The aircraft parts market encompasses a wide range of components that are crucial for aircraft operations such as airframes, aircraft interiors, aircraft engine components, aircraft hydraulic and pneumatic systems, aerostructures and assemblies. The demand for these components is driven by the need for maintenance, repair and overhaul (MRO) activities of the existing aircraft fleet. Additionally, the increasing procurement of new aircraft by passenger and freight airlines to cater to the growing air traffic is anticipated to fuel the demand for aircraft parts during the manufacturing stage.
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 irbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd., Teijin, Lockheed Martin Corporation, and Triumph Group, Inc. These players are focusing on developing lightweight and fuel-efficient components to meet the emerging demand for new generation aircraft.
The growing MRO activities especially in the Asia Pacific region presents lucrative growth opportunities for aircraft parts manufacturers. The demand for MRO is estimated to grow alongside the regional fleet size.
Furthermore, the increasing international trade and tourism are boosting the procurement of new fuel-efficient aircraft by air passenger carriers worldwide. This is encouraging aircraft parts manufacturers to strengthen their global supply chain and distribution networks through mergers and acquisitions. Regions like Middle East and China are witnessing high investment in airport infrastructure development which will facilitate global expansion of major aircraft parts companies.
Market Drivers and Restraint:
The rising procurement of new fuel-efficient aircraft for passenger and cargo transportation is one of the major drivers of the aircraft parts market. Manufacturers are developing advanced lightweight components with better performance and turnaround times. Furthermore, the increasing importance of MRO to increase aircraft service life and ensure compliance with global aviation safety regulations is propelling the demand for periodic replacement and repair of parts.
However, volatility in raw material prices acts as a key restraint. The prices of metals like steel and aluminum which are widely used in aircraft manufacturing are prone to fluctuations. Moreover, delays in aircraft delivery programs negatively impact the demand for new aircraft parts. Strict quality certifications and regulatory standards also increase the costs of developing aircraft components.
Segment Analysis
The aircraft parts market is dominated by the engine segment. This is because engines are one of the most expensive components of an aircraft and require frequent maintenance and replacement of parts. Engines undergo rigorous stress and wear and tear during operations. Thus engine parts such as turbines, compressors, and gearboxes have high demand. The aerostructure sub-segment also has a significant share as it involves major airframe sections such as wings, fuselage, and empennage that have frequent maintenance requirements.
Global Analysis
North America holds the largest share in the global aircraft parts market due to presence of major OEMs like Boeing, Lockheed Martin, etc. and large fleet of commercial and defense aircraft in the US. Presence of large MRO facilities further boosts aftermarket demand. The market in Asia Pacific is growing at fastest pace led by countries like China and India. This is owing to rising expenditures on defense modernization programs and expansion of domestic air traffic in China. China is increasingly focusing on development of indigenous components. Western Europe also has sizable share on account of presence of Airbus and growing MRO activities across the region.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
