"The Aircraft Parts Market is driven by the rising demand for aftermarket components"
The aircraft parts market comprises a range of components and parts required to manufacture, retrofit, and maintain aircraft fleet. Some of the key aircraft parts include engines, landing gear, avionics, aerostructures, and auxiliary power units. Commercial, military, general aviation, and helicopters rely on aircraft parts for optimal functioning. The increasing aircraft orders and fleet size have augmented the demand for new as well as replacement parts. Major aircraft manufacturers including Boeing and Airbus outsource a significant share of aircraft parts manufacturing to tier players specializing in specific areas.
The Global Aircraft
Parts Market is estimated to be valued at US$ 688.63 Bn in 2024 and is
expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Aircraft Parts are irbus Group, Alcoa Corporation,
Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems
Ltd., Teijin, Lockheed Martin Corporation, and Triumph Group, Inc. With over
27,000 commercial aircraft currently in service across the world, the demand
for replacement parts has increased manifolds in the aftermarket segment. Major
players are focusing on expanding their service center networks as well as
collaborating with airlines to ensure seamless parts supply and reduced turnaround
time.
The growing passenger and freight traffic has propelled the demand for new
commercial aircraft. Major aircraft manufacturers have logged record numbers of
aircraft orders, which will keep the demand for new aircraft parts high over
the coming decade. Additionally, the increasing militarization of several
countries and upgradation of existing fleets is boosting spending on military
aircraft parts.
Leading aircraft parts manufacturers are eyeing new markets through strategic
partnerships, mergers & acquisitions, and contract extensions. The
increasing global aviation activities in countries such as India and China
offer massive opportunities for international as well as domestic players in
the aircraft parts industry.
Market key trends
Additive manufacturing or 3D printing technology is gaining prominence in the
aircraft parts industry. It allows fabricating complex lightweight parts,
reduces raw material wastage, and offers design flexibility. Major players have
established advanced 3D printing facilities to produce critical aircraft
components for structural, engine, and cabin applications. With further
improvements in printing speed and material properties, 3D printing is likely
to transform aircraft parts manufacturing over the next decade.
Porter's Analysis
Threat of new entrants: Aircraft Parts requires high initial costs and
economies of scale to produce efficiently.
Bargaining power of buyers: Large aircraft manufacturers
have significant bargaining power over suppliers due to the oligopolistic
market.
Bargaining power of suppliers: There are few suppliers for
critical components, giving them more bargaining power against buyers.
Geographical Regions
North America currently holds the largest share of the aircraft parts market in terms of value due to presence of major aircraft manufacturers and MRO centers in the region. Asia Pacific region is expected to be the fastest growing region during forecast period owing to increasing air traffic and fleet size in countries like China and India.
Geographical Regions
The United States currently dominates the global aircraft parts market in terms of value led by presence of key OEMs and MRO providers. China is anticipated to witness highest growth rate during forecast period supported by rapid expansion of domestic aviation industry and international trade routes connecting China with other countries. _______________________________________________________________________
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