Global Aircraft, Engines and Parts Market To Reach $122 Billion By 2015


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Global Aircraft, Engines and Parts Market To Reach $122 Billion By 2015

By Jim Douglas

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.  

In 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.

Aircraft 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.  

Typically, 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 development.  

The 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.

Additionally, 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.  

The deterioration 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.  

Post recession 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 United States together account for a major share of the global Aircraft, Engines, Parts and Equipment market. The emerging economies will be the critical factor in driving growth in the market in the post recession period.  

Countries such as India, China, and Africa offer immense opportunities fuelled by population growth, rising urbanization, economic growth, increasing cargo and passenger hubs, deregulation, launch of low-cost carriers and inter-regional trade.  

Asia-Pacific is 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.


The report provides market estimates and projections (in US$ Million) for major geographic markets including the United States, Canada, Japan, Europe, Asia-Pacific, Latin America and Middle East/Africa. Product markets independently analyzed include Commercial Aircraft (Wide Body Aircraft and Narrow Body Aircraft), General Aviation (Single Engine Piston, Multi-Engine Piston, Turbofan/Turbojet, and Turboprop), Military Aircraft (Including Helicopters), Engines and Parts (Military and Non-Military).  

Global Industry Analysts, Inc., is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world?s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year.

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