15 Biggest Aerospace Companies in the World
In this article, we will take a look at 15 of the biggest aerospace companies in the world. If you want to see more of the biggest aerospace companies in the world, go directly to 5 Biggest Aerospace Companies in the World.
In the last few decades, the aerospace industry has grown substantially thanks to increasing commercial air travel and increasing defense spending.
In the next few decades, the commercial aerospace industry is expected to grow substantially.
According to a global market forecast from Airbus in 2022, there are expected to be around 39,500 new passenger and freighter aircraft deliveries over 2022 to 2041. While global GDP is estimated to grow at a CAGR of 2.6% from 2019 to 2041, passenger traffic is expected to grow by a CAGR of 3.6% during that span. Freight traffic is expected to increase at a CAGR of 3.2% during the same time period.
As the world economy expands, demand for passenger air travel is expected to rise. As world trade increases, demand for air cargo is expected to rise too.
Similarly, the defense aerospace industry is also expected to grow. According to PwC estimates, the industry is expected to grow modestly in 2022 before growing faster in 2023.
Aerospace companies are increasingly moving into space as well.
In terms of space, space satellites have already offered substantial benefits such as GPS, weather reports, and also fast communication.
Lockheed Martin VP of Commercial Civil Space Lisa Callahan describes the benefits,
GPS is about a $300 billion per year business here on Earth, and since its inception it’s estimated to have generated $1.4 trillion in the US alone. Just look at the rideshare industry, which is a $60 billion business annually, and all thanks to space assets providing those GPS signals. Weather is very similar, with the US weather satellite market worth $162 billion a year, with space assets totaling about 77 percent of that. So space is really playing a huge role in the economy here on Earth.
In terms of the future, there will likely be substantial more benefits for the economies and companies that succeed in terms of commercializing space. Space tourism and satellite internet are industries that have already begun, and economically harnessing solar energy, mining asteroid resources, and colonizing Mars look increasingly achievable in the future.
Given that leading aerospace companies have the technology and expertise to make those industries possible, they could potentially realize substantial economic benefits if they successfully commercialize their opportunity.
Given the distances to space, realizing the potential of space is extremely difficult and there is no guarantee of success. Successfully lowering costs to space, and ensuring safety are both very important.
Given the pandemic, commercial air travel decreased substantially in 2020 and many commercial aircraft manufacturers have not fully recovered from the decreasing airplane orders. With the high inflation, the Federal Reserve has also increased the benchmark federal funds rate to 3.75% to 4% from around 0% in the beginning of the year. According to the Fed's current projections, the rates could rise to 4.5% to 4.75% in 2023.
With the higher rates, the global economic growth is expected to slow substantially and aerospace companies, like many other companies, could face near term headwinds as a result.
Given the uncertainty, it could be a good idea for long term investors to own a well diversified portfolio of stocks across many different sectors.
For our list of 15 Biggest Aerospace Companies in the World, we took the top 15 companies by revenue from flightglobal.com's Top 100 aerospace companies ranked by revenue.
For our 2021 aerospace revenue, we used data from flightglobal.com.
15 Biggest Aerospace Companies in the World
15. Textron Inc. (NYSE:TXT)
2021 Aerospace Revenue: $9.2 billion
Number of Hedge Fund Holders: 23
Textron Inc. (NYSE:TXT) is a leading aerospace company with over 33,000 employees and operations in 25 different countries. Founded in 1923, the company produces advanced aviation, defense and industrial products. In terms of its products, Textron Inc. (NYSE:TXT) produces the popular Cessna aircraft for civil aviation and helicopters under the Bell brand for defense. For the future, the company is working on electric aircraft for sustainable flight. As of 2021, Textron Inc. (NYSE:TXT) had aerospace revenues of $9.2 billion, ranking it #15 on our list of 15 Biggest Aerospace Companies in the World.
Alongside The Boeing Company (NYSE:BA), Raytheon Technologies Corporation (NYSE:RTX), and Lockheed Martin Corporation (NYSE:LMT), Textron Inc. (NYSE:TXT) is one of the biggest aerospace companies in the world.
2021 Aerospace Revenue: $10.87 billion
Rolls-Royce is a leading maker of aircraft engines for aircraft such as Airbus A380 as well as the Boeing 777 and Boeing 787. Rolls-Royce is also a big player in the defense aerospace engine market with over 16,000 military engines in service with 160 customers in 103 countries. For 2021, Rolls-Royce reported aerospace revenues of $10.87 billion, ranking it among the largest aerospace companies in the world.
13. Honeywell International Inc. (NYSE:HON)
2021 Aerospace Revenue: $11.03 billion
Number of Hedge Fund Holders: 42
Honeywell International Inc. (NYSE:HON) is a diversified industrial conglomerate that is also a leading aerospace company. In terms of its aerospace division, Honeywell International Inc. (NYSE:HON) supplies products, software and services to aircraft makers who serve a variety of end markets such as civil aviation, defense, and space contractors. The company's product include auxiliary power units, propulsion engines, environmental control systems, integrated avionics, and more. Of Honeywell International Inc. (NYSE:HON)'s total revenues of $34.4 billion for 2021, $11.03 billion were from aerospace.
2021 Aerospace Revenue: $12.3 billion
AVIC, otherwise known as Aviation Industry Corporation of China, is a leading Chinese aviation firm. AVIC, which is state owned, has over 100 subsidiaries and more than 450,000 employees. AVIC makes both military and civil aircraft and had 2021 aerospace revenue of $12.3 billion.
11. BAE Systems
2021 Aerospace Revenue: $16.12 billion
BAE Systems is a leading British defense and aerospace company. In terms of its aerospace division, BAE Systems manufactures and supports leading combat and fast jet trainer aircraft. The company supports customers across the life cycle of the air sector, "from design, development and production, through to provision of aircraft, training, support and maintenance." For 2021, BAE Systems had aerospace revenue of $16.12 billion.
2021 Aerospace Revenue: $16.71 billion
Leonardo is a leading multinational aerospace and defense company based in Italy. In terms of aerospace, the company makes helicopters, aircraft, and unmanned systems such as drones. With $16.71 billion in 2021 aerospace revenues, Leonardo also has a space business. Specially, the company's space business, "brings space closer to Earth for the benefit of citizens, institutions and businesses, covering the entire value chain of the space industry, from the manufacture of satellites and orbiting infrastructure, and the production of high-tech equipment and sensors, through to management of satellite services and propulsion and launching systems." As of 2021, Leonardo had aerospace revenues of $16.71 billion.
9. L3Harris Technologies, Inc. (NASDAQ:LHX)
2021 Aerospace Revenue: $17.81 billion
Number of Hedge Fund Holders: 34
L3Harris Technologies, Inc. (NASDAQ:LHX) is a leading defense and aerospace company with 47,000 employees and customers in more than 100 countries. With 2021 aerospace revenues of $17.81 billion, L3Harris Technologies, Inc. (NASDAQ:LHX) provides "provides advanced defense and commercial technologies across space, air, land, sea, and cyber domains". Despite the broader market declining substantially in 2022, L3Harris Technologies, Inc. (NASDAQ:LHX) shares are up 7.55% year to date as of 11/5.
2021 Aerospace Revenue: $18.33 billion
Safran is a French multinational company that makes aircraft engines along with rocket engines and other aerospace related equipment. In 2021, Safran had $18.33 billion in aerospace revenue, ranking the company #8 on our list of 15 Biggest Aerospace Companies in the World. If NATO increases its expenditures, there's a chance that Safran could realize more revenue too.
7. General Electric Company (NYSE:GE)
2021 Aerospace Revenue: $21.31 billion
Number of Hedge Fund Holders: 49
General Electric Company (NYSE:GE) is a leading American industrial conglomerate with businesses in multiple sectors. In terms of its aerospace business, GE Aviation, the business had aerospace revenues of $21.31 billion and profit of $2.9 billion for 2021. In 2021, GE Aviation also shipped 1,487 commercial aircraft engines. Year to date, General Electric Company (NYSE:GE) shares are down 14.2% versus the S&P 500's decline of 21.4%. Although its shares haven't done well this year, General Electric Company (NYSE:GE) has quality earning potential if it maintains its market share.
6. Rostec State Corporation
2021 Aerospace Revenue: $27.96 billion
Rostec State Corporation is a Russian state owned defense conglomerate that also designs, manufacturers, and services modern commercial and military aircraft. As of 2021, Rostec State Corporation had aerospace revenues of almost $28 billion, ranking the company #6 on our list of 15 Biggest Aerospace Companies in the World.
Like Rostec State Corporation, The Boeing Company (NYSE:BA), Raytheon Technologies Corporation (NYSE:RTX), and Lockheed Martin Corporation (NYSE:LMT) are among the biggest aerospace companies in the world.
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Disclosure: None. 15 Biggest Aerospace Companies in the World is originally published on Insider Monkey.