(MENAFN- GlobeNewsWire - Nasdaq) New York, May 25, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Commercial Aircraft Engines Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" -
The commercial aircraft engines market is expected to record a CAGR of over 4% during the forecast period.
Key Highlights
The rise in global air passenger traffic is leading to a growth in the demand for new commercial aircraft, and this factor is driving the growth of the commercial aircraft engines market. The development of new medium- and small-sized airports in cities and regions across Asia-Pacific, Middle-East and Africa, etc., is propelling the growth of the regional aircraft and aircraft engines market.
Due to the rise in aviation emissions and implementation of stringent emission norms, aircraft manufacturers, aircraft engine manufacturers, and airlines are expected to adopt hybrid and electric aircraft engines in the future. In December 2019, Harbour Air and magniX successfully completed the trial flight of the world's first completely electric commercial aircraft, in Canada.
Technological innovations are significantly fueling market growth, and the development of new models is resulting in weight reduction, less noise footprints, less emissions, high thrust, reduction in maintenance operations, etc. Hybrid propulsion commercial aircraft engines are boosted by the development of 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 labeled as“maintenance free” by the company. The battery can provide information on current charge status and battery health.
However, due to the COVID 19 outbreak and low economy growth rate, the demand for commercial aircraft and commercial aircraft engines has slumped slightly. There has been a decrease in the growth rate of wide body aircraft and narrow body aircraft orders, owing to the grounding of 737 Max aircraft. This effect, however, is expected to be short lived, due to the increasing investments in the aviation industry of emerging economies and emergence of new technologies, norms and regulations for safety, etc.
Commercial Aircraft Engines Market Trends
Narrow Body Aircraft Segment is Expected to Dominate the Market
Innovations in aerodynamics, fuel efficiency, low carbon emissions, the introduction of new routes, and many other factors have tremendously propelled the market growth of narrow body aircraft. Models, such as A321 neo and A220, are capable of reducing fuel burn by 20%, as compared to 10% in early classic models. Narrow body aircraft are also being used for long haul flights, and this trend is expected to grow during the forecast period.
The increase in the demand for long haul operations from medium airports in countries, such as China and Norway, is driving the growth of the market. Airbus A321LR and Boeing 737 Max are both capable of reaching distances beyond 7,000 km. Narrow body aircraft, such as Airbus A220, are capable of performing efficiently in aviation markets with low to medium growth rates. A220 has become the preferred choice for low-cost airlines, such as Moxy, which operate in the 100-150 passenger segment. The popularity can be attributed to A220's spacious cabin and seats and 20% less burn rate over competitor aircraft, such as Embraer 190.
Aircraft manufacturers are ramping up their aircraft productions, and this is a major factor driving the growth of the commercial aircraft engines market. Airbus is planning to produce 63 A320 aircraft per month from 2021, with a significant boost from its recently established manufacturing facilities in the United States. Moreover, Boeing is expected to reach an annual production capacity of 900 commercial aircraft in 2020.
Stringent laws and regulations are also propelling the growth of the commercial aircraft engines 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 that had more than 3000 hours flight time, with new engines, by August 2020.
Asia-Pacific to Exhibit the Highest Growth Rate
The aviation industry in Asia-Pacific, 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., are strengthening the commercial engines market in the region. China may need more than 7,500 commercial aircraft by 2030, in order to cater to the need of the growing domestic air passenger traffic, primarily comprising middle-class people. In May 2020, Rolls Royce offered the Commercial Aircraft Corporation of China Limited (COMAC) to build a variant of its 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 the first 737 Max aircraft to Air China, and the production is expected to surge during the forecast period. The aviation manufacturing industry in Asia-Pacific holds a very promising future, due to the booming aviation industry, owing to factors, such as new airport development, new route operations, and low cost labor. The aforementioned factors are driving the growth of the commercial aircraft engines market in Asia-Pacific.
Commercial Aircraft Engines Industry Overview
The commercial aircraft engines market is consolidated, with major players, such as Safran SA, Rolls Royce Holdings PLC, General Electric Company, and CFM International, dominating the market. The commercial aircraft engines market is witnessing collaborations and joint development programs for creating new technologies for lighter and fuel-efficient aircraft. Global commercial aircraft engine manufacturers are also investing in the manufacturing ecosystems in regions, such as Asia-Pacific, owing to the availability of low-cost labor and the growing aviation industry. The main revenue generation strategy of market players is winning contracts and orders from aircraft manufacturers for engines and engine MRO services.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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