Aircraft And Aircraft Parts Manufacturing And Repair & Maintenance Market Definition
The aircraft and aircraft parts manufacturing and repair & maintenance market (or aircraft and aircraft parts manufacturing and repair services market) consists of sales of complete aircraft and aircraft parts for civilian and military purposes, and related services such as maintenance, repair and overhaul (MRO) services for aircraft by entities (organizations, sole traders and partnerships) that manufacture aircraft and aircraft parts for civilian and military purposes and/or provide related services.
The aircraft and aircraft parts manufacturing and repair & maintenance industry consists of companies involved in developing prototypes and manufacturing or assembling of complete aircraft and aircraft parts. This industry also includes companies that provide modifications or conversions, repair, parts replacing, and complete overhauling and rebuilding of aircraft. The types of aircraft manufactured by companies in this industry include gliders, helicopters, drones, ultra-light aircraft, passenger aircraft, private jets, military aircrafts, fighter jets, bombers and unmanned and robotic aircraft.
Aircraft And Aircraft Parts Manufacturing And Repair & Maintenance Market Size
The global aircraft manufacturing and aircraft parts manufacturing and repair & maintenance market and aircraft manufacturing market size reached a value of nearly $481 billion in 2017, having grown at 3.7% since 2013.
Growth in the historic period resulted from increased demand for air travel and technological advances. Factors that negatively affected growth in the historic period were increased corruption and bribery activities and high currency rate fluctuations.
Going forward, growth of the global economy and increased use of drones are expected to contribute to the rising demand for aircraft and aircraft parts manufacturing and repair & maintenance. Factors that could hinder the growth of this market in future are increasing cyber-attacks and inadequate aviation infrastructure.
Aircraft And Aircraft Parts Manufacturing And Repair & Maintenance Market Drivers
The key drivers of the aircraft and aircraft parts manufacturing and repair & maintenance market include:
Commercial Use Of Drones – Legal authority allowing the use of drones for commercial use is being extended more widely. For example, in August 2016 the US Federal Aviation Authority issued a rule allowing the use of drones (or ) for commercial purposes under certain conditions without a special waiver that was expensive and time-consuming to obtain and severely restricted their use. Many other countries follow the FAA’s regulatory lead, so this cleared commercial drones for take-off not just in the USA but worldwide. Combined with the launch of reliable and stronger drones specifically for commercial use, such as that manufactured by DJI, a Chinese company, this is expected to drive rapid growth in the drone segment of the market.
Aircraft And Aircraft Parts Manufacturing And Repair & Maintenance Market Restraints
The key restraints on the aircraft and aircraft parts manufacturing and repair & maintenance market include:
High Currency Rate Fluctuations – Fluctuations in currency rates hindered the growth of the aircraft and aircraft parts manufacturing and Repair & Maintenance market in the historic period. For instance, since 2014, the dollar rate has increased by 20% against the currencies of the major trade partners of the USA industry and by more than 50% for emerging countries such as Brazil and Russia. This rise in the exchange rate of the U.S. dollar created challenges for airline companies which generate revenues in the currency of the country they operate in and purchase new aircraft in terms of U.S. dollars. Even a small change in the U.S. currency negatively impacted the market for aircraft manufacturing as 34% of the order backlogs held by two major aircraft manufacturing companies were from emerging markets.
Aircraft And Aircraft Parts Manufacturing And Repair & Maintenance Market Trends
Major trends influencing the aircraft and aircraft parts manufacturing and repair & maintenance market include:
Machine Learning Algorithms In Aircraft Manufacture – Aircraft manufacturers are using machine-learning techniques such as artificial intelligence (AI) to improve aircraft safety and quality and manufacturing productivity. Machine learning algorithms collect data from machine-to-machine and machine-to-human interfaces and use data analytics to drive effective decision making. These technologies optimize manufacturing operations and lower costs. For example, GE Aviation uses machine learning and data analytics to identify faults in engines, which increases components’ lives and reduces maintenance costs. Boeing has successfully built machine-learning algorithms to design aircraft and automate factory operations.
Robotics And UAVs For More Accurate Maintenance – Robotics and drones unmanned aerial vehicles (UAVs) are widely used in aircraft manufacturing. UAVs are aircraft without a human pilot and are operated by a remote control. These help in automated inspections by capturing images, comparing them against the respective 3D models (digital twins) and reporting any damage which requires further inspection or repairs. UAVs also help the companies to shorten inspections by several hours and the inspection work can be done more accurately and safely. Companies that are actively making civil UAVs include DJI, Parrot and 3D Robotics.
Opportunities In The Aircraft And Aircraft Parts Manufacturing And Repair & Maintenance Market
Opportunities – The top opportunities in the global aircraft manufacturing market and the aircraft parts manufacturing and repairs & maintenance market will arise in the civil airplanes manufacturing segment which will gain $76.3 billion of global annual sales by 2021, and in the USA, where an almost identical amount will be added to the overall market. 14 market-trend-based and five player-adopted strategies for aircraft manufacturing industry businesses include those in low-cost countries competing for business in the major aircraft manufacturing countries, offering retro-fitting of inflight entertainment systems, developing turboprop models, investment in engine overhaul facilities, strengthening market presence in their regional aviation market and for businesses in all segments major investment in research and development.
Aircraft And Aircraft Parts Manufacturing And Repair & Maintenance Market Segmentation
The aircraft and aircraft parts manufacturing and repair & maintenance market is categorized by segment, and by geography.
By Service Type-
The aircraft and aircraft parts manufacturing and repair & maintenance market can be categorized by segment type into
- a) Aircraft Manufacturing
- b) Aircraft Parts Manufacturing, And Aircraft And Aircraft Parts Repair & Maintenance
The aircraft manufacturing market size was the largest at 61.7% of the total.
Sub-Segment
The aircraft manufacturing market is segmented by sub-segment into
- a) Civil Airplanes
- b) Military Airplanes Manufacturing
- c) Civil And Military Helicopters Manufacturing
- d) Civil And Military Drones Manufacturing
- e) Civil And Military Gliders Manufacturing
The civil planes manufacturing market accounted for the largest share of the aircraft manufacturing market in 2017 at 49.5%.
The aircraft parts manufacturing, and aircraft and aircraft parts repair & maintenance market is segmented by sub-segment into
- a) Civil Repair, Maintenance & Overhaul
- b) Engine & Engine Parts Manufacturing
- c) Military Repair, Maintenance & Overhaul
- d) Other Aircraft Parts Manufacturing
Civil aircraft repair, maintenance and overhaul accounted for the largest share of the aircraft and aircraft parts repair, maintenance and overhaul market in 2017 at 37.5%.
By Geography - The aircraft and aircraft parts manufacturing and repair & maintenance market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- o Asia Pacific
- China
- Japan
- India
- Australia
- o Eastern Europe
- o South America
- o Middle East
- o Africa
North America is the largest market for the aircraft and aircraft parts manufacturing and repair & maintenance companies, accounting for 40.3% of the global market. It was followed by Western Europe, Asia Pacific and then the other regions. Going forward, North America and Eastern Europe will be the fastest growing regions for this market, followed by Asia Pacific, Africa and the Middle East.
Aircraft And Aircraft Parts Manufacturing And Repair & Maintenance Competitive Landscape
Major Competitors are:
- • The Boeing Company
- • Airbus Group
- • Lockheed Martin Corporation
- • United Technologies Corporation
- • GE Aviation
Other Competitors Include:
- • SAFRAN Company
- • Northrop Grumman Corp
- • Rolls-Royce Holdings plc
- • Honeywell International Inc.
- • General Dynamics Corp
