Aircraft Engine Parts Manufacturing Private Company Multiples and Valuation
Aircraft Engine Parts Manufacturing: Navigating Market Trends, Private Company Multiples and Valuation.
Aircraft Engine Parts Manufacturing
Industry: Aircraft Engine Parts Manufacturing
Naics: 336412
Private Company Multiples
Industry Overview
The Airplane, Engine, and Parts Manufacturing industry has demonstrated remarkable resilience and growth in recent years. The industry develops and produces planes, rotorcraft, engines, and related components for civil, commercial, and defense markets. Pent-up demand following the pandemic has led to a surge in air travel, boosting revenue as airlines seek replacements for planes and parts. Additionally, rising global tensions have spurred increased defense spending, supporting revenue for defense contractors.
Market Size
The industry has experienced significant growth, with revenue climbing at a CAGR of 6.0% to reach $240.3 billion in 2025. This includes a 3.1% spike in 2025 alone, with profit margins reaching 5.7%. Looking ahead, revenue is projected to strengthen at a CAGR of 2.1%, reaching $266.7 billion by 2029. This growth is supported by steady government spending and improving consumer sentiment.
Key Players and Market Concentration
The industry is characterized by a mix of large, dominant players and smaller, specialized manufacturers. Key players in the defense sector include Boeing, Lockheed Martin, Raytheon, and Bell-Textron. In commercial aircraft, Boeing is the primary U.S.-based player, competing with international rivals like Bombardier, Airbus, and Embraer. Market concentration varies by sector, with defense and large-scale commercial aircraft manufacturing being highly concentrated due to high barriers to entry and substantial R&D costs. Specialized parts markets, however, show greater fragmentation.
Workforce
The industry employs a significant workforce across various specializations, including engineering, manufacturing, and research and development. The sector requires highly skilled workers to meet the technological demands of modern aircraft production.
Future Outlook
The future of the Airplane, Engine, and Parts Manufacturing industry looks promising, with several key trends emerging:
- Continued growth in global and domestic demand for commercial aircraft
- Increasing focus on fuel-efficient and environmentally friendly aircraft
- Expansion of defense contracts, particularly for next-generation fighters and bombers
- Growing interest in electrification and autonomous/remote piloting technologies
- Ongoing industry consolidation through mergers and acquisitions
Factors Influencing Higher Valuation
Factors that can lead to higher valuations in this industry include:
- Strong R&D capabilities and technological innovation
- Secure, long-term contracts, especially with government agencies and mainstream logo customers
- Diversified product portfolios across civil, commercial, and defense markets
- Efficient supply chain management and production capabilities
- Strategic partnerships
- Leadership in emerging technologies
How to Grow Your Airplane, Engine, and Parts Manufacturing Business
To thrive in this competitive industry:
- Invest heavily in R&D to stay at the forefront of technological advancements
- Pursue long-term contracts, particularly in the defense sector
- Focus on developing fuel-efficient and environmentally friendly aircraft
- Explore opportunities in emerging markets and technologies
- Consider strategic partnerships or acquisitions to expand capabilities
- Implement robust supply chain management to mitigate disruptions
- Diversify product offerings across various market segments
Key Financial Metrics
Income Statement Benchmark
