Global Aircraft, Engines and
Parts Market To Reach $122 Billion By 2015
February 20, 2011 - Global Industry Analysts, (GIA)
announces the release of a comprehensive global report
on Aircraft, Engines, Parts and Equipment markets. World
Aircraft, Engines, Parts and Equipment market is
forecast to reach US$122 billion by the year 2015.
the post-recession period, large percentage of short
haul, low-cost airplanes deliveries are expected to be
made to Asian countries where Low Cost Carriers (LCC)
have made significant inroads in recent years.
Rise in demand for military aircrafts and rise in air traffic along domestic short haul routes, among others, spell opportunities in the developing countries. Quick rebound of investments, especially government investments in regional aviation infrastructure projects such as new terminal facilities, and air travel infrastructure augurs well for aircraft manufacturing and production.
manufacturing industry worldwide is largely dependent on the
health of the aerospace and defense industry. Economic cycles
and fluctuations in economic growth tend to directly influence
the market, given the growing importance and clout of the civil
aircraft sector in several regional markets worldwide.
demand for large passenger aircrafts is directly proportional to
the demand for passenger travel, which in turn depends heavily
on a country?s GDP, and rate of economic growth. Aircraft
manufacturing for the defense sector, on the other hand, is
influenced by government funding for aeronautical research and
aerospace industry, over the years, has witnessed its fair share
of trials and tribulations, which began with the 9/11 terrorist
attack, political and military conflicts, fuel price volatility,
SARS scare in and around the ASEAN region and China, all of
which disrupted the global travel industry.
The period witnessed bankruptcies of numerous airline operators, followed by a string of consolidation/mergers/acquisitions, as companies attempted to streamline processes, reduce operating costs and achieve flexibility to survive the rough business climate. The industry again hit a speed-breaker manifested in the form of the 2007-2009 world economic recession, which significantly affected the transportation industry.
The slowdown in
tourism as a result of the financial crisis led world economic recession
has had a negative impact on market prospects for aircraft
manufacturing. Tourism industry, which is largely upheld by the level of
consumer confidence, took a hurting blow as consumer confidence and
sentiments weakened across the globe. Rising levels of unemployment,
reduction in household wealth, loss of corporate travel
coverage/allowances, falling disposable incomes have together led to a
sharp decline in travel and tourism across the world.
Global air travel, especially, took the deepest dive with airline traffic volumes shrinking considerably as reflected by the reductions in air passenger traffic, large-scale cancellation of flights, reduced number of flight trips, and reductions in airline fleet/passenger capacity. For instance, airline operators in a desperate bid to survive the harsh economic realities pruned down passenger capacity, leading to a global reduction in the same by 2% in the year 2009.
tight corporate budgets and liquidity concerns resulted in companies
halving expenditures on business travels. Against the backdrop of a
fiscal climate strained by deficit, orders for corporate aircraft
manufacturing declined perceptibly. The belt tightening measures adopted
by cash starved companies has brought luxury air travel to an abrupt
end. The trend is mirrored in the steep slump in corporate jet travel.
Although luxury is
widely touted as a habit difficult to break, the prolonged severity of
the current economic slowdown has elicited declines in spending and the
low tide has stranded growth with wealthy consumers gradually cutting
back on lavish, luxury lifestyles. The erosion in personal wealth and
scale back on spending by High Net Worth Individuals (HNWIs) has hurt
the market for private aircrafts.
in general global trade conditions and the ensuing collapse of regional
export markets critically distorted air cargo/freight traffic, thus
temporarily reducing the need for expanding global air freighter fleet,
and as a result impacted production of air cargo crafts. Airfreight
declined largely as a result of companies turning defensive against the
economic climate by reducing inventories to maintain lean stock and
eliminate inventory pile-up.
however, the need to replenish inventories will emerge and the ensuing
restocking will drive up airfreight volumes. All of the aforementioned
factors that brought down the travel, tourism, and trade industries
played instrumental roles in inducing broad based declines in demand for
new aircrafts, triggering declines in production and shipments of
passenger and cargo aircrafts and aircraft parts and components like
engines. Cancellation of new aircraft orders, postponement of new
aircraft deliveries, and rise in the number of parked airplanes crippled
manufacturing activities across the world.
As stated by the
new market research report, Europe and
Countries such as
expected to be the fastest growing market for general aviation aircraft
increasing at a CAGR of 3.6% during the analysis period. The
civil/commercial UAS (unmanned aerial systems) sector will experience
subdued growth in post recession period with most companies pinned down
by lack of civil regulations for certification & operation in the
national air space. Efforts of European civil aviation authorities, and
the US Federal Aviation Administration (FAA) to rationalize civil
certification procedures will be key for future growth.
Major players in
the marketplace include American Champion Aircraft Corporation, ATR, BAE
Systems, Bell Helicopter Textron Inc., Bombardier Inc., CFM
International Inc., Cirrus Design Corporation, DAHER-SOCATA, Diamond
Aircraft Industries Inc., Embraer-Empresa Brasileira de Aeron?utica
S.A., European Aeronautic Defense and Space Co. (EADS), Airbus S.A.S.,
Eurocopter SA, GE Aviation, Hawker Beechcraft Corporation, Ilyushin
Aviation Complex JSC, International Aero Engines, IRKUT Corporation,
Lancair International Inc., Lockheed Martin Corp., MD Helicopters Inc.,
NH Industries, Pilatus Aircraft Ltd., Piper Aircraft, Inc., Pratt &
Whitney, Raytheon Co., Rolls-Royce plc, RUAG AG, Snecma SA, Fokker
Aerospace BV, S.A.B.C.A., The Boeing Company., among others.
The research report titled ?Aircraft, Engines, Parts and Equipment: A Global Strategic Business Report? announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities.
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