It has been estimated that the UK engine manufacturing market will increase at a compound annual growth rate (CAGR) of 2.2% over the next five years, to reach £26.2 billion in 2016-17.
Over the past five years, industry revenue grew at an estimated CAGR of 2.7% through 2011-12, to total £23.5 billion.
The recession created tough operating conditions for manufacturers, although production remained relatively untouched.
The aircraft engine manufacturing industry in the UK is the second-largest in the world, following the United States. However, aircraft manufacturing in the United Kingdom is declining; the industry is saturated, participation is falling and technological development is low. Competition from emerging economies is rising and production shifting to low production cost countries.
Market revenue rose over the past five years due to cooperation with Airbus and Boeing. The development of parts made from composite materials and a significant backlog of orders also contributed to industry growth.
The aircraft engine manufacturing industry has medium barriers to entry due to the significant amount of capital required to start a business, the need to secure skilled labour and strict compliance requirements set out by governments. Depending on the size of operations, start-up capital can vary but is generally high for large-scale production sites.
Key players within the UK aircraft engine manufacturing market include; BAE Systems plc, Bombardier Aerospace UK, EADS UK Ltd, and Rolls-Royce plc.
For more information on the UK aircraft engine manufacturing market, see the latest research: UK Aircraft Engine Manufacturing Market Report
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