AIRCRAFT PARTS MARKET ANALYSIS

Regional Analysis

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North America has established itself as the dominant region in the global aircraft parts market. The region is expected to account for a market share of 35.1% in 2024. The key drivers propelling the North American aircraft parts market are the large fleet size and aging aircraft that are driving significant replacement demand for parts. The region is home to major aviation companies such as Boeing, General Electric Aviation, Honeywell, and Pratt & Whitney who have sustained their presence here for decades. This has created a robust supply chain ecosystem for components. Additionally, the region has seen steady orders for new commercial and military aircraft that need to be equipped and maintained. The strong domestic demand combined with exporting capabilities has made North America the preferred sourcing region for several aircraft parts globally. However, companies are facing pressure to reduce costs which is impacting pricing and market shares.

The Asia Pacific region has emerged as the fastest growing market with a CAGR of 6.7% for the forecast period of 2024-2031. Rapid economic growth and rising income levels in countries such as China and India have increased passenger traffic and propelled government investments to modernize fleets. Low labor costs and presence of cost-competitive suppliers have attracted several international OEMs to set up local manufacturing partners. This is enhancing the self-sufficiency of domestic carriers. For instance, many Chinese airlines now source a significant share of parts locally rather than from traditional import channels. The region also has ambitious plans to indigenize its defense aviation programs which will generate indigenous demand for components. While the market is at a nascent stage currently, projections indicate that Asia Pacific will witness the highest demand growth over the next decade. This makes it an attractive region for global parts manufacturers to gain an early advantage through investments and partnerships.