Aircraft Aftermarket Parts Market Size, Share & COVID-19 Impact Analysis, By Parts Type (MRO Parts and Rotable Replacement Parts), By Component Type (Engine, Airframe, Interior, Cockpit Systems, and Others), By Aircraft (Narrow-body, Wide-body, and Regional Aircraft), and Regional Forecast, 2021-2028

The global aircraft aftermarket parts market size was USD 29.44 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with commercial aftermarket parts witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 9.2% in 2020 than the average year-on-year growth during 2017-2019. The market is projected to grow from USD 31.22 billion in 2021 to USD 47.33 billion in 2028 at a CAGR of 6.12% during the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Aircraft aftermarket services are largely dependent on the rising number of aircraft fleets across the globe. Aircraft PMO parts specialize in program management, this allows operational groups to focus on the major missions in the specified time, and as per the end-user requirements. According to Airbus SAS, it is expected that the growth of the passenger fleets will double from 21,000 aircraft in 2019 to 45,000 by 2035. The upsurge in demand for new aircraft will facilitate the demand for maintenance, repair, and overhaul (MRO), which will further propel the demand for the aftermarket sector in the next few years.

COVID-19 Pandemic Has Negatively Affected the Aviation Industry Thus Impacted the Commercial Aftermarket Parts

Due to the lockdown in several countries in 2020, there was a huge impact on the aviation industry, resulting in a slowdown in aircraft production that impacted aircraft deliveries. According to Airbus SAS, by the end of October 2020, it delivered 341 aircraft compared to 571 aircraft in 2019. Thus, the pandemic impacted around 40% of aircraft deliveries across the globe. The reduction in aircraft deliveries has drastically reduced the demand for MRO services and software and commercial aftermarket parts domain.  

According to Airbus SAS, it is estimated that more than 16,000 commercial aircraft are grounded or parked due to less passenger travel during the pandemic. Thus, due to the grounding of aircraft, the demand for maintenance has drastically reduced adversely impacting the demand for the software and services segment in the commercial aircraft aftermarket domain. According to our analysis, the global MRO market in 2020 was estimated at USD 91.6 billion. However, due to the pandemic, the global MRO market is anticipated to be USD 49.2 billion and decline by 45%. This has reduced the demand for aircraft aftermarket parts.

LATEST TRENDS

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Augmentation of Big Data and Digitization of Aftermarket Operational Process to Aid Growth

The rise in the demand for commercial aircraft aftermarket parts from the airlines and aftermarket service providers has significantly brought forth issues related to accessibility and availability of the parts. This has enforced companies to implement advanced technologies such as big data in the operational process. The use of big data helps companies streamline the operational processes, assist in designing cost-efficient predictive maintenance strategies, and broaden the company’s supply chain management in remote locations.

The next-generation aircraft are equipped with advanced sensors for collecting and analyzing the real-time data from the aircraft. The gathered data is further used to optimize the predictive maintenance algorithms and modeling processes. Moreover, the digitization of the MRO process has improved the visibility of the aircraft aftermarket parts and systems. Thus, the implementation of advanced technology such as big data and digitization of processes in the supply of aftermarket parts has helped the companies understand the uncertainty of orders from airlines and thus helped to make strategic decisions. Such factors are propelling the growth of the global aviation PMO parts market during the forecast period.

DRIVING FACTORS

Subsequent Demand for MRO Services to Propel Market Growth

According to Airbus SAS, the demand for commercial aircraft is estimated to be over 7,200 in the next 20 years. This will facilitate the demand for commercial aircraft PMO parts in Asian countries.

Globally, the total MRO spend is expected to rise to USD 115.9 billion by 2029, up from USD 81.8 billion in 2019. The major MRO spend is observed in the engine and airframe domain.

Increasing Number of Retired Aircraft to Facilitate the Used Serviceable Materials (USM)

The pandemic has adversely impacted the revenue of airlines across the globe. To overcome the financial impact, airlines are resizing fleets by considering the early retirement of the aircraft. Thus, the commercial aircraft disassembly, dismantling, and recycling industry has been growing at a significant rate since 2020, which has increased the demand for used serviceable materials (USM) domain.

Several aircraft aftermarket parts providers such as General Electric Company, the Boeing Company, and others prefer using these USM parts from the retired aircraft to cut down the cost incurred with the aircraft aftermarket parts. Thus, the increasing demand for USM parts will significantly contribute to the aviation PMO parts market growth.

RESTRAINING FACTORS

Issues Related to the Coordination of Facilities will Restrain the Supply Chain Network

The airlines coordinate with aftermarket parts and MRO service providers for the scheduled maintenance services. In terms of a risk minimization approach, lack of coordination between aircraft PMO parts and MRO providers incur as a restraints factor for airlines. An extra burden is created for the airliners in terms of operation and coordination between different facilities. In the day-to-day operations, it is important that both the MRO and aftermarket parts facilities effectively communicate with each other, particularly regarding the scheduled maintenance process.

Most of the MRO facilities are not well organized and lack an integrated approach with other facilities. In some circumstances, the MRO facility is not responsive to the operational parameters of the aircraft. Moreover, aftermarket parts facilities may operate from remote locations. Thus, if the aircraft owner is willing to carry out maintenance, then the lack of proper information about processes may act as an additional burden resulting in restraining the growth of the market.

SEGMENTATION

By Parts Type Analysis

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Rotatable Replacement Parts Segment to Grow at Highest CAGR

Based on the parts type, the market is classified into MRO parts and rotable replacement parts.

The MRO parts segment is expected to showcase considerable growth during the forecast period. The growth is due to the rising next-generation aircraft and the growing needs of the customers maintenance demand for such advanced aircraft worldwide.

The rotable replacement parts segment is anticipated to grow at the highest CAGR during the forecast period. The growth of the segment can be attributed to the increasing demand for scheduled checks such as class A checks, class B checks, and class D checks. The airlines are focusing more on the scheduled checks. However, every aircraft undergoes a complete check and components and systems replacement every six years. This will boost the growth of the market.

By Component Analysis

Interior Systems Segment to be Fastest-Growing Segment

The global aviation PMO parts market is segmented into engine, airframe, interior, cockpit systems, and others based on the component.

The engine segment is estimated to hold the largest aircraft aftermarket parts market share as the cost incurred in the maintenance and parts is high compared to other components. In February 2021, Uganda Airlines signed a total care agreement with Rolls-Royce. In this agreement, Rolls-Royce has charged Uganda Airlines on a dollar-per-flying-hour payment basis. The company will provide all the maintenance services related to Trent 7000 engines.

The airframe segment is expected to grow significantly during the forecast period due to the rise in the airline aircraft modernization programs. The airframe maintenance service involves high cost and time-consuming processes. Thus, it is generally carried out every six years.

The interior segment is expected to exhibit a high growth rate during the forecast period. This segment comprises aircraft interior components and systems maintenance-related services. The rise in the demand for passenger safety and comfort has propelled the demand for modernizing the older aircraft with technologically advanced interior systems.

The cockpit segment is anticipated to experience considerable growth due to the emergence of artificial intelligence and internet of things (IoT) based systems and components. The airliners are actively involved in upgrading their commercial fleets with these AI and IoT integrated systems.

Others segment comprises landing gear, wheels, and other components in the aircraft.

By Aircraft Type Analysis

Narrow-Body Segment to Hold Major Market Share

Based on the aircraft type, the market is segmented into narrow-body, wide-body, and regional aircraft.

The narrow body aircraft segment is estimated to hold the major market share of the market as the growing demand for domestic flights with low-cost carrier fleets in the Asia Pacific region and European regions. The rise in the number of domestic travels increases the need for aircraft engine maintenance services, landing gears, and other small components related to passenger safety.

The wide-body segment is expected to grow at a significant rate during the forecast period due to the rise in the number of retired aircraft and the subsequent demand for repair or replacement of aircraft components services.

The regional jet segment is anticipated to grow at a steady rate due to the rise in the business jets and private jets maintenance service demand.

REGIONAL INSIGHTS

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The global Aircraft Aftermarket Parts market is segmented on regions into North America, Europe, Asia-Pacific, and the Rest of the World.

North America stood at USD 11.45 billion in 2020 and is expected to dominate the global market during the forecast period. The growth is attributed to maintenance repair and overhaul MRO service providers focusing on the rising investment in the aftermarket facilities in the U.S. and Canada. Moreover, the U.S. comprises key players in the aviation PMO parts domain such as the Boeing Company, Collins Aerospace, and other dominant players. Besides, the U.S.-based firms have a strong supply chain network for MRO services and aircraft parts. Furthermore, the rise in the demand for standardization of parts manufacturer approval (PMA) processes in the U.S. will boost the growth of the market.

Europe is estimated to showcase exponential growth in the forthcoming years. The restructuring of the government norms related to the import and export of the aftermarket parts propel the growth of the market. However, the risk associated with the high fuel prices, impact of Brexit on trades, labor shortage, and global trade war may hamper the growth of the European countries.

The market in Asia-Pacific is projected to grow at the highest CAGR during the forecast period. Aftermarket parts providers are investing in establishing aftermarket hubs in countries such as Japan, Singapore, and Australia that are expected to augment market growth.

The China aviation PMO parts sector is expected to grow significantly. The growth is attributed to the growing narrow-body aircraft and related fleet services facilities in China. Moreover, the changes in the import and export of governmental norms have propelled the growth of the market.

The market in the Rest of the world is expected to grow at an exponential growth during the forecast period. The increasing number of next-generation fleet sizes in countries such as the UAE, Saudi Arabia, and Israel is expected to boost the Middle Eastern region, whereas, the growing aircraft aftermarket storage infrastructure spending by countries such as Brazil and Argentina will favor the market growth.

KEY INDUSTRY PLAYERS

General Electric Company is a Prominent Player Offering Aftermarkets Parts to Key Airlines

General Electric Company is a leader in providing engine-based aftermarket parts solutions. The company has a wide range of product portfolios and has a major presence in the U.S., Singapore, and India, securing a stable market position. The company invests in research & development and new product innovation activities. Moreover, the company is focused on mergers, agreements, and contracts to sustain its position in the market.

LIST OF KEY COMPANIES PROFILED:

• The Boeing Company (The US)


• Collins Aerospace (The US)


• Honeywell International Inc. (The US)


• General Electric Company (The US)


• Eaton Technologies (The US)


• Meggitt PLC (The UK)


• UTC Aerospace Systems (The US)


• AJW Group (The UK)

KEY INDUSTRY DEVELOPMENTS:

• January 2021 - Honeywell International Inc. secured an agreement of 10 years with ST Engineering to provide component MRO and warranty repair services to all Asia-Pacific operators. This agreement is for the components installed on CFM International Leap engines.


• September 2020 - Barnes Aerospace, a business unit of Barnes Group Inc., announced its long-term agreement of 10 years with GE Aviation, a subsidiary of General Electric Corporation. In this agreement, both companies will collaborate to manufacture the LEAP engine components.

REPORT COVERAGE

An Infographic Representation of Aircraft Aftermarket Parts Market

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The global aircraft aftermarket parts market report provides a detailed analysis of the market and focuses on key aspects such as key players, types, applications based on a commercial platform. Moreover, the report offers insights on the parent market, global commercial MRO market trends, competitive landscape and highlights key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the sizing of the global market over recent years.

Report Scope & Segmentation