky.

Major companies operating in the aerospace market include Airbus Group, The Boeing Company, United Technologies Corporation, General Electric Company, Safran S.A., General Dynamics Corp., Honeywell International, Rolls-Royce Holdings Plc., Embraer S.A, Northrop Grumman Corp., Cessna, Dirgantara Indonesia, BAE Systems, McDonnell Douglas, Raj Hamsa Ultralights, Leonardo, Meggitt PLC, Honda Aircraft Company, GKN, Mitsubishi Aircraft Corporation, Mahindra Aerospace, IHI Corporation, Bombardier, Hindustan Aeronautics Limited (HAL), Kawasaki Aerospace Company, PD AeroSpace, Thales Japan, Lockheed Martin India Pvt Ltd, Subaru Corporation, Raytheon, L3Harris Technologies Inc, TransDigm Group Incorporated, Saab AB, Arconic Inc, Britten-Norman, Pilatus Aircraft Ltd, Commercial Aircraft Corporation of China, Bharat Electronics Limited (BEL), Cobham, Dassault Aviation SA, Hybrid Air Vehicles (HAV), JAMCO Corporation, QinetiQ, Textron Inc., BrahMos Aerospace, Ltd. (COMAC), Superior Aviation Beijing Co., Indian Rotorcraft, Foxcon Aviation, TeamIndus, ShinMaywa Aircraft Industries, Aviation Industry Corporation of China, Drone Aerospace Systems Pvt Ltd.

North America was the largest region in the aerospace market in 2024. North America is expected to be the fastest growing region in the forecast period. The regions covered in the aerospace market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aerospace market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The aerospace sector encompasses a diverse range of activities, including the production of commercial aircraft, aircraft maintenance, repair, and overhaul services, as well as the manufacturing of auxiliary equipment for civilian and commercial purposes. This industry involves companies engaged in developing prototypes and manufacturing or assembling complete aircraft and aircraft parts for commercial applications. Additionally, it includes entities providing modifications, conversions, repair, parts replacement, and comprehensive overhauling and rebuilding services for commercial aircraft. Various types of aircraft, such as gliders, helicopters, drones, ultra-light aircraft, passenger aircraft, and private jets, are manufactured within this industry.

The main categories within the aerospace sector include commercial aircraft, aircraft maintenance, repair, and overhaul services, aerospace support, and auxiliary equipment. Aircraft maintenance, repair, and overhaul services encompass activities related to the upkeep, repair, and comprehensive overhauling of commercial aircraft, including helicopters, gliders, drones, aircraft turbines, aircraft engines, and rocket engines. These aircraft come in different sizes, including wide-body, narrow-body, regional, and others, and can be operated in both autonomous and manual modes. The aerospace industry serves both government and private sector needs.

The aerospace market research report is one of a series of new reports that provides aerospace market statistics, including aerospace industry global market size, regional shares, competitors with an aerospace market share, detailed aerospace market segments, market trends and opportunities, and any further data you may need to thrive in the aerospace industry. This aerospace 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 aerospace market consists of sales of civilian and commercial aircraft, aircraft components, MRO services, and aerospace equipment support. 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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