This is marketing research on the Aircraft Engine and Parts industry and can include information on the background, market structure, definitions, competitors, trends and developments of aircraft engine and parts and is related to other topics such as planes, repairs, maintenance and accessories.

Table of Contents

Table of Contents

1 Background 
2 Market Structure 
3 Market Metrics 
4 Industry Players 
5 Trends and Developments 
6 Sources

Background

The “Aircraft Engines and Engine Parts” industry includes companies engaged in manufacturing aircraft engines and engine parts. The aircraft and parts industry (SIC 372) covers aircraft (SIC 3721), aircraft engines and engine parts (SIC 3724), and aircraft equipment and parts not elsewhere classified (SIC 3728).

Market Structure

The top manufacturers include major U.S. aircraft engine manufacturers which are generally divisions of larger companies such as Pratt & Whitney as part of United Technologies or GE Aircraft Engines as a part of General Electric Company, as well as Rolls Royce Group based in Britain. There also exist many smaller, niche players worldwide.

Market Metrics

Aircraft Engines and Engine Parts

Prospects for future sales of U.S.-manufactured aircraft engine “hushkits” and replacement engines suffered a setback with the adoption by the European Union (EU) in April 1999 of legislation aimed at restricting the operation of aircraft modified with that equipment. The regulation is scheduled to take effect in May 2000. It freezes at current levels the number of hushkitted and certain reengined aircraft that may be registered and operated in the EU even though those aircraft are compliant with the most recent and stringent aircraft noise standards established by the International Civil Aviation Organization (ICAO).

No aircraft manufactured in Europe are affected by the regulation. The restrictions fall on U.S. manufacturers and other U.S. companies that produce and install hushkits and replacement engines. The EU legislation also affects U.S. air carriers, whose fleets contain many more hushkitted and reengined aircraft than do European carriers. The restrictions imposed by the regulation reduce the market for noise-modified aircraft and thus the resale value of such aircraft. As of November 1999, the United States was continuing to seek the EU’s withdrawal of its regulation.

One program designed to revitalize the U.S. general aviation industry, the GAP Program, has implications for manufacturers of small aircraft engines. Managed out of NASA’s Glenn Research Center, this program is coordinated by the FAA and performed jointly by NASA and Contractor-Led Project Teams formed by industry. The goal of GAP is to develop affordable propulsion systems for general aviation light aircraft and consists of two elements. The goal of the Intermittent Combustion (IC) Engine Element is to reduce engine prices in half while substantially improving reliability, maintainability, ease of use, and passenger comfort. The primary goal of the Turbine Engine Element is to reduce the price of small turbine engines by a factor of 10.

On the military side there is the Integrated High Performance Turbine Engine Technology (IHPTET) Initiative, a joint DOD–NASA–industry effort to provide significant performance and operational improvements for current and future military engines. IHPTET is considered a model program because the technology it is developing is dual-use technology.

Growth and Trade Projections for Aircraft Engines and Parts

The value of shipments in the aircraft engine and parts industry was expected to increase about 10 percent in 1999. Shipments are expected to remain level through 2004 as the market for regional jets replaces that for twin-aisle commercial aircraft. Exports increased about 23 percent in 1998 compared with 1997 and were expected to increase 0.7 percent in 1999 as regional jets are being manufactured outside the United States. Foreign production of regional jets is expected to absorb some of the parts previously consumed by domestic producers.

Aircraft Parts and Equipment

The aircraft parts and equipment subsector (SIC 3728) covers parts and equipment other than engines and their parts. It excludes avionics—navigation and communications equipment for aircraft. Some of the products included are fuselage assemblies, wing assemblies and parts, rudders, landing gear, wheels, brakes, fuel tanks, propellers and rotors, and their parts. Other equipment covered includes dusting and spraying equipment, ejector seat devices, and aircraft arresting device systems. Small individual parts are included in SICs other than 372 and 376 but are not covered elsewhere in this publication.

Electronic commerce has come to U.S. aerospace industry manufacturers and distributors of aircraft parts, including some engine parts. Suppliers to major aerospace contractors increasingly may contact their customers and suppliers on the Internet. Aircraft owners and mechanics may order parts at an increasing number of Web sites.

A central concern of U.S. manufacturers of aircraft parts and equipment is the apparent trend among U.S. airframe producers, both civil and military, to source more components offshore. Parts suppliers and labor unions charge that the increased foreign content of “U.S.” aircraft deprives them of contracts and jobs. Manufacturers of airframes and major components (such as engines) justify offshore sourcing as a necessary element in maintaining access to foreign markets for complete aircraft. U.S. airframe manufacturers also cite the substantial number of components U.S. parts producers provide to foreign airframe manufacturers.

Although the number of firms in the industry expanded 5.6% in the five year period between 1997 and 2002 as measured by the U.S. Department of Commerce, the number of employees actually decreased by 14.3% (see chart below). That number likely expanded in the years after 2002 as the leading manufacturers such as Boeing and Airbus had significant plane orders and sales of parts and engines probably increased apace with plane orders through mid-decade.

At the same time, revenues rose 6% overall, with the value of shipments for U.S. aircraft engines and parts growing to over US $24 billion by 2002 (see chart below).

Top Ten Exporters (in USD thousands) includes aerospace and associated equipment and parts:

	Country	        2001	     2002	           2003	          2004	           2005
	U.S. 	     44,688,612	  43,876,404	39,598,602	42,095,103	49,793,290
	France 	     17,209,629	  17,169,665	19,219,687	21,945,554	24,460,067
	Germany      17,174,529	  16,313,247	16,419,450	17,978,212	19,273,154
	Canada 	      8,554,233	   7,416,979	 7,908,625	 7,257,128	 7,980,447
	Italy 	      2,751,140	   3,869,782	 2,701,757	 3,380,324	 3,404,577
	Brazil 	      3,553,510	   2,798,690	 2,049,892	 3,371,301	 3,302,832
	Spain 	      1,342,552	   1,846,354	 1,739,200	 2,704,673	 2,809,857
	Singapore       850,356	     936,658	 1,191,481	 1,245,870	 1,505,207
	Japan 	      1,729,388	   1,294,581	 1,497,873	 1,170,224	 1,411,390
	Netherlands 	599,057	     586,510	   789,097	   983,464	 1,085,295

Top Ten Importers (in USD thousands) - includes aerospace and associated equipment and parts:

	Country	       2001	    2002	            2003	           2004	           2005
	Germany      13,979,227	  11,862,803	13,082,675	16,689,337	19,441,485
	USA 	     21,180,142	  18,063,413	17,057,916	16,558,525	16,568,718
	France 	      6,172,356	   6,711,546	 8,151,716	 9,939,777	11,113,185
	China 	      4,542,722	   4,051,120	 4,460,636	 4,989,641	 6,561,195
	Canada 	      5,046,346	   4,522,881	 3,437,852	 3,619,663	 5,336,813
	India 	        260,727	     969,185	 1,154,706	 1,569,892	 4,998,920
	Japan 	      1,970,300	   3,723,920	 4,409,678	 4,143,318	 4,822,429
	Singapore     3,805,102	   3,136,258	 3,879,668	 3,990,189	 3,751,226
	Spain 	      1,805,533	   1,782,085	 1,608,830	 2,583,371	 3,211,721
	Italy 	      3,404,350	   3,987,422	 2,874,144	 2,829,489	 3,006,917

Industry Players

The General Electric Company was the world's largest manufacturer of aircraft jet engines during the initial years of the 2000s. GE Aircraft Engines is part of GE Aviation, which had US $16.8 billion in revenues in 2007.

Rolls-Royce Group PLC in Britain UK has over 100 militaries as its customers. The company reported sales of over 4 billion UK pounds in sales in its aerospaces segment in 2007.

Pratt & Whitney is a division of United Technologies Company and also owns Sikorsky aircraft, a manufacturer of military and commercial helicopters. In 2008, the company reported revenues of US $13 billion, profits of over $2 billion and employed over 38,000 workers.

Other key players from past and present in the market includes the following:

• BMW (Germany)
• Bristol Engine Company (UK)
• Bristol Siddeley (UK)
• CFM International (USA and France)
• Continental Motors (USA)
• Curtiss-Wright (USA)
• Daimler-Benz (Germany)
• de Havilland (UK)
• Ford Motor Company (UK)
• Hispano-Suiza (France)
• Honda (Japan)
• Kuznetsov (Russia)
• Avco Lycoming (USA)
• Napier & Son (UK)
• Pratt & Whitney Canada (Canada)
• Rotax (Austria)
• Snecma Moteurs (France)
• Turboméca (France)
• Volvo Aero (Sweden)
• Westinghouse (USA)

The majority of key players are from the the U.S. and Western Europe.

Trends and Developments

Growth and Trade Projections for Aircraft Parts and Equipment

As with engine and parts manufacturers, U.S. deliveries of aircraft parts and equipment were expected to rise in 1999 compared with 1998 but remain stable for the period 2000–2004. During the latter period, exports should rise about 2 percent per year as foreign regional jet aircraft manufacturers’ requirements increase, partially offsetting decreased demand by U.S. aircraft manufacturers.

Sources

• U.S. Department of Commerce
• Corporate Websites
• US Census Bureau