The aircraft parts market includes a wide range of components and systems that are essential for the functioning and safety of an aircraft. Key aircraft parts include the landing gear, aerostructures, aircraft wiring, engine components, and hydraulic and pneumatic systems. The demand for these parts is driven primarily by the replacement of aging parts and the production of new aircraft. As per the International Air Transport Association (IATA), 40,806 new aircraft are projected to be delivered between 2023 and 2042, fueling the need for aircraft parts. Manufacturers are focusing on developing lightweight and fuel-efficient parts using advanced materials to reduce maintenance costs for airlines.
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 3.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the aircraft parts market is the increasing utilization of additive manufacturing for production. 3D printing allows aircraft manufacturers to produce durable, lightweight, and customizable parts on-demand. This helps reduce waste, lead times, and inventory costs compared to conventional manufacturing methods. Composite materials are also gaining widespread adoption due to desirable properties like high strength-to-weight ratio. Continuous carbon fiber reinforced polymers are being evaluated for aerostructures to achieve substantial weight savings. With growing environmental concerns, OEMs are collaborating with suppliers to develop more sustainable aircraft through recycling, reduced emissions, and protection of resources.
Porter’s Analysis
Threat of new entrants: The threat is medium as the aircraft parts manufacturing requires high investment for R&D and production facilities. However, entry barriers are lower for component manufacturers and maintenance services.
Bargaining power of buyers: The bargaining power of buyers is high as the large airline companies can negotiate lower prices due to their high demand. There are also alternate suppliers in the market.
Bargaining power of suppliers: The bargaining power of suppliers is medium as they need to meet the stringent quality standards of airline companies and regulatory bodies. However, shortage of some critical components increases their power.
Threat of new substitutes: The threat is low as there are no cost-effective substitutes for aircraft parts that can ensure similar level of safety, comfort and fuel-efficiency.
Competitive rivalry: The competition is high among the key global players to gain higher market share through continuous innovation, expansion to emerging markets and strategic partnerships.
Key Takeaways
The Global Aircraft Parts Market Size is expected to witness high growth over the forecast period. The market is driven by recovery in commercial aviation post COVID-19 disruptions, replacement of aging fleet and upcoming novel aircraft deliveries.
Regionally, North America dominated the market in 2023 with over 30% share owing to presence of leading aircraft OEMs and MRO companies in the US. Europe was the second largest market attributed to significant aircraft fleet and production facilities of Airbus. Asia Pacific is expected to witness fastest growth during 2023-2030 led by China and India. These countries are focusing on indigenous production as well as expanding MRO infrastructure.
Key players operating in the Aircraft Parts Market are Avery Dennison Corporation, Spandex Ltd, IGEPA group GmbH & Co. KG, ORAFOL Europe GmbH, Identity Global, LINTEC Corporation, 3A Composites Holding AG, Signs Express, EhKo Sign Industries Kft, MACtac LLC (Lintec), Kelly Signs, and L&H Sign Company Inc. The companies are focusing on developing innovative and lightweight components to improve fuel-efficiency as well as expanding their geographic footprint through strategic collaborations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it