Full flight: Rising global demand for commercial aircraft will benefit industry performance

The Aircraft, Engine and Parts Manufacturing industry in Canada has rapidly expanded for most of the past five years, despite volatile profitability. As the global economy grew, led by emerging market growth, demand for air travel increased. Consequently, demand for industry products climbed, bringing the industry to new heights. Over the five years to 2023, IBISWorld expects industry revenue to increase. Despite the recent slowdown, the global economy is anticipated to continue growing, increasing air travel and demand for industry products. Even demand for business aircraft, which has been weak over the past five years, is anticipated to slowly climb in light of economic growth...read more.

Industry Statistics & Market Size
Revenue
$23bn
Annual Growth 13-18
7.1%
Forecast Growth 18-23
Profit
Employment
40,222
Businesses
413

Industry Threats & Opportunities

  • Demand for the industry’s newest, cleanest and more fuel-efficient aircraft and engines will grow
  • The decline in oil and gas prices have reduced global energy investment
  • Recovering fuel prices and aging airline fleets will further boost industry demand
  • Industry Report - Industry Locations Chapter

    Industry locations usually cluster around aerospace hubs. These areas have universities to help conduct research and development (R&D), government incentives, good trade infrastructure, vocational training programs and proximity to US aerospace manufacturing facilities.Ontario and QuebecAn estimated 42.3% of industry establishments are located in Ontario alone. The province is home to the University of Toronto Institute for Aerospace Studies and the Ryerson Institute for Aerospace Design and Innovation, both of which collaborate with the industry on research and development (R&D). However, while Ontario is home to the most establishments, Quebec is the true capital of the industry. Quebec accounts for 25.6% o...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

  • Ability to manage external contracts
  • Access to highly skilled workforce
  • Ability to attract foreign customers
  • IBISWorld analysts also discuss how external factors such as Total value of world trade and World price of crude oil 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?

    Industry operators provide one or more of the following: the manufacture of complete aircraft; the manufacture of aircraft engines, propulsion units and other related equipment or parts; the development and creation of aircraft prototypes; aircraft conversions (i.e. major modification to systems); and complete aircraft overhaul and rebuilding (i.e. periodic restoration of aircraft to original design specifications).

    Industry Products
  • Completed aircraft
  • Aircraft engines and engine parts
  • Landing gear
  • Completed rotorcraft
  • Other components
  • Industry Activities
  • Manufacture complete aircraft
  • Manufacture aircraft components, parts and subassemblies
  • Manufacture aircraft engines
  • Manufacture aircraft engine components, parts and subassemblies
  • Modify aircraft, aircraft parts or engines
  • Restore and overhaul aircraft, aircraft parts or engines
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total value of world trade
  • World price of crude oil
  • Canadian-dollar effective exchange rate index
  • Government expenditure and investment
  • World price of aluminum
  • Per capita disposable income

  • Current Performance
  • Foreign demand drives growth
  • Recent turbulence
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Global economic growth propels demand
  • Recovering fuel prices, regulations and aging airline fleets
  • International trade
  • Profit and other 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
  • Heavy Engineering Construction in Canada
  • Tire Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada
  • Aluminum Manufacturing in Canada

  • Key Selling Industries
  • Aircraft Maintenance, Repair & Overhaul in Canada
  • Charter Flights in Canada
  • Heavy Equipment Rental in Canada
  • International Airlines in Canada
  • Mining In Canada
  • Scheduled Air Transportation in Canada

  • Products & Services
  • Aircraft engines and engine parts
  • Completed aircraft
  • Other components
  • Landing gear
  • Completed rotorcraft
  • Chart: Aircraft, Engine & Parts Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Health of downstream industries and economic growth
  • Military funding
  • Exports
  • Exchange rates
  • Aircraft life cycle
  • Fuel prices
  • Interest rates

  • Major Markets
  • Exports
  • Commercial aerospace
  • Defence
  • 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
    ProfitPurchasesWagesRent and utilitiesDepreciationOther and marketing
  • 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
    Bombardier Inc., United Technologies Corporation, Bell Helicopter Textron Inc.,
  • Table: Bombardier Inc. - financial performance
  • Table: United Technologies Corporation - financial performance
  • Table: Bell Helicopter Textron Inc. - 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Government funding for defence (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Avionics
  • Avionics are aircraft electronic systems and include things such as radar and communication, control and display systems.
  • Original Equipment Manufacturer (Oem)
  • In this industry, OEMs are the firms that do the primary aircraft design and development work and are responsible for the final assembly of the aircraft, which is then sold under their brand.
  • Tier 1 Supplier
  • Tier 1 suppliers are primarily sub-system integrators, with only OEMs above them in the supply chain.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Aircraft, Engine & Parts Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    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 of 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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