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Aircraft, Engine & Parts Manufacturing in Germany - Market Research Report (2014-2029)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: August 2024 WZ C30.30DE

Revenue

€41.5bn

2024

€41.5bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

86,930

Businesses

107

Wages

€X.Xbn

Aircraft, Engine & Parts Manufacturing in Germany industry analysis

In the 2010s, the aerospace industry benefited from rising global passenger numbers and the resulting increase in demand for aircraft. However, the coronavirus crisis brought this development to an abrupt end. As numerous airlines cancelled orders or negotiated a delayed acceptance of ordered aircraft, the industry recorded a slump in sales in 2020. Over the last five years, the industry's turnover has fallen by an average of 0.5% per year and is expected to reach 41.5 billion euros in 2024. < />In 2024, the industry's turnover is expected to increase by 5.5 %. The negative impact of the coronavirus pandemic on the aviation industry has largely been overcome and the number of passengers travelling by plane is increasing worldwide. This is prompting many airlines to expand or modernise their fleets. The industry is benefiting greatly from large orders from low-cost carriers. In addition, the increased military spending of many countries due to the war in Ukraine is having a positive effect on the military aircraft and supplier parts business. The aerospace sector was hardly affected by the negative consequences of the coronavirus pandemic and is also developing stably in the current year. Given the limited size of the domestic market, foreign trade is extremely important for the industry. Adjusted for distortion effects, the industry generates around three quarters of its turnover from exports.For the period from 2024 to 2029, it is expected that the global passenger volume and thus also the demand for passenger aircraft will continue to increase. Accordingly, IBISWorld forecasts average annual industry growth of 3.2% over the next five years and industry revenue of EUR 48.6 billion in 2029. In the coming years, airlines are expected to increasingly deploy medium-haul aircraft for long-haul flights in order to reduce the sales risk of excessive passenger capacity. At the same time, the growth of the Asian aviation market is creating new export opportunities for German aircraft manufacturers. Reducing fuel consumption is playing an increasingly important role in the industry, which is made possible in particular by the use of fuel-efficient engines and lighter aircraft.

Trends and Insights

  • The industry is benefiting from the expansion of low-cost carriers. In the course of their strong growth, many low-cost carriers have placed large orders for new aircraft.
  • The majority of industry revenue is generated with civil aircraft sold abroad. Gulf carriers in particular have played an important role as customers for civil aircraft in recent years. China now also represents a significant sales market.
  • Within the northern region, the greater Hamburg area is particularly important for the industry. This is the centre of the German aerospace industry due to the Airbus and Lufthansa Technik companies based there.
  • Almost all companies active in the industry are directly or indirectly dependent on Airbus. Many of them have aligned their business model with Airbus, at least as far as their German sites are concerned.

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  • Market estimates from 2014-2029
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 0.5 % over the past five years, to reach an estimated €41.5bn in 2024.

Trends and Insights

Airbus lowers its delivery targets due to problems in the supply chain

  • The reason for the delayed delivery of aircraft by Airbus is, according to the Group, ongoing bottlenecks in the procurement of components such as engines, fuselage parts and cabin equipment.
  • Additional trends and insights available with purchase
Aircraft, Engine & Parts Manufacturing in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Airlines are expected to use more and more medium-haul aircraft instead of long-haul aircraft in the coming years

  • In the coming years, long-haul flights are likely to be increasingly operated with medium-haul aircraft such as the A320neo, which can also be used on long-haul routes with additional fuel tanks. Conventional long-haul aircraft, on the other hand, are likely to become less important.

Biggest companies in the Aircraft, Engine & Parts Manufacturing in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Airbus SE
23,817.0
Rolls-Royce Deutschland Ltd. & Co. KG
2,119.0
MTU Aero Engines AG
1,838.1

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Aircraft, Engine & Parts Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Civil aircraft, Military aircraft and Spacecraft. Civil aircraft is the largest segment of the Aircraft, Engine & Parts Manufacturing in Germany.

Trends and Insights

The share of civil aircraft in industry sales declined due to cancellations caused by the pandemic

  • This segment comprises the production of aircraft and aircraft parts as well as other civil aviation equipment, including civil helicopters, sports aircraft and civil drones, but also ancillary services such as interior refurbishment.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The industry is involved in the manufacture of aircraft and spacecraft for the purpose of transporting people, goods, military equipment and weapon systems. Components such as engines and propellers are also part of the sector's products, while specialised equipment and software such as flight navigation systems are predominantly not.

What's included in this industry?

Civil aircraftMilitary aircraftSpacecraft

Companies

Airbus SERolls-Royce Deutschland Ltd. & Co. KGMTU Aero Engines AG

Purchase this report to view all 5 major companies in this industry.

Related Terms

ADDITIVE MANUFACTURINGARTIFICIAL INTELLIGENCE (KI)MAINTENANCE, REPAIR AND OPERATIONS (MRO)MACHINE LEARNINGORIGINAL EQUIPMENT MANUFACTURER (OEM)WIND CHANNEL TESTWINGLET

Industry Code

WZ 2008

WZ 30.30 - Aircraft, Engine & Parts Manufacturing in Germany

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

The industry is benefiting from the expansion of low-cost carriers. In the course of their strong growth, many low-cost carriers have placed large orders for new aircraft.

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 (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • 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

The majority of industry revenue is generated with civil aircraft sold abroad. Gulf carriers in particular have played an important role as customers for civil aircraft in re...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • 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

Within the northern region, the greater Hamburg area is particularly important for the industry. This is the centre of the German aerospace industry due to the Airbus and Luf...

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 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

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

Almost all companies active in the industry are directly or indirectly dependent on Airbus. Many of them have aligned their business model with Airbus, at least as far as the...

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 2019-2024
  • 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

Rolls-Royce Germany has invested heavily in innovative engine technologies in recent years. Two significant developments are the Pearl 15 engine and the Advance 3 engine.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Airbus SE's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Rolls-Royce Deutschland Ltd. & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of MTU Aero Engines AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Airbus SE, and factors influencing its performance in the industry
  • Description and key data for Rolls-Royce Deutschland Ltd. & Co. KG, and factors influencing its performance in the industry
  • Description and key data for MTU Aero Engines AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The industry is subject to strict regulation in terms of safety requirements and technical standards. The Air Traffic Licensing Regulations and the Ordinance on the Testing o...

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 (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

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

The cost of materials is the biggest cost factor in the industry. It is likely to continue to rise in the coming years as increasingly high-quality substances, materials and ...

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 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

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 (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

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 industry in Germany in 2024?

The market size of the Aircraft, Engine & Parts Manufacturing industry in Germany is €41.5bn in 2024.

How many businesses are there in the Aircraft, Engine & Parts Manufacturing in Germany industry in 2024?

There are 107 businesses in the Aircraft, Engine & Parts Manufacturing industry in Germany, which has grown at a CAGR of 2.8 % between 2019 and 2024.

Has the Aircraft, Engine & Parts Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Aircraft, Engine & Parts Manufacturing industry in Germany has been declining at a CAGR of 0.5 % between 2019 and 2024.

What is the forecast growth of the Aircraft, Engine & Parts Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Aircraft, Engine & Parts Manufacturing industry in Germany is expected to grow.

What are the biggest companies in the Aircraft, Engine & Parts Manufacturing market in Germany?

The biggest companies operating in the Aircraft, Engine & Parts Manufacturing market in Germany are Airbus SE, Rolls-Royce Deutschland Ltd. & Co. KG and MTU Aero Engines AG

What does the Aircraft, Engine & Parts Manufacturing in Germany include?

Civil aircraft and Military aircraft are part of the Aircraft, Engine & Parts Manufacturing industry.

Which companies have the highest market share in the Aircraft, Engine & Parts Manufacturing in Germany?

The company holding the most market share in Germany is Airbus SE.

How competitive is the Aircraft, Engine & Parts Manufacturing industry in Germany?

The level of competition is high and steady in the Aircraft, Engine & Parts Manufacturing industry in Germany.

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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 Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

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.