Aircraft, Engine & Parts Manufacturing in European Union 2026: Industry Statistics & Trends

The Aircraft, Engine & Parts Manufacturing industry in the European Union comprises the development, design, and assembly of commercial and military aircraft, helicopters, propulsion units, and specialized structural components. According to the Aerospace, Security and Defence Industries Association of Europe (ASD), the civil aeronautics sector generated a turnover of 129,100 million EUR in 2024, experiencing steady recovery driven by commercial air traffic demand and fleet modernization. While the sector faces ongoing supply chain bottlenecks and labor shortages, it is actively transitioning toward green aviation and advanced fuel-efficient technologies to meet long-term net-zero goals.

Industry snapshot

Key public data points

Historical & forecast

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What does the Aircraft, Engine & Parts Manufacturing in European Union industry cover?

This industry encompasses the complete manufacturing lifecycle of civil and military aerospace systems, including commercial airliners, regional transport planes, helicopters, and unmanned aerial vehicles. It also incorporates the production of propulsion systems, engine parts, avionics, landing gear, and specialized fuselage assemblies. The sector is crucial to the EU's high-tech industrial base, driving extensive domestic research, engineering innovation, and high-value exports.

• •Classified under the official European system as NACE Rev. 2 code C30.30 (Manufacture of air and spacecraft and related machinery).
• •Includes the specialized production of turbine engines, components, and aftermarket parts used for civil maintenance, repair, and overhaul (MRO) activities.
• •Excludes operating airlines and downstream airport services, focusing strictly on upstream manufacturing and engineering.

Who operates in the industry and how is it structured?

The European aerospace manufacturing ecosystem is characterized by a multi-tier supply chain structured around a few massive system integrators known as Original Equipment Manufacturers (OEMs). Beneath these tier-1 integrators are thousands of specialized small and medium-sized enterprises (SMEs) providing advanced machinery, components, electronics, and raw materials. Geographically, production clusters are heavily concentrated in France, Germany, Spain, and Italy.

• •The broader European aerospace and defense sector represents more than 4,000 active companies according to ASD 2024 figures.
• •Direct employment across Europe's total aerospace and defense industry reached a record 1.1 million individuals in 2024.
• •Tier-1 and tier-2 suppliers are highly specialized, often acting as single-source providers for complex sub-assemblies like landing gear or engine casings.

What drives demand in the industry?

The primary catalyst for civil aircraft manufacturing is global passenger air traffic volume and the corresponding fleet renewal cycles of commercial airlines seeking fuel efficiency. Dual-use technologies and national security priorities also funnel significant demand through military aviation projects and joint European defense initiatives. Furthermore, stringent climate goals are forcing operators to accelerate the retirement of older fleets in favor of modern, eco-efficient designs.

• •According to the European Aviation Environmental Report (EAER) 2025, flights at EU27 and EFTA airports recovered to 8.35 million in 2023.
• •Long-term traffic projections by Eurocontrol anticipate regional flight numbers to reach approximately 11.8 million annual flights by 2050 in its base scenario.
• •Rising environmental pressure and fleet replacement needs directly stimulate orders for new narrow-body and wide-body commercial aircraft.

Who are the notable companies in the industry?

The EU market features a consolidated tier of dominant multinational manufacturers competing globally, supported by specialized pan-European defense and engine conglomerates. These organizations engage in intense innovation cycles and capital-intensive R&D to maintain global market share against international rivals. While commercial assembly is highly integrated, engine manufacturing and component supply lines remain competitive fields with specialized market leaders.

• •Airbus SE operates as the premier European commercial aircraft and helicopter manufacturer, maintaining its primary final assembly lines in France and Germany.
• •Safran SA is a dominant French-headquartered multinational producing aircraft engines, landing systems, and aerospace components.
• •Leonardo S.p.A., based in Italy, stands as a critical manufacturer of regional aircraft structures, helicopters, and military aviation systems.
• •Rolls-Royce plc and MTU Aero Engines AG represent vital engine manufacturers and partners supplying advanced propulsion units across European platforms.

What are the recent trends and outlook?

The industry's near-term trajectory is defined by a strong order backlog contrasted against persistent global supply chain vulnerabilities and skilled labor constraints. Manufacturers are increasingly prioritizing industrial scaling to meet delivery targets while investing heavily in sustainable aviation fuel (SAF) compatibility and hybrid propulsion. In parallel, cross-border defense collaborations are seeing an infusion of capital, stabilizing the broader manufacturing sector.

• •Total aerospace and defense research and development (R&D) spending in Europe rose by 9.4% to reach 25,200 million EUR in 2024 (ASD).
• •The overall European aerospace and defense industry turnover jumped 10.1% to 325,700 million EUR in 2024, signaling robust post-pandemic recovery.
• •Industrial roadmaps are prioritizing structural decarbonization and digitalization, such as digital twin testing, to mitigate production bottlenecks.

How is the industry regulated?

Manufacturing operations and product certifications are strictly governed by pan-European regulatory authorities to ensure safety, airworthiness, and environmental compatibility. New regulations are legally enforcing the integration of sustainable technologies and forcing production facilities to monitor lifecycle carbon footprints. Compliance with these rigorous safety and environmental frameworks dictates product design cycles and international export permissions.

• •The European Union Aviation Safety Agency (EASA) enforces the core certification specifications for all aircraft, engines, and parts manufactured in the EU.
• •The ReFuelEU Aviation Regulation legally mandates structural targets for the uptake of Sustainable Aviation Fuels (SAF) at EU airports.
• •Manufacturers must strictly align production processes with the EU Emissions Trading System (ETS) and REACH chemical compliance laws.

Government, statistical and trade sources used for this Claight analysis.

• ASD Europe Aerospace and Defence Facts and Figures 2024 ·
• European Aviation Environmental Report 2025 (EASA / Eurocontrol / EEA) ·
• Eurostat NACE Rev. 2 Statistical Classification Framework