The Aircraft Parts Market is estimated to be valued at USD 685.36 Bn in 2024, exhibiting a CAGR of 5.4% over the forecast period (2024-2031). The aircraft parts market is driven by factors such as increased air passenger traffic globally leading to higher demand for new aircraft.
Market Dynamics:
The growth of the global aircraft parts market is driven by two key factors - rising Maintenance, Repair, and Overhaul activities and increasing commercial aircraft fleet size.
Rising MRO activities refer to the growing maintenance, repair, and overhaul operations being carried out on the existing fleet of aircraft across the world. As aircraft continue to age, the demand for MRO services increases accordingly in order to ensure airworthiness standards are met. This translates to the higher consumption of replacement parts. The commercial aircraft fleet is also expanding rapidly year-on-year to meet passenger traffic growth. Major aircraft manufacturers have booked a record number of new orders to be delivered over the next decade. An expanding fleet will sustain the future demand for aircraft parts during the operation life of the aircraft.
Market Drivers:
Increasing Demand for Commercial and Business Aircraft
One of the major drivers for the growth of the aircraft parts market is the increasing demand for commercial and business aircraft across the world. According to various forecasts, the global commercial aircraft fleet is expected to double in size over the next 20 years due to rising air passenger traffic. Major aircraft manufacturers like Boeing and Airbus already have huge order backlogs for popular aircraft models like Boeing 737 MAX and Airbus A320neo family, as airlines look to replace aging fleets and expand their networks. The growth in commercial aviation will directly increase the demand for spare parts used for maintenance, repair, and overhaul activities of these aircraft.
Stringent Regulations Driving More Frequent Parts Replacement
Regulatory authorities like the FAA and EASA have been implementing increasingly stringent safety and airworthiness directives that mandate more frequent replacement or inspection of critical aircraft parts. For example, rules have been tightened on the replacement cycle of parts like turbines, sensors, filters, and electronic components. While increasing costs for operators, these regulations are necessary to minimize risks and ensure reliability. Compliance with such rules drives a need for higher number of parts replacements, boosting the demand for the aircraft parts market.
Market Restraints:
High Cost of Developing and Certifying New Parts
One key challenge faced by players in the aircraft parts market is the high investment and certification costs associated with introducing new parts. Developing innovative components that meet strict engineering, testing and airworthiness standards of regulatory bodies is an expensive and time-consuming process. Bringing a new part from design to production and getting the necessary approvals can take several years and millions of dollars of investment. This high barrier to entry protects incumbent players and acts as a restraint for new entrants into the market.
Economic Downturns Impacting Aviation Industry Spending
As the aircraft parts demand is ultimately driven by production and fleet levels set by aircraft OEMs and airline operators respectively, economic cycles that impact these industries' financial health can negatively influence the parts market as well. During periods of recession, reduced consumer spending and declines in business/freight activities force airlines to cut routes, defer expansion plans and limit fleet renewal budgets. This translates to lower procurement of new aircraft and reduced spending on parts as well. The uncertain macroeconomic conditions brought about by the ongoing COVID-19 pandemic have severely challenged the aviation industry.
Market Opportunities:
Growing Maintenance, Repair and Overhaul Services Market
As the worldwide commercial fleet continues its relentless growth, the volume of aircraft requiring regular maintenance checks is rising exponentially. According to analysts, the global MRO services market is poised to double over the next 20 years. This presents a huge opportunity for aircraft parts suppliers to tap into the aftermarket demand for replacement components needed for various servicing works. Established as well as smaller players can grow revenues by expanding or entering the industrial services domain in addition to the original equipment business.
Additive Manufacturing is Driving New Part Designs
Advancements in additive manufacturing or 3D printing technologies have enabled novel design possibilities for aircraft components that were previously unfeasible through conventional methods. Lightweight, complex shapes can now be achieved at lower costs compared to traditional production processes. This opens up an opportunity for parts makers to develop cutting-edge designs optimized for performance and develop competitive advantages. Leveraging 3D printing, completely new categories of lightweight, customizable and durable parts can be created to meet future aviation needs.
Link - https://www.coherentmarketinsights.com/market-insight/aircraft-parts-market-4466
Key Developments
- On March 19, 2024, Executives from the UK’s XS Aviation are set to launch an aircraft parts trading platform named Spaero on April 1. Led by XS Aviation owner Myles Corey, Spaero aims to democratize aircraft parts trading and accelerate the procurement process, ultimately helping operators return their aircraft to service more quickly and safely.
- In October 2023, Sterling, a Kuehne+Nagel company, introduced a global Aerospace Service designed to expedite the delivery of urgently needed aircraft parts from one of the largest Original Equipment Manufacturers (OEM) based in Seattle, Washington. This high-level service will operate 24/7 from a newly established Logistics Service Hub in Seattle, staffed with Sterling drivers and a new fleet of vehicles.
- In August 2022, Safran Data Systems, a division of Safran Electronics & Defense, acquired Captronic Systems, an Indian firm. This acquisition expands Safran Data Systems' product portfolio and strengthens its international operations in India, positioning it as a leading player in the space industry, supplying instrumentation for testing, telemetry, and communications with satellites, launch vehicles, and remote platforms.
Key Market Players:
Key companies covered as a part of this study include AVIC Beijing National Aeronautical Manufacturing Corporation, Bombardier Inc., Eaton Corporation PLC, GE Aviation, GKN Aerospace, Hanwha Aerospace, Heracleum Group, Hindustan Aeronautics Limited, Honeywell International Inc., Leonardo S.p.A., Liebherr Group, Mitsubishi Heavy Industries, Ltd., Moog Inc., Rolls-Royce plc, Safran, Spirit AeroSystems Inc., United Technologies Corporation, and Woodward Inc.
