# Aerospace and defence: Value chain, from upstream to the customer Civil aircraft, military platforms, weapons, satellites and launch vehicle makers Source page: https://www.materialinsights.org/industries/aerospace_defence/value-chain/ #### 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 energeticsSpecialty alloy, casting and forging suppliers**5 · Chokepoint Melt 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](https://www.sipri.org/media/press-release/2025/sipri-top-100-arms-producers-see-combined-revenues-surge-states-rush-modernize-and-expand-arsenals)^,^[6](https://leehamnews.com/2026/09/09/ge-aerospace-moves-to-secure-critical-engine-casting-capacity/) **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 Titanium](https://www.materialinsights.org/commodities/titanium/)[Ni Nickel](https://www.materialinsights.org/commodities/nickel/)[Co Cobalt](https://www.materialinsights.org/commodities/cobalt/)[Re Rhenium](https://www.materialinsights.org/commodities/rhenium/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/)[Nb Niobium](https://www.materialinsights.org/commodities/niobium/)[Cr Chromium](https://www.materialinsights.org/commodities/chromium/) Chemicals [Ar Argon](https://www.materialinsights.org/chemicals/argon/) Energy [HI Energy-intensive industry](https://www.materialinsights.org/energy/e_heavy_industry/)[EH Electric heating](https://www.materialinsights.org/energy/e_electric_heat/) Industries [Metal products](https://www.materialinsights.org/industries/metal_products/)[Machinery and equipment](https://www.materialinsights.org/industries/machinery/)**Examples:** Howmet Aerospace, Precision Castparts, Consolidated Precision Products, ATI, MIDHANI **Carbon-fibre and composite material makers**4 · Critical Produce 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 Acrylonitrile](https://www.materialinsights.org/chemicals/acrylonitrile/)[EPX Epoxy resins](https://www.materialinsights.org/chemicals/epoxy/)[N2 Nitrogen gas](https://www.materialinsights.org/chemicals/nitrogen_gas/) Energy [EH Electric heating](https://www.materialinsights.org/energy/e_electric_heat/) Industries [Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)[Textiles and leather](https://www.materialinsights.org/industries/textiles/)**Examples:** Toray, Hexcel, Syensqo, Teijin **Explosives, propellant and munitions makers**4 · Critical Make 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 Cotton](https://www.materialinsights.org/commodities/cotton/)[St Steel](https://www.materialinsights.org/commodities/steel/)[Cu Copper](https://www.materialinsights.org/commodities/copper/)[Zn Zinc](https://www.materialinsights.org/commodities/zinc/)[W Tungsten](https://www.materialinsights.org/commodities/tungsten/) Chemicals [HNO3 Nitric acid](https://www.materialinsights.org/chemicals/nitric_acid/)[AN Ammonium nitrate](https://www.materialinsights.org/chemicals/ammonium_nitrate/)[H2SO4 Sulphuric acid](https://www.materialinsights.org/chemicals/sulphuric_acid/)[Tol Toluene](https://www.materialinsights.org/chemicals/toluene/)[PU Polyurethanes (MDI, TDI, polyols)](https://www.materialinsights.org/chemicals/polyurethanes/) Energy [Exp Explosives and propellants](https://www.materialinsights.org/energy/e_propellants/) Industries [Metal products](https://www.materialinsights.org/industries/metal_products/)**Examples:** Rheinmetall, Nammo, Solar Industries, Munitions India, Northrop Grumman Stage 2 **Engines and systemsAero-engine makers**5 · Chokepoint Design, build and maintain jet and turboprop engines, earning much of their profit from decades of spare parts and service after the sale.^[4](https://airbus.com/en/newsroom/press-releases/2026-02-airbus-reports-full-year-fy-2025-results)^,^[5](https://www.iata.org/en/pressroom/2025-releases/2025-12-09-02/) **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 Nickel](https://www.materialinsights.org/commodities/nickel/)[Ti Titanium](https://www.materialinsights.org/commodities/titanium/)[Re Rhenium](https://www.materialinsights.org/commodities/rhenium/)[Co Cobalt](https://www.materialinsights.org/commodities/cobalt/)[Y Yttrium](https://www.materialinsights.org/commodities/yttrium/)[Hf Hafnium](https://www.materialinsights.org/commodities/hafnium/) Chemicals [Pnt Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/) Energy [Jet Aviation propulsion](https://www.materialinsights.org/energy/e_aviation/)[HVO Renewable diesel and SAF](https://www.materialinsights.org/energy/hvo_saf/) Industries [Machinery and equipment](https://www.materialinsights.org/industries/machinery/)[Metal products](https://www.materialinsights.org/industries/metal_products/)**Examples:** GE Aerospace, Pratt & Whitney (RTX), Rolls-Royce, Safran, Hindustan Aeronautics (licensed production) **Avionics, sensor and defence-electronics makers**4 · Critical 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 Gallium](https://www.materialinsights.org/commodities/gallium/)[Ge Germanium](https://www.materialinsights.org/commodities/germanium/)[REE Rare earths](https://www.materialinsights.org/commodities/rare_earths/)[Au Gold](https://www.materialinsights.org/commodities/gold/)[Be Beryllium](https://www.materialinsights.org/commodities/beryllium/) Chemicals [ESG Electronic specialty gases](https://www.materialinsights.org/chemicals/electronic_gases/) Energy [NMC Nickel-rich lithium-ion batteries](https://www.materialinsights.org/energy/e_li_nmc/) Industries [Semiconductors](https://www.materialinsights.org/industries/semiconductors/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)[Software and IT services](https://www.materialinsights.org/industries/software_it/)**Examples:** Honeywell Aerospace, Thales, L3Harris, Bharat Electronics, Collins Aerospace **Aerostructure and subsystem suppliers**3 · Important Build 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 Aluminium](https://www.materialinsights.org/commodities/aluminum/)[Ti Titanium](https://www.materialinsights.org/commodities/titanium/)[St Steel](https://www.materialinsights.org/commodities/steel/) Chemicals [EPX Epoxy resins](https://www.materialinsights.org/chemicals/epoxy/)[Adh Adhesives and sealants](https://www.materialinsights.org/chemicals/adhesives/)[Pnt Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/) Energy [HVAC AC transmission](https://www.materialinsights.org/energy/e_hvac/) Industries [Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)[Metal products](https://www.materialinsights.org/industries/metal_products/)**Examples:** GKN Aerospace, Safran Landing Systems, Tata Advanced Systems, Mahindra Aerospace, Dynamatic Technologies Stage 3 **Platform integrationCommercial airframers**5 · Chokepoint Design, assemble, certify and sell airliners and business jets to airlines and lessors, coordinating thousands of suppliers.^[4](https://airbus.com/en/newsroom/press-releases/2026-02-airbus-reports-full-year-fy-2025-results) **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 Aluminium](https://www.materialinsights.org/commodities/aluminum/)[Ti Titanium](https://www.materialinsights.org/commodities/titanium/) Chemicals [Pnt Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/)[PTFE Fluoropolymers (PTFE, PVDF)](https://www.materialinsights.org/chemicals/fluoropolymers/) Energy [Jet Aviation propulsion](https://www.materialinsights.org/energy/e_aviation/) Industries [Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** Airbus, Boeing, Embraer, COMAC **Defence prime contractors and shipyards**4 · Critical Integrate fighter jets, missiles, armoured vehicles, warships and submarines for governments under long, often cost-plus contracts.^[2](https://www.sipri.org/media/press-release/2025/sipri-top-100-arms-producers-see-combined-revenues-surge-states-rush-modernize-and-expand-arsenals) **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 Steel](https://www.materialinsights.org/commodities/steel/)[Ti Titanium](https://www.materialinsights.org/commodities/titanium/)[REE Rare earths](https://www.materialinsights.org/commodities/rare_earths/)[W Tungsten](https://www.materialinsights.org/commodities/tungsten/) Chemicals [EPX Epoxy resins](https://www.materialinsights.org/chemicals/epoxy/) Energy [Shp Ship propulsion](https://www.materialinsights.org/energy/e_marine/)[Exp Explosives and propellants](https://www.materialinsights.org/energy/e_propellants/)[U Uranium](https://www.materialinsights.org/energy/uranium/) Industries [Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)[Semiconductors](https://www.materialinsights.org/industries/semiconductors/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)**Examples:** 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) **Satellite and launch companies**4 · Critical Build satellites and rockets and sell launches, imagery and satellite services to governments, telecom operators and companies.^[7](https://satellitetoday.com/launch/2026/04/10/brycetech-report-shows-spacex-accounted-for-50-of-launches-in-2025/) **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 Aluminium](https://www.materialinsights.org/commodities/aluminum/)[Ti Titanium](https://www.materialinsights.org/commodities/titanium/)[Ga Gallium](https://www.materialinsights.org/commodities/gallium/)[Ge Germanium](https://www.materialinsights.org/commodities/germanium/) Chemicals [O2 Oxygen](https://www.materialinsights.org/chemicals/oxygen/)[H2 Hydrogen](https://www.materialinsights.org/chemicals/hydrogen/) Energy [Rkt Rockets and human power](https://www.materialinsights.org/energy/e_rockets/)[Gas Natural gas](https://www.materialinsights.org/energy/natural_gas/) Industries [Semiconductors](https://www.materialinsights.org/industries/semiconductors/)[Telecommunications](https://www.materialinsights.org/industries/telecom/)**Examples:** SpaceX, ArianeGroup, NewSpace India Limited, Skyroot Aerospace Stage 4 **Certification and customersAirworthiness authorities and defence certifiers**5 · Chokepoint Certify aircraft, engines, parts and maintenance organisations, and approve military airworthiness and export licences.^[5](https://www.iata.org/en/pressroom/2025-releases/2025-12-09-02/) **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 security](https://www.materialinsights.org/industries/public_admin/)**Examples:** FAA, EASA, DGCA India, CEMILAC **Airlines, lessors and defence ministries**3 · Important Order and finance aircraft and weapons, operate them and fund the backlog through deposits, leases and defence budgets.^[1](https://www.sipri.org/media/press-release/2026/global-military-spending-rise-continues-european-asian-expenditures-surge) **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](https://www.materialinsights.org/energy/crude_oil/) Chemicals [HVO Renewable diesel and SAF](https://www.materialinsights.org/energy/hvo_saf/) Energy [Jet Aviation propulsion](https://www.materialinsights.org/energy/e_aviation/) Industries [Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)[Public administration, defence and security](https://www.materialinsights.org/industries/public_admin/)**Examples:** IndiGo, Air India, AerCap, Ministry of Defence (India) Stage 5 **Maintenance and aftermarketMaintenance, repair and overhaul (MRO) providers**3 · Important 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 Nickel](https://www.materialinsights.org/commodities/nickel/)[Ti Titanium](https://www.materialinsights.org/commodities/titanium/) Chemicals [Lub Lubricant additives](https://www.materialinsights.org/chemicals/lubricant_additives/)[Pnt Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/) Energy [Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/) Industries [Machinery and equipment](https://www.materialinsights.org/industries/machinery/)[Professional services](https://www.materialinsights.org/industries/professional_services/)**Examples:** Lufthansa Technik, ST Engineering, AAR, Air India Engineering Services, GMR Aero Technic ## Other sections - [Overview](https://www.materialinsights.org/industries/aerospace_defence/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/aerospace_defence/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/aerospace_defence/price-links/index.md) - [Example story](https://www.materialinsights.org/industries/aerospace_defence/story/index.md) - [Linked industries](https://www.materialinsights.org/industries/aerospace_defence/linked-industries/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/aerospace_defence/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/aerospace_defence/risks/index.md) - [Sources](https://www.materialinsights.org/industries/aerospace_defence/sources/index.md)