Overview

Table: Civil Aircraft and Parts (AIR) Market size:

(total market size = (total local production + imports) - exports)
Figures in USD billions. Sources:  GIFAS, USDoC, French Customs.  * Indicates unofficial estimates based on various industry sources. Year to year figures subject to currency fluctuations. Please note that the Total Local Production numbers reflect the civil market only, while Total Exports/Imports/US Imports include civil and defense aeronautics.

Overview

Reported revenue for the French civil aerospace industry in 2024 grew to $61.9 billion (source: GIFAS) out of total non-consolidated civil aerospace and aero defense revenues of $83.9 dollars. The aerospace and aero defense industry exported approximately 82% of its consolidated turnover, and the civil sector represents 74% of revenues. Orders have also increased over the previous year.  The industry has at last recovered to pre-Covid levels, driven by strong demand, particularly in export sales.

According to France’s Manufacturers’ Association, although the supply chain is stabilizing, it continues to be affected by the lingering impacts of the health crisis, persistent tensions in the supply of raw materials – such as titanium, special steels, and components – and high operating costs in France due to labor, energy and taxation pressures. 

Five aircraft manufacturers account for most of the French market: Airbus (large commercial aircraft), Airbus Helicopters, Dassault Aviation (high-end business jets), ATR (passenger and cargo turboprop aircraft for regional transport, an Airbus JV with Italian firm Leonardo), and Daher (TBM and Kodiak light aircraft and business turboprops). There is also a growing ecosystem of smaller manufacturers offering light electric or hybrid aircraft or vehicles suited for urban air mobility.

Because of the breadth and depth of the aerospace industry in France, U.S. manufacturers often decide to use an agent or a distributor to reach out to potential customers. It is generally difficult to break into the business (with some exceptions based on product type) without local representation that can interface with the various layers of engineers, purchasers, and supply chain quality managers. In France, it is normal business practice for manufacturers’ representatives to work on retainer only or a mixed retainer/commission fee; rarely will an agent accept a commission-only contract to develop new business in this competitive market. U.S. firms must be prepared to invest significantly in their business development process over extended periods before generating any orders. AS9100/ISO 9001 certification would be considered the minimum requirement for doing business in the aerospace supply chain in France.

Leading Sub-sectors

A significant technology shift has been taking place in aerospace in France – and that is to move to producing a zero emissions aircraft by 2035 and full carbon neutrality across the industry by 2050, a very ambitious goal. It is usually new aircraft development, driving new design and technology requirements, which create opportunities for potential suppliers. 
The best prospects for American firms in this market continues to be those associated with the manufacturing of new aircraft or engine models or very technical products. Disruptive hydrogen or electric propulsion energy technologies applied to aircraft and any products or technologies allow an aircraft to use less energy, including lighter or more fully optimized onboard equipment, new light-weight materials, or more intelligent flight management systems example, should do well. The growth in the drone and the autonomous systems market should also offer opportunities.

Opportunities

Typically, the French aerospace market provides many opportunities but is considered highly competitive.  Potential new suppliers must target the right tier and understand clearly what their value-added is compared to those already in place in the supply chain and must understand they will be competing with companies from around the world, not just from France. Many major French firms like Safran, Airbus, or Dassault are all present in the US and have sourcing offices, which may be an easier path to receiving OEM approval.

Future aircraft will increasingly include more electric systems on board.  Airbus and ATR are looking to move to renewable hydrogen as primary fuel, although other technologies such as hybrid electric or Sustainable Aircraft Fuel (SAF) options are on the table in the interim. Other technologies of interest include Enhanced Vision Systems, autonomous systems, and specialty materials.

It is important to keep in mind that beyond French-made aircraft, French equipment suppliers are also working on aircraft platforms around the world, including all the major U.S. aircraft manufacturers, especially Boeing. However, entering the French market requires patience, investment, innovative products, and competitive pricing.

Resources

Aeromart Toulouse Supply Chain Business to Business Meetings
Paris Air Show 
French Aerospace Industries Association GIFAS        
Contact: U.S. Embassy - U.S. Commercial Service Commercial Specialist:
Cara.Boulesteix@trade.gov - Tel: +33 (0)1 43 12 70 79