May 22, 2024

The Aircraft Parts Market is Primed for Growth by Modernization

Market Overview
The aircraft parts market encompasses a wide range of components that are used in the manufacturing of commercial and military aircraft. Major parts include engines, fuselages, wings, landing gears, and seats. Aircraft parts help enable flight through supporting critical systems like electrical and hydraulic networks. They are manufactured from high-strength lightweight materials like aluminum, titanium and composites to optimize aircraft performance. Modern aircraft are increasingly using advanced composite materials for safety, fuel efficiency and other operational benefits.

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. Growing air traffic and demand for new aircraft are driving significant opportunities for aircraft parts manufacturers. The global commercial aircraft fleet is expected to double in size over the next 20 years as air travel continues to rise. Major players are expanding globally to address emerging markets headed by China and India with their large investments in new aircraft procurement.

Growing demand in the aftermarket is another key factor fueling aircraft parts industry growth. Airlines are extending the lifecycle of existing fleets and relying more on component MRO activities. The global aircraft parts MRO market is projected to reach over $50 billion by 2027. Players are enhancing global service footprints and capabilities to leverage the high-value aftermarket opportunities.

Market key trends:
Modernization of existing fleets through retrofitting is one of the key trends in the aircraft parts industry. Airlines are seeking performance enhancements like higher fuel efficiency, connectivity solutions and cabin comfort amenities. Suppliers are developing advanced lightweight replacement parts that reduce aircraft weight for lower operating costs. Ongoing technology developments in additive manufacturing or 3D printing also allow complex customized parts production economically. This facilitates rapid prototype development and supply chain agility.

Porter’s Analysis

Threat of new entrants: High capital requirements like investment in technology, manufacturing plants and R&D act as a barrier for new entrants in the aircraft parts market.

Bargaining power of buyers: Airlines have significant bargaining power over aircraft parts manufacturers due to consolidation in the airline industry. However, compliance with stringent regulations limits switching between suppliers.

Bargaining power of suppliers: Strict quality standards and certification processes for parts limit the number of suppliers. This gives existing suppliers some bargaining power over OEMs and MRO companies.

Threat of new substitutes: No viable substitutes exist for aircraft components like engines, landing gear, and other critical systems. Substitution threat is low.

Competitive rivalry: The market is highly competitive with many global players. Players compete based on technology, quality, service and price.

Geographical Regions

North America accounts for the largest share of the global aircraft parts market, valued at around US$ 200 Bn in 2024 due to strong presence of aircraft manufacturers and MRO companies in the region.

Asia Pacific is projected to be the fastest growing regional market for aircraft parts during the forecast period. Countries like China and India are expected to drive huge demand for new aircraft due to rising passenger traffic, thereby fuelling the need for replacement of parts.

*Note:

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