An airplane is a transportation vehicle that is used to transport people and cargo from one place to another through air. Airplanes or aircrafts are designed in many shapes and sizes depending on its application. The aircraft can be categorized into following types: narrow body aircraft, wide-body aircraft and turboprop aircraft. Aircraft contains many parts such as aircraft engines, landing gears, propellers, wings and flaps, cabin interiors, fuselage, cockpit etc.
The expansion of airlines to meet a surge in the number of air travelers from developing countries of Asia Pacific region such as India and Vietnam is expected to propel the demand for aircraft parts across the globe over the forecast period. For instance, according to India Brand Equity Foundation, in FY20 the number of domestic passenger traffic was 274.50 Million in India, which was growing at a CAGR of 12.91% over FY16.
Global Aircraft Parts Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has significantly disrupted several industries including infrastructure, retail, manufacturing, and others. To combat the COVID-19 pandemic, most of the countries have implemented strict lockdowns and canceled their domestic and international flights, so the monetary spending of people on air travel activity has also reduced, according to CMI’s analysis.
Companies offering aircraft parts are experiencing disruption in their production due to the lack of availability of workers. COVID-19 pandemic has acted as a restraint to the growth of the aircraft parts market in 2020 as supply chains were disrupted due to the unavailability of workers at manufacturing facilities. Also, companies were unable to move the cargoes due to trade restrictions. Canada aircraft manufacturers depend heavily on the supply of parts and components from the U.S. However, it is expected that the aircraft parts market will recover from the crisis over the forecast period. Several companies witnessed decreased sales of aircraft parts as the supply chain was disrupted by lockdown orders and domestic and international travels were also banned. For instance, in the period 2019 to 2020, the revenue of key aircraft manufacturers such as General Dynamics and Lockheed Martin decreased by about 4.1% and 8.6%, respectively.
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|Base Year:||2020||Market Size in 2019:||US$ 537.0 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||5.1%||2028 Value Projection:||US$ 826.01 Bn|
Major companies operating in the global 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.
|Restraints & Challenges:||
North America is expected to hold dominant position in the global aircraft parts market during the forecast period
North America held dominant position in the global aircraft parts market in 2019, accounting for 35.1% share in terms of value, followed by Europe and Asia Pacific.
Figure 1: Global Aircraft Parts Market Share (%), By Region, 2019
In the year 2020, the North American region held the dominant market share in the global aircraft component market and is expected to retain its dominance over the forecast period. The growth of the North American region is majorly attributed to the presence of large aircraft manufacturers in the region such as Boeing, Bombardier Inc., Lockheed Martin Corporation etc. In addition, many aircraft manufacturers are engaged in the export of aircraft components to several other countries. For instance, every year, Canada imports aircraft parts such as wings, fuselages, engines etc. worth around US$ 10 to US$ 20 billion, out of which about 50% to 60% of parts are from the U.S.
Major companies operating in the global aircraft parts are: Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd, Teijin, Lockheed Martin Corporation, and Triumph Group, Inc.
Among aircraft type, the narrow body aircraft sub-segment is expected to showcase highest CAGR in the market during the forecast period, owing to rapid launch of advanced narrow body aircrafts.
Narrow-body aircraft are also called single-aisle aircraft. The growth of narrow-body aircraft is majorly attributed to higher efficiency, higher operating range, and less fuel requirement as compared to wide-body aircraft. Some of the prominent single–aisle aircraft manufacturers are Boeing, Airbus, and Tupolev.
In addition, several narrow body aircrafts are being launched, which have long operating range. For instance, Airbus A321LR, a narrow body aircraft, has a range of 7,400 kilometers.
Figure 2: Global Aircraft Parts Market Value (US$ Bn), 2017 - 2028
The global aircraft parts market was valued at US$ 537.04 Bn in 2019 and is expected to reach US$ 826.01 Bn by 2028 at a CAGR of 4.9% between 2021 and 2028.
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