The aircraft parts market comprises components and systems that are installed during aircraft assembly and are replaced regularly to ensure optimum performance of the aircraft. These parts include wings, propulsion systems, landing gear, hydraulic and pneumatic components, fuselage, cabin interiors and others. Due to wear and tear, aircraft parts require regular replacement which allows OEMs and MRO service providers to generate continued demand. 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 9.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Regular replacement and maintenance of aircraft parts helps in reducing the overall maintenance cost of aircrafts. Replacing worn-out parts on time improves aircraft performance and fuel efficiency. It also reduces the risk of failure during flight and chances of grounding aircrafts. This allows airlines to save significantly on maintenance expenditure in the long run. The need for lowering operating costs drives greater demand for aircraft parts globally. As new parts ensure compliance with updated industry standards, their adoption leads to maintenance of safety protocols. With growing air traffic worldwide, the substantial opportunity to reduce costs through timely component replacement is expected to boost growth of the aircraft parts market over the forecast period.
Porter's Analysis
Threat of new entrants: The aircraft parts market has high entry barriers due to high capital investment requirements and stringent regulations. Aircraft parts manufacturing requires heavy investment in R&D, tooling, testing facilities. compliance and certification which makes entry difficult for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate. The market has few dominant OEMs such as Boeing and Airbus who account for major share in procurement. However, with growing passenger traffic, airlines are in position to negotiate for competitive pricing and delivery schedules.
Bargaining power of suppliers: The bargaining power of suppliers is high due to consolidation of supply base and long-standing relationships between suppliers and OEMs. Suppliers have capabilities to manufacture customised, complex components leaving very few substitutes.
Threat of new substitutes: The threat of substitutes is low as aircraft travel has no close substitute over long distances. High-speed rail is alternative for short-haul travel but not viable over transcontinental routes.
Competitive rivalry: The market is highly competitive with few global players dominating. Intense competition on pricing, technological innovation, and MRO services.
SWOT Analysis
Strength: Established supply chain and long-standing relationships with OEMs, high entry barriers ensure established players face minimal threat. Strong focus on R&D to develop new materials and components help gain technological edge.
Weakness: High dependence on aerospace cycle results in volatile revenues during industry downturns. Significant long-term investments required to develop new technologies increases financial risks.
Opportunity: Growth in global passenger and freight traffic, demand for new-generation fuel-efficient aircraft and demand from MRO market.
Threats: Economic slowdowns impacting airline profitability and aircraft orders, surge in raw material costs, and stringent environmental regulations increasing compliance burden.
Key Takeaways
The Global Aircraft Parts Market Size is expected to witness high growth during the forecast period due to rising air traffic and increasing demand for MRO services.
North America dominates currently due to presence of Boeing, largest aftermarket services provider, and major MRO companies. Asia Pacific is growing at fastest pace led by China and India on back of rising middle class, domestic air traffic, and low-cost carriers.
Key players operating in the Aircraft Parts Market are Intel Corporation, Broadcom Inc., Mellanox Technologies (now part of NVIDIA), Cisco Systems Inc., Juniper Networks Inc., Hewlett Packard Enterprise (HPE), Dell Technologies Inc., Huawei Technologies Co. Ltd., Arista Networks Inc., Extreme Networks Inc., Juniper Networks Inc., Marvell Technology Group Ltd., Fujitsu Limited, NEC Corporation, Microchip Technology Inc.
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https://www.newswirestats.com/aircraft-parts-market-size-share-growth-outlook-2023-2/
