Strong take off: Growth has been supported by a backlog of passenger aircraft orders

The UK Aircraft, Engine and Parts Manufacturing industry is the second largest in the world, after that of the United States. It is a major source of investment, research and development and is particularly renowned for the production and assembly of aircraft wings and the design and manufacture of aircraft engines. Growth has been strong over the past five years due to high demand for new fuel-efficient aircraft that make use of composite materials. A significant backlog of orders has sustained production and aircraft delivery in the industry over the past five years. Overall, industry revenue is projected to rise at a compound annual rate of 7.1% to reach £39.1 billion over the five years through more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Fleet renewal timelines have supported steady revenue growth for the industry
  • Ongoing domestic investment initiated the development of key production technologies
  • Operators are concerned about the potential introduction of tariffs and extra custom checks
  • Industry Report - Industry Locations Chapter

    The South EastThe South East accounts for the highest proportion of industry establishments, at an estimated 22.4%. The industry exports a majority of its products overseas, with many heading for Europe. The South East has excellent trade links with Europe, and Southampton is the second largest container port in the United Kingdom. Therefore, locating in this region can be beneficial for aircraft parts manufacturers that rely heavily on overseas markets.The South WestThe South West is also home to a large number of industry operators, accounting for an estimated 14.4% of total industry establishments. A number of these establishments are situated in Filton on the outskirts of Bristol. Fil...purchase to read more.

    Additional Insights for the Aircraft, Engine & Parts Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aircraft, Engine & Parts Manufacturing Industry are

  • Access to highly skilled workforce
  • Ability to accommodate environmental requirements
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as Demand from scheduled passenger air transport and Government spending on defence in the Aircraft, Engine & Parts Manufacturing industry impact industry performance..

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    What's in this report

    What is the Aircraft, Engine & Parts Manufacturing Industry?

    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.

    Industry Products
  • Aircraft equipment
  • Aircraft engines
  • Space equipment
  • Defence aircraft
  • Civil aircraft
  • Helicopters
  • Business jets and other smaller planes
  • Industry Activities
  • Manufacturing aircraft for the transport of goods and passengers
  • Manufacturing helicopters, gliders and hang-gliders
  • Manufacturing dirigibles and hot air balloons
  • Manufacturing aircraft engines
  • Manufacturing aircraft parts and accessories
  • Manufacturing ground flying trainers
  • Manufacturing spacecraft, launch vehicles and satellites
  • Manufacturing guided missiles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from scheduled passenger air transport
  • Government spending on defence
  • Real effective exchange rate
  • World price of steel

  • Current Performance
  • Order backlogs and defence
  • Up and away
  • Production and design
  • Propelling profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Foreign threats
  • Increased pressure
  • Production trends
  • Table: Aircraft, Engine & Parts Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aircraft, Engine & Parts Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Scheduled Passenger Air Transport
  • Non-Scheduled Passenger Air Transport
  • Freight Air Transport

  • Key Selling Industries
  • Electronic Component Manufacturing
  • Iron & Steel Manufacturing
  • Power Circuit Breaker Manufacturing

  • Products & Services
  • Aircraft engines
  • Aircraft equipment
  • Defence aircraft
  • Civil aircraft
  • Business jets and other smaller planes
  • Helicopters
  • Space equipment
  • Other
  • Chart: Aircraft, Engine & Parts Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial sector
  • Foreign governments
  • UK military
  • Other
  • Chart: Major Market Segmentation for the Aircraft, Engine & Parts Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesPurchase costs account for large proportion of industry revenue, at 59% in the current year. Purchase costs include all inputs into production, such as steel, other metals, plastics, carbon fibre and electronics. Purchase costs were high at the start of the period, but steel prices plummeted over the three years through 2016, which eased pressure for industry operators. The weak pound is expected to increase purchase costs in the latter half of the period, as the majority of inputs are imported. Steel prices are forecast to decrease in 2019, which is likely to reduce purchase costs. WagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Aircraft, Engine & Parts Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aircraft, Engine & Parts Manufacturing Industry

  • Industry Globalization
    Airbus Operations Ltd, BAE Systems plc, Rolls-Royce plc,
  • Table: Airbus Operations Ltd - financial performance
  • Table: BAE Systems plc - financial performance
  • Table: Rolls-Royce plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aircraft, Engine & Parts Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Aircraft, Engine & Parts Manufacturing Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    787 Dreamliner
  • A medium-size, wide-body, twin-engine jet airliner developed by Boeing Commercial Airplanes.
  • A350
  • A long-range, medium-size, wide-body plane being developed by Airbus.
  • A380
  • A double-decker, wide-body, four-engine airliner manufactured by the European corporation Airbus.
  • A400m
  • A European four-engine turboprop military transport aircraft designed by Airbus Military to replace or supplement aircraft used as tactical airlifters.
  • Nacelle
  • An outer casing or housing for an aircraft engine.
  • Wide-Body Aircraft
  • A jet airliner with a wide fuselage, able to fit two passenger aisles with seven or more seats abreast.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Aircraft, Engine & Parts Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
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    This report on Aircraft, Engine & Parts Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aircraft, Engine & Parts Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aircraft, Engine & Parts Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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