THE GLOBAL AVIATION SPARE PARTS MARKET : 2022 – 2030

The global aerospace parts manufacturing market size was estimated at USD 851.5 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.0% from 2022 to 2030. The rising demand for lightweight, new-generation and fuel-efficient aircraftowing to the emphasis on reducing Greenhouse Gas (GHG) emissions is predicted to boost market growth over the forecast period. The aerospace industry was severely impacted due to the COVID-19 pandemic as manufacturers were unable to export the product owing to the trade limitations placed by the various governments. In addition, the majority of the manufacturers suspended operations across all the major economies to comply with the norms for lockdown, which impacted market growth.
The market for aerospace parts manufacturing is expected to witness a supply-demand gap, leading to a rise in the order backlog of aircraft deliveries. This is expected to encourage the OEMs (aircraft manufacturers) to temporarily increase their production levels to match the order backlog over the forecast period. The manufacturers are expected to witness a significant increase in revenue across the supply chain, owing to the market. The U.S. exhibits the largest market for aircraft parts manufacturing, owing to the presence of established aircraft manufacturing base, coupled with huge potential for aerospace MRO activities. Also, advanced technological capabilities, coupled with airworthiness for the production of superior-quality products, including critical aircraft parts, such as wings and fuselage, are expected to boost industry growth.
Tier 1 suppliers, which comprise systems and major structure manufacturers are engaged in the manufacturing of aero engines, turbines, jets, and engine propulsion systems, experience severe pressure from OEMs. As a result, the industry demonstrates increasing consolidation through tier 1 of the supply chain, owing to rising mergers & acquisitions to reduce the supply chain complexity. The industry players face competition in terms of product quality and design. The industry players are targeting the customers with customized requests to sustain in the market. Companies are also likely to adopt emerging technologies, such as additive manufacturing, to replace the traditional manufacturing process of smaller aircraft components with complex structures.

Product Insights

The aerostructure segment accounted for the largest revenue share of more than 51.0% of the market for aerospace parts manufacturing 2021. Increasing usage of composites for manufacturing fuselage to reduce fatigue maintenance, in high tension loaded environment, is expected to increase the overall cost of aero-structure, thereby impacting market growth on a positive note. Cabin interiors exhibit less complex structure as compared to airframe parts, however, it demonstrates mechanical requirements set by regulatory authorities, such as stringent fire, smoke, and toxicity limits. Hence, high-strength, lightweight, and space-saving solutions coupled with exceptional fire prevention and smoke detection are used for the manufacture of cabin interiors.
The insulation components segment is expected to witness significant growth during the projected period owing to their rapid replacement rate. Rising aircraft MRO activities, owing to the expanding aircraft fleet, are predicted to fuel the demand for these components over the projected period. Avionics manufacturing is expected to grow in line with aircraft manufacturing, as they are designed to increase the safety and utility of an aircraft. Actuators account for a major share of avionics manufacturing, as they are used in all the systems of an aircraft including oxygen, air, hydraulic, fuel, and water systems. In addition, actuators are used in flaps, landing gear, and weapon systems.

End-use Insights

The commercial aircraft segment led the market for aerospace parts manufacturing and accounted for over 50% share of the global revenue in 2021. The segment estimated the highest demand owing to the rise in passenger and freight traffic. With improved trade relations globally, there is an increase in the demand for cargo services, which is expected to drive industry growth. The product demand for business aircraft is expected to rise owing to low prices and an increase in the size of the aircraft. Business aircraft are anticipated to boost productivity, as air travel requires less time compared to other modes of travel. This is expected to drive the demand for business aircraft over the forecast period, thereby benefitting the industry growth.

Increasing demand for advanced composite materials for the manufacturing of innovative fighter planes is expected to aid industry growth. Also, increasing demand by NATO countries for surveillance aircraft as well as fighter aircraft, owing to rising security threats, is anticipated to positively impact the industry growth over the forecast period. Increasing government initiatives for space exploration is predicted to benefit market growth. Drones and Unmanned Aerial Vehicles (UAVs) are expected to play an essential role in industry growth. The rising use of UAVs for military reconnaissance is expected to augment industry growth.

Regional Insights

North America dominated the aerospace parts manufacturing market and accounted for the largest revenue share of more than 51% in 2021 owing to the presence of key aircraft parts manufacturers and the well-established aircraft manufacturing industry in the region. Ascending demand for new-generation aircraft is expected to boost the market growth in the region over the forecast period. The market in the U.S. is characterized by the ascending demand for landing gear and other support components, on account of the upward trend of replacing old landing gears with advanced systems. In addition, the rising demand for fixed-wing aircraft in the U.S. is anticipated to drive the market over the forecast period.

Asia Pacific is estimated to be the fastest-growing market for aerospace parts manufacturing with a CAGR of 7.3% owing to the rapid expansion of the aviation industry and growth of the Maintenance, Repair, and Overhaul (MRO) sector in the region. This is expected to have a positive impact on regional market growth. The stability of investments in R&D in the aerospace and defense sector in Europe is expected to positively affect the aircraft parts manufacturing industry in the region. The industry also boasts of a highly innovative and cutting-edge research approach. Rapid growth in the production of cabin interior components is anticipated to drive the market growth over the forecast period.

The industry has witnessed increased competition, on account of the rapid growth in the number of Asian manufacturers. The players compete on the basis of differentiation in technology, design, product performance, and compliance with the customer specifications. In addition, timely product delivery, market goodwill, superior customer service and support, and price also affect the competition. The key industry players often enter into long-term supply contracts with aircraft manufacturers. They also provide customized solutions to suppliers and aircraft manufacturers. The aircraft manufacturers often monitor the component manufacturing throughout the value chain, from designing the component to its production to ensure high quality.