What is the future of Aircraft Machined Components Market? Know Covid Impact on Size, Share & Forecasts
The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including the Aircraft Machined Components Market.
It was estimated prior to this unanticipated outbreak that the Aircraft Machined Components Market to reach US $ 6.3 -billion-figure in 2025 . However, the gradual slowing down of industries will undoubtedly impose limits on the previously estimated growth rate.
The COVID-19 has devastated the entire supply chain of the airline business with the massive drop in air travel, not only reducing the airlines' revenue but also enduring an additional cost of maintaining their grounded aircraft fleets. As per the latest estimates of IATA, the airline industry is expecting to record a possible loss of US $ 314 billion of passenger revenues, an equivalent of a 48% loss in RPKs in 2020 from 2019.
Market Share Analysis
Share by Process Type: Milled parts occupy the largest share
The machined components market for the aircraft industry is firstly segmented into milled parts, turned parts, and others. Milled parts are estimated to be the biggest growth engine of the market in the coming five years. Milled parts are used in a gamut of applications including fuselage and wing components, mainly made of aluminum and titanium. Titanium has been winning the hearts of the industry stakeholders with its exceptional benefits and is replacing other heavyweight metals including stainless steel. Turned parts also hold a big chunk of the market and are extremely suitable for cylindrical parts situated across aircraft including landing gear, flight control surfaces, and fuselage.
Share by Aircraft Type: The key Commercial Aircraft programs A350XWB, B787, A320neo family, and B737MAX, drive the market
On the basis of aircraft type, the market is segmented as commercial aircraft, regional aircraft, helicopter, military aircraft, and general aviation. Commercial aircraft is likely to remain the most dominant aircraft type in the market during the forecast period, mainly driven by the key aircraft programs such as A350XWB, B787, A320neo family, and B737MAX. The aircraft type is anticipated to log the biggest decline among all the aircraft types in 2020 in the wake of the pandemic. However, the demand for machined components is likely to bounce back from 2021, translating long-term sustainability with attractive growth opportunities. Several factors may collectively add vigor to the fading demand for milled parts in the coming years out of which expected approval of the B737 max, market entries of C919, MC-21, and B777x, and increasing aircraft fleet size are the favorable ones.
Share by Application Type: Airframe is the largest application
Based on the application type, the market is segmented as airframe, engine, interiors, and others. Airframe is estimated to maintain its dominance in the market during the forecast period. The key why and wherefore behind the dominance of airframe in the market is the large number of applications of machined components, most of which are large-sized structures such as fuselage frames, fuselage covers, wing ribs, spars, and engine pylon fittings.
Key Materials: Aluminum has the largest share, while Titanium has the fastest growth
Based on the material type, the market is segmented as aluminum, stainless steel, titanium, and other metals & alloys. Aluminum is likely to remain the most dominant material type in the market over the next five years, owing to its widespread usage in various applications (majorly airframe) and excellent track record of more than eight decades. Titanium is expected to be the fastest-growing material type in the market, owing to its excellent benefits over its rivals including excellent mechanical performance, corrosion resistance, excellent coefficient of thermal expansion, and lightweight.
Regional Analysis
In terms of region, North America is projected to remain the largest market for aircraft machined components during the forecast period. The USA is not only the largest market in North America but also in the world, owing to the presence of many aircraft OEMs and engine manufacturers such as Boeing, Airbus, Lockheed Martin, Bombardier Inc., Gulfstream Aerospace, GE Aviation, Pratt & Whitney , and Rolls-Royce as well as the presence of various tier players and machined components manufacturers in the country. The country is also one of the most-affected nations by the COVID-19 with having the largest number of positive cases in the world.