The expenditure of the U.S. government on military is the highest among all the countries across the globe. In FY 2019, the U.S government approved a budget of around US$ 686 Billion and out of this, nearly US$ 194 Billion was for the United States Department of the Air Force. The United States Department of the Air Force spends a part of mentioned budget on procurement of aircraft parts, operation, and maintenance activities and advanced technologies.
Moreover, the increasing expenditure on air travel owing to high GPD (Gross domestic product) per capita of U.S. and Canada is expected to propel the North America aircraft parts market. For instance, during the period 2016 to 2019, GDP per capita income of the U.S. and Canada increased from US$ 57,951 to US$ 65,297 and US$ 42,322 to US$ 46,194, respectively.
Furthermore, Carbon fiber and composite materials are very costly compared to conventional materials. Carbon fiber aircraft parts are very costly and require high initial investment. It can be a challenge for small companies operating in North America aircraft parts market to pay such high initial capital. The aircraft structures have complex architecture and require a lot of research and development activities.
North America Aircraft Parts Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has significantly disrupted almost all the industries including, aviation, manufacturing, and others. To combat COVID-19 pandemic, several states in the U.S. and Canada imposed lockdown in 2020 and are now easing it phase-wise and industry wise. This has significantly impacted manufacturing sector as the facilities across the U.S. and Canada were temporarily shut down.
Companies offering aircraft parts are experiencing disruption in production due to lack of availability of workers. COVID-19 pandemic have acted as a restraint to the growth of the aircraft parts market in 2020 as supply chains were disrupted due to unavailability of workers at manufacturing facility. Also companies were unable to move the cargoes due to trade restrictions. Canada aircraft manufacturers depend heavily on 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, revenue of General Dynamics and Lockhead Martin decreased by about 4.1% and 8.6%, respectively.
U.S. is expected to hold dominant position in the North America aircraft parts market during the forecast period.
U.S. held dominant position in the North America aircraft parts market in 2021, accounting for 88.9% share in terms of value, followed by Canada.
Figure 1: North America Aircraft Parts Market Share (%), By Region, 2021
On the basis of country, North America aircraft parts market is segmented into U.S. and Canada. Among country, Canada is expected to show highest CAGR of 4.9% in terms of value during the forecast period 2022-2030. U.S. held the largest market share in terms of revenue in the North America Aircraft Parts market in 2021. The country is expected to be dominant over the forecast period with more than 80% of the total market share in the North America aircraft parts market. This is due to presence of various prominent players in the U.S. which include, Alcoa Corporation, Arconic Corporation, Boeing, Collins Aerospace, Lockheed Martin Corporation, Triumph Group, Inc. and others. For instance, In February, Triumph Group, Inc. announced that its Triumph Systems & Support business signed an exclusive agreement with VSE Aviation, Inc. (one of the player of aerospace industry) to distribute more than 1,600 original equipment spare parts for various Boeing and Airbus commercial platforms.
North America Aircraft Parts Market Report Coverage
|Base Year:||2021||Market Size in 2021:||US$ 180.18 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||4.5%||2030 Value Projection:||US$ 268.87 Mn|
Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd, Teijin, Lockheed Martin Corporation and Triumph Group, Inc.
|Restraints & Challenges:||
Narrow Body aircraft segment is expected to drive the highest market growth during the forecast period.
On the basis of aircraft type, Canada aircraft parts market is segmented into narrow body aircraft, wide-body aircraft, and turboprop aircraft. Among aircraft type, narrow body aircraft segment is expected to show highest CAGR of 4.7% in terms of value during the forecast period 2022-2030. 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: North America Aircraft Parts Market Value (US$ Mn) Analysis and Forecast and Y-o-Y Growth (%), 2017 - 2030
The North America aircraft parts market was valued at US$ 180.18 Mn in 2021 and is expected to reach US$ 268.87 Mn by 2030 at a CAGR of 4.5% between 2021 and 2030.
Major players operating in the North America aircraft parts market include Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd, Teijin, Lockheed Martin Corporation and Triumph Group, Inc
Frequently Asked Questions