:max_bytes(150000):strip_icc()/GettyImages-150639560-d454779a2e5d4e5b90130ff8f50a56bd.jpg "Who Are the Major Airplane Manufacturing Companies?")
Although the airline industry overall is an extremely competitive market, there is little competition among its suppliers of aircraft. In the large commercial aircraft market of the airline supply business, the major players are American-based Boeing (BA) and the Airbus Group, formerly known as the European Aeronautic Defense and Space Company (EADS).
Less well-known makers of large passenger airplanes are attempting to build a bigger presence on the world’s stage. In addition, there are regional airplane manufacturers with an established foothold as makers of smaller jets. Then, there are those companies that supply essential components to the aircraft makers.
Key Takeaways
- The global airplane manufacturing market is valued at over $400 billion.
- The world’s only major large passenger aircraft manufacturers are Boeing and Airbus.
- Boeing’s and Airbus’s established jet brands are the 7-series and A-series, respectively.
- Up-and-coming large passenger airplane makers include Comac in China, Mitsubishi in Japan, and UAC in Russia.
- Based on deliveries, Airbus takes the top spot as the largest airplane manufacturer in the world.
The Airplane Manufacturing Market
The airplane manufacturing market is part of the overall airline industry. The global market’s estimated value was more than $400 billion in 2023, and is expected to grow to more than half-a-trillion dollars by 2029. Companies in this market are involved in the manufacturing of airplanes and their components, including engines and propulsion systems.
Large Passenger Airplane Manufacturers
Boeing and Airbus are the world’s only major large passenger aircraft manufacturers. The two companies share almost exclusive control of the worldwide airplane supply business for large commercial jets. Their established brands are Boeing’s 7-series and Airbus’s A-series of jets. These aircraft include narrow-body aircraft, wide-body aircraft, and jumbo jets.
Regional and Other International Airplane Manufacturers
Bombardier, based in Canada, and Embraer, a Brazilian aircraft manufacturer, are leaders in the regional and business airplanes market. They both focus on smaller-sized jets.
On a global scale, competition with Boeing and Airbus is difficult. However, newer airline suppliers Comac in China, Mitsubishi in Japan, and UAC in Russia are working on a series of new wide-body jets in a joint venture. They hope to eventually become a legitimate competitor that can take on the dominance of Boeing and Airbus in the large-jet space.
Military Airplane Manufacturers
Boeing and Airbus have a significant market share in the supply of military aircraft, particularly to the United States. Their competition in this market includes Lockheed Martin. Just under half of Boeing’s revenues came from U.S. government contracts in 2021. Only 20% of Airbus’ revenues came from defense contracts in 2020.
Suppliers to Airplane Manufacturers
Raytheon Technologies Corporation (RTX) and General Electric (GE) are two significant companies that manufacture airplane engines and other parts for industry operators. Rolls-Royce (RYCEY), Pratt & Whitney, and Honeywell (HON) also produce airplane jet and propeller engines.
Top Aircraft Manufacturers
Here are some of the largest aircraft manufacturers in the world. All data as of Q1 2024.
Boeing (BA)
- Headquartered in: Chicago, Illinois, USA
- Founded in: 1916
- Market Cap: $121 billion
- Employees: 156,000
- Products: Known for manufacturing a wide range of commercial jetliners, Boeing’s product line includes the 737, 747, 767, 777, and 787 families of airplanes. The company also offers military aircraft, satellites, and other aerospace products and services.
Once the darling of the aircraft business, Boeing has faced a number of critical challenges recently, most notably issues related to the safety of its aircraft. Incidents involving the 737-MAX’s inflight controls and aircraft doors detaching mid-flight have raised serious concerns. These issues have not only affected Boeing’s reputation and financial stability but also have wider implications for airline safety standards and consumer confidence in the industry.
Airbus (EADSY)
- Headquartered in: Leiden, Netherlands
- Founded in: 1970
- Market Cap: $126.3 billion
- Company Size: 138,000
- Products: Airbus is renowned for its range of commercial aircraft, including the A220, A320, A330, A350, and A380 families. The company also produces military planes, helicopters, and provides aerospace-related services.
Lockheed Martin (LMT)
- Headquartered in: Bethesda, Maryland, USA
- Founded in: 1995 (from the merger of Lockheed Corporation and Martin Marietta)
- Market Cap: $113.6 billion
- Employees: 116,000
- Products: While primarily focused on defense and military aircraft, such as the F-16 and F-35 Lightning II, Lockheed Martin also engages in aeronautics, missiles, fire control, and space systems.
Embraer (ERJ)
- Headquartered in: São Paulo, Brazil
- Founded in: 1969
- Market Cap: $3.2 billion
- Employees: 18,000
- Products: Embraer is renowned for its E-Jet and E-Jet E2 series of regional jets, which are popular among airlines for short to medium-haul flights.
Bombardier (BDRBF)
- Headquartered in: Montreal, Quebec, Canada
- Founded in: 1942
- Market Cap: $3.9 billion
- Employees: 15,000
- Products: The company’s aerospace division is known for its business jets, including the Challenger and Global series.
Boeing comes in second as the largest airplane manufacturer in the world due to manufacturing problems that led the Federal Aviation Administration to demand that it halt deliveries of its 787 model.
Who Is the Largest Aircraft Manufacturer?
Airbus is currently the world’s top commercial airplane manufacturer in terms of airplanes delivered and market capitalization. Boeing is in second place, as its deliveries stalled due to the grounding of certain aircraft and the COVID-19 pandemic, along with issues regarding its 737-MAX flight controls and more recent issues involving faulty doors.
How Are New Aircraft Certified to Fly?
Aircraft certification is a rigorous and detailed process conducted by aviation authorities such as the Federal Aviation Administration (FAA) in the United States or the European Union Aviation Safety Agency (EASA) in Europe. This process involves extensive testing and evaluation of the aircraft’s design, construction, and performance to ensure it meets strict safety standards. It includes analysis of the airframe, engines, systems, and flight performance, along with assessments of the aircraft’s handling under various conditions.
What Role do Aerospace Suppliers Play in Aircraft Manufacturing?
Aerospace suppliers are critical in the aircraft manufacturing ecosystem. They provide essential components, systems, and materials required to build an aircraft. This includes items such as avionics, propulsion systems, landing gear, cabin interiors, and composite materials. These suppliers range from large companies that produce major systems to smaller specialized firms. Aircraft manufacturers rely on these suppliers for both the initial construction of aircraft and ongoing maintenance and replacement parts.
Top aerospace suppliers include General Electric (GE), Safran (SAFRY), Honeywell (HON), BAE Systems (BAESY), and Spirit AeroSystems (SPR).
How Did the COVID-19 Pandemic Impact Aircraft Manufacturers?
The COVID-19 pandemic significantly impacted the aircraft manufacturing industry. There was a drastic reduction in demand for new aircraft due to the sharp decline in air travel. This led to production slowdowns, delays in aircraft deliveries, and financial challenges for manufacturers. However, the industry has been adapting by focusing on more flexible manufacturing processes, increasing cargo aircraft production due to the rise in e-commerce, and accelerating digital transformation to improve operational efficiency.
The Bottom Line
The airplane manufacturing market, valued at over $400 billion, is a significant component of the global airline industry, expected to see considerable over the next decade. Dominated by Boeing and Airbus, the only major manufacturers of large commercial jets, this market is characterized by their iconic 7×7-series and A3xx-series jets. The role of suppliers, including GE, Raytheon Technologies, and Rolls-Royce, is pivotal in providing essential components like engines and avionics. The industry, while facing lingering challenges from the COVID-19 pandemic leading to reduced demand and production, is adapting through flexible manufacturing and digital innovations. Boeing, in particular, has encountered significant mechanical challenges with its 737-MAX and 787 models, impacting its position in the global market. Overall, this industry is a complex and dynamic field, integral to global transportation and economic development.