The Aircraft Parts market is estimated to be valued at US$ 655.22 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The aircraft parts manufacturing market involves production of parts like engines, electrical systems, avionics, airframes, and landing gear for various commercial and military aircrafts. Key parts manufactured include landing gears, wings, windows, flaps, doors, lights, brakes, and wheels. Aircraft part manufacturers are focused on delivering lightweight yet durable components to improve aircraft fuel efficiency.
Market Dynamics:
The growth of the aircraft parts market is majorly driven by rising procurement of new aircrafts globally. According to the Airbus Global Market Forecast, around 39,000 new commercial aircraft are estimated to be delivered over the next 20 years valued at US$ 5.8 trillion. Additionally, continuous investments by aviation OEMs for development of lightweight composite parts to reduce aircraft weight and emissions is another factor favoring market growth over the forecast period. However, complex manufacturing processes of aircraft parts leading to high prices remains a major challenge. Moreover, impact of COVID-19 led to decline in aircraft deliveries and production in 2020-21 temporarily impacting the demand for aircraft parts.
SWOT Analysis
Strength: The aircraft parts market is dominated by a few major players who have strong financial resources and global presence. They invest heavily in R&D to develop lightweight and fuel-efficient parts. Premium quality parts ensure safety and extend life of aircraft.
Weakness: Frequent changes in aircraft technologies and stringent regulations increase development costs of parts. Manufacturing complex aircraft parts requires large capital investments and skilled workforce.
Opportunity: Growing aircraft fleet size driven by increasing air passenger traffic in emerging economies of Asia Pacific and Middle East regions provides scope to equip them with new aircraft parts. Upgradation of existing aircraft also boosts aftermarket demand.
Threats: Economic downturns and fluctuations in crude oil prices impact airline profits and their spending on replacement of parts. Trade wars and geopolitical issues pose threat to global supply chain of this industry.
Key Takeaways
The Global Aircraft Parts Market Share is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing air passenger traffic and aircraft fleet expansion worldwide. Growth in air cargo business and charter flights also drive demand for new aircraft and replacement of parts.
Regional analysis North America dominates global aircraft parts market currently with the highest market share of over 35%, led by active manufacturing and MRO activities in the US. Asia Pacific region is fastest growing market for aircraft parts due to immense growth potential from China and India and planned fleet expansion of low-cost carriers in Southeast Asia.
Key players operating in the aircraft parts market are Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd., Teijin, Lockheed Martin Corporation, and Triumph Group, Inc. Key players are focusing on developing additive manufacturing, advanced composite materials, and 3D printed parts to produce light weight components and retrofit parts for extending life of existing aircraft efficiently.
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