The aircraft parts market consists of various components and equipment that are installed in aircrafts for their smooth functioning. Some key aircraft parts include hydraulic and pneumatic parts, landing gear components, aircraft seats, avionics, and aircraft electrical systems. Growing emphasis on lightweight and more fuel-efficient aircraft components is increasing the demand for advanced materials like composites in manufacturing aircraft parts. Carbon fiber composites offer benefits like high strength, corrosion resistance, and less weight compared to aluminum. This helps aircraft achieve substantial weight savings and improved fuel efficiency. The reduced total operating cost of aircraft is a major factor boosting the adoption of advanced composite materials in aircraft parts manufacturing.

The Global Aircraft Parts Market is estimated to be valued at US$ 688.63 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024-2031.

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. Irbus and Boeing collectively account for over 50% share of the global aircraft parts market owing to their vast product portfolio and widespread supply chain network.

The growing demand for new commercial and military aircraft across regions is a key factor driving the need for aircraft parts. Manufacturers are focusing on partnerships with OEMs to gain advantage in supplying critical components. Growing passenger traffic is necessitating the replacement of older fleet with new fuel-efficient aircraft, which spurs the demand for aircraft parts.

The aircraft parts market is witnessing increasing globalization with emerging regions offering manufacturing opportunities. Countries like India, China, and Mexico are attracting investments by global aircraft OEMs and parts suppliers due to availability of low production costs. This is positively impacting the expansion of the aircraft parts industry.

Market drivers:
The increasing aircraft fleet size is a major driver of growth in the aircraft parts market. According to estimates, the global commercial fleet is expected to double from around 25,000 aircraft in 2019 to over 48,000 aircraft by 2039. This massive demand for new aircraft will necessitate continual procurement of replacement parts and equipment over the lifetime of the aircraft. Furthermore, stringent environmental regulations regarding carbon emissions are propelling the demand for lightweight and fuel-efficient components.

Geopolitical Impact on Aircraft Parts Market Growth

The current geopolitical instability across many parts of the world has significantly impacted the growth trajectory of the global aircraft parts market. The ongoing Russia-Ukraine conflict and rising geopolitical tensions have disrupted the supply chains and created uncertainties. Both Russia and Ukraine are major suppliers for critical aircraft components. The sanctions on Russia have obstructed the supply of key materials like titanium. At the same time, the interruptions caused by the war have disrupted just-in-time delivery of components. All these factors have negatively affected the procurement schedules of aircraft OEMs and MRO facilities globally.

Going forward, aircraft parts manufacturers will need to diversify their supply sources and onshore more component production. While relocating entire supply networks may not be feasible in the short run, steps must be taken to lower dependencies on geopolitically volatile regions. Investing in alternate suppliers from relatively stable countries will help reduce disruptions. Additionally, OEMs should optimize inventory levels of critical parts to absorb supply shocks. Overall, the market needs collaborative strategies that enhance supply resilience amid changing geopolitical scenarios.

Geographical Regions of Concentrated Value

The aircraft parts market sees a high concentration of value in North America and Western Europe. Countries like the US, Canada, Germany, France and the UK account for over 60% of the total market revenue. This is due to the large fleet sizes and high maintenance requirements of airlines based in these regions. With leading global aircraft OEMs situated here, the aftermarket demand for repairs and overhauls is also significantly high. The availability of advanced MRO infrastructure further boosts the market value in North America and Western Europe.

Fastest Growing Regional Market

The Asia Pacific region has emerged as the fastest expanding market for aircraft parts in recent years. Countries like China, India and Indonesia are witnessing exponential air passenger traffic growth. To meet this rising demand, airline fleet sizes across APAC are rapidly increasing with plans for new aircraft procurement. This is driving heavy investments to develop local MRO centers as well. Additionally, several APAC nations have also become important manufacturing hubs for aircraft parts. All these factors are fueling the fastest market growth from the APAC region over the forecast period.