The aircraft parts market includes components and systems used in both commercial and military aircrafts. Some of the major aircraft parts include engine components, landing gear, hydraulics and pneumatics, avionics, and aircraft interiors. Aircraft parts play a vital role in ensuring safety, comfort, and reliability of aircraft operations. There is a growing demand for lightweight yet durable aircraft parts to improve fuel efficiency. Key players are investing in research and development of advanced composite materials to manufacture next-generation aircraft parts.

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 operating in the Aircraft Parts Market are Airbus 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 new product development and collaborations to gain a competitive edge in the market. For instance, in 2021, Collins Aerospace partnered with Bombardier to develop advanced aircraft interior parts.

The demand for aircraft parts is growing significantly driven by the rising international and domestic air passenger traffic globally. The recovering commercial aviation industry post-COVID is fueling the requirement for maintenance, repair, and overhaul of existing aircraft fleets. Furthermore, many countries are modernizing their aircraft fleets which is creating opportunities for parts manufacturers.

Geographically, North America dominates the global aircraft parts market due to presence of large aircraft OEMs such as Boeing. However, Asia Pacific is emerging as a major market with countries like China actively investing in domestic aviation infrastructure and regional aircraft development programs. Manufacturers are shifting production bases to Asia to leverage lower costs.

Market Drivers
The key driver fueling the aircraft parts market is growing international and domestic air passenger traffic. According to IATA, the number of global air travelers is expected to double to 8.2 billion by 2037. This rising demand for air travel is driving the requirement for new commercial aircraft with more parts and components. Further, mandatory aircraft maintenance checks and replacement of older parts to comply with safety regulations are supporting the aftermarket for aircraft parts. Thus, increasing passenger air traffic remains the primary growth driver for the aircraft parts industry over the forecast period.

Impact of Geopolitical Situation on Aircraft Parts Market Growth
The current geopolitical situation is impacting the growth of the aircraft parts market. Rising geopolitical tensions and conflicts between various nations are causing supply chain disruptions. This is making it difficult for aircraft parts manufacturers to procure raw materials smoothly. The ongoing Russia-Ukraine war has significantly disrupted supplies of titanium and aluminium, which are important raw materials for aircraft manufacturing. Rising economic sanctions are also constraining business operations between key trading partners. This is hindering free flow of components across borders.

Going forward, aircraft parts manufacturers will need to diversify their supply sources and set up local manufacturing facilities in different regions to minimize dependencies on conflict-affected areas. Companies also need to invest in developing alternative materials and boost local sourcing to insulate themselves from geopolitical uncertainties. Partnerships with local players can help gain better control over supplies. Use of advanced technologies like 3D printing for custom parts production close to assembly sites can provide some flexibility.

Geographical Regions with Highest Aircraft Parts Market Value
North America currently dominates the aircraft parts market in terms of value, accounting for around 35% share. This is due to the large presence of aircraft manufacturers and MRO companies in the US. Going forward, Asia Pacific is expected to rise as the fastest growing region on back of initiatives to modernize fleets in China and India as well as rising defense budgets of various nations. Demand will also pick up in Central and Eastern Europe with their focus on augmenting defense capabilities. Middle Eastern countries are also actively procuring new aircraft to support infrastructure expansion.

Fastest Growing Region in the Aircraft Parts Market
Asia Pacific is projected to emerge as the fastest growing region in the global aircraft parts market during the forecast period of 2024 to 2031. This growth can be attributed to increasing Aviation activities in developing Asian countries like China and India. presence of Airbus and Boeing production facilities in China is also fueling the demand for aircraft components and spares in the region. Growing tourism Industry along with rising middle class disposable incomes are propelling the demand for air travel in Asian countries. Rapid modernization of airline fleets and rising defense expenditures of countries like India, China are further driving the requirement for aircraft parts in Asia Pacific. Additionally, Asia Pacific region also offers cost advantages for aircraft parts manufacturers setting up production bases.