Higher International Acceptance of FAA Parts Manufacturer Approval to Drive Growth in the World PMA Parts Market, According to New Report by Global Industry Analysts, Inc

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GIA announces the release of a comprehensive global report on PMA Parts market. World market for PMA Parts is projected to reach US$749 Million by the year 2017. Growth will be primarily driven by robust gains in South East Asia, Eastern Europe and South America and by expanding Parts Manufacturer Approval and certification for a broad range of parts/components encompassing virtually every aircraft platform covered in almost every ATA chapter, ranging from engine parts, rotating airfoils, nuts/bolts, combustors and fuel pumps to interior parts.

PMA Parts: A Global Strategic Business Report

Follow us on LinkedIn – As a combined design and production approval for parts and components in the aircraft aftermarket, the number of applications for obtaining PMA from the Federal Aviation Administration (FAA) is steadily on the rise. Given the lucrative opportunities in the aircraft aftermarket and the growing competitiveness and emphasis on quality, components manufacturers are increasingly seeking the coveted airworthiness certification from FAA for safety and quality assurance. Growing awareness over the reliability, quality, durability and cost benefits offered by PMA parts is leading to increased acceptance of PMA parts worldwide, which in turn in generating opportunities for the international community to produce high quality, safe PMA parts. Against this backdrop, there continues to be a steady increase in the number of FAA-approved Parts Manufacturer Approval (PMA) firms in Asia. Also, increased outsourcing of MRO operations to Asia Pacific, as a result of rising economic and competitive pressures in developed nations and low cost labor in Asian countries, is helping drive the dynamics of the PMA parts market in the region.

Growth in the PMA approved parts market, in the upcoming years, will be driven by rising average life of aircrafts and the ensuing opportunities in the aftermarket created by maintenance needs. PMA engine parts in the MRO sector are poised to record the maximum gains, 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 for PMA parts. Demand for PMA parts will also increase in sync with the growing focus of airline companies on cost efficiencies. PMA parts, in this regard, are cheaper than OEM products as PMA provides better economies of scale than original manufacturing. PMA brings about substantial savings in material costs, and these savings lower the prices of PMA products for consumers and increase the profit margins for airline operators. The future will continue to witness an explosion in the number and types of PMA parts available to the consumer. With the sophistication in new generation aircraft models, comes complexly designed components, which require PMA parts to be equally scalable and reliable. Innovation in new technologies in manufacture of PMA parts will help benefit the PMA market, as managing and understanding sophisticated mechatronic systems becomes easier.

Given that aftermarket sales in the aerospace industry are closely tied to air traffic trends, aftermarket suppliers in the commercial aerospace sector 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 PMA parts 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 stringent management of inventories such as inventory destocking, and delays in implementation of maintenance, repair, and overhaul programs. This thereby would negatively impact the PMA parts market. There also exist fears over austerity measures likely to be initiated to counter the crisis, since austerity measures such as increased taxes, freeze on salaries in the public sector and lesser access to credit, will impact leisure travel. Weakening of trade in Europe could also likely result in lower load factors as exporters and importers shift to other cheaper modes of cargo transport. Limited visibility surrounding the sovereign debt woes, and the prolonged confusion over the appropriate measure to contain the damage, is expected to heighten the risk of possible reduction in both airline passenger and cargo capacity growth. This in turn will increase the number of parked aircrafts thus yielding a detrimental impact on the PMA parts market.

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. Current economic data that leaves room for hope include Germany’s relative resilience in handling the euro zone crisis, which is helping strengthen confidence levels. Heartening economic data such as comparatively lower levels of unemployment, better trade surplus accounts, and stable industrial output and manufacturing indices, indicate that the real German economy has not yet been impacted by the crisis as feared. Also forced austerity measures implemented in Greece to reduce the country’s widening deficits, are less likely to be adopted in relatively stronger economies with lower debt loads like in Germany, Spain and Italy. This is primarily because of the growing acceptance of the counterproductive implications of such a strategy on GDP growth in an economy. In addition, year 2011 ended on an encouraging note with tourism performance, as indicated by the level of airline bookings and hotel occupancy rates, posting encouraging growth. Airline capacity in Europe therefore increased in 2011 as was mirrored by the increase in available seat kilometers. 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. Paradoxically, the weak economic climate will put PMA products in the limelight, given its inherent cost effectiveness. The PMA parts 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 PMA Parts, Airframe PMA Parts represents one of the fastest growing segments trailing a projected CAGR of 9.6% over the analysis period 2009 through 2017.

Major players in the global marketplace include Able Engineering & Component Services Inc, ADpma LLC, Aircraft Spruce and Specialty Company, Belac LLC, C&D Zodiac Inc, GM Nameplate, HEICO Corporation, Jet Parts Engineering Inc, KAPCO, McFarlane Aviation Inc, Pratt & Whitney Aircraft Company, Rapco Fleet Support Inc, Rotair Industries Inc, Triumph Group Inc., Wencor Inc., among others.

The research report titled “PMA Parts: 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, Europe, and Rest of World. Product segments analyzed include Airframe, Engine, Line, and Component.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/PMA_Parts_Market_Report.asp

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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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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