ENGINE AFTERMARKET PARTS MARKET TRENDS & INSIGHTS EDIT

Base Year	2023
Historical Data Time Period	2019-2023
Forecast Period	2024-2031
Global Aircraft Aftermarket Parts Market Sales Revenue 2022	$ 30.1 Billion
Global Aircraft Aftermarket Parts Market Compound Annual Growth Rate (CAGR) for 2024 to 2031	6.5%

Data Credit: Cognitive Market Researchs

However, Fortune Market Insights say that globally, the MRO industry’s size is expected to reach US$ 117.7 billion by 2031, from US$ 68.4 billion in 2021, growing at a CAGR of 5.6 percent. Whereas, the global aircraft aftermarket parts market is projected to grow from $31.22 billion in 2021 to $47.33 billion in 2028 at a CAGR of 6.12% in the forecast period (2024 – 2031).

Of the four segments of the MRO industry such as line maintenance, components, engines, and airframe, engine maintenance is likely to bring in the maximum revenue. This is because engines and airframes constitute 65–70 % of the work by value.

The above growth can be attributed to several factors, such as the growing popularity of air travel and expanding global aviation networks, (According to IATA, between February 2022 to February 2023, total revenue passenger kilometres (RPKs) increased by 55.5%).

With mature aircraft fleets requiring more frequent maintenance and replacement, adoption of cost-effective, fuel-efficient, and advanced engine technology, and last but not the least, regulatory requirements for safety and compliance will be the obvious triggers that would grow the global aircraft aftermarket parts market.

To the above, add the northward demand for air cargo, emergence of low-cost carriers, opting for predictive maintenance and sustainable aviation practices increase the importance of aftermarket parts in ensuring safe and environmentally responsible air travel.

The need to optimize operational efficiency, improve aircraft performance, and reduce downtime also drives the demand for aftermarket parts. Furthermore, the expansion of air travel keeps the demand up for aftermarket parts industry.

Image Credit: Deloitte

Given the criticality and complex structure of an aircraft engine, greater frequency and regularity in MRO services, parts repairs, and replacement are required. Thus, this is seen to result in growth of the aircraft aftermarket parts market. Afterall optimal performance and safety are paramount. Also, adherence to stringent regulatory requirements that engine maintenance creates the on-going demand for replacement parts, such as turbine blades, bearings, and gaskets, due to to high frequency use and stress that is brought about in use. Furthermore, newer engine technologies, offering greater fuel efficiency, all have necessitated airlines to increase spends towards engine modifications and upgrades.

Increasing Aircraft Fleet Age, Superior Cabin Interiors and Amenities, Demand for Replacement Parts Spurts Growth

Due to extended aircraft operations, various aircraft components, such as engines, landing gear, avionics, and aircraft interiors need replacement and refurbishing. While timely maintenance can extend the operational life of an aircraft, eventually, parts replacement will be required within the timeframes recommended by manufacturers.

The increasing average age of aircraft fleets directly correlates to increased demand for aftermarket parts, calls for innovation and investment in this industry.

Aftermarket component suppliers offer aviation customers products that are aviation compliant and meet safety standards. The airworthiness of aging aircraft is dependent on this, and that drives the aftermarket components market. The advantage for opting for aftermarket parts for buyers is their cost effectiveness, as airlines are often faced with balancing budgets and the need for remaining airworthy and carry out safe operations.

Aircraft Aftermarket Parts Market – It is a Competitive Market

Image Credit – RAM Aircraft

The market for Aircraft Aftermarket Parts consists of original equipment manufacturers (OEMs), specialized parts suppliers, and maintenance providers. While OEMs offer proprietary components, being established brands, and can leverage their brand equity in the marketplace, the independent supplies players provide a huge cache of parts as a cost-effective proposition. MRO companies then come up with a gamut of solutions that include quality, price, availability, and customer centricity, thus heating up the competitiveness in the parts landscape.

OEMs have thus inked deals and collaborations with independent suppliers to increase their footprint and remain present over large geographical regions. Some significant partnerships are highlighted below:

# January 2021: ST Engineering announced that it had signed a 10-year agreement with Honeywell Aerospace to become Asia-Pacific’s sole licensed MRO service provider in Asia-Pacific for Honeywell components installed on LEAP-series engines. ST Engineering is designated to provide component MRO and warranty repair services to all Asia-Pacific operators for Honeywell components deployed on the Airbus A320neo family, Boeing 737 MAX, and COMAC C919 engines. Reference – aviationbusinessnews.com

# May 2022: Boeing and Airline MRO Parts (AMP) entered a Tailored Parts Package (TPP) agreement, demonstrating a genuinely collaborative approach to meeting customer requirements. The contract establishes Boeing as a supplier for AMP’s parts business and designates Boeing as a “Platinum Supplier.” Boeing’s Parts & Distribution Services team collaborated to submit a single proposal for all aspects of our parts business, thereby improving the efficacy of our response,” according to Boeing.

# California, US, based Aero Precision was honoured as the ‘2019 Honeywell Channel Partner of the Year’ for their exclusive worldwide tie-up for aftermarket distribution of Honeywell’s interior and exterior lighting on all fixed and rotary wing military aircraft. The channel partnership has stood the test of time for over two decades.

Today, Aero Precision provides component management, modifications and upgrades, repair, and overhaul solutions, with a keen focus on customer service across the globe, offering over 20 military aircraft and products, from more than 30 strategic OEM partners. With their acquisition of Kellstrom Defense, Aero Precision has established itself as one of the largest privately owned military aftermarket distributors in the Aerospace industry.

The above example is a clear indication of how partnerships and enhancement of services, with an ever-expanding global reach is possible, and a well-worked out strategy can deliver good results in the aircraft aftermarket parts market.

Aircraft Aftermarket Parts Market Buoyed by the Engine Segment

Image Credit: Pinterest

Engine components given their criticality, control the largest market share within the Aircraft Aftermarket Parts market. The engine component of an aircraft requires regular maintenance, repairs, and replacements to ensure optimal performance and safety. Constant demand for replacement parts, such as turbine blades, bearings, and gaskets, is necessitated by the high operational use and following regulatory safety mandates, especially so for engines. Additionally, advancements in engine technologies and the desire for increased fuel efficiency motivate airlines to invest in engine enhancements and modifications. Some of the key components of an aircraft are as appended:

Engine
Airframe
Interior
Cockpit Systems
Others

Regions Leading in the Aftermarket Parts Market

Image Credit: Aerocontact

The United States Aircraft Aftermarket Parts Anticipated to Grow at the Quickest Rate in North America -Forecast Period (2024- 2031)

According to Cognitive Market Research, the United States is expected to maintain its leading position in the North American region as a front-runner with established players and a mature market. The region’s substantial aviation infrastructure, has the presence of major carriers, MRO facilities, and aerospace manufacturers. Advanced technological capabilities, with large airline networks, and a best-in-class regulatory environment, will naturally have an equally pronounced aircraft aftermarket parts market. Research and development and capabilities of heavy investments makes the U.S. aerospace industry remain in a leadership position.

Aircraft Aftermarket Parts to Witness the Fastest Growth in the Asia Pacific Region in the Forecast Period (2024- 2031)

Due to various converging factors, the Aircraft Aftermarket Parts market is quickly expanding in the fastest-growing region. Increasing aircraft utilization in the region is necessitated by the region’s increasing air travel demand, which necessitates frequent maintenance and part replacement. As airlines increase the size of their fleets, the demand for aftermarket parts increases. Moreover, a growing emphasis on safety, compliance with regulations, and passenger experience motivates investments in high-quality components. The region’s emerging economies are also experiencing a rise in aircraft modernization initiatives, which increases the demand for aftermarket enhancements.

2050 Net Zero Goals and SAF to Remain in Focus – Positive Impact on the Aftermarket Parts Industry

‘Sustainability’ necessitates the adoption of newer and advanced technology in the engine segment, with Net Zero goals deadline coming closer each year. The aftermarket parts industry has moved towards its sustainability goals by cutting down on waste, with MROs switching to paperless operations.

Top Companies Market Share in Aircraft Aftermarket Parts Industry: