INDUSTRY REPORT
“ Aircraft manufacturers are facing important decisions as demand for green and efficient aircraft intensifies and industry works towards achieving net zero by 2050 . As part of this , alternative sources of power are being considered such as sustainable aviation fuels and hydrogen . There are also significant and important milestones being developed and reached in Advanced Air Mobility ( AAM ), which remains a developing market and one to watch closely ,” it added .
The COVID-19 pandemic hit the industry hard . Global travel restrictions and lockdowns led to huge revenue losses for aviation operators , and the aerospace parts manufacturing market came to a sudden halt . Now that the world is slowly emerging from the shadow of the pandemic , the consequent staff shortages in airports are still impacting some commercial flight operations .
The Aerospace Industries Association in the U . S ., in collaboration with analyst IHS Markit , recently released 2022 facts and figures data highlighting the aerospace and defence ( A & D ) industry ’ s economic impact .
“ The 2021 A & D workforce stood at more than 2.1 million strong , with employees in every state in the U . S . These are highly skilled jobs , with an average salary of over US $ 106,700 ( about 40 per cent above the national average ). Jobs supported by the A & D industry represent approximately 1.4 per cent of the U . S .’ s total employment base . Although still in recovery , the A & D workforce increased by approximately 6,000 employees . More than 57 per cent of employment comes from the shared A & D supply chain , an extensive network of suppliers composed of thousands of small and medium-sized businesses ,” it said .
“ Despite the inflationary pressure and continued pandemic recovery , the industry ’ s workforce generated US $ 892 billion in combined sales in 2021 , a 2.1 per cent increase from the prior year . In 2021 , A & D industry exports rose by 11.2 per cent to a total value of US $ 100.4 billion . In 2021 , the U . S . A & D industry exported to 205 countries ,” it added .
Global market for aerospace parts
The global aerospace parts manufacturing market size is anticipated to reach US $ 1,233.2 billion by 2030 , according to a new report by Grand View Research , Inc . The market is expected to reach a CAGR of 4 % from 2022 to 2030 , The increasing influx of passengers and freight in developing economies is fuelling the production of advanced aircraft , which is projected to augment the growth of the market .
“ Numerous aircraft manufacturers are streamlined in the overall value chain , being primarily involved in the process of parts manufacturing . These companies own in-house facilities for production and supplier contracts to procure the parts . Manufacturers also focus on the designing , procurement of raw materials , and quality control of thirdparty supplier parts ,” explained the analyst .
Airbus production . Image : Shutterstock . com .
The main findings in the report are listed below :
■ Based on product , the aerostructure dominated the market accounting for a revenue share of over 52.2 % in 2019 . The robust replacement rate of aluminium with expensive composites in airframe structures and fuselage significantly drove product demand .
■ Based on end-use , commercial aircraft is forecasted to expand at the fastest CAGR of 4.6 % from 2022 to 2030 . A few noteworthy changes are being implemented into the structure of aircraft for limiting carbon emissions by substituting the existing parts with lightweight materials . Such innovations are opportunistic for the growth of the market .
■ The Asia-Pacific market accrued revenue of US $ 149.6 billion in 2019 and is projected to expand at the fastest growth rate , owing to rapid developments in the aviation industry , boosting the growth of MRO services and the aerospace parts manufacturing industry .
■ The global market is regulated by stringent norms for manufacturing , safety standards and certifications , restricting the entry of new entrants into the market .
■ Emerging players in the Asia-Pacific region that offer innovative low-cost solutions to end-users are likely to challenge the recognized players in North America and Europe , leading to the disruption of competitive rivalry in the market .
“ The aerospace parts manufacturing market is predominantly concentrated in the North American and European regions , owing to the presence of significant aircraft manufacturers . Countries , including China and India , are projected to emerge as the key markets in the upcoming years . This is attributable to the rapid growth in manufacturing and export activities . The trade of components and sub-assemblies across the world has surged by over 25 % in the past decade . Nonetheless , the sector remains consolidated with the three leading countries including the U . S ., France and Germany , accounting for approximately 60 % of total aircraft manufacturing ,” continued the analyst .
The market has witnessed an uptrend of collaboration and joint venture strategies among key vendors . This supports companies to sustain themselves in a highly competitive market in terms of technological advancements and geographical expansion ; it also limits the risks involved . Additionally , the companies can also easily access the market and achieve long-term contracts .
Aerospace materials
Image : Shutterstock . com .
According to a new report by analyst Precedence Research , the global aerospace materials market reached US $ 36.42 billion in 2021 and is expected to surpass US $ 67.42 billion by 2030 , growing at a CAGR of 7.08 % over the forecast period ( 2022 to 2030 ). The industry sector has
ISMR December 2022 / January 2023 |
ismr . net | 27