Aircraft Milled Parts Market | Covid-19 Impact Analysis

Aircraft Milled Parts Market: Highlights

Milling Process Experiencing Rapid Advancements

Milled parts or components are those machined components, which are mainly produced through the milling process. A wide and diverse range of machined components is used in the aerospace industry, made via processes such as milling, turning, and drilling. Milling offers rapid profiling of aircraft structural components, which are majorly made with aluminum, stainless steel, titanium, and their alloys; with better surface finish and greater dimensional accuracy than metal forming of aircraft structures.

Rapid advancements in the milling process, i.e., from conventional milling machines to advanced CNC (Computer Numerical Control) milling machines and high-speed machining centers have paved the way for milled components/parts in the aerospace industry. These advancements have also helped the industry to achieve its main objective of optimizing metal removal rates and minimizing chatter.

Impact of COVID-19 on Aircraft Milled Parts Market

The aircraft milled parts market is projected to recover at a healthy rate from 2021 onwards, to reach an estimated value of US$ 4.3 billion in 2025.

The outbreak of COVID-19 has put an end to the 16-year long industry boon, which had begun when the industry had emerged out from another infectious disease SARS (2002-2003). The aerospace industry is projected to be one of the most severely impacted industries due to the COVID-19 outbreak.

As per the recent 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. Complete lockdown of many countries due to the pandemic has forced several airlines to operate at a reduced capacity rate of 5% to 40% of their total strength. For instance, Lufthansa Group has recently announced a 95% capacity reduction due to the outbreak.      

The unprecedented drop in air travel has not only reduced airlines’ revenue but also added an extra cost of grounding their huge aircraft fleets. Thus, the impact of COVID-19 is disrupting the entire supply chain of the industry resulting in stock fall out and bankruptcies of several regional airlines, leading to consolidation in the regional aviation market.

The outbreak has also affected the business of already struggling aircraft OEMs:

• Boeing: Still struggling to get an approval for B737Max. COVID-19 has temporarily halted its production and has disrupted the entire supply chain of B737Max. 
• Airbus: Temporary slashed in production rates of their key aircraft programs by 1/3^rd. Halted its several major facilities in Europe and Alabama, the USA (dedicated for the A220 program) for a few weeks.

The overall impact of the outbreak is yet unpredictable; however, based on the industry estimates by IATA and ICAO and Stratview Research’s primary interviews with the market stakeholders and industry experts, it is anticipated to be graver than past industry downturns (the Great Recession, SARS, and MERS). Yet the industry is still optimistic about its recovery as it did during past pandemics/recession, but the shape of the curve would be deeper with huge short- as well as long-term repercussions. 

The demand for milled parts in the industry is largely dependent on the overall health of the aviation industry. The following are the factors impending speedy recovery of the market.

• Huge order backlogs of Boeing and Airbus (12,365 aircraft at the end of May 2020)
• Increasing demand for replacing iconic aircraft such as A380 and B747 (which are forced to retire early by several airlines due to the outbreak) with A321, A350XWB, and B787
• Market entry of new aircraft programs such as A321XLR, C919, and MC-21; and variants of existing aircraft programs such as B777X.
• An expected increase in the demand for narrow-body aircraft with the resumption of domestic air travel.
• Advancements in the milling process to offer excellent benefits, such as accuracy in finishing, uniformity in design, reduction lead time, ease in manufacturing complex parts, reduction in manpower, and minimal chances of error.

Aircraft Milled Parts Market Share Analysis

By Aircraft Type: Commercial Aircraft to be Dominant

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 growth engine of the market during the forecast period, mainly driven by an expected increase in commercial aircraft deliveries in the coming years. The short-term outlook of the commercial aircraft market seems struggling to owe to the continuous grounding of the B737 Max, reduction in production rates of A320, A330, and A350 XWB programs and expected delay in the entry of upcoming aircraft programs such as B777X and C919.

By Application Type: Large-Sized Structure Makes Airframe the Largest Application

Based on the application type, the market is segmented as airframe, engine, interiors, and others. The airframe segment is likely to maintain its dominance in the market during the forecast period because a large number of structural components are still made through the milling process.  The aircraft engine segment is expected to rebound with the highest pace from 2021 onwards, mainly driven by a handful of engines, such as LEAP, GE9X, GEnx, PW F135, PW1000G, and Rolls-Royce Trent XWB and 7000. 

By Material Type: Aluminum has Widespread Usage along with Excellent Track Record

Based on the material type, the market is segmented as aluminum, stainless steel, titanium, and other metals & alloys. Aluminum is projected to remain the most dominant material type in the aircraft milled parts market over the next five years, owing to its widespread usage and excellent track record in the aircraft industry. Titanium is estimated to be the fastest-recovering material type in the market in the coming years, mainly propelled by increased penetration of titanium in the next-generation aircraft programs, such as B787 and A350XWB.

By Region: North America, the Largest Consumer of Milled Parts

In terms of region, North America is projected to remain the largest market for aircraft milled parts during the forecast period. The USA is expected to rebound quickly and will act as the growth engine of the region’s market, owing to the presence of several aircraft OEMs such as Boeing, Airbus, Lockheed Martin, Bombardier Inc., and Gulfstream Aerospace as well as the presence of several leading tier players and milled parts manufacturers in the country.

The USA has registered the highest number of positive cases in the world. The country is the manufacturing hub of the aircraft industry and the rapid outbreak has marked an inconceivable dent in the region’s market with the temporary shutdown of Airbus’ A220 production facility in Alabama, and Boeing’s B787 plant in South Carolina and Washington. 

Asia-Pacific is expected to recover at the fastest pace, as soon as the aftermath of the pandemic ends, propelled by upcoming indigenous aircraft programs (COMAC C919 and Mitsubishi SpaceJet) and opening of assembly plants of Boeing and Airbus in China for B737, A330, A320, and A350. Further, key economies, such as India and China, in the region are incessantly increasing their defense budget with the purpose to acquire the latest military aircraft to solidify their defense capabilities. Implementation of offset policy by the major economies including India, along with vigorous development of indigenous military aircraft, such as Tejas and J20, further substantiate the demand for milled parts in the region.

Key Players

The supply chain of this market comprises raw material suppliers, aircraft milled parts manufacturers, distributors, tier players, aircraft OEMs, airlines, aircraft leasing companies, and MRO companies.

Some of the key players in the aircraft milled parts market are

• Precision Castparts Corp.
• GKN plc
• Spirit AeroSystems, Inc.
• Magellan Aerospace Corp.
• Triumph Group Inc.
• Senior plc
• Minebea Mitsumi, Inc.
• LMI Aerospace, Inc.
• Air Industries Group, Inc.
• Gardner Aerospace.

Research Methodology

This paragon report, from Stratview Research, provides a comprehensive analysis that reflects today’s aircraft milled parts market realities and future possibilities for the forecast period 2020 to 2025.  The report provides detailed analysis including the short- as well as long-term revenue loss of the aircraft milled parts market due to the pandemic.  Also, the report estimates the total opportunity loss by comparing pre-COVID and post-COVID market scenarios. The report proves to be extremely beneficial, particularly to those companies, willing to build short-term strategies with an aim to protect themselves from the current harsh market environment. The report also portrays the long-term market view (post-pandemic), identifying future growth avenues for the market participants and other market stakeholders, helping them to align themselves based on attractive market segments.

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 1,000 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.

Report Features

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:

• Market structure: Overview, industry life cycle analysis, supply chain analysis
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
• Market trend and forecast analysis
• Market segment trend and forecast
• Competitive landscape and dynamics: Market share, Product portfolio, New product launches, etc.
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for the existing and new players
• Key success factors

Market Segmentation

The market is segmented into the following categories:

Aircraft Milled Parts Market, by Aircraft Type

• Commercial Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Regional Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Helicopter (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Military Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• General Aviation (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Aircraft Milled Parts Market, by Application Type

• Airframe (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Interiors (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Aircraft Milled Parts Market, by Material Type

• Aluminum Milled Parts (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Stainless Steel Milled Parts (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Titanium Milled Parts (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Other Milled Parts (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Aircraft Milled Parts Market, by End-User Type

• OE (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Aftermarket (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Aircraft Milled Parts Market, By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: France, Germany, the UK, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Japan, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: The Middle East, Latin America, and Others)

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the aircraft types by application type

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at [email protected].