The main findings revealed that the aircraft manufacturing business has changed dramatically since the late 1990s. For new entrants, the aircraft sector remains appealing.
Globalization, government backing, and the general desire for more mobility have all contributed to the long-term growth rate, indicating that there is still a considerable need for aircraft of all sizes. It is strongly recommended to enter the industry because of its attraction.
Components of aircraft manufacturing company
The major components of the aircraft manufacturing industry are as follows:
For the manufacturing of aircraft, raw materials like steel and plastic parts are required. Aircraft manufacturer purchases raw material from suppliers worldwide and makes long-term alliances with them.
Civil aircraft manufacturers
The manufacturer works from research and development to training pilots to selling new aircraft. Nearly 80% of the sale is done between manufacturers and airlines.
Aircraft leasing companies
20% of the planes are brought by leasing. This business is also growing because of tax reductions for investors and uncertainties in the airline manufacturing business.
They work for the end customers. They do marketing, air traffic planning and other stuff.
The airport is a necessary infrastructure.
The most important component of the industry is the customer.
In 2021, the global aircraft manufacturing market was worth USD 413.51 billion, and it is predicted to increase at a CAGR of 3.7 percent over the next five years. The aircraft manufacturing industry includes the production of airplanes as well as components such as engines, propulsion systems, and other components. Because of major supply chain interruptions and a slowdown in manufacturing activity, the COVID-19’s spread shows a decline in the aviation manufacturing market’s growth.
The entire manufacturing process has been interrupted by imposed trade obstacles and international border closures. Demand for airplane production is expected to be hampered by supply chain interruptions, lockdown measures, and limited consumer and business spending. Furthermore, the industry’s expansion is expected to be hampered by the drop in air activity. However, when governments throughout the world relax their restrictions, the demand for aircraft production is expected to rebound.
High demand for aircraft
In 2016, more than 22,000 commercial wide-body and narrow-body aircraft were in service around the world. According to the latest data from international aircraft maker Boeing, the worldwide commercial aircraft fleet is expected to grow by 40% by 2027, from 25,000 in 2017. According to Boeing, this global expansion will require an additional 560,000 pilots and 600,000 technicians by the early 2030s.
Commercial aircraft expansion will push airport capacity even further, the world’s busiest single-runway airport set a new world record by flying nearly one flight every minute, and worldwide airport capacity is expected to hit its limit. The great majority of commercial aircraft fleet increase will take place outside of the UK, implying that foreign trade will fuel growth in the MRO (maintenance, repair and operations) industry.
The UAE and the Middle East will require 253,000 additional pilots, 308,000 additional air crew, and 259,000 additional maintenance personnel during the next ten years.
There is high demand of aircraft and the aircraft manufacturing industry is booming now.