[ 英語タイトル ] Asia-Pacific Aircraft Engine Market - Growth, Trends, and Forecasts (2020 - 2025)

Product Code : MDAD0085832

Survey : Mordor Intelligence

Publish On : November, 2020

Category : Aerospace and Defence

Study Area : Asia Pacific

Report format : PDF

Sales price option (consumption tax not included)

[Report Description]

The market for aircraft engines is anticipated to register a CAGR of over 4%, during the forecast period (2020 - 2025).

- To cater to the growing air traffic, several airlines are revamping their fleet by procuring new aircraft, which is generating demand for new engines. However, due to the COVID-19 pandemic, revenue for the aviation sector is expected to fall drastically (nearly by 50% in India) in the Asia-Pacific region as many airlines are deferring their procurement plans as part of their restructuring initiatives to sustain profitability. This has resulted in a temporarily sharp decline in the demand for both aircraft and aircraft engines.
- The availability of low-cost skilled and unskilled workforce and the launch of aviation friendly government initiatives, such as the 'Make In India' initiative, is creating opportunities for foreign players, such as Safran, Rolls Royce, and General Electric, to set up manufacturing units for aircraft engine and components in Asia-Pacific.
- However, uncertainties, such as the grounding of an aircraft (such as the B737 MAX), persistent problems in the engine design that raise concerns regarding the safety of the aircraft, and delay in aircraft deliveries, are some of the factors that impede the growth of the market in focus.
- Growing concern over aviation emission may act as an opportunity for developing fuel-efficient and lightweight engines and bolster the research and development (R&D) of electric engines.

Key Market Trends

Turbofan Engines to Dominate the Market

Currently, the turbofan sub-segment holds a major share in the aircraft engines market and is anticipated to dominate the market during the forecast period. Turbofan engines are most widely used in commercial and military segments. In April 2019, China showcased the latest turbofan engine prototypes to be used for its aircraft carrier-based stealth fighters. As of 2019, Chinese officials were in the midst of an ongoing negotiation to sell highly advanced and powerful jet engines to Germany. Transfer-of-technology (ToT) has emerged as a predominant feature in modern era military procurements. On this note, Safran has agreed to transfer SNECMA M88 engine manufacturing technology to India for Rafale Jets. With growing aircraft orders in the commercial aircraft segment, which is majorly dominated by the turbofan engine segment, the turbofan engine segment is anticipated to register the highest CAGR during 2020-2025 in the region.

China to Witness the Highest Growth During the Forecast Period

The rapid rise in air passenger traffic in China and India has encouraged the procurement of new aircraft by airline operators. In 2019, Indian low-cost carrier (LCC) Indigo placed a USD 33 billion order for 300 Airbus A320neo, A321neo and A321XLR aircraft to increase its long-distance operational capabilities. Moreover, China is expected to increase its aerial fleet size at a rapid pace to surpass the air dominion of the US globally in terms of military assets. Furthermore, IATA forecasts that China is likely to become the world’s leading commercial aviation hub by 2024, thereby necessitating the procurement of new aircraft in accordance with the passenger traffic growth. Furthermore, with the growth in the high net-worth individual (HNWI) population in the region, several new business jets are being released, which integrate newer engine models for sustaining flight over an extended range and comply with the evolving emission norms in the region.

Competitive Landscape

The Asia-Pacific aircraft engine market is highly consolidated, with a majority of the market share being held by Pratt & Whitney (Raytheon Technologies Corporation), Rolls-Royce Holding PLC, Safran SA, UEC Aviadvigatel JSC, and GE Aviation (General Electric Company). The engine manufacturers and aircraft OEMs often prefer long-term contracts, thereby, making it difficult for new players to enter the market. The significant investment toward R&D of advanced technologies, like additive manufacturing and incorporation of AI to increase the production rate, is expected to help the players to ramp up their production capacity, thereby, maximize their profits.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
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