Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has declined at a CAGR of 2.8 % over the past five years, to reach an estimated £39.9bn in 2025.
Trends and Insights
Rebounding international travel revives UK aircraft manufacturing sector
- Aircraft manufacturing in the UK is witnessing a resurgence in response to the lifting number of flying hours and rising passenger numbers. Large engine flying hours reached 101% compared to 2019 levels in the first half of 2024, according to Rolls Royce, indicating a recovery in demand for new aircraft and engines. This uptick is crucial as it contributes to higher utilisation rates for existing fleets, pushing airlines to expand and upgrade their aircraft to enhance operational efficiency.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Rearming Europe will boost revenue for defence contractors
- The UK's defence sector, including aircraft manufacturing, is set to experience robust growth driven by elevated defence spending at home and abroad. European governments have reacted strongly to the new policies of the US Trump administration and are seeking more strategic autonomy from the US, which will come with a high monetary cost. Announced in February 2025, UK defence expenditures will increase to over 2.5% of GDP annually by 2027, three years earlier than originally planned. From 2025 £178 billion will be dedicated to enhancing defence equipment and support. More orders are expected from abroad, with the German government announcing a new €500 billion rearmament programme in March 2025 through 2030. This is a massive reversal for Europe's biggest economy, which in 2023 only spent 1.5% of GDP on defence. The resultant uptick in orders for defence contractors, particularly for entities like BAE Systems, boosts industry demand.
Biggest companies in the Aircraft, Engine & Parts Manufacturing in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
Rolls-Royce plc | 5,533.5 | |
Airbus Operations Ltd | 4,590.7 | |
BAE Systems plc | 2,408.0 |
To view the market share and analysis for all 4 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 Civil aircraft and parts, Defence aircraft and parts and Aircraft engines. Civil aircraft and parts is the largest segment of the Aircraft, Engine & Parts Manufacturing in the UK.
Trends and Insights
Strong Airbus perfromance has boosted civil aircraft and parts manufacturing
- Civilian aircraft production is now a global industry, with parts produced across mobile countries before assembly. No large civilian aircraft are produced entirely in the UK, but Airbus produce many parts in the UK before assembly is completed in France, Germany or Spain.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Businesses in this industry manufacture complete aircraft and spacecraft, engines, propulsion units and other related equipment and parts, including military and civil aircraft and guided missiles.
What's included in this industry?
Aircraft enginesDefence aircraftAircraft equipmentCivil aircraftHelicopters Business jets and small planes Space EquipmentCompanies
Rolls-Royce plcAirbus Operations LtdBAE Systems plcPurchase this report to view all 4 major companies in this industry.
Related Terms
A380787 DREAMLINERA400MA350NACELLEWIDE-BODY AIRCRAFTMINISTRY OF DEFENCEIndustry Code
SIC 30.30 - Aircraft, Engine & Parts Manufacturing in the UK
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
Flying hours are rising boosting commercial aircraft orders. Commercial airlines are expanding their fleet seeking more environmentally friendly jets across all routes.
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 (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- 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
Orders for engines are rising thanks to rising commercial orders. Wide body aircraft orders are rising as passenger numbers recover, boosting engine orders for Rolls Royce.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2025
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
- 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
The North West is an automotive hub. The region is home to a significant portion of aircraft, engine and parts manufacturers.
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 2025
Tables
- Number and share of establishments in each region in 2025
- Number and share of revenue each region accounts for in 2025
- Number and share of wages each region accounts for in 2025
- Number and share of employees in each region in 2025
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
Larger players benefit from consistent orders for defence. The companies fortify their market shares through both commercial and defence orders. This means it’s difficult for...
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 2020-2025
- 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
BAE Systems maintained a steady revenue stream despite the pandemic. The company was able to swerve the colossal impacts of the pandemic thanks to its strong links to UK defe...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
- Overview of Rolls-Royce plc's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Airbus Operations Ltd's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of BAE Systems plc's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Rolls-Royce plc, and factors influencing its performance in the industry
- Description and key data for Airbus Operations Ltd, and factors influencing its performance in the industry
- Description and key data for BAE Systems plc, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Demand from scheduled passenger air transport impacts performance. When demand for passenger air transport increases, more flights are scheduled and more aircraft are needed.
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 (2015-2030)
- Assistance historical data and forecast (2015-2030)
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
Steel prices have shot up. This has lifted the cost of production for aircraft makers as steel is a key input.
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 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2019-2023)
- Coverage Ratios (2019-2023)
- Leverage Ratios (2019-2023)
- Operating Ratios (2019-2023)
- Assets (2019-2023)
- Liabilities (2019-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
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 (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Aircraft, Engine & Parts Manufacturing in the UK industry in United Kingdom in 2025?
The market size of the Aircraft, Engine & Parts Manufacturing in the UK industry in United Kingdom is £39.9bn in 2025.
How many businesses are there in the Aircraft, Engine & Parts Manufacturing in the UK industry in 2025?
There are 546 businesses in the Aircraft, Engine & Parts Manufacturing in the UK industry in United Kingdom, which has declined at a CAGR of 6.5 % between 2020 and 2025.
Has the Aircraft, Engine & Parts Manufacturing in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Aircraft, Engine & Parts Manufacturing in the UK industry in United Kingdom has been declining at a CAGR of 2.8 % between 2020 and 2025.
What is the forecast growth of the Aircraft, Engine & Parts Manufacturing in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Aircraft, Engine & Parts Manufacturing in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Aircraft, Engine & Parts Manufacturing in the UK market in United Kingdom?
The biggest companies operating in the Aircraft, Engine & Parts Manufacturing market in United Kingdom are Rolls-Royce plc, Airbus Operations Ltd and BAE Systems plc
What does the Aircraft, Engine & Parts Manufacturing in the UK in United Kingdom include?
Aircraft engines and Defence aircraft are part of the Aircraft, Engine & Parts Manufacturing in the UK industry.
Which companies have the highest market share in the Aircraft, Engine & Parts Manufacturing in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Rolls-Royce plc.
How competitive is the Aircraft, Engine & Parts Manufacturing in the UK industry in United Kingdom?
The level of competition is low and steady in the Aircraft, Engine & Parts Manufacturing in the UK industry in United Kingdom.
Related Industries
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Competitors
Complementors
View all industries in United Kingdom
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.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
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.
