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Aircraft Milled Parts Market Size, Share, Trend & Forecast Analysis (2020-2025) | Covid-19 Impact Analysis
Aircraft Milled Parts Market is Segmented 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).
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.
The aircraft milled parts market is projected to grow at a healthy rate over the next five years 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$ 252 billion of passenger revenues, an equivalent of a 38% loss in RPKs in 2020 from 2019. Complete lockdown of many countries due to the pandemic has forced several airlines to cut their flying capacity due to grounded fleets and operate at a reduced capacity 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 to the cost of grounding of their huge aircraft fleets. Thus, the impact is disrupting the entire supply chain of industry with the 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 OEM, Boeing, extending the grounding of B737 Max, leading to their stock fall out up to 70% roughly during March 2020. The subsequent halt in production and assembly plants of Airbus in Europe and the USA and Boeing in the USA due to the outbreak has also restricted the growth of the industry in 2020.
The overall impact of the outbreak is yet unpredictable; however, currently, it is anticipated to be graver than the SARS (2002-2003) and the MERS (2015). And yet the industry is optimistic about its recovery as it did during SARS (2002-2003).
The demand for milled parts in the industry is largely dependent on the overall health of the aviation industry. The following factors may lead to a speedy recovery of the market.
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 owing 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.
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. The dominance is majorly due to a large number of applications of milled parts in the airframe where most of structures are large in size. The aircraft engine segment is projected to witness the highest growth in the coming five years, mainly driven by a handful of engines, such as LEAP, GE9X, GEnx, PW F135, PW1000G, and Rolls-Royce Trent XWB and 7000.
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-growing 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.
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 remain the growth engine of the North American 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 various 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 left the worst impact in the region’s market with the temporary shutdown of Airbus’ A220 and A380 production facility in Alabama, and Boeing’s B787 plant in South Carolina and Washington.
Asia-Pacific is expected to witness the highest growth during the forecast period, driven by upcoming indigenous aircraft program i.e. COMAC C919 and Mitsubishi SpaceJet, and opening of assembly plant 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 along with their offset policy and development of indigenous military aircraft such as Tejas and J20.
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
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