Who Are the Major Airplane Manufacturing Companies?

Although the airline industry is highly competitive, the competition among aircraft suppliers is relatively limited. Lesser-known makers of large passenger airplanes are attempting to build a more significant presence on the world's stage. Still, in the large commercial aircraft market, there are just two major players: the U.S.-based Boeing (BA) and the Airbus Group (EADSY), formerly known as the European Aeronautic Defense and Space Company (EADS).

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.

Airbus is the world's top commercial airplane manufacturer based on airplanes delivered. Boeing is in second place, as its deliveries stalled because of the grounding of certain aircraft, the COVID-19 pandemic, and issues for its 737-MAX aircraft.

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 brutal. 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 in the U.S. Their competition in this market includes Lockheed Martin. Just under half of Boeing's revenues came from U.S. government contracts in 2022. Only about 20% of Airbus' revenues came from defense contracts in 2022.

Suppliers to airplane manufacturers

Aerospace suppliers are critical to the aircraft manufacturing ecosystem. They provide essential components, systems, and materials required to build an aircraft. This includes 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 the initial construction of aircraft and ongoing maintenance and replacement parts.

Raytheon Technologies Corporation (RTX) and General Electric (GE) are two major 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)

Headquarters: Chicago, Illinois, USA
Founded: 1916
Market Cap: $130 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 some critical challenges recently, most notably issues related to the safety of its aircraft. Incidents involving the 737-MAX's in-flight controls and aircraft doors detaching midflight 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)

Headquarters: Leiden, Netherlands
Founded: 1970
Market Cap: $128.6 billion
Company Size: 134,000
Products: Airbus is known for its commercial aircraft, including the A220, A320, A330, A350, and A380 families. The company also produces military planes and helicopters and provides aerospace-related services.

Lockheed Martin (LMT)

Headquarters: Bethesda, Maryland
Founded: 1995 (from the merger of Lockheed Corporation and Martin Marietta)
Market Cap: $113.6 billion
Employees: 116,000
Products: While 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)

Headquarters: São Paulo, Brazil
Founded: 1969
Market Cap: $3.2 billion
Employees: 18,000
Products: Embraer is known for its E-Jet and E-Jet E2 series of regional jets, popular among airlines for short to medium-haul flights.

Boeing comes in second as the largest airplane manufacturer in the world because of manufacturing problems that led the Federal Aviation Administration (FAA) to halt deliveries of its 787 model.

Bombardier (BDRBF)

Headquarters: Montreal, Quebec, Canada
Founded: 1942
Market Cap: $3.7 billion
Employees: 15,000
Products: The company's aerospace division is known for its business jets, including the Challenger and Global series.

How Are New Aircraft Certified to Fly?

Aircraft certification is a rigorous and detailed process conducted by aviation authorities such as the FAA in the U.S. 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, with assessments of the aircraft's handling under various conditions.

How do market dynamics between Boeing and Airbus influence the airplane manufacturing industry?

The duopoly of Boeing and Airbus significantly influences market dynamics in the airplane manufacturing industry. Their competition is legendary, driven by their high-stakes duopoly, the need to stay ahead in avionics and other changing technology, and the geopolitics around Boeing being a major American company and Airbus being a European consortium. As manufacturing for other goods had for decades been moving out of Europe and the U.S., these two companies were also emblems of what the U.S. and Europe could still produce.

Court battles, World Trade Organization complaints, and negotiations at the highest political levels for aircraft contracts mean more is at stake than simply any new plane put out by one requires an answer from the other. Together, this duopoly's decisions on production rates, aircraft models, and what technology they will use set trends for the entire industry, affecting everything from airline fleet choices to what kind of technology pilots and regular consumers will find once on board.

How Did the COVID-19 Pandemic Impact Aircraft Manufacturers?

The COVID-19 pandemic significantly impacted the aircraft manufacturing industry. There was a drastic cut in demand for new aircraft because of the sudden 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 because of the rise in ecommerce and accelerating digital transformation to improve efficiency.

The Bottom Line

The airplane manufacturing market, valued at over $400 billion, is a significant part of the global airline industry, which is expected to grow considerably over the next decade. Dominated by Boeing and Airbus, the only major manufacturers of large commercial jets, this market is characterized by their iconic 7x7-series and A3xx-series jets. Suppliers, including GE, Raytheon Technologies, and Rolls-Royce, are pivotal in providing essential components like engines and avionics. While facing lingering challenges from the COVID-19 pandemic leading to reduced demand and production, the industry is adapting through flexible manufacturing and other changes. Boeing, in particular, has encountered significant mechanical challenges with its 737-MAX and 787 models, affecting its position in the global market.