The commercial aircraft engines market is expected to exhibit a growth rate of more than 4% during the forecast period.
- The rise in global air passenger traffic is leading to the growth in demand for new commercial aircrafts and this factor is driving the growth of commercial engines aircraft market. The development of new medium and small sized airports in cities and regions situated in geographies such as Asia Pacific, Middle-East and Africa, etc. is propelling the growth regional aircrafts and regional aircraft engines market.
- Due to rise in aviation emission and implementation of stringent emission norms, aircraft manufacturers, aircraft engine manufacturers and airlines are expected to adopt hybrid and electric aircraft engines in future. In December 2019, Harbour Air and magniX successfully completed the trial flight of world’s first completely electric commercial aircraft in Canada.
- Technological innovations are significantly fuelling the market growth and development as new models are providing weight reduction, less noise footprints, less emissions, high thrust, reduction in maintenance operations, etc. The hybrid propulsion commercial aircraft engines are being propelled by development in battery technology in areas such as weight reduction, less space requirement and high power. In 2019, True Blue Power exhibited its fifth generation Gen5 lithium ion battery which is labelled as “maintenance free” by the company. The battery can provide information on current charge status and battery health.
- However, due to COVID 19 outbreak and low economy growth rate, the demand for commercial aircrafts and commercial aircraft engines has slumped slightly. There has been a decrease in growth rate of Wide Body Aircraft and Narrow Body Aircraft orders has also received a setback owing to the grounding of 737 Max aircrafts. This effect however, is expected to be short lived due to increasing investments in aviation industry of emerging economies and emergence of new technology, norms and regulations for safety, etc.
Key Market Trends
Narrow Body Aircraft Segment Is Expected To Dominate The Market
The innovations in aerodynamics, fuel efficiency, low carbon emissions, new routes and many other factors have tremendously propelled the market growth of Narrow Body Aircrafts. Models such as A321 neo and A220 are capable of reducing fuel burn by 20% compared to 10% in early classic models. Narrow body aircrafts are also being put into use for long haul flights and this trend is expected to grow during the forecast period.
The increase in demand of long haul operations from medium airports in countries such as China and Norway is driving the growth of market. Airbus A321LR and Boeing 737 Max are both capable of reaching distances beyond 7000 kilometres. Narrow Body Aircrafts such as Airbus A220 are capable of performing efficiently in aviation markets with low to medium growth rate. A220 has become a preferred choice for low cost airlines such as Moxy that operates in 100 to 150 passenger segment. The popularity can be attributed to A220’s spacious cabin and seats, 20% less burn rate over competitor aircrafts such as Embraer 190.
The aircraft manufacturers are ramping up their aircraft productions and this is a major factor driving the growth of commercial aircraft engines market. Airbus is planning to produce 63 A320 aircrafts per month from 2021 getting a significant boost from its recently established manufacturing facilities in United States and Boeing is expected to reach annual production capacity of 900 commercial aircrafts in 2020.
Stringent laws and regulations are also propelling the growth of commercial engine market for instance, in June 2020, DGCA, the civil aviation governing body in India ordered low cost airlines such as Indigo and GoAir to replace old A320 engines having more than 3000 flight hours time with new engines by August 2020.
Asia-Pacific To Exhibit The Highest Growth Rate
The aviation industry in Asia-Pacific region, particularly in India and China is expected to exhibit a significant growth rate during and beyond the forecast period. The collaboration and joint development initiatives in engine manufacturing, MRO services, etc. by foreign players such as Safran, General Electric, Rolls Royce, etc. is strengthening the commercial engines market in the region. China would need more than 7500 commercial aircrafts by 2030 to cater to the need of growing domestic air passenger traffic comprising primarily of middle class people. In May 2020, Rolls Royce offered Commercial Aircraft Corporation of China Limited (COMAC) to build a variant of Trent 7000 engine in partnership with Aero Engine Corporation Of China for the new CR929 wide body aircraft. In 2018, Boeing’s new plant in Zhoushan in China delivered first 737 Max aircraft to Air China and the production is expected to grow during the forecast period. The aviation manufacturing industry in Asia-Pacific region holds a very promising future due to booming aviation industry that includes new airport development, new route operations, low cost labour, etc. The aforementioned factors the driving the growth of commercial aircraft engines market in Asia-Pacific.
The Commercial Aircraft Engine Market is a consolidated with major players such as Safran SA, Rolls Royce Holdings Plc, General Electric Company, CFM International, etc. dominating the market. The commercial aircraft engine market is witnessing collaborations and joint development programs for the purpose of building new technology for lighter and fuel efficient aircrafts. Global commercial aircraft engine manufacturers are also investing in manufacturing ecosystem in regions such as Asia-Pacific owing to the availability of low-cost labour and growing aviation industry. The main revenue generating strategy of market players is winning contracts and orders from aircraft manufacturers for engines and engine MRO services.
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