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Aircraft Machined Components Market | Covid-19 Impact Analysis
Aircraft Machined Components Market is Segmented by Process Type (Milled Parts, Turned Parts, and Others), by Aircraft Type (Commercial Aircraft, Regional Aircraft, Helicopter, Military Aircraft, and General Aviation), by Application Type (Airframe, Engine, Interiors, and Others), by Material Type (Aluminum, Stainless Steel, Titanium, and Other Metals & Alloys), by End-User Type (OE and Aftermarket), and by Region (North America, Europe, Asia-Pacific, Latin America, and Rest of the World).
Covid-19 has impacted the market dynamics, competition, and global supply chains. The revenues have gone down in 2020 and may resume an uptrend gradually from 2021. Companies optimizing their operation and strategy will sustain and beat the competition.
Note: The summary below might not have included insights on covid impact since we have large number of reports.
Machining is an engineering process that is used to obtain the desired shape of the part by various machining processes such as milling, turning, and drilling. The process can also be described as a variety of material removal processes where the cutting tool takes out the undesired metal from the workpiece to build the desired shape of the part. There are two basic types of cutting tools: single-point tool for turning and boring and multi-point tool for milling and drilling. Milling and turning are the two major machining operations through which aerospace structural parts are shaped. In the milling process the cutting tool moves around the workpiece, whereas in turning, the workpiece moves against the cutting tool to obtain the shape.
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.
Aircraft manufacturing is recording similar declines with many airlines having started deferring their ordered aircraft deliveries. Production halts, remote and adjusted work schedules, and huge cash burns are the other noticeable trends, negatively impacting the sales as well as profitability. As a result of that, aircraft OEMs have no choice except to curtail their production rates for the year 2020, which added to the uncertainty fueld by prolonged grounding of B737Max and further delays in market entries of the most-awaited aircraft programs. Overall, the pandemic has marked an indelible dent in the growth of the aircraft industry in 2020.
It is difficult to state when the impact of the pandemic would start to fade away since the pandemic is still in its spread phase. However, the results of primary interviews coupled with past recovery trends of previous downturns caused by recession or pandemics suggest that the market for aircraft machined components will mark an overall V-shaped recovery with a deeper curve than previous downturns.
The major participants are still optimistic about the long-term market outlook with a plethora of opportunities across regions. Huge order backlogs of 12,816 aircraft of Boeing and Airbus at the end of June 2020 will be the pivotal factor in revitalizing the demand for machined components in years to come. Other demand boosters are market entries of new aircraft and large aircraft fleet size, helping the market to land close to US$ 6.3-billion-figure in 2025.
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.
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.
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.
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.
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.
Post pandemic, Asia-Pacific is estimated to heal up with the fastest pace over the next five years, driven by several growth propellers. China is estimated to maintain its tag of the growth engine of the region’s market in the coming years. The second-quarter results of China suggest a healthy rebound of the country’s market for machined components. Upcoming indigenous aircraft program (COMAC C919) and higher investment in military aircraft may further reinforce the demand for machined components in the country. India, a diminutive market, is anticipated to register the highest growth in the coming five years, propelled by an expected increase in air passenger traffic and procurement of combat aircraft with the obligation of offset policies.
The supply chain of this market comprises raw material suppliers, aircraft machined components manufacturers, distributors, tier players, OEMs, aircraft leasing companies, airlines, and MRO companies.
Some of the key players in the aircraft machined components market are
This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,500 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles, have been leveraged to gather the data. We have conducted more than 15 detailed primary interviews with the market players across the value chain in all five regions and industry experts to obtain both qualitative and quantitative insights.
The aircraft machined components market report is one of the most comprehensive reports published by Stratview Research. The report studies the changing market dynamics, competitive landscapes, market gaps, emerging trends, etc. to assess the market possibilities in the short as well as long-run. The report separately studies Milled Parts and Turned Parts to assess the Machined Components Market with high veracity. The lucid nature of the report allows buyers to understand the market dynamics in very little time. The report also studies the short- as well as long-term repercussions of the pandemic in the market and estimates the possible loss that the industry stakeholders have to incur due to the pandemic. The report also covers the pre- as well as post-COVID analysis to gauge the opportunity loss of the industry in the long run.
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
The aircraft machined components market is segmented into the following categories.
Aircraft Machined Components Market, by Process Type
Aircraft Machined Components Market, by Aircraft Type
Aircraft Machined Components Market, by Application Type
Aircraft Machined Components Market, by Material Type
Aircraft Machined Components Market, by End-User Type
Aircraft Machined Components Market, By Region
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