Aircraft parts include components and systems that are essential for the functioning of an aircraft like Landing Gears, Propulsion Systems, Interiors, Health Monitoring Systems, etc. The demand for aircraft parts is increasing with the growing aircraft fleet size worldwide and increasing frequency of maintenance, repair and overhaul activities.
The global Aircraft Parts Market is estimated to be valued at US$ 655.22 Bn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing maintenance, repair and overhaul (MRO) activities is expected to be a major trend in the aircraft parts market during the forecast period. MRO refers to the maintenance, repair, and overhaul of aircraft parts and systems to ensure airworthiness, reliability, and compliance with regulations. The MRO market has grown significantly over the last few years owing to the expansion of fleets across regions. According to estimates, global MRO spending is projected to reach over US$ 80 Bn by 2027, expanding at a CAGR of approximately 4-5% during 2023-2027. Growing aircraft fleet size combined with rising spending on aircraft MRO will drive the demand for aircraft parts.
SWOT Analysis
Strength: The aircraft parts market benefits from strong demand for aircraft repair and maintenance activities. Commercial aircraft require periodic repair and maintenance checks which drives the need for spare parts.
Weakness: Original equipment manufacturers have a stronghold over the supply of certain critical aircraft components resulting in high prices. This acts as a barrier for new entrants.
Opportunity: Emergence of newer aircraft models provides opportunities for component manufacturers to supply customized parts. The demand for fuel-efficient components also opens up opportunities.
Threats: Economic slowdowns negatively impact the demand for air travel which affects the procurement of new as well as replacement parts by airlines. Stringent aviation regulations increase compliance costs for parts manufacturers.
Key Takeaways
The Global Aircraft Parts Market Size is expected to witness high growth over the forecast period driven by increasing aircraft procurement for fleet modernization and expansion by commercial airlines as well as military forces worldwide.
Regional analysis: North America dominates the market currently owing to strong presence of major aircraft OEMs and MRO companies such as Boeing, GE Aviation, Honeywell, and Raytheon. Asia Pacific is expected to be the fastest growing region supported by developing aerospace hubs in China and India and rising passenger traffic in the region.
Key players: Key players operating in the aircraft parts market are Intel Corporation, Broadcom Inc., Mellanox Technologies, Cisco Systems Inc., Juniper Networks Inc., Hewlett Packard Enterprise (HPE), Dell Technologies Inc., Huawei Technologies Co. Ltd., Arista Networks Inc., Extreme Networks Inc., Juniper Networks Inc., Marvell Technology Group Ltd., Fujitsu Limited, NEC Corporation, and Microchip Technology Inc. These companies focus on developing differentiated solutions for segments such as avionics, aerostructures, and landing systems.
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