The aircraft parts market comprises components and systems that are installed during aircraft manufacturing. Some key aircraft parts include wings, flight control surfaces, landing gear, hydraulic systems, and aircraft engines. Aircraft parts play a vital role in ensuring flight safety, efficiency, and reliability. The increasing demand for lightweight and fuel-efficient aircraft parts to reduce maintenance costs and enhance aircraft performance is driving advancements in aerospace materials. Composite materials that are stronger, lighter, and more durable than traditional metals are increasingly being used to manufacture aircraft parts.
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 growing demand for commercial aircraft due to rising passenger traffic and increasing air cargo is a major growth opportunity in the aircraft parts market. Composite materials, 3D printing, and lightweight alloys are some of the emerging technologies attracting investments in the aircraft parts manufacturing industry.
Technological advancements in aerospace materials and additive manufacturing are driving the development of next-generation aircraft parts with improved performance, reduced maintenance costs, and lower production lead times. 3D printing technologies are enabling complex assembly and integration of multi-component aircraft parts.
Market Drivers
The rising demand for aircraft from both commercial and military sectors due to increasing global air passenger and freight traffic is a key driver for the aircraft parts market. Government initiatives and investments to modernize aging aircraft fleets are also propelling the demand for aircraft parts. The increasing need for affordable and fuel-efficient aircraft to control operating costs is accelerating technological innovations in the aircraft parts manufacturing industry.
Current challenges in the Aircraft Parts Market
The aircraft parts market is facing challenges due to the COVID-19 pandemic. The pandemic has severely impacted the aviation industry with grounding of airplanes and decline in air passenger traffic across the world. Many airline companies have declared bankruptcy or are going through financial restructuring. This has led to decline in demand for aircraft parts from commercial aviation segment. Further, restrictions on travel and economic recession have reduced discretionary spending of consumers on leisure and business travel which has hampered the growth of general aviation sector as well. Supply chain disruptions during pandemic lockdowns have also created delays and backlogs in manufacturing and delivery of aircraft parts. Rising raw material costs have put upward price pressure on aircraft parts. Geopolitical tensions in some parts of world also pose challenges for this industry.
SWOT Analysis
Strength: Established global supply chain network of major players and strong focus on innovation and technology.
Weakness: High research and development costs, vulnerability to economic cycles and external factors like pandemics and geopolitical issues.
Opportunity: Growing commercial aircraft fleet size, increasing penetration in developing markets.
Threats: Intense competition, regulations regarding fuel emissions and noise levels.
North America is the largest market for aircraft parts in terms of value, accounting for over 35% share. This is due to presence of major aircraft OEMs and tier players in the region. USA is the world’s largest aviation market and home to planes like Boeing and business jets from General Dynamics, Lockheed Martin, Gulfstream etc. Asia Pacific region is the fastest growing market for aircraft parts driven by expanding aviation industry of China and India. Countries are investing heavily in new plane fleet to support rising passenger traffic.
Europe is another major geography in aircraft parts market led by Germany, UK and France. Strong manufactuing base of Airbus has fueled the demand over years. Likewise, aircraft parts market is also concentrated in Middle East region particularly in UAE, Saudi Arabia due to expanding international transit routes and business aviation. Boeing and Airbus have established local production plants as well.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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