The Aircraft, Engine and Parts Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) July 11, 2013 -- Despite record-high fuel prices, airlines worldwide have a ravenous need to renew or expand fleets. The Aircraft, Engine and Parts Manufacturing industry feeds this hunger by manufacturing and overhauling aircraft and aircraft engines; industry operators also manufacture aircraft-related parts and equipment. Additionally, the industry has introduced new products like fuel-efficient planes, including the Boeing 787 Dreamliner, released in September 2011. “Meanwhile, the war against terrorism, the introduction of the Joint Strike Fighter jet and the rising popularity of unmanned aerial vehicles (i.e. drones) have all supported the industry's military segment,” says IBISWorld industry analyst Olawale Harrison. As a result, revenue is expected to increase 2.1% in 2013 to total an estimated $186.3 billion.
The Aircraft, Engine and Parts Manufacturing industry has a medium level of concentration, with the four largest major players holding more than 60.0% of market share. In the commercial aircraft segment, Boeing dominates the industry. “The costs associated with manufacturing aircraft and components are high,” says Harrison, “and contracts are usually awarded to existing players in similar fields or in countries that have negotiated large aircraft orders.” Likewise, a few large firms dominate the production of military aircraft products and parts for the US government. Consequently, the main contractors earn the majority of revenue generated by the military segment. Market share concentration is forecast to increase as the largest companies continue grow through mergers and acquisitions.
IBISWorld expects strong military demand, and growing civil demand, to raise revenue an average of 2.1% annually during the five years to 2013. Technological improvements will drive growth in manufacturing aircraft, engines and parts; the industry's focus on improving fuel efficiency will continue to draw interest from customers in downstream markets, especially airlines looking to save on fuel costs. While federal funding for defense will slow in coming years, based on a projected reduction in military involvement overseas, passengers returning to commercial flying will lead to consistent growth in demand from domestic and foreign airlines. A high backlog of orders will pay dividends for operators in the Aircraft, Engine and Parts Manufacturing industry and help revenue grow in the five years to 2018.
For more information, visit IBISWorld’s Aircraft, Engine and Parts Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Aircraft, Engine and Parts Manufacturing industry build and overhaul complete aircraft, develop prototypes and convert aircraft. The industry also includes the manufacture, conversion and overhaul of aircraft engines and propulsion systems. Additionally, the industry makes related parts and auxiliary equipment.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, 310 866 5042, [email protected]
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