Aircraft parts refer to various components and systems used in aircraft manufacturing and maintenance. Some of the major aircraft parts include aircraft engine, landing gear, avionics, aircraft systems, cabin interior, and aircraft electrical systems. Aircraft parts find extensive applications in commercial aviation and defense sectors. Commercial aircrafts require frequent replacement of parts as they operate on high frequencies to different destinations carrying passengers. Meanwhile, military aircrafts require aircraft parts for operational efficiency and safety during missions.

The global aircraft parts market is estimated to be valued at US$ 82 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
One of the key drivers for growth of the global aircraft parts market is the increasing aircraft procurement for fleet expansion by commercial airlines as well as defense forces globally. Significant rise in air passenger traffic over the past few years has necessitated procurement of new aircrafts by airlines. According to Airbus, the new aircraft deliveries are estimated to double by 2040 with over 39,000 new aircrafts to be delivered during the period. Similarly, defense forces are procuring new generation fighter jets and aircrafts equipped with advanced technology to strengthen national security. For instance, in 2021, the US Department of Defense announced plans to procure 96 F-35 fighter jets from Lockheed Martin over the next two years with a contract value of over US$ 23 Bn. Such large scale aircraft procurement drives aftermarket demand for aircraft parts for maintenance and repairs. Moreover, strict regulatory standards regarding aircraft airworthiness and safety further fuels adoption of replacement aircraft parts.

SWOT Analysis
Strength: The aircraft parts market benefits from strong demand for commercial aviation. Rising air passenger traffic is expected to drive demand for new aircraft and replacement of existing aircraft parts over the next decade. Additionally, modern aircraft rely on thousands of sophisticated components which need regular replacement and maintenance. This creates a stable revenue stream for suppliers.

Weakness: Aircraft part manufacturing requires heavy capital investments in advanced production technologies. Significant research and development expenditures are also needed to develop new lightweight metals and composite materials. These high fixed costs pose challenges for small players. Supply chain disruptions and delays in aircraft deliveries due to the pandemic have also negatively impacted manufacturers in the short term.

Opportunity: Growth in the Asia Pacific region is projected to outpace other markets. Rising incomes and strong economic growth in countries like China and India are leading to increased domestic and international air travel. This growing commercial aviation market represents major opportunities for aircraft parts suppliers. Suppliers can also explore opportunities in the expanding business and general aviation segments through development of affordable, lightweight components.

Threats: Intensifying competition from low-cost counterparts based in Asia poses pricing pressures. Stringent regulatory standards increase compliance costs for manufacturers. Environmental concerns around aircraft emissions may lead to higher costs of doing business in the long run if more stringent norms are imposed. Geopolitical tensions can also disrupt sourcing, production and supply chains across international borders.

Key Takeaways
The global aircraft parts market is expected to witness high growth over the forecast period driven by increasing commercial aircraft deliveries across major economies.

The Asia Pacific region is projected to be the fastest growing as well as the largest regional market for aircraft parts. Countries like China and India are investing heavily in expanding their commercial aviation fleets to meet the rising demand for air travel from their burgeoning middle classes. Chinese manufacturers are also emerging as prominent suppliers of aircraft components to global OEMs as they boost domestic production abilities.

Key players operating in the aircraft parts market are Safran, UTC Aerospace Systems, Honeywell International, General Electric Aviation, Meggitt, Rockwell Collins, Parker-Hannifin, and Thales. Consolidation activities among suppliers are on the rise with big firms acquiring smaller players to gain technological capabilities and scale up global footprints.