The aircraft parts market comprises components that are essential in ensuring the safe operation of aircraft. Some of the key parts include landing gear, wing and fuselage parts, avionics systems, engine parts, aircraft electrical systems, aircraft airframes parts, and other components. The demand for these parts is driven by the need for regular maintenance, repair, and overhaul (MRO) activities of existing aircraft fleets. Additionally, factors such as growing passenger and cargo traffic, rising procurement of new generation aircraft, and expanding defense budgets of countries are expected to fuel the demand for aircraft parts over the coming years.

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 from 2024 to 2031.

Key Takeaways

Key players: 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. These players are focusing on strategies such as new product launches, partnerships, and contracts to strengthen their market position.

Growing demand: With the growing air passenger traffic worldwide, the demand for aircraft and aircraft parts is increasing significantly. According to IATA, the number of air passengers is expected to double to 8.2 billion by 2037. This rising traffic is positively impacting the aircraft parts market.

Global expansion: Key players in the market are expanding their global footprint to leverage the growth opportunities in developing Asian, Latin American, and Middle Eastern markets. For instance, in 2021, Airbus opened a new engineering and delivery center in China to cater to the growing aviation market in the country.

Market drivers: One of the key drivers for the aircraft parts market is the increasing aircraft procurement by airlines and aircraft operators. To replace aging fleets and meet the rising traffic demand, major economies are procuring new generation aircraft in large numbers which is significantly driving the aftermarket demand for aircraft parts.

Impact of geopolitical situation on market growth and geographical regions

The aircraft parts market is facing challenges due to the changing geopolitical dynamics across several regions. The ongoing Russia-Ukraine conflict and rising geopolitical tensions have disrupted supply chains and impacted transportation networks. This has negatively influenced the demand for aircraft parts in Eastern Europe and central Asian countries. To ensure long term business continuity, companies need to diversify their supply base and manufacturing footprint globally. They must look at alternative sourcing options from politically stable nations. Additionally, sanctions and export restrictions imposed on Russia by western nations have restricted part supplies, elevating production costs.

Geographically, North America currently holds the largest share of the global aircraft parts market in terms of value. Major aircraft manufacturers such as Boeing and Lockheed Martin have their headquarters and manufacturing facilities located across the US and Canada. This makes North America an important geographic hub for aircraft component production serving both domestic as well as export demand. Going forward, Asia Pacific is expected to see the fastest market growth during the forecast period. Countries like China and India offer a large talent pool and are aggressively investing in their aviation sectors. Emerging economies in Southeast Asia are also expanding airport infrastructure and fleet sizes to boost air connectivity.

Currently, the global aircraft parts industry is facing headwinds from inconsistent recovery in international travel due to the COVID-19 pandemic. However, with air traffic projected to rebound in the coming years, demand for replacement components and upgrading existing aircraft is expected to drive the long-term prospects.