Aerospace Parts Manufacturing Market Analysis and Forecast to 2035: Type, Product, Process, Matrial, End-user

Aerospace Parts Manufacturing Market is expected to expand from $1,121.7 billion in 2025 to $1,875.9 billion by 2035, with a CAGR of 5.1%. In February 2025, the Producer Price Index (PPI) for U.S. aerospace product and parts manufacturing stood at 281.062, indicating sustained cost pressures within the sector. These increases are being driven by factors such as rising labor wages, raw material price volatility, and ongoing supply chain challenges. The sector's price movements highlight the complex cost structure of aerospace manufacturing, where high-precision components and stringent quality standards require significant investment.

Regionally, price dynamics show marked differences. In March 2025, the U.S. reinstated 25% tariffs on steel imports from the U.K., affecting $3.43 billion worth of goods, including military aircraft parts. This has raised manufacturing costs in Europe and added pressure to supply chains. In contrast, Asia-Pacific continues to benefit from competitive pricing supported by lower production costs and government incentives, with strong growth fueled by demand for maintenance, repair, and overhaul (MRO) services and expanding aerospace manufacturing capabilities.

Segment Overview

Based on type segment, the aerospace parts manufacturing market includes commercial aircraft parts, military aircraft parts, general aviation parts, helicopter parts, and spacecraft parts. In 2024, the commercial aircraft parts segment accounted for 53.6% of the market share. This segment holds the highest share due to the increasing demand for advanced and fuel-efficient engines in the commercial aviation sector. Manufacturers are investing in new facilities to meet rising production needs. For instance, in February 2024, Safran Aircraft Engines announced the establishment of a new foundry in Rennes, Brittany, to produce turbine blades for its LEAP engines used in Airbus A320neo and Boeing 737 MAX aircraft. These engines offer 15% lower fuel consumption and reduced CO2 emissions, driving greater adoption and boosting the commercial aircraft parts segment's market share.

Based on end user segment, the market is divided into MROs and OEM. The OEM segment is expected to be the fastest-growing, at a rate of 5.9% during the forecast period, due to the rising demand for advanced manufacturing capabilities, cost efficiency, and specialized expertise in producing complex aviation components. OEMs are increasingly partnering with specialized fabrication service providers to streamline production and meet stringent industry standards. For instance, in May 2025, Duncan Manufacturing Solutions (DMS) announced significant expansion to support aviation OEMs with high-precision fabrication, composite manufacturing, and additive manufacturing solutions. Equipped with AS 9100D and ISO 9001:2015 certifications, DMS delivers customized, high-quality components efficiently, enabling OEMs to accelerate innovation and reduce production time, thereby driving strong growth in the OEM segment.

Geographical Overview

North America is witnessing largest growth in the aerospace parts manufacturing market in 2024, driven by rising defense modernization programs, advanced manufacturing capabilities, and strong collaborations between OEMs and technology firms. The region benefits from robust R&D investments, skilled labor, and a focus on next-generation defense systems. In February 2024, Mercury Systems secured a three-year subcontract worth up to $96 million with Raytheon to supply high-performance signal processing sub-systems for the U.S. Army's LTAMDS radar program, also serving Poland. Such contracts underscore North America's leadership in producing cutting-edge aerospace and defense components, strengthening its position in global supply chains.

Similarly, Europe's aerospace parts manufacturing market is witnessing growth driven by expanding Maintenance, Repair, and Overhaul (MRO) capabilities and strong collaborations between leading OEMs and service providers. The region benefits from advanced engineering expertise, a well-established aviation infrastructure, and increasing demand for component support services across commercial fleets. In August 2024, Woodward entered a five-year MRO agreement with Lufthansa Technik to service engine components at its Prestwick, UK, facility. This partnership strengthens Europe's position as a hub for high-quality aerospace component manufacturing and repair, supporting the sector's growth through enhanced technical capabilities and long-term service commitments.

Additionally, Asia-Pacific's aerospace parts manufacturing market is expanding due to rising demand for Maintenance, Repair, and Overhaul (MRO) services as airlines keep older aircraft in operation amid new plane shortages. Supply chain disruptions and higher labor costs have slowed aircraft deliveries, prompting carriers to invest more in maintenance to extend fleet lifespans. In July 2024, Malaysia-based Asia Digital Engineering (ADE) reported fully booked slots until the end of 2025 and the upcoming launch of a 14-line maintenance hangar, the largest in Malaysia. Such capacity expansion, coupled with increasing third-party airline contracts, is strengthening the region's role in global aerospace component manufacturing and repair.

Further, the Middle East & Africa's aerospace parts manufacturing market is gaining momentum due to the region's competitive labor costs and a rapidly growing pool of skilled workers, attracting global manufacturers seeking to expand production capacity amid supply chain delays. Morocco, in particular, is emerging as a key hub, with its $2 billion aerospace industry producing components from wings to fuselages and employing a high proportion of trained women workers. In April 2024, Safran Aircraft Engines marked 25 years of partnership with Royal Air Maroc, underscoring the country's role in servicing Boeing and Airbus engines for global airlines and supporting industry growth across the region.

Latin America's aerospace parts manufacturing market is expanding due to advancements in manufacturing technologies, strategic geographic positioning, and growing sustainability initiatives. The region is embracing 3D printing, composite materials, and Industry 4.0 solutions to produce lighter, stronger components that improve aircraft performance and fuel efficiency. Leading players like Embraer are streamlining production and reducing lead times, while free trade agreements enhance market access to North America and Europe. Investments in eco-friendly materials, biofuels, and expanded MRO facilities further strengthen the sector. Combined with an improving infrastructure and skilled workforce, these factors position Latin America as an emerging hub in the global aerospace supply chain.

Key Trends and Drivers

Global Demand and Fleet Expansion Fuel Market Growth -

The aerospace parts manufacturing market is gaining momentum due to rising demand for fleet expansion and modernization, driven by increasing air travel and the need for fuel-efficient, technologically advanced aircraft. Single-aisle airplanes, crucial for short to medium-haul routes, dominate demand and require advanced avionics, lightweight materials, and efficient engines. In July 2024, Boeing's Commercial Market Outlook projected nearly 44,000 new airplanes by 2043, with 71% being single-aisle models. Rapid passenger traffic growth in South and Southeast Asia, expansion of widebody fleets in the Middle East, rising air cargo needs, and October 2024 defense investments in rocket motors, UAVs, and eVTOL aircraft are further accelerating market growth.

Advanced Manufacturing Technologies Transform Aerospace Production -

Advancements in manufacturing technologies, particularly 3D printing, are significantly driving the aerospace parts manufacturing market. Additive manufacturing enables the production of lightweight, durable, and complex components with reduced material waste, enhancing performance and cost efficiency. High-fatigue-resistant 3D-printed titanium alloys, offering up to 120% longer fatigue life, are improving component reliability in demanding aerospace applications. In November 2024, ITP Aero advanced this trend by adopting selective laser melting to produce TP400 engine rear structure blades, a process certified by EASA and AESA. This innovation supports complex geometries, boosts aircraft efficiency, and highlights the growing role of advanced manufacturing in shaping the aerospace industry's future.

Research Scope

• Estimates and forecasts the overall market size across type, application, and region.
• Provides detailed information and key takeaways on qualitative and quantitative trends, dynamics, business framework, competitive landscape, and company profiling.
• Identifies factors influencing market growth and challenges, opportunities, drivers, and restraints.
• Identifies factors that could limit company participation in international markets to help calibrate market share expectations and growth rates.
• Evaluates key development strategies like acquisitions, product launches, mergers, collaborations, business expansions, agreements, partnerships, and R&D activities.
• Analyzes smaller market segments strategically, focusing on their potential, growth patterns, and impact on the overall market.
• Outlines the competitive landscape, assessing business and corporate strategies to monitor and dissect competitive advancements.\n\nOur research scope provides comprehensive market data, insights, and analysis across a variety of critical areas. We cover Local Market Analysis, assessing consumer demographics, purchasing behaviors, and market size within specific regions to identify growth opportunities. Our Local Competition Review offers a detailed evaluation of competitors, including their strengths, weaknesses, and market positioning. We also conduct Local Regulatory Reviews to ensure businesses comply with relevant laws and regulations. Industry Analysis provides an in-depth look at market dynamics, key players, and trends. Additionally, we offer Cross-Segmental Analysis to identify synergies between different market segments, as well as Production-Consumption and Demand-Supply Analysis to optimize supply chain efficiency. Our Import-Export Analysis helps businesses navigate global trade environments by evaluating trade flows and policies. These insights empower clients to make informed strategic decisions, mitigate risks, and capitalize on market opportunities.