The aircraft exhaust systems market is poised to register a CAGR of over 5% during the forecast period 2020 - 2025. As the exhaust systems are necessitated to operate continuously in extreme temperatures, they are made up of advanced metals and alloys with a low weight profile and high fusion point to withstand the extreme operating conditions.
- The market growth is an outcome of the organic growth of the aviation industry as a large number of aircraft deliveries are scheduled during the forecast period. The aircraft exhaust systems are essential for ensuring a proper propulsion cycle, integration of engines into the new-generation aircraft would drive the demand for individual components of the exhaust systems.
- Aviation industry incumbents are keenly investing in the development of new aircraft propulsion technologies to enhance the performance characteristics of newer-generation aircraft. Emerging technologies such as the Electronic Thrust Reverser Actuation System (ETRAS), a hybrid system that enables automated thrust reverser operation through electromechanical actuators, would drive R&D efforts divested towards developing advanced engine subsystems. The ETRAS would physically combine the existing electrical thrust reverser actuation controller (ETRAC) and thrust reverser power unit (TRPU) of the aircraft engine into a single system, thereby reducing the engine's weight-profile by a significant margin.
- The increasing use of new manufacturing technologies such as Automated Fiber Placement (AFP) to manufacture airframe components such as tubes with T-shape or Y-shape or tube with flanges having a circular shape like exhaust ducts in jet engines are envisioned to reduce the aircraft's turnaround time (TAT).
Scope of the Report
The market study includes various types of parts and components integrated into an aircraft exhaust system, such as exhaust cone, exhaust pipe, exhaust nozzle, and turbochargers. The study also takes into account the auxiliary power unit (APU) installed in the system, and hence considers the constituent components such as APU exhaust liner and APU exhaust tube. Others include components such as the exhaust screen and exhaust cowl. Market estimates are based on linefit installations of exhaust systems into aircraft engines of new-generation aircraft being procured by operators around the globe and do not include the sales and replacement of individual components.
Key Market Trends
Development of New Engine Technologies Driving R&D of Associated Subsystems
Aviation is a major source of greenhouse gas emission and is hence being subjected to global scrutiny from environmental protection agencies. This has led to the imposition of stringent emission norms to curb environmental degradation caused by the combustion of aviation fuel. In March 2017, the International Civil Aviation Organization (ICAO) adopted a new aircraft CO2 emissions standard that is to be enforced to new aircraft type designs from 2020, and to aircraft type designs already in production as of 2023. The regulation also states the provisions for engine modification to ensure full compliance by 2028. The aircraft combustion cycle is directly influenced by the engine design, including subsystems such as exhaust systems. Stringent emission norms are anticipated to drive technological innovations in the design of fuel-efficient engines with sophisticated exhaust systems.
In an effort to curb emission, R&D initiatives are being undertaken to develop an electric powertrain for aviation. In November 2017, Rolls-Royce partnered with Siemens and Airbus to develop a hybrid aircraft on which one of the four gas-turbine engines would be pure-electric. The model is scheduled to undergo testing in 2020. Besides, Rolls-Royce is also developing a new Power Gearbox that can comparatively enhance the fuel efficiency of its large turbofan engines by 25%. Hence, the exhaust system would also be aptly modified to fulfill the desired performance criteria. Such efforts are envisaged to enhance the business prospects of the aircraft exhaust systems market during the upcoming period.
Asia-Pacific to Generate the Highest Demand During the Forecast Period
Asia-Pacific is anticipated to generate the highest demand for aircraft exhaust systems market during the forecast period. This demand can be attributed to the increasing orders of new aircraft, propelled by ever-growing passenger traffic in the region. During 2013-2018, the proliferation of air tourism has driven the passenger traffic in Vietnam, India, Thailand, China, and Indonesia by 130.30%, 117.01%, 76.75%, 73.31%, and 40.91%, respectively. The International Air Transport Association (IATA) has projected that China would eventually become the world’s largest aviation market in the mid-2020s. By 2030, India would usurp the title of the third-largest aviation market and Indonesia would develop into the fourth largest aviation market. The huge market potential has encouraged the aircraft OEMs to devise strategic expansion plans to increase their penetration into the region, which in turn will support the growth of the aircraft exhaust systems market.
Furthermore, Asia-Pacific has the second-largest military expenditure globally. The tense geopolitical scenario prevalent in the region is fostering the initiation of fleet modernization programs for enhancing the aerial defense capabilities of the countries. Such developments are anticipated to drive the market for aircraft exhaust systems during the forecast period.
The aircraft exhaust systems market is characterized by the presence of a limited number of dominant vendors operating at a global level. The market is highly competitive, with players competing to gain the largest market share. Constraints associated with the design of aircraft exhaust systems and cancellation of aircraft orders due to macroeconomic factors impede the growth of the market. It is crucial for vendors to provide advanced systems to aircraft OEMs to survive in an intensely competitive market environment. The dominant market players include GKN Aerospace (Melrose Industries PLC), Triumph Group, Magellan Aerospace Corporation, Rolls-Royce plc, and Esterline Technologies Corporation. These players mainly compete based on their in-house manufacturing capabilities, global footprint network, product offerings, R&D investments, and a strong client base. The increase in aircraft procurement rate due to the rapid increase in air passenger traffic is expected to fuel the market growth during the forecast period. The competitive environment in the market is likely to intensify further due to an increase in product/service extensions and technological innovations.
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