Taking off: Soaring industry exports have supported industry revenue growth

The Aircraft Manufacturing and Repair Services industry maintains and repairs commercial and military aircraft, and also manufactures aircraft and aircraft components. The industry has grown modestly over the past five years due to an overall rise in exports and steady demand for maintenance, repair and overhaul (MRO) services. Exports are primarily sent to the United States (for Boeing planes) and France (for Airbus planes) as Australian parts are key components of the Boeing 787 Dreamliner and the Airbus A380. Overall, industry revenue is expected to increase at an annualised 0.2% over the five years through 2017-18, to $3.9 billion. This includes anticipated growth of 4.2% in 2017-18...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
0.2%
Forecast Growth 18-23
Profit
Employment
13,533
Businesses
908

Industry Threats & Opportunities

  • The industry has low capital intensity due to a reliance on highly skilled labour
  • Wages have increased as a share of revenue as the technical complexity of operations has risen
  • Government capital expenditure on defence is expected to increase strongly
  • Industry Report - Industry Analysis Chapter

    The Aircraft Manufacturing and Repair Services industry has grown marginally over the past five years. Increasing demand for maintenance, repair and overhaul (MRO) services from commercial airlines has supported revenue growth for the industry’s larger players, particularly Boeing and Airbus. A rise in aircraft kilometres flown has increased the need for maintenance of existing aircraft fleets, boosting MRO activity. An overall increase in capital expenditure on defence has also driven demand from the Australian Defence Force (ADF). Many industry players, such as BAE Systems, provide through-life support service contracts for military aircraft fleets. Industry revenue is expected to increase at an annualised 0.2% over the five years through 2017-18, to reach $3.9 billion. Thi...purchase to read more.

    Additional Insights for the Aircraft Manufacturing and Repair Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aircraft Manufacturing and Repair Services Industry are

  • Ability to expand and curtail operations rapidly in line with market demand
  • Output is sold under contract - incorporate long-term sales contracts
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from air and space transport and Aircraft kilometres flown in the Aircraft Manufacturing and Repair Services industry impact industry performance..

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    What's in this report

    What is the Aircraft Manufacturing and Repair Services Industry?

    The industry includes businesses that manufacture aircraft and aircraft engines and frames used for civilian and military purposes. Industry services also include guided missile manufacturing, aircraft maintenance, repair and overhaul.

    Industry Products
  • Aircraft and aircraft parts manufacturing
  • Other products and services
  • Military aircraft maintenance, repair and overhaul services
  • Commercial aircraft maintenance, repair and overhaul services
  • Industry Activities
  • Manufacturing aircraft engines and frames
  • Manufacturing aircraft, including helicopters and gliders
  • Manufacturing guided missiles
  • Maintenance, repair and overhaul of aircraft, engines and avionics
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from air and space transport
  • Aircraft kilometres flown
  • Capital expenditure on defence
  • Air passenger movements through capital city airports

  • Current Performance
  • Global supplier
  • International trade
  • Maintenance demand and offshoring
  • Profitability and military demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Improved demand
  • On and offshoring
  • Defence demand
  • Table: Aircraft Manufacturing and Repair Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aircraft Manufacturing and Repair Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • International Airlines
  • Domestic Airlines
  • Non-Scheduled Air Transport
  • Defence

  • Key Selling Industries
  • Audio Visual Electronic Equipment Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing
  • Structural Steel Fabricating
  • Telecommunications and Other Electrical Goods Wholesaling

  • Products & Services
  • Aircraft and aircraft parts manufacturing
  • Commercial aircraft maintenance, repair and overhaul services
  • Military aircraft maintenance, repair and overhaul services
  • Other products and services
  • Chart: Aircraft Manufacturing and Repair Services Industry Products and Services Segmentation

  • Demand Determinants
  • Passenger numbers
  • New models

  • Major Markets
  • Export markets
  • Commercial airlines
  • The Australian Defence Force
  • Other markets
  • Chart: Major Market Segmentation for the Aircraft Manufacturing and Repair Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Aircraft Manufacturing and Repair Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aircraft Manufacturing and Repair Services Industry

  • Industry Globalization
    Boeing Australia Holdings Pty Ltd, Airbus Australia Pacific Limited, BAE Systems Australia Holdings Limited,
  • Table: Boeing Australia Holdings Pty Ltd - financial performance
  • Table: Airbus Australia Pacific Limited - financial performance
  • Table: BAE Systems Australia Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aircraft Manufacturing and Repair Services 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 Manufacturing and Repair Services 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    787 Dreamliner
  • Aircraft built by the Boeing Company that use 20% less fuel for comparable missions than similarly sized aeroplanes, with speeds similar to the current fastest wide bodies.
  • Avionics
  • Electronic systems for use on aircraft, artificial satellites and spacecraft, comprising communications, navigation and the display and management of multiple systems.
  • Glider
  • An aircraft that flies without the use of thrust from an engine.
  • Guided Missile
  • A self-propelled projectile used as a weapon. Missiles are typically propelled by rockets or jet engines.
  • Heavy Maintenance
  • Extensive checks of an aircraft's fuselage and other primary components occurring every 5 to 7 years. This requires an aircraft to be taken out of service. Also known as base maintenance.
  • Line Maintenance
  • Frequent checks and repairs of an aircraft's systems, often carried out weekly or monthly. Does not require the aircraft to be taken out of service.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Aircraft Manufacturing and Repair Services 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
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    This report on Aircraft Manufacturing and Repair Services:
    • 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 Manufacturing and Repair Services 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 Manufacturing and Repair Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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