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Summary of our market study
The aerospace subcontracting sector in France is estimated at between 20 and 25 billion euros.
The global aerospace market is worth around $900 billion. The share of subcontracting is estimated at between 200 and 250 billion. The United States controls around 49% of the market.
The global aerospace subcontracting market has experienced difficulties, notably due to the suspension of production of the Boeing 737 MAX.
In the military sector, the French aerospace industry is experiencing growth thanks to sales of the Rafale fighter jet by Dassault Aviation, which should benefit 500 French companies.
Occitanie and Nouvelle Aquitaine account for 28% and 13% of aerospace jobs respectively.
Soaring aerospace subcontracting market in France
Subcontracting plays a crucial role in the aerospace industry, accounting for an estimated 70% to 80% of the sector's added value, which includes between 10,000 and 20,000 companies.
France is the European leader in the aerospace subcontracting market, with 8% of the global market.
In France, national production in the aerospace sector amounted to almost 100 billion euros, i.e. almost half the total production of the European Union and Great Britain.
The civil sector accounts for around 78% of sales. Equipment manufacturers contribute around 37% of sales, and engine manufacturers around 15.5%.
The industry employs around 190,000 people.
Production equipment is close to its capacity limits, and difficulties in recruiting skilled workers are limiting output.
Industry players
- Thales is at the forefront of avionics and equipment manufacturing, providing sophisticated technological solutions on a global scale.
- Safran is another industry giant, present in aerostructures, engine parts and avionics.
- Honeywell is renowned for its avionics supplies, interior fittings and engine components.
- Mechachrome specializes in aerostructures and engine components
- Figeac Aero is a leading supplier of aerostructures, engine parts and landing gear
- Latécoère is an established supplier of aerostructures and avionics.
- Stelia Aerospace, an Airbus subsidiary specializing in aerostructures and interior equipment.
- Le Piston Français (LPF) is a key player in engine subsystems and parts.
- LISI, another major player, operates in the fields of aerostructures, interior equipment and engine parts.
- Sabena, a specialist in aircraft and helicopter maintenance through its subsidiary Heli Union
- Daher, a newcomer to the sector
- Liebherr, German group
- Rolls Royce, British specialist
- United Technology, American multinational
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Summary and extracts
1 Market overview
1.1 Presentation
Defined by AFNOR as "the operation by which a contractor entrusts a subcontractor with all or part of the execution of a works contract or public procurement contract concluded with the project owner", subcontracting in the aeronautics industry is based on a tiered organization. Each subcontractor, often an SME or ETI, contributes around 70-80% of the sector's added value. This network of subcontractors represents a pool of thousands of companies, mainly grouped around major industrial centers such as Airbus in Occitanie and Dassault in Nouvelle-Aquitaine, with a dynamic presence in other strategic regions such as the Paris region.
The impact of the Covid-19 pandemic caused a 35% collapse in sales in the aeronautical industry, but a gradual recovery has since been observed. In 2024, however, sales are still 5.4% lower than in 2019, illustrating a fragile recovery, accentuated by tensions on raw material supplies, notably titanium and aluminum. These shortages, exacerbated by the war in Ukraine, are affecting subcontractors' ability to keep pace with aircraft manufacturers' production.
Another major challenge for the industry is recruitment. By 2024, 25,000 positions will need to be filled in the French aerospace industry, particularly in production jobs requiring specific skills (milling, turning, etc.). GIFAS has set up tailor-made training programs to meet these needs, but this shortage of skilled manpower is slowing down the pace at which orders are placed.
In addition to these obstacles, a third of SME subcontractors remain vulnerable to cyber-attacks, having not yet implemented an information systems security policy (ISSP). In contrast, 57% of large companies in the sector have already carried out a cybersecurity diagnostic, revealing a marked disparity in protection against IT risks, which could weaken the entire supply chain.
1.2 The global market
Apart from France, which is a world leader across the industry's entire value chain, the aerospace subcontracting market brings together a number of OEMs and engine manufacturers from the four corners of the globe. The American conglomerate United Technologies (***). Aerospace activities account for around **% of this American giant's sales.
Lockheed Martin, ...
1.3 France, flagship of the aeronautics industry
France has established itself as a major player in the global aerospace industry, ranking second only to the United States. In ****, the sector generated sales of almost €** billion, with a trade surplus of over €** billion, according to Gifas. Sector leaders include giants such as Airbus, Safran, Dassault Aviation and Thales, which ...
2 Demand analysis
2.1 Airbus and Boeing
Aircraft order book World, ****-****, in $ billions Source: ****
The chart shows the evolution of aircraft order book for Boeing and Airbus between **** and ****, in billions of dollars. Both manufacturers show continued growth, but Airbus stands out for its more marked acceleration. In ****, Boeing's order backlog was $*** billion, below that of Airbus ...
2.2 Military expenditure worldwide
Military aviation is a large part of the French aeronautics industry, accounting for around **% of its output by value. In ****, worldwide military spending reached more than *,*** billion dollars, a figure that has been rising steadily over the last ten years.
Military expenditure worldwide World, ****-****, Billions of dollars Source: ****
In addition, ...
2.3 Air freight
Air freight activities within the European Union have made very little progress over the last ten years.
On a global scale, however, air freight transport, measured in billions of tonne-kilometres carried byICAO, has been rising steadily for the past * years, at a compound annual growth rate of +*.**% over the ****-**** ...
2.4 Increase in air passenger traffic
The keystone of the sector, passenger air transport is set to grow over the next few years, rapidly surpassing its pre-pandemic level. This increase in air traffic represents a favorable environment for growth in the outsourcing sector over the next few years.
Air passenger numbers compared with **** World, **** - ****, as % of ...
3 Market structure
3.1 Characteristics of the business fabric in the aeronautics sector
The aerospace market in France is structured around a dense ecosystem of over *,*** companies, ranging from major groups like Airbus and Dassault Aviation to SMEs and ETIs specializing in the subcontracting and manufacture of aeronautical components.
These companies design, produce and maintain civil and military aircraft (***), as well as manufacturing spare ...
3.2 Value chain
The aeronautics supply chain involves several thousand companies, from parts manufacturers to maintenance and repair operators.
Parts manufacturers: IHI, Meggitt, ITP Aero, L* Technologies Sub-system manufacturers: Mitsubishi Heavy Industries, Kawasaki, TAI, GKN Aerospace Equipment and engine manufacturers : Thalès, Safran, UTC Aerospace Systems Aircraft manufacturers: Airbus, Boeing, Dassault Aviation Customers: AirFrance ...
3.3 Market structure
This study on the structure of the aeronautics market is based on a survey of *** companies, mainly SMEs and ETIs, to ensure geographical and sectoral representativeness of the value chain. The companies surveyed cover various segments, including aerostructure, mechanics, on-board systems, engineering and consulting. The survey is not limited to Gifas ...
3.4 Challenges for the subsidiary
Subcontractors often find it difficult to adapt to the demand for higher production rates, shorter delivery times, uncompromising quality control and downward pressure on prices.Manufacturers suffer"scissor effectthe "scissor effect" of lower production rates for older programs, before benefiting from the ramp-up of new programs(***).
An overheated production system
Production ...
3.5 Geography of subcontracting
Offshoring...
To minimize production costs and find new pools of skilled personnel, industry players often relocate part of their production abroad. On July *, ****, SAFRAN opened a new production site in Poland, for a total investment of €**m. This new plant employing *** people focuses on the production of a single part: low-pressure ...
4 Offer analysis
4.1 The challenge of supplier ramp-up
Growth in the aeronautics market goes hand in hand with the need to increase the production capacities of the various suppliers in the aeronautics value chain. For Airbus deliveries, for example, the production rate of Tier * suppliers is still the limiting factor. [***] But it is above all SMEs that suffer from ...
4.2 Decarbonizing the aeronautics sector
The decarbonization of the aeronautical sector is becoming a crucial issue in the face of the **** carbon neutrality objectives. Although the aerospace industry is still in the exploratory phase for radical decarbonization technologies, such as new propulsion systems or sustainable aviation fuels, significant efforts are being made.
In ****, only *% of companies ...
4.3 Lower working capital requirement (WCR)
In ****, the WCR of operators in the same sample fell by *.* days' sales compared with ****. This evolution is explained by a decrease in customer lead times and an increase in supplier lead times. However, inventories for these same companies increased in ****. Since ****, however, there has been an increase in this ...
4.4 A sector with the wind in its sails despite struggling subcontractors
Subcontractors in the French aeronautics industry, who play an essential role in the production chain of major aircraft manufacturers such as Airbus and Safran, are going through a period of turbulence. While global demand for aircraft is experiencing a post-pandemic rebound, fueled by historic order books - Airbus is forecasting delivery ...
4.5 Subcontractors take insufficient account of cyber risk
Number of cyberattacks by target in the airline industry France, ****, in units Source: ****
This graph shows the distribution of the *** cyberattacks recorded in the aviation sector in ****, highlighting the concentration of targets. Airports are by far the hardest hit, accounting for around **% of attacks, or *** attacks. This figure illustrates the strategic ...
5 Regulations
5.1 Regulations
French law on subcontracting
In France, Law no. **-**** of December **, **** on subcontracting sets out the terms of organization between subcontractors and subcontracted parties. This law has been successively consolidated by several other laws and ordinances, the latest being ordinance n°****-**** of November **, ****, laying down the legislative part of the ...
5.2 Recent regulations
Order of August **, ****: (***)
The Order of August **, **** introduces a major update to the regulations governing ultralight motorized aircraft (***) and more powerful aircraft, thanks in particular to technologies such as electric motors. It's a bit like updates in other sectors, such as electric cars, where rules are adapted to incorporate innovations.
For ...
6 Positioning the players
6.1 Segmentation
The companies listed below represent a cross-section of France's largest aerospace suppliers, equipment and engine manufacturers.
6.2 List of companies included in the statistics
The various statistics concerning intermediate operating balances, working capital requirements and expense items presented in the "Supply analysis" section have been compiled from the financial data of the following companies:
ACE Aéronautique Aero ** Aero Gearbox International Alkan Alsenam Ami Metals France Athos Aéronautique Auxitrol Aviacomp Blanc Aéro Corse ...
- Mecachrome Groupe
- Honeywell
- Figeac Aéro Groupe
- Latecoere
- Stelia Aerospace
- Le Piston Français
- Lisi Aerospace groupe
- Lauak
- Collins Aerospace
- Heli union
- CURTIL
- E.S.P.A.C.E
- GATTEFIN Ets
- Safran Groupe
- Zodiac Aerospace (Groupe Safran)
- INDUXIAL
- NEXTEAM Chatellerault - Ex Mecafi
- Nexteam Ventana
- ROSSI AERO
- Thales
- Sabena Technics (TAT Groupe)
- Expliseat
- Domusa Groupe
- Daher
- UUDS Aero
- Crouzet
- JVGroup - BT2i
- LFG Groupe
- Famat
- AMI Metals
List of charts presented in this market study
- Breakdown of sales in the defense and aeronautics sector
- Size of the global aerospace market
- Key figures for the global aeronautics industry
- Aerospace industry sales
- Share of civil and military sales in the aerospace sector
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Latest news
With its aircraft seat factory, French company Expliseat aims to challenge Safran, Collins and Recaro - 17/09/2024
- Three giants Safran, the American Collins Aerospace (RTX Group) and Germany's Recaro control the market
- Expliseat has a 25-30% market share in the regional segment
- The workforce at the plant near Angers is set to increase from 45 to 120 by 2026.
- Contracts signed with Air France, to refurbish the Embraer fleet of its regional subsidiary Hop!
- Order book worth 40 million euros.
- Expliseat's ultra-light seats, based on the bonding of carbon fiber composite tubes and titanium parts, have already won over Airbus, Boeing, ATR, Dassault Aviation and Bombardier, as well as China's Comac.
- More than 10,000 of these TiSeat seats are in service, and can be found in the catalogs of the world's leading aircraft manufacturers.
- The seats are around 35% lighter than the competition (6.5 kg vs. 9 kg)
- epliseat has pledged to raise 17 million euros in 2023.
- Expliseat will need to ramp up production rates, aiming for between 2,000 and 3,000 seats this year, rising to 10,000 by 2025.
Aerospace: Mecachrome takes over Espace's assets - 13/09/2024
- - Mecachrome has taken over the assets of the Espace subcontractor, including 258 employees in France and Tunisia.
- - 138 of the 145 employees at Saint-André-des-Eaux have been rehired, along with 120 people at the Tunisian plant.
- - Drop in Espace sales from €31 million to €17 million between 2019 and 2020.
- - Espace sales to rise to 21 million euros by 2023.
- - Mecachrome initially owned 30% of Espace after acquiring the WeAre group in 2022.
- - Mecachrome sales up by 20% to 605 million euros in 2023.
- - Mecachrome employs 5,000 people and operates in some twenty plants.
- - Mecachrome forecast 10% growth in 2024. -
- Mecachrome acquired subcontractors WeAre Group (950 employees) and Rossi Aéro (250 employees) in 2022.
- - Mecachrome's objective is to return to pre-Covid business levels by 2026.
AMI Metals sets up in Ariège for aeronautical profiles - 11/07/2024
- Number of employees at AMI Metals: 15,000
- - Number of AMI Metals industrial sites: 320
- - Geographical distribution of AMI Metals: 40 U.S. states and 12 countries outside the U.S
- - Industrial site area for AMI Metals in France: 10,000 square meters
- - Initial business sector: aerospace subcontracting, specializing in titanium parts
- - Number of aerospace companies in the Occitanie region: 700
French nuclear giants show interest in Daher Valves - 03/07/2024
- Framatome and TechnicAtome acquire Daher subsidiary specializing in the manufacture of nuclear valves and fittings
- This equipment is critical for nuclear deterrent submarines and civil nuclear power plants.
- Daher Valves (renamed Vanatome) has around 120 employees and generates annual sales of 15 to 20 million euros.
- Framatome acquired 70% and TechnicAtome 30% of Vanatome.
- Vanatome and Segault together account for 50% of the supply of nuclear taps and valves for the defense sector.
- The Vanatome plant plans to increase production by 25% by 2027.
- The company's order book is equivalent to three years' production.
- In January, Framatome and Naval Group finalized the acquisition of Jeumont Electric, also with a view to consolidating the supply chain and enhancing sovereignty.
Defense: Thales quadruples mortar shell production in the Loiret region of France - 18/06/2024
- - Ammunition production capacity at Thales' La Ferté-Saint-Aubin plant: currently at 20,000 rounds per year, planned to increase to over 80,000 rounds per year by 2026.
- - French army ammunition orders: 3,000 rounds in 2022, 15,000 rounds in 2023. Deliveries scheduled between the last quarter of 2024 and 2029.
- - Brazilian Air Force acquires two Ground Master 200 Multi Mission radars from Thales.
- - Thales order book in 2023: 45.3 billion euros, up 10%.
- - Thales sales forecast for 2024: between €19.7 and €20.1 billion, with organic growth of 4-6%.
Safran becomes world leader in flight controls - 07/06/2024
- Safran acquires the flight control and actuation business of American company Collins Aerospace for $1.8 billion.
- The activities sold by Collins are spread over eight plants in Europe (France, Italy and the UK) and Asia, with 3,700 employees involved.
- Microtecnica, the Italian subsidiary of the divested business, accounts for 15% of revenues with three plants. It specializes in mechanical and electronic components and services for military aircraft.
- Italian defense programs in which it is involved, such as the Tornado and Eurofighter combat aircraft and the MU90 torpedo, as well as the future GCAP program, a competitor to the Future Air Combat System (Scaf) involving Germany, France and Spain.
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