Aircraft Engine and Parts Manufacturing

The Aircraft Engine and Parts Manufacturing industry designs and produces jets, helicopters, motors, and associated products for the civil and military markets.

Following years of expansion, the industry’s income has recently slowed. The bulk of this turnaround was caused by slower defense expenditures, which decreased demand for combat aircraft and associated products in the United States.

Furthermore, as a result of the COVID-19 (coronavirus) pandemic, industry income is expected to plummet as demand for air travel plummets. As a result, market income is forecast to fall at an annualized rate of 5.8 percent to $169.4 billion over the next five years, with a 31.9 percent drop in 2020 alone.

The Aircraft Engine and Parts Manufacturing industry eventually came to a halt in the five years leading up to 2020. This industry’s participants manufacture helicopters, aircraft subsystems, engines, and components for both military and industrial applications.

Despite the fact that well over half of the products offered are for private consumers, the most costly and advanced pieces are manufactured for military forces, with the US Department of Defense purchasing the lion’s share of these materials.

Slowing US military spending has led the industry’s defense market to contract for most of the last five years, partly offsetting increases in the commercial segment.

The Aircraft Engine and Parts Manufacturing industry is expected to rebound from a sharp downturn in 2020 due to the COVID-19 (coronavirus) pandemic over the next five years, to 2025.

Following a sharp downturn in 2020 that decimated the commercial industry, rising domestic and foreign demand for air transport would almost certainly generate additional demand for more commercial aircraft and related components.

As a result, airlines will almost certainly have to replace older models with newer, more fuel-efficient models. Furthermore, increased military hardware shipments and a short-term rise in defense spending are expected to rekindle the defense sector.

As a result, market income is expected to grow at a 9.0 percent annualized rate to $260.2 billion over the next five years. However, most of this expansion is predicted to arise as a result of the coronavirus pandemic’s low foundation.

Revenue in the industry is not forecast to hit pre-pandemic values until 2023, owing to a decline in demand for new goods in 2020 and early 2021 as industrial clients transition to new operational frameworks.

This industry includes companies that produce and rebuild complete aircraft, as well as those that build design and transform aircraft. Manufacturing, conversion, and redesign of aircraft engines and propulsion systems are also part of the industry.

Furthermore, the industry manufactures similar components and auxiliary devices. See the Space Ship and Missile Manufacturing sector for statistics on guided missiles, space ships, and support facilities, which are not included in this industry.