Aerospace and defence: Value chain, from upstream to the customer
Civil aircraft, military platforms, weapons, satellites and launch vehicle makers
Value chain, from upstream to the customer
Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Specialty materials and energeticsMelt titanium and nickel superalloys and turn them into forgings, castings and plate for engines, landing gear and airframes, sold to engine makers and airframers.2,6
Why chokepoint: A small number of qualified melters, casters and forgers in the US, Europe and Russia make engine-grade parts and requalifying a part takes years; castings are such a pinch point that GE Aerospace agreed in 2026 to buy caster CPP for US$ 11.75 billion. Technologies Vacuum arc and electron-beam remelting Single-crystal turbine blade casting Closed-die and isothermal forging Aluminium-lithium plate Additive manufacturing of metal parts Depends on Commodities Ti TitaniumNi NickelCo CobaltRe RheniumAl AluminiumNb NiobiumCr Chromium Chemicals Ar Argon Energy HI Energy-intensive industryEH Electric heating Industries Metal productsMachinery and equipmentExamples: Howmet Aerospace, Precision Castparts, Consolidated Precision Products, ATI, MIDHANIProduce carbon fibre, prepregs and resins for wings, fuselages, nacelles and missile bodies.
Why critical: Aerospace-grade carbon fibre comes from a few firms in Japan, the US and Europe and each material must be certified on each aircraft. Technologies PAN precursor and carbon-fibre carbonisation Toughened epoxy prepregs Automated fibre placement Autoclave and out-of-autoclave curing Depends on Chemicals ACN AcrylonitrileEPX Epoxy resinsN2 Nitrogen gas Energy EH Electric heating Industries Plastic and rubber productsTextiles and leatherExamples: Toray, Hexcel, Syensqo, TeijinMake explosives, rocket propellants and shells, missiles' motors and ammunition for armed forces and space launchers.
Why critical: Capacity was cut after the Cold War and only a few plants per country make energetics, so the war in Ukraine exposed multi-year shell backlogs. Technologies Nitrocellulose and nitroglycerine propellants TNT, RDX and HMX explosives Composite solid rocket propellant Automated shell filling Depends on Commodities Ct CottonSt SteelCu CopperZn ZincW Tungsten Chemicals HNO3 Nitric acidAN Ammonium nitrateH2SO4 Sulphuric acidTol ToluenePU Polyurethanes (MDI, TDI, polyols) Energy Exp Explosives and propellants Industries Metal productsExamples: Rheinmetall, Nammo, Solar Industries, Munitions India, Northrop GrummanDesign, build and maintain jet and turboprop engines, earning much of their profit from decades of spare parts and service after the sale.4,5
Why chokepoint: Four groups (GE and Safran, partly through their CFM venture, Pratt & Whitney and Rolls-Royce) make nearly all airliner engines; engine output trails airframes, Airbus blames Pratt & Whitney shortages for slower ramp-ups, and IATA sees no normal supply before 2031-2034. Technologies High-bypass turbofans and geared fans Ceramic matrix composites Thermal barrier coatings Digital engine health monitoring Military afterburning engines Depends on Commodities Ni NickelTi TitaniumRe RheniumCo CobaltY YttriumHf Hafnium Chemicals Pnt Paints and coatings Energy Jet Aviation propulsionHVO Renewable diesel and SAF Industries Machinery and equipmentMetal productsExamples: GE Aerospace, Pratt & Whitney (RTX), Rolls-Royce, Safran, Hindustan Aeronautics (licensed production)Supply flight controls, radars, communications, electronic warfare and mission computers to airframers and defence primes.
Why critical: Systems are certified per platform and supplied by a few firms per country; military chips often come from a handful of trusted fabs. Technologies AESA radars (gallium nitride) Fly-by-wire flight control Secure communications and datalinks Infrared seekers Radiation-hardened electronics Depends on Commodities Ga GalliumGe GermaniumREE Rare earthsAu GoldBe Beryllium Chemicals ESG Electronic specialty gases Energy NMC Nickel-rich lithium-ion batteries Industries SemiconductorsComputers and electronicsSoftware and IT servicesExamples: Honeywell Aerospace, Thales, L3Harris, Bharat Electronics, Collins AerospaceBuild fuselage sections, wings, landing gear, interiors and other assemblies to the airframers' designs under long-term contracts.
Why important: Several suppliers exist worldwide, including growing Indian ones, but each part is tooled and certified for one programme, so moving work takes many months. Technologies Automated drilling and riveting Large composite structure curing Landing-gear machining Build-to-print manufacturing Depends on Commodities Al AluminiumTi TitaniumSt Steel Chemicals EPX Epoxy resinsAdh Adhesives and sealantsPnt Paints and coatings Energy HVAC AC transmission Industries Vehicles, ships, rail, aircraftMetal productsExamples: GKN Aerospace, Safran Landing Systems, Tata Advanced Systems, Mahindra Aerospace, Dynamatic TechnologiesDesign, assemble, certify and sell airliners and business jets to airlines and lessors, coordinating thousands of suppliers.4
Why chokepoint: Airbus and Boeing make nearly all large jets; Airbus delivered 793 aircraft in 2025 against a backlog of 8,754, so airlines have no short-term alternative. Technologies Final assembly lines Digital twins and model-based design Systems integration and flight test Type certification Depends on Commodities Al AluminiumTi Titanium Chemicals Pnt Paints and coatingsPTFE Fluoropolymers (PTFE, PVDF) Energy Jet Aviation propulsion Industries Vehicles, ships, rail, aircraftComputers and electronicsFinance: banking, insurance, marketsExamples: Airbus, Boeing, Embraer, COMACIntegrate fighter jets, missiles, armoured vehicles, warships and submarines for governments under long, often cost-plus contracts.2
Why critical: Most countries have one or two primes per platform type; US firms take about 49% of top-100 arms revenue (calculated) and switching platform takes a decade. Technologies Stealth design Missile guidance and propulsion Naval shipbuilding and submarine hulls Systems-of-systems integration Secure supply-chain management Depends on Commodities St SteelTi TitaniumREE Rare earthsW Tungsten Chemicals EPX Epoxy resins Energy Shp Ship propulsionExp Explosives and propellantsU Uranium Industries Vehicles, ships, rail, aircraftSemiconductorsComputers and electronicsExamples: Lockheed Martin, RTX, BAE Systems, Hindustan Aeronautics, Mazagon Dock Shipbuilders · US firms ≈ 49% of top-100 arms revenue (calculated from US$ 334 of 679 billion)Build satellites and rockets and sell launches, imagery and satellite services to governments, telecom operators and companies.7
Why critical: SpaceX flew 165 of the world's 325 orbital launches in 2025 and carried about 85% of satellites launched, and few countries have independent launch. Technologies Reusable rocket stages Small-satellite buses Electric propulsion Earth-observation sensors Depends on Commodities Al AluminiumTi TitaniumGa GalliumGe Germanium Chemicals O2 OxygenH2 Hydrogen Energy Rkt Rockets and human powerGas Natural gas Industries SemiconductorsTelecommunicationsExamples: SpaceX, ArianeGroup, NewSpace India Limited, Skyroot AerospaceCertify aircraft, engines, parts and maintenance organisations, and approve military airworthiness and export licences.5
Why chokepoint: Each country has one authority and nothing flies or ships without its approval; IATA says certification of new types now takes four to five years against 12-24 months before. Technologies Type and production certification Continued airworthiness oversight Export-control licensing (ITAR, EAR) Military airworthiness approval Depends on Industries Public administration, defence and securityExamples: FAA, EASA, DGCA India, CEMILACOrder and finance aircraft and weapons, operate them and fund the backlog through deposits, leases and defence budgets.1
Why important: Demand is spread across hundreds of airlines and many national budgets, but a few large lessors and governments drive orders. Technologies Fleet planning Operating and finance leases Defence procurement procedures Fuel and emissions management Depends on Commodities Oil Crude oil Chemicals HVO Renewable diesel and SAF Energy Jet Aviation propulsion Industries Finance: banking, insurance, marketsPublic administration, defence and securityExamples: IndiGo, Air India, AerCap, Ministry of Defence (India)Inspect, repair and overhaul airframes, engines and components through their 25-plus-year lives, for airlines and air forces.
Why important: Many airframe MROs exist, but engine overhaul is dominated by the engine makers and their licensees, with long shop queues. Technologies Engine shop visits Non-destructive testing Predictive maintenance analytics Used serviceable material and part repair Depends on Commodities Ni NickelTi Titanium Chemicals Lub Lubricant additivesPnt Paints and coatings Energy Bld Energy in buildings Industries Machinery and equipmentProfessional servicesExamples: Lufthansa Technik, ST Engineering, AAR, Air India Engineering Services, GMR Aero Technic