February 28, 2024
Aircraft Parts Market

Aircraft Parts Market is Expected to be Flourished by Growing Demand for New Commercial Aircrafts

The aircraft parts market include a variety of components and equipment that are necessary for the functioning and safety of aircraft. Some of the major product types are engines, airframes, interiors, landing gear, and avionics. These parts are needed for the construction, maintenance, repair and operation of commercial, military, business jets and general aviation aircraft. With the growing global air passenger traffic, there is an increase in demand for new and advanced commercial aircrafts from airline carriers. This is expected to drive the procurement of aircraft parts by Boeing, Airbus and other aircraft manufacturers over the forecast period.

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 Dynamics
Growing demand for new commercial aircrafts is expected to be a major growth driver of the aircraft parts market over the forecast period. According to Boeing, around 42,000 new commercial planes will be delivered globally by 2039 to meet the rising air travel demand. This includes orders of over 8,000 aircraft worth nearly US$ 1.2 trillion from carriers in Asia Pacific region alone over next two decades. Fulfilling such huge order backlogs by aircraft OEMs will fuel the procurement of various aircraft parts like engines, landing gear, and avionics from tier 1 and tier 2 suppliers. Another factor supporting the market growth is increasing aircraft MRO activities across the world. As aircraft fleets expand, the overall number of aircraft maintenance, repair and overhaul services are also projected to rise substantially in the coming years. Aircraft service providers are investing in development of new airframe MRO facilities to handle rising aftersales services demand.

Segment Analysis
The global aircraft parts market is dominated by the commercial aircraft segment. Presently, commercial aircraft accounts for nearly 55% of the total aircraft parts demand due to rising air passenger traffic globally. Within commercial aircraft, the narrow body aircraft segment leads with over 60% share due to its higher usage for short and medium haul routes. Other segments include military aircraft, general and business aviation, and regional aircraft.

PEST Analysis
Political: Aviation industry is one of most regulated industries globally. Favourable government policies promoting aviation growth especially in developing nations boost market. Some geopolitical issues pose challenges.
Economic: Market closely tracks global economic conditions and air travel demand. Rising GDP, middle class population enhance prospects. High capital requirement impacts smaller players.
Social: Increased spend on leisure and business travel expands market. Safety concerns also affect demand.
Technological: Adoption of advanced materials and electronics aids MRO activities. Digitization initiatives optimize processes. Shorter replacement cycles influence aftermarket.

Key Takeaways
The Global Aircraft Parts Market Size is expected to witness high growth over the forecast period of 2023 to 2030, driven by rising aircraft deliveries and increasing air traffic globally.

Regional analysis: The North America region currently dominates the market and is expected to continue its dominance led by the US. Asia Pacific is poised to be the fastest growing region in the aircraft parts market supported by strong aviation growth in countries like China and India.

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. Key players are focusing on partnerships, new product innovation and enhancing supply chain capabilities to strengthen market presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it