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The aircraft parts market comprises a crucial part of the aerospace industry. Aircraft parts such as wings, fuselage, propulsion systems and landing gear are manufactured individually and then assembled together into an aircraft. Aircraft parts ensure optimized operational efficiency and flight safety. Advancements in aircraft parts technologies have led to lighter aircraft with improved fuel efficiency and power output. Key materials used in aircraft parts manufacturing include aluminum, composite materials and titanium which enable weight reduction.
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 from 2024 to 2031.
Aircraft parts demand is primarily driven by the rising passenger and freight air transport activities globally. Additionally, factors such as burgeoning commercial aircraft fleet, regional connectivity through low-cost carriers and new aircraft delivery contribute to aircraft parts demand.
Key Takeaways
Key players operating in the 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. The key players are focusing on developing advanced lightweight aircraft parts through composites and additive manufacturing to improve fuel efficiency.
Growing passenger and freight traffic globally has increased the demand for new aircraft. This promotes increased procurement of aircraft parts by OEMs and MRO companies. Rising middle-class population in emerging nations willing to travel by air is a major factor boosting the demand for aircraft and aircraft parts.
The aircraft parts manufacturers are expanding globally near OEM assembly plants, MRO stations and major airports for shorter delivery timelines and better customer service. New manufacturing plants are being set up by companies in Asia Pacific and Middle East regions to cater to growing demand. Joint ventures with local players are enabling global market reach.
Market key trends
The aircraft parts market is transitioning towards more electric aircraft with electric propulsion components replacing traditional hydraulic and pneumatic systems. This provides advantages such as reduced emissions, noise levels and operating costs. Additive manufacturing is gaining popularity for aircraft parts production due to advantages such as design flexibility, reduced waste and lead time. Light weighting of aircraft parts through advanced composite materials and 3D printing will be a major trend over the forecast period to achieve greater fuel efficiency.
Porter’s Analysis
Threat of new entrants: It is difficult for new players to enter the Aircraft Parts Market because of high capital requirements and stringent regulations.
Bargaining power of buyers: Airlines have high bargaining power as buyers due to bulk purchases and availability of substitute parts from other manufacturers.
Bargaining power of suppliers: Suppliers of raw materials like aluminum and composite have moderate bargaining power due to availability of substitute materials and dependency of airlines on original equipment manufacturers.
Threat of new substitutes: Threat of new substitutes is low as aircraft parts require certification and replacing existing parts is a long drawn process.
Competitive rivalry: The market is dominated by major players like Airbus, Boeing, Collins Aerospace etc but regional and local manufacturers are adding competition.
Geographical Regions
North America holds the largest share of the global aircraft parts market in terms of value due to presence of major OEMs and MRO companies in the region. The US and Canada are home to aircraft manufacturers like Boeing, Collins Aerospace, Lockheed Martin etc which drive the market.
Asia Pacific is poised to be the fastest growing region for aircraft parts market during the forecast period. This is attributed to rising aircraft demand from countries like China and India due to increasing air passenger traffic. Development of local MRO industry and investment in new aircraft fleet by low cost carriers will further aid growth of the aircraft parts market in Asia Pacific.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
