Introduction
The aerospace component manufacturing industry is undergoing significant transformation, driven by increasing demand for commercial aircraft, military modernization, and advancements in space exploration. The market, valued at approximately $900 billion in 2023, is expected to grow at a compound annual growth rate (CAGR) of 4.5% to 6.2%, reaching $1.3 trillion by 2030. This growth trajectory is also fueling a surge in mergers and acquisitions (M&A) as companies seek strategic expansion, supply chain resilience, and technological advancement.
At Accelerated Manufacturing Brokers, Inc., two-thirds of our completed deals were aerospace-related in 2024, accounting for 83% of our annual revenue.
This article explores the current market size, key M&A transactions from the past year, and how future growth will impact M&A activity in the U.S. aerospace sector through 2025.
Market Size and Growth Drivers
The global aerospace component manufacturing market is expanding due to several key factors:
- Rising Commercial Aviation Demand: With air travel recovering post-pandemic and expected to double in the next two decades, airlines are placing large orders for new aircraft. Airbus and Boeing predict over 40,000 new aircraft deliveries by 2040.
- Military and Defense Investments: Increased defense spending, particularly in the U.S., China, and Europe, is driving demand for advanced military aircraft and components.
- Growth in Space Exploration: Government agencies (NASA, ESA, ISRO) and private players (SpaceX, Blue Origin) are accelerating demand for aerospace components in satellites, spacecraft, and launch vehicles.
- Technological Innovation: The adoption of lightweight composite materials, additive manufacturing (3D printing), and smart manufacturing is reshaping aerospace manufacturing.
- Supply Chain Resilience Initiatives: Companies are consolidating supply chains and reshoring production to mitigate risks from global disruptions.
Key Mergers and Acquisitions in Aerospace Manufacturing (2024-2025)
The past year has witnessed significant M&A activity as companies pursue vertical integration, technology acquisition, and market expansion. Notable transactions include:
1 Boeing’s Reacquisition of Spirit AeroSystems
- Deal Value: $8.3 billion (enterprise value)
- Date: June 2024
- Rationale: Boeing repurchased Spirit AeroSystems to address quality control issues and streamline its supply chain. This move strengthens Boeing’s manufacturing capabilities, particularly for its 737 MAX and 787 programs.
2 BAE Systems’ Acquisition of Ball Aerospace
- Deal Value: $5.6 billion
- Date: February 2024
- Rationale: The acquisition expands BAE Systems’ space and defense technology portfolio, particularly in satellite and electronic warfare systems.
3 Apollo Global’s Buyout of Barnes Group
- Deal Value: $3.6 billion
- Date: October 2024
- Rationale: Private equity firm Apollo Global Management took Barnes Group private to enhance its operational efficiency and aerospace component manufacturing capabilities.
4 Teledyne’s Purchase of Excelitas Units
- Deal Value: $710 million
- Date: Late 2024
- Rationale: Teledyne expanded its aerospace and defense electronics segment, positioning itself as a key player in avionics and satellite communications.
5 Stronvar Aerospace’s Acquisition of Electro Methods Inc. (EMI)
- Deal Value: Undisclosed
- Date: February 2025
- Rationale: Blackstone-backed Stronvar Aerospace acquired EMI, a Connecticut-based aerospace components manufacturer, to enhance production capacity and workforce expansion.
6 Triumph Group Goes Private
- Deal Value: $3 billion
- Date: February 2025
- Rationale: Private equity firms Warburg Pincus and Berkshire Partners acquired Triumph Group to streamline operations and strengthen its position in the aerospace and defense manufacturing sector.
How Market Growth Will Impact M&A in 2025
As the aerospace component manufacturing market continues its expansion, M&A activity in the U.S. is expected to rise further in 2025, driven by:
1Increased Deal Volume
- More companies will pursue strategic acquisitions to gain market share, enhance capabilities, and integrate new technologies.
- Both corporate buyers and private equity firms are expected to remain highly active.
2Focus on Advanced Technologies
- Aerospace firms will seek specialized acquisitions in AI-driven avionics, autonomous aircraft, and next-gen propulsion systems.
- Companies investing in sustainable aviation (hydrogen-powered and electric aircraft) will look for M&A opportunities.
3 Supply Chain Consolidation
- M&A will play a key role in reducing supply chain vulnerabilities, with OEMs acquiring key suppliers to improve efficiency.
- Companies will seek regional expansions to reshore production and lessen reliance on foreign suppliers.
4 Private Equity Involvement
- The strong market outlook will attract private equity investors, leading to increased buyout activity.
- Firms like Apollo and Blackstone are expected to expand their aerospace portfolios through leveraged buyouts and capital investment.
5 Rising Valuations and Competitive Bidding
- Strong industry growth will lead to higher valuations for aerospace companies, increasing competition among buyers.
- As a result, some deals may involve joint ventures or strategic partnerships rather than outright acquisitions.
Conclusion
The aerospace component manufacturing industry is on a steady growth trajectory, expected to reach $1.3 trillion by 2030. This expansion is driving robust M&A activity, with recent deals reflecting trends in supply chain consolidation, private equity investments, and technology-driven acquisitions.
Looking ahead to 2025, M&A transactions in the U.S. will continue to accelerate, fueled by:
- Increasing demand for commercial and military aircraft
- Consolidation of supply chains to enhance resilience
- Expansion in space exploration and satellite technology
- Private equity’s growing interest in the aerospace sector
As companies position themselves for the future, strategic acquisitions will play a critical role in shaping the aerospace industry’s next decade.