The global aerospace parts manufacturing market is expected to grow at a rapid pace to reach the market value of USD 1130 billion by 2030 at a CAGR of 5%, from the early figures of USD 754 billion in 2021. This increase in the market value is because of the passenger’s demand that is making the aviation industry update and evolve the entire aviation industry and offer their passengers more convenient, better, and faster transportation services.
Another major factor that drives more passengers to fly is the affordable ticket prices and the frequency of the flights to every major location in the world. For all these reasons, it is the need of the hour for aircraft manufacturers to develop new-age aircraft that will cater to the needs of increasing passenger numbers.
Major aircraft manufacturers like Boeing and Airbus are continuously trying to increase their aircraft production rate and launch new aircraft with the increase in passengers, which is proving to be the driving factor for the aerospace parts manufacturing market. Now, when considering the aircraft fleet replacement, the increase in the demand for air transportation and the marginal fuel efficiency puts extra pressure on the aerospace industry to reduce greenhouse emissions.
Considering the technological upgrades in aircraft over the past few years, the aircraft industry has been forced to replace the old fleet with a more superior performance aircraft. New parts and components are manufactured when replacing an aircraft or even refurbishing it, which is another driving factor for the aerospace parts manufacturing market.
With emerging economies like India, China, and European countries, frequent flyers have increased. It may be for business or a personal purpose, but the fact is that the passenger count has increased. Along with this, the per-capita income in such countries has risen to the highest level considering their past income, so people are now traveling by flights more than any other travel means, even for domestic travel purposes.
Due to this, there has been a sudden load on the aviation industry to manage such a huge crowd and offer them the best in class services. To cater to these needs, the aviation industry is continuously developing new designs and large-sized aircraft, which opens a wide window of opportunities for the aerospace parts manufacturing market. This is why many manufacturers, OEMs, and Tier-1&2 companies are stepping into the aerospace parts manufacturing market to gain maximum profits and have a significant revenue generation through this.
There is no doubt that the Covid-19 pandemic had a drastic effect on every industrial segment out there, and the aerospace industry is not so different from it. The aviation industry has faced a different challenge in its history which was the travel restrictions imposed all over the world. With the preventive measures, people were forced to stay in and not allowed to travel outside their homes. This led the aviation industry to grasp huge losses as there was no revenue generation option as all the passengers and commercial flights were on standby mode.
The entire aerospace parts manufacturing market came to a sudden halt with no production demand as the aircraft was stationed at a place and no passengers at all. International flights were completely banned to prevent the spread of the disease, which led the global aviation industry to fall back to the lowest figures in its history. The entire revenue generation model of the aviation industry was stopped and made to carry huge debts for the majority of the airlines operating around the world.
The global aerospace parts manufacturing market is further segmented into four regions: North America, Europe, Asia-Pacific, and Middle East & Africa. The North American region has the major share in the global market with a market value of USD 411 billion in 2021 and is expected to reach USD 522 billion by 2030 at a CAGR of 3%. It is one of the most favorable regions for the aviation industry, as the number of flights operating in the region is the highest in the entire world.
After North America, Europe is the second most dominating region with a market share of USD 255 billion in 2021 and is expected to grow to USD 420 billion by 2030 at a CAGR of 6%. The rest of the two regions, namely, Asia-Pacific and the Middle-East & Africa, hold a significant market value, where Asia-Pacific accounts for an estimated figure of USD 270 billion by 2030 at a CAGR of 8%, whereas the Middle-East & Africa region has the market valued at USD 14 billion by 2030 at a CAGR of 5%.
The major players in the global aerospace parts manufacturing industries are