The aircraft parts industry is a multi-billion dollar sector supplying vital components for commercial as well as military aircrafts. Aircraft parts such as engine components, avionics, control systems and hydraulic pumps ensure safety, efficiency and airworthiness of aircraft fleets. With commercial air travel witnessing robust growth and defence budgets rising globally, the demand for new planes has surged exponentially creating a dire need for aircraft spare parts, maintenance, repair and overhaul services.
The global Aircraft Parts Market is estimated to be valued at US$ 133.3 billion in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The surging demand for military and commercial aircrafts is the primary driver propelling the aircraft parts market. Post pandemic, commercial aviation is recovering strongly with air passenger traffic reaching pre-Covid levels in major economies. Likewise, modernization of ageing fighter jet fleets and induction of new generation aircraft like stealth jets by militaries worldwide has pumped huge investments into the defence aviation sector. As original equipment manufacturers ramp up aircraft production to meet this burgeoning demand, it is catalyzing transactions in the aircraft components aftermarket as well. With the global fleet of military and civilian aircraft projected to double over the next 20 years, prospects appear bright for the aircraft parts industry.
SWOT Analysis
Strength: Aircraft parts have longer product life cycles compared to other industries. This provides sustained demand for replacement parts.
Weakness: Original equipment manufacturers exert significant bargaining power over independent parts suppliers. stringent aviation safety regulations increase compliance costs.
Opportunity: Growth in the commercial aircraft fleet is driving the demand for new and replacement aircraft parts. Emerging markets are expected to increase procurement of new aircraft.
Threats: Economic slowdowns can reduce demand for air travel and decrease the need to replace parts. Trade disputes and geopolitical tensions pose risks to global supply chains.
Key Takeaways
The global aircraft parts market is expected to witness high growth over the forecast period of 2024 to 2031 driven by fleet expansion plans of major airlines.
North America currently dominates the market owing to presence of largest fleet of commercial aircraft and dominant position of The US aircraft manufacturers. Asia Pacific is expected to be the fastest growing regional market with China emerging as the major growth engine.
Key players operating in the aircraft parts market include Safran, Collins Aerospace, General Electric, Honeywell International, Avio Aero, Raytheon Technologies Corporation, BAE Systems, Diehl Stiftung & Co. KG, and Astronics Corporation. Major players are focusing on new product development and supply chain expansion strategies to strengthen their presence across major aviation hubs. Mergers and acquisitions remain a key strategy adopted by large OEMs to enhance their product portfolio and vertically integrate their supply chains.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
