The global aerospace parts manufacturing market size is expected to reach USD 1.14 trillion by 2025, according to a new report by Grand View Research, Inc. The market is anticipated to register a CAGR of 3.8% over the forecast period. Increasing fleet replacement rates are expected to lead to a surge in aircraft production, which is expected to boost the growth.
Rising demand for fleet expansion in emerging economies from Asia Pacific, such as China and India is expected to provide growth opportunities to the Maintenance, Repair and Operations (MRO) service providers. A number of established players are expanding their manufacturing facilities to Asia to cater to the increasing demand from MRO service providers, which is anticipated to boost the regional market growth.
The aerospace manufacturing industry has witnessed an upward trend in the use of additive manufacturing technology, for designing parts with advanced materials and unique geometries. A number of companies adopt the technology owing to its superior designing abilities. Airbus is using it to manufacture over a 1,000 different parts for its A350 aircraft.
Long in-service period of aircrafts creates opportunities for MRO providers to offer maintenance and repair of current fleets, which further contributes to the demand. In addition, airlines planning expansion of their fleets may bring back older aircrafts in service or maintain an extended in-service period, which is expected to drive growth of the aerospace parts manufacturing market.
Further key findings from the report suggest:
- Aircraft manufacturing held the largest market share of 52.9% in 2017, on account ofincreasing orders of aircraft deliveries coupled with efforts undertaken by manufacturers to clear backlog orders
- The demand for commercial aircraft parts is estimated to be the highest on account of rise in passenger and freight traffic and improved global trade. It is expected to exhibit a CAGR of 4.2% from 2018 to 2025
- The market is concentrated in North America and is estimated to reach USD 515.68 billion by 2025, owing to the presence of major manufacturers such as Boeing, Northrop Grumman, and Lockheed Martin
- The market players compete on the basis of differentiation in production technology, design, product performance, and conformity to customer specifications to increase the market share.