AIRCRAFT PARTS MARKET ANALYSIS

Aircraft Parts Market Size and Trends

The aircraft parts market is estimated to be valued at US$ 685.36 billion in 2024 and is expected to reach US$ 991.57 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.

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The aircraft parts market is experiencing positive growth driven by factors such as the increasing global commercial aircraft fleet, demand for fuel-efficient replacement parts, and mandatory aircraft maintenance, repair, and overhaul activities. However, geopolitical risks, fluctuating raw material prices, and delays in aircraft deliveries are some challenges faced by the market. Key players are investing in designing lightweight and advanced materials to reduce costs and improve aircraft performance. Adoption of 3D printing and additive manufacturing is gaining traction in the production of aircraft components offer opportunities for customized designs with reduced waste. Overall, the market is driven by the need for increased air travel and mobility globally.

Aircraft Modernization Program

The commercial aviation industry has seen tremendous growth over the past few decades driven by increasing globalization and rising incomes in developing economies. Airlines around the world have ramped up the procurement of new aircraft to support their expansion plans as well as replace older fleet with modern and fuel-efficient planes. Aircraft manufacturers like Airbus and Boeing are reporting record backlogs for their narrowbody and widebody aircraft as airlines place large orders to accommodate traffic growth. This massive aircraft procurement drive has created robust demand for aircraft parts from manufacturers.

As the fleet of newer aircraft join the networks of major carriers, the demand for replacement parts to support the modern aircraft is rising. The sophisticated systems and components in new planes require advanced parts that must meet stringent quality and reliability standards. Manufacturers are investing heavily in developing cutting-edge components that improve fuel-efficiency, reduce maintenance turnaround times, and extend service life of assets. Several airlines are also entering into long-term partnerships with OEMs and MRO companies for comprehensive supplies management programs. This ensures a steady supply of genuine parts for predictable maintenance schedules and maximizes aircraft uptime. The lifecycle management of costly aircraft assets is driving greater reliance on manufacturers for customized parts and services packages.

For instance, in May 2023, Asia Digital Engineering (ADE), the engineering and maintenance subsidiary of Capital A, launched two groundbreaking digital solutions: AEROTRADE and ELEVADE FLEET. These platforms aim to revolutionize aircraft parts procurement and holistic aircraft health management in Asia, streamlining operations, enhancing efficiency, and elevating overall aviation industry performance.

Greater Emphasis on Parts Reliability

Another major factor aiding the aircraft parts market is the growing focus of regulators as well as carriers on operational reliability and safety. Any in-flight malfunctions or grounding issues translate to significant financial losses for airlines from delayed/cancelled flights besides damaging their reputation. The aviation authorities have hence tightened rules regarding use of unreliable parts on aircraft. They mandate that any replacement component must be equal or superior to the original part in quality and airworthiness. This pushes airlines and MROs to either rely only on authentic parts from OEM-authorized distributors or invest in stringent testing of alternative components. The need to avoid faults that can potentially endanger passengers has made carriers increasingly risk-averse about using unknown or low-cost parts.

For instance, on June 21, 2023, at the International Paris Air Show (SIAE), Capgemini an IT company,  and Amazon Web Services (AWS) a cloud computing company, announced the launch of Lifecycle Optimization for Aerospace. This platform aims to accelerate the adoption of circular economy practices in the aviation industry by automating the inspection process, optimizing lifecycle analysis of aircraft parts, and guiding decisions to extend their lifespan. Major aviation sector players, including Air France and Safran, participated in its development and will be among the first users.