Aircraft, Engine & Parts Manufacturing in Europe - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: August 2024
EU-C303Revenue
€199.9bn
Past 5-Year Growth
Profit
€XX.Xbn
Employees
969k
Businesses
3,178
Wages
€XX.Xbn
Aircraft, Engine & Parts Manufacturing in Europe industry analysis
Aircraft manufacturing is a growing and genuinely globalised industry, with large-scale manufacturers operating in many different locations, each specialising in a stage or product in the production process. For example, Airbus SE, which represents an overwhelming share of the European market (24%), manufacturers commercial wings in North Wales while focusing on fuselage production in South France and Germany. Because of the globalised nature of the industry, manufacturers generate a large proportion of revenue from exports.
Trends and Insights
- France dominates European Aircraft manufacturing. According to Eurostat, in 2020, France’s aircraft, engine and part manufacturing revenue accounted for 48.7% of industry revenue. Major companies Airbus SE and Safran SA have many manufacturing facilities across France.
- Rising defence spending amid global tensions defence aircraft order volumes. The Russia-Ukraine conflict increased defence spending among EU member states and NATO members, boosting defence aircraft order volumes.
- The world price of steel doubled in 2021, elevating purchase costs over 2021 and 2022. Similarly, semiconductor shortages have raised costs, leading to manufacturers bringing some producers in-house to minimise expenses.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 8.0 % over the past five years, to reach an estimated €199.9bn in 2024.
Trends and Insights
France dominates European Aircraft manufacturing
- According to Eurostat, in 2020, France’s aircraft, engine and part manufacturing revenue accounted for 48.7% of industry revenue.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Foreign threats will boost defence spending in the future
- The Russia-Ukraine conflict has led to more government spending pledges, sustaining orders for defence contractors, with the UK government planning to spend £45.9 billion on aircraft and helicopter procurement over the next 10 years (starting February 2023).
Biggest companies in the Aircraft, Engine & Parts Manufacturing in Europe
| Company | Market Share (%)
2024 | Revenue (€m)
2024 | Profit (€m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Airbus SE | 63,558.1 | 6,086.2 | 9.6 | |
Safran SA | 25,054.9 | 3,419.3 | 13.6 | |
Rolls-Royce plc | 18,155.3 | 1,124.0 | 6.2 |
To view the market share and analysis for all 10 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Commercial aircraft, Aircraft Engines and Aircraft equipment. Commercial aircraft is the largest segment of the Aircraft, Engine & Parts Manufacturing in Europe.
Trends and Insights
Flying hours return, boosting order books for large commercial aircraft, aircraft engines and equipment
- The industry produces equipment like fuselages, wings, landing gear, fuel tanks, helicopter rotors, propellers and turbojets.
- More insights available in the full report
Widen your competitive advantage with related industries
Competitors
- Shipbuilding in Europe
- Railway Equipment Manufacturing in Europe
- Military Fighting Vehicle Manufacturing in Europe
Complementors
- Engine & Turbine Manufacturing in Europe
International industries
- Aircraft, Engine & Parts Manufacturing in the US
- Aircraft Manufacturing and Repair Services in Australia
- Aircraft Manufacturing in China
Table of Contents
About this industry
Industry definition
Businesses in the industry manufacture complete aircraft and spacecraft, engines, propulsion units and other related equipment and parts, including military and civil aircraft and guided missiles. The manufacture of instruments and appliances for measuring, testing and navigation is not industry-related. The manufacture of launching devices for ground and aircraft carrier take-offs is not part of the industry.
What's included in this industry?
Commercial aircraftAircraft enginesAircraft equipmentDefence aircraftBusiness Jeys & Other small planesHelicoptersSpace equipmentOtherCompanies
Airbus SESafran SARolls-Royce plcPurchase this report to view all 10 major companies in this industry.
Related Terms
Wide-Body AircraftSpacecraftA350Industry Code
303 - Aircraft, Engine & Parts Manufacturing in Europe
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
France dominates European Aircraft manufacturing. According to Eurostat, in 2020, France’s aircraft, engine and part manufacturing revenue accounted for 48.7% of industry rev...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Rising defence spending amid global tensions defence aircraft order volumes. The Russia-Ukraine conflict increased defence spending among EU member states and NATO members, b...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Purchase this report to unlock analyst insights.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The world price of steel doubled in 2021, elevating purchase costs over 2021 and 2022. Similarly, semiconductor shortages have raised costs, leading to manufacturers bringing...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Airbus SE's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Safran SA's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Rolls-Royce plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 7 additional companies
Detailed analysis
- Description and key data for Airbus SE, and factors influencing its performance in the industry
- Description and key data for Safran SA, and factors influencing its performance in the industry
- Description and key data for Rolls-Royce plc, and factors influencing its performance in the industry
- Description, key data and performance trends for 7 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Manufacturers must comply with the EU Aviation Safety Agency Regulations (EASA). These EASE regulations ensure all European commercial aircraft manufacturers comply with airw...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Semi-conductor shortages elevate purchase costs and delay commercial deliveries. Airbus was behind on commercial deliveries in 2022 because of aircraft part, semiconductor an...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Aircraft, Engine & Parts Manufacturing industry in Europe in 2024?
The market size of the Aircraft, Engine & Parts Manufacturing industry in Europe is €199.9bn in 2024.
How many businesses are there in the Aircraft, Engine & Parts Manufacturing in Europe industry in 2024?
There are 3,178 businesses in the Aircraft, Engine & Parts Manufacturing industry in Europe, which has grown at a CAGR of 3.8 % between 2019 and 2024.
Has the Aircraft, Engine & Parts Manufacturing industry in Europe grown or declined over the past 5 years?
The market size of the Aircraft, Engine & Parts Manufacturing industry in Europe has been declining at a CAGR of 8.0 % between 2019 and 2024.
What is the forecast growth of the Aircraft, Engine & Parts Manufacturing industry in Europe over the next 5 years?
Over the next five years, the Aircraft, Engine & Parts Manufacturing industry in Europe is expected to grow.
What are the biggest companies in the Aircraft, Engine & Parts Manufacturing market in Europe?
The biggest companies operating in the Aircraft, Engine & Parts Manufacturing market in Europe are Airbus SE, Safran SA and Rolls-Royce plc
What does the Aircraft, Engine & Parts Manufacturing in Europe include?
Commercial aircraft and Aircraft engines are part of the Aircraft, Engine & Parts Manufacturing industry.
Which companies have the highest market share in the Aircraft, Engine & Parts Manufacturing in Europe?
The company holding the most market share in Europe is Airbus SE.
Which countries have the most businesses in the Aircraft, Engine & Parts Manufacturing industry in Europe?
The European country with the most businesses in the Aircraft, Engine & Parts Manufacturing industry is United Kingdom.
How competitive is the Aircraft, Engine & Parts Manufacturing industry in Europe?
The level of competition is high and steady in the Aircraft, Engine & Parts Manufacturing industry in Europe.
