Market Dynamics
Introduction
In the aircraft industry, casting is the process of creating complex shapes by pouring liquid metals into a mold and allowing it to solidify. Castings can be made from various metals and alloys, including aluminum, titanium, stainless steel, etc. Casting is a crucial process in aircraft manufacturing as it allows for the creation of parts with intricate shapes and details that would be difficult or impossible to achieve through other manufacturing methods.
Overall, casting plays a vital role in the aircraft industry, allowing for the creation of high-strength, complex parts that are critical to the safe and efficient operation of aircraft.
Market Drivers
The market for aircraft casting is likely to grow as a result of an increase in air passenger traffic that is boosting the demand for commercial aircraft. Increases in per capita income resulting in rising demand for air travel from developing countries are other factors fueling the demand for cast components in the aerospace industry. For instance, Air India placed 470 new aircraft and ordered 250 aircraft from Airbus and 220 from Boeing, making it the largest-ever pipeline of new aircraft ordered in commercial aviation history.
The demand for cast parts in defense applications is also increasing as a result of rising geopolitical tensions, including the Russia-Ukraine war and escalating conflicts with China. Long-term contracts and significant R&D expenditures are a few of the trends happening in the aircraft casting market. For example, Howmet has several contracts to supply various components for new as well as existing military, commercial, and general aviation aircraft programs.
COVID-19 Impact
In 2020, the booming aircraft casting market experienced a severe drop of -34.5% due to the COVID-19 pandemic. The market is expected to rebound at an explosive rate in the wake of the rapid recovery in the production rates of key commercial aircraft programs, environmental restrictions posed by the governments to reduce carbon emissions, the retirement of older aircraft, and technological breakthroughs to drive market growth.
Segments Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Aircraft Type
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Commercial Aircraft, Regional Aircraft, Helicopter, Military Aircraft, and General Aviation
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Commercial aircraft is anticipated to remain the biggest demand generator for cast parts in the coming years.
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Application Type
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Engine and Airframe
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The engine is expected to remain the dominant as well as the fastest-growing application during the forecasted period.
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Process Type
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Investment Casting and Die & Other Casting
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Investment casting is anticipated to be the leading process type in the coming years.
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Material Type
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Nickel, Titanium, Stainless Steel, Aluminum, and Others
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Nickel is expected to hold a major part of the share, whereas titanium is expected to be the fastest-growing material type during the forecasted period.
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End User-Type
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OE and Aftermarket
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OE holds the larger share, whereas the aftermarket is expected to be the fastest-growing segment over the next five years.
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Regional Analysis
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North America, Europe, Asia-Pacific, and Rest of the World
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North America is expected to remain the dominant market over the next five years, whereas Asia-Pacific is likely to grow at the fastest rate.
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By Aircraft Type
“Commercial aircraft dominates the market during the forecast period.”
The aircraft casting market is segmented into commercial aircraft, regional aircraft, helicopters, military aircraft, and general aviation. Commercial aircraft is projected to hold the biggest portion of the overall aircraft casting market in the coming five years. The demand for new commercial aircraft in the wake of rebounding air passenger traffic will be the key driving force of the market demand.
Airbus forecasts the demand for new 39,490 passengers and freighter aircraft and air passenger traffic to increase by 3.6% annually over the next two decades. Similarly, Boeing anticipates about 41,170 commercial and regional aircraft are likely to be delivered in the next 20 years.
By Application Type
“Engine dominates the market during the forecast period.”
The market is segmented into engine and airframe. Engine is expected to remain dominant as well as the fastest-growing application type in the market during the forecast period. To achieve net zero by 2050, manufacturers are trying to make engines more efficient, have less fuel usage, be lightweight, and reduce noise and emission levels. Also, manufacturers are investing in electric and hybrid propulsion technology as an alternative to fuel-based systems. The requirement for precision parts in the engine and its sub-systems.
An expected increase in the production of Boeing 737 Max, Airbus A320 neo, and the upcoming COMAC C919 is likely to drive the production of the world's most demanded Leap engine.
By Process Type
“Investment casting dominates the market during the forecast period.”
The market is segmented into investment casting and die & other castings. Investment casting is expected to remain the dominant as well as the fastest-growing process type in the coming years.
Investment casting offers various advantages over others such as increased design flexibility, high tolerances, intricate product detail, reduced machining cost, and design freedom. Investment castings are used to produce a large variety of components such as engine rings, impellers, blades, bearing cages, hydraulic fluid system components, exterior and interior components, motion control and actuation system components, and landing and braking parts.
By Material Type
“Nickel dominates the market during the forecast period.”
The market is segmented into nickel, titanium, stainless steel, aluminum, and others. Nickel is expected to remain the dominant material type in the market during the forecast period. Nickel-based alloys are widely used in the aerospace and defense industries due to their exceptional corrosion resistance, heat resistance, stress corrosion resistance, and weldability.
Titanium is expected to be the fastest-growing material type in the market during the forecast period. Titanium is gaining popularity because it is just slightly heavier than aluminum but provides more strength than aluminum, it is also suitable for airframe components as it doesn't strain or disintegrate. The Russo-Ukrainian War led to several changes in the market dynamics of the aerospace industry.
Among all, the supply chain disruption, especially at the raw material level, is the most noticeable one. Both, Airbus and Boeing heavily relied on Russia for the procurement of titanium. As a result of the ban on imports from Russia, the price of titanium started soaring which affected the entire market dynamics.
By End User-Type
“OE dominates the market during the forecast period.”
The market is segmented into OE and aftermarket. OE is expected to remain dominant, whereas the aftermarket is expected to be the fastest-growing end-user type in the market during the forecast period.
Increasing production rates of important programs like the B737 Max, B787, B777X, A350, and A320 family, as well as the entry of new players like COMAC, are expected to fuel the OE segment. Boeing, in its latest outlook, anticipates that the global commercial and regional aircraft fleet is likely to reach 47,080 units by 2041, an increase of 21,180 units from the 2019 level. This will create a sizable demand for cast parts at the aftermarket level in the coming years.
Regional Analysis
“North America is expected to remain the largest market during the forecast period.”
North America is the pioneer in the aerospace industry. Almost all the innovations have been led by the region over the decades. This makes the region the most preferred manufacturing destination for aerospace components as well as systems. This is quite visible in the case of casting for aerospace parts too. all the leading investment, as well as diecasting companies, have an excellent manufacturing base in the region. Also, all the leading OEMs have their presence in the region.
Asia Pacific has been the hotbed of the aerospace as well as defense industries. increasing air passenger traffic, growing disposable income, increasing population, and increasing middle-class income people have been creating a greater demand for new aircraft, which, in turn, is driving tear players as well as OEMs to open their manufacturing base in the region. in the past decade, almost all the leading players have either set up their manufacturing base or formed any kind of strategic alliance with the local companies to mark their presence in the growing Asian market. at the same time, major Asian economies have been keen to develop commercial, regional, and military aircraft indigenously.
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s aircraft casting market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a 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 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
