Robust Demand for Aircrafts in Asia to Vitalize the Global Market Aircraft, Engines, Parts and Equipment, According to a New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Aircraft, Engines, Parts and Equipment market. World market for Aircraft, Engines, Parts and Equipment is projected to reach US$131.7 billion by the year 2017. Growth will be primarily driven by gains in civil aircraft sales encouraged by robust demand for aircrafts in Asia and re-fleeting programs & increase in demand for high-end fuel efficient aircrafts in developed countries. Capacity expansion activities of air cargo carriers in developing countries will help generate demand for freighter aircrafts. Also, growing base of aging aircrafts and longer service life of aircrafts will drive gains for aircraft engines and parts in the aftermarket.

Aircraft, Engines, Parts and Equipment: A Global Strategic Business Report

Follow us on LinkedIn – Given the importance of airplanes and aviation in the modern world and the fact that the aerospace industry is an indication of a nation’s progressive engineering capabilities, aircraft manufacturing industry is critical to a nation’s economy. In the United States, civil aviation manufacturing contributes significantly to the country’s GDP. The industry, in general, is dependent on several factors such as, cost of capital, fuel prices, scale of air travel, the state of the tourism industry, health of international trade and strength of military budget policies. A key noteworthy trend in the industry is the mushrooming of low cost carriers and the expanding demand for low cost, limited size aircrafts. High price sensitivity to air tickets in developing countries and consumer frugality in debt ridden developed countries, are together fuelling growth of low cost carriers. Also driving opportunities in the aircraft OEM sector is the waxing demand for fuel efficient aircrafts. The trend is largely driven by the rising cost of aviation fuel, which is resulting in parking of old generation aircrafts and addition of newer aircrafts to the operational fleet.        

The growing MRO (maintenance, repair and overhaul) industry is also expected to create avenues for growth in the replacement parts and components market sector. With developing countries emerging into a ‘single-stop’ MRO hub, piggybacking on the strength of MRO outsourcing , its opportunities galore in Asia-Pacific, Latin America and the Middle East. In the engines, parts and equipment sector, demand for aircraft engine parts and components is poised to witness the strongest growth, given that engine maintenance is evolving into a major business worldwide with spending on engine maintenance accounting for over 40% of total annual MRO spends. The increase in the number of operational aircrafts and in the average flying hours per aircraft and the ensuing rise in engine utilization will continue to generate opportunities for aircraft engine MRO with engine overhaul activities trickling down as potential sales opportunities in the aftermarket. The increasing trend of higher military aircraft MRO spending propelled by rising expenditure towards maintenance and repair of old and worn defense aircrafts is also forecast to drive opportunities in the parts and components aftermarket. In the military and defense sector, demand for aircrafts hinges critically upon the spending outlook of governments worldwide and Europe’s debt crisis, not surprisingly is casting a long shadow of worry over the Aircraft, Engines, Parts and Equipment market. Also, national debt in the United States is reaching a symbolic high, almost equaling the value of goods and services produced in the economy. New spending limits, new definitions of security and annual reductions will likely lower the defense budget baseline in US and Europe and this thereby will directly impact defense contracts awarded to Aircraft OEMs.

Given that sales of aircrafts and aircraft parts and components in the aerospace industry are closely tied to air traffic trends, the aircraft manufacturing industry in Europe currently remain nervous over the play out of the sovereign debt crisis drama. Given the yet mixed signals emanating from the handling of the region’s debt crisis, sentiments in the market continues to swing between hope and concerns. At the pessimistic end of the spectrum, bearish market outlook indicate that in the event of an escalation in the severity of the crisis, the ensuing declines in air traffic and capacity surpluses will likely result in reduced new aircraft orders, stringent management of inventories such as inventory destocking, and delays in implementation of maintenance, repair, and overhaul programs. Another expected fallout of the European debt crisis is the shifting of aircraft financing opportunities out of Europe.

While no easy and immediate solutions exist for Europe’s macroeconomic imbalances, Europe remains a wildcard with the economic health of the region forecast to be the sum of the solutions adopted to resolve the crisis. While the potential outcomes of the crisis remain numerous, baseline market sentiments currently accumulate at the optimistic end of the spectrum. Interestingly, political conflicts and unrest in Middle East and Northern Africa is re-channeling tourist traffic to Southern Europe. Also, the depreciation of the Euro amidst the pressures exerted by the eurozone debt drama is expected to positively benefit tourism in Europe with the number of middle class Asian tourists to the region poised to increase. The aircraft, engines, parts and equipment market in Europe is therefore expected to hold up in the year 2012 despite the debt crisis.

As stated by the new market research report on Aircraft, Engines, Parts and Equipment, General Aviation is forecast to witness the strongest growth trailing a projected CAGR of 3.1% over the analysis period 2009 through 2017.

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 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, 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).

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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