Aerospace Global Market Opportunities and Strategies to 2033

This report describes and explains the aerospace market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global aerospace market reached a value of nearly $308.7 billion in 2023, having grown at a compound annual growth rate (CAGR) of -0.8% since 2018. The market is expected to grow from $308.7 billion in 2023 to $461.9 billion in 2028 at a rate of 8.4%. The market is then expected to grow at a CAGR of 4.8% from 2028 and reach $583.3 billion in 2033.

Growth in the historic period resulted from the rising numbers of air travelers, strong economic growth in developing countries and growth in commercial use of drones. Factors that negatively affected growth in the historic period were grounding of airplanes, high exchange rate fluctuations and shortage of skilled labor.

Going forward, the rapid urbanization, increasing commercial aircraft orders and rising government support will drive the growth. Factor that could hinder the growth of the aerospace market in the future include increasing raw material costs, increased cyber-attacks and stringent compliance and certification requirements.

The aerospace market is segmented by type into commercial aircraft, aircraft maintenance, repair and overhauling services and aerospace support and auxiliary equipment. The commercial aircraft market was the largest segment of the aerospace market segmented by type, accounting for 63.4% or $195.8 billion of the total in 2023. Going forward, the commercial aircraft segment is expected to be the fastest growing segment in the aerospace market segmented by type, at a CAGR of 9.5% during 2023-2028.

The aerospace market is segmented by size into wide-body, narrow-body, regional and others. The narrow-body market was the largest segment of the aerospace market segmented by size, accounting for 72.4% or $223.9 billion of the total in 2023. Going forward, the narrow-body segment is expected to be the fastest growing segment in the aerospace market segmented by size, at a CAGR of 8.8% during 2023-2028.

The aerospace market is segmented by end user into government and private sector. The private sector market was the largest segment of the aerospace market segmented by end user, accounting for 65.4% or $201.2 billion of the total in 2023. Going forward, the private sector segment is expected to be the fastest growing segment in the aerospace market segmented by end user, at a CAGR of 8.8% during 2023-2028.

The aerospace market is segmented by operation into autonomous aircraft and manual. The manual market was the largest segment of the aerospace market segmented by operation, accounting for 79.4% or $245.3 billion of the total in 2023. Going forward, the autonomous aircraft segment is expected to be the fastest growing segment in the aerospace goods market segmented by operation, at a CAGR of 10.1% during 2023-2028.

North America was the largest region in the aerospace market, accounting for 47.3% or $146 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the aerospace market will be Middle East and South America where growth will be at CAGRs of 12.6% and 12.2% respectively. These will be followed by North America and Western Europe where the markets are expected to grow at CAGRs of 8.4% and 7.7% respectively.

The global aerospace market is highly concentrated, with a few number of large players operating in the market. The top ten competitors in the market made up to 63% of the total market in 2022. The market concentration can be attributed to the presence of large number of players in different geographies. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. Airbus SE was the largest competitor with a 17.4% share of the market, followed by The Boeing Company with 11.3%, Raytheon Technologies Corporation with 8.8%, General Electric Company with 8.5%, Safran S.A. with 4.1%, General Dynamics Corporation with 3.1%, Honeywell International Inc. with 2.6%, Rolls-Royce Holdings plc with 2.6%, Bombardier Inc. with 2.3% and Northrop Grumman Corporation with 2.2%.

The top opportunities in the aerospace market segmented by type will arise in the commercial aircraft segment, which will gain $112.4 billion of global annual sales by 2028. The top opportunities in the commercial aircraft market segmented by type will arise in the passenger aircrafts segment, which will gain $59.1 billion of global annual sales by 2028. The top opportunities in the aircraft maintenance, repair and overhauling services market segmented by type will arise in the commercial aircrafts MRO services segment, which will gain $12.5 billion of global annual sales by 2028. The top opportunities in the aerospace support and auxiliary equipment market segmented by type will arise in the satellites segment, which will gain $8.7 billion of global annual sales by 2028. The top opportunities in the aerospace market segmented by size will arise in the narrow-body segment, which will gain $117.2 billion of global annual sales by 2028. The top opportunities in the aerospace market segmented by end user will arise in the private sector segment, which will gain $105.8 billion of global annual sales by 2028. The top opportunities in the aerospace market segmented by operation will arise in the manual segment, which will gain $114.2 billion of global annual sales by 2028. The aerospace market size will gain the most in the USA at $57.5 billion.

Market-trend-based strategies for the aerospace market include focus on the use of 3D printing for innovative aerospace applications, focus on using machine-learning techniques, such as artificial intelligence (AI), to improve aircraft safety and manufacturing productivity, focus on partnerships and collaborations to expand their product portfolio and geographic presence, focus on using AHMS systems to assist companies in maintenance and repair process and lower operating costs, focus on finding alternatives to reduce emissions and fuel consumption, and so, they are increasingly investing in electric run aircraft, focus on launching advanced aircraft for passenger transportation and focus on using cloud platforms for developing their aircraft designs.

Player-adopted strategies in the aerospace market include focus on strengthening its operational capabilities through securing new contracts, focus on enhancing business capabilities through the investments and focus on enhancing business operations through strategic collaborations and partnerships.

To take advantage of the opportunities, the analyst recommends the aerospace companies to focus on advancing aerospace capabilities through 3D printing innovations, focus on elevating aerospace efficiency with machine learning advancements, focus on transforming aerospace maintenance with AHMS innovations, focus on electric-powered aircraft for economic and environmental advantages, focus on cloud-based collaboration for efficient aerospace development, focus on expanding in the commercial aircraft market segment for sustainable growth, focus on narrow-body and wide-body segments for accelerated growth, focus on passenger aircrafts and commercial gliders/drones for sustained growth, focus on rocket engines and commercial gliders/drones MRO services for strategic expansion, focus on satellite market for strategic business growth, expand in emerging markets, continue to focus on developed markets, focus on diversifying distribution channels for aerospace market expansion, provide competitively priced offerings, focus on strategic pricing for aerospace market success, participate in trade shows and events, continue to use B2B promotions, focus on integrated promotion strategies, focus on private sector growth for aerospace expansion and focus on understanding and meeting government end-user needs for strategic growth.