Ceramic Industry News / Advanced Ceramics / Market Trends

Aircraft, Engine and Parts Manufacturing Industry Revenue to Rise

Revenue for the aircraft, engine and parts manufacturing industry is expected to rise slightly in the five years to 2018 as consumers resume air travel and airlines renew their fleets. In addition, as new, more technologically advanced aircraft come to market, companies will command higher prices, leading to improved profit, according to a new report from IBISWorld.

Despite record-high fuel prices, airlines worldwide have a ravenous need to renew or expand fleets. The aircraft, engine and parts manufacturing industry reportedly feeds this hunger by manufacturing and overhauling aircraft and aircraft engines; industry operators also manufacture aircraft-related parts and equipment. In addition, the industry has introduced new products like fuel-efficient planes, including the Boeing 787 Dreamliner that was released in September 2011.

“Meanwhile, the war against terrorism, the introduction of the Joint Strike Fighter jet and the rising popularity of unmanned aerial vehicles (i.e., drones) have all supported the industry’s military segment,” said Olawale Harrison, industry analyst. As a result, revenue is expected to increase 2.1% in 2013 to total an estimated $186.3 billion.

The aircraft, engine and parts manufacturing industry has a medium level of concentration, with the four largest major players holding more than 60% of market share. In the commercial aircraft segment, Boeing dominates the industry. “The costs associated with manufacturing aircraft and components are high, and contracts are usually awarded to existing players in similar fields or in countries that have negotiated large aircraft orders,” said Harrison.

Likewise, a few large firms dominate the production of military aircraft products and parts for the U.S. government. Consequently, the main contractors earn the majority of revenue generated by the military segment. Market share concentration is forecast to increase as the largest companies continue grow through mergers and acquisitions.

IBISWorld reports it expects strong military demand, as well as growing civil demand, to raise revenue an average of 2.1% annually during the five years to 2013. Technological improvements will drive growth in manufacturing aircraft, engines and parts; the industry’s focus on improving fuel efficiency will continue to draw interest from customers in downstream markets, especially airlines looking to save on fuel costs. While federal funding for defense will slow in coming years, based on a projected reduction in military involvement overseas, passengers returning to commercial flying will lead to consistent growth in demand from domestic and foreign airlines.

For additional information, visit www.ibisworld.com.


Did you enjoy this article? Click here to subscribe to Ceramic Industry Magazine.

You must login or register in order to post a comment.



Image Galleries

2015 Ceramics Expo

Snapshots from the 2015 Ceramics Expo, April 28-30, Cleveland, Ohio. Posted: May 14, 2015.


Ceramics Expo podcast
Editor Susan Sutton discusses the upcoming Ceramics Expo with event director Adam Moore.
More Podcasts

Ceramic Industry Magazine

June 2015 ceramic industry

2015 June

This issue features our first annual Supplier of the Year Awards. Be sure to check it out!
Table Of Contents Subscribe

Daily News

We know where you find the latest ceramic industry news (ahem), but where do you catch up on the rest of your daily news?
View Results Poll Archive


M:\General Shared\__AEC Store Katie Z\AEC Store\Images\Ceramics Industry\handbook of advanced ceramics.gif
Handbook of Advanced Ceramics Machining

Ceramics, with their unique properties and diverse applications, hold the potential to revolutionize many industries, including automotive and semiconductors.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


facebook_40px twitter_40px  youtube_40pxlinkedin_40google+ icon 40px


CI Data Book July 2012

Ceramic Industry's Directories including Components, Equipment Digest, Services, Data Book & Buyers Guide, Materials Handbook and much more!