The global aircraft parts market is expected to grow significantly owing to increasing demand for lightweight and durable parts from commercial aircraft manufacturers. Major components such as engine parts, landing gear, airframe parts, and cabin interior parts find widespread applications in aircraft. The continued adoption of lightweight yet high-strength aluminum alloys and composite materials in aircraft manufacturing has propelled market growth over the years.
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 market are Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd., Teijin, Lockheed Martin Corporation, and Triumph Group, Inc.
The increasing aircraft orders and backlogs from global airlines provide lucrative opportunities for aircraft parts suppliers to increase sales. Moreover, the demand for low-cost carriers from emerging economies of Asia Pacific fuels the need for newer aircraft, boding well for the market.
Additive manufacturing using advanced materials allows complex part designs that were not possible before. This reduces cost and lead times significantly. Technologies like laser powder bed fusion are being increasingly used to 3D print critical aircraft components.
Market drivers
One of the key drivers for the aircraft parts market is the growing aircraft fleet. Airlines are procuring newer fuel-efficient aircraft to replace aging fleets as well as cater to increasing passenger traffic. This is driving the demand for replacement parts and spares over the lifetime of an aircraft. Furthermore, the rising requirement for maintenance, repair, and overhaul activities on aircraft parts ensures continued market revenues. Stricter emission norms have also accelerated the early retirement of older aircraft models, thereby acting as a market driver.
Current Challenges in Aircraft Parts Market
The aircraft parts market is facing a few challenges at present. Supply chain disruptions caused due to the Covid-19 pandemic have hampered the delivery of aircraft parts. This has negatively impacted aircraft fleet modernization programs worldwide. Inflationary pressures have increased manufacturing costs for components and parts. Raw material shortages for titanium, aluminum, and other specialty alloys used in aircraft parts are pushing up prices. Sustainability also remains a challenge due to the carbon emissions from aircraft. Original equipment manufacturers need to transition to renewable materials and technologies to reduce environmental impact.
SWOT Analysis
Strength: Jet aircraft replacement cycles provide steady aftermarket demand. Technology migration and component upgrades drive parts sales.
Weakness: High R&D costs involved developing new materials and parts. Supply chain vulnerabilities were exposed by pandemic disruptions.
Opportunity: Integration of more lightweight, durable composites for improved fuel efficiency. E-Aircraft technologies offer growth prospects in coming decades.
Threats: Protectionist tendencies may affect global supply networks and trade. Cybersecurity risks to aircraft systems need constant monitoring.
Geographical Regions
North America accounts for the largest share of the global aircraft parts market, both in terms of value and volume. This is attributed to the presence of major aircraft OEMs and part manufacturers in the region. The U.S. Air Force is also one of the largest fleet operators globally. Going forward, Asia Pacific is expected to record the highest CAGR during the forecast period from 2024 to 2031. Countries like China, India, and Japan are witnessing increased aircraft procurement and fleet modernization programs. This will drive the demand for aircraft parts from both domestic as well as international suppliers in the coming years.
Fastest Growing Region
Asia Pacific region is projected to be the fastest growing market for aircraft parts during the forecast time frame. Expanding air passenger traffic over the long term is driving investments in new aircraft procurement across Asia. Countries like China and India have emerged as new hotspots of aviation sector growth. Their plans to develop domestic aircraft manufacturing will further accelerate aircraft parts demand till 2031 and beyond in the Asia Pacific market.
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- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it