Market Trends of Aircraft Radome Industry
This section covers the major market trends shaping the Aircraft Radome Market according to our research experts:
The Commercial Aircraft Segment is Projected to Witness the Highest CAGR During the Forecast Period
In segmentation by application, the commercial aircraft segment is expected to grow with the highest CAGR during the forecast period. The growing preference for air travel over the past decade has increased the pressure on airlines to modernize and expand their fleets. Several airlines in the past few years placed orders for newer generation aircraft that are highly fuel-efficient. Though the situation has changed hugely now due to the advent of the COVID-19 pandemic, there is a huge order backlog with the aircraft OEMs, with several aircraft deliveries scheduled during the forecast period. By the end of 2020, Airbus reported a backlog of 6,998 jets while Boeing's backlog was 4,997. Though few airlines have deferred most of their aircraft deliveries, these aircraft will be delivered during the latter half of the forecast period.
Since radomes form an integral part of an aircraft, the growing demand for new aircraft is simultaneously generating demand for radome structures. For instance, in August 2019, FACC was awarded a contract to manufacture radomes for the Airbus A220 family, which has seen an increase in demand in recent years. FACC has started the delivery of the radomes in 2020 and will manufacture them for the Airbus A220 under a life-of-program contract. With the demand for new aircraft expected to recover in the coming months, the aircraft OEMs are ramping up their production rates, which have come down as a result of the pandemic. Additionally, the introduction of new aircraft models, such as Boeing 777X, Comac C919, and Irkut MC-21, may further generate demand for new aircraft radomes in the coming years.
The Asia-Pacific Region is Expected to Generate the Highest Demand for Aircraft Radomes During the Forecast Period
Currently, Asia-Pacific has the highest market share among all the regions due to higher aircraft procurement. The region's market is also expected to witness the highest CAGR during the forecast period. The growth in air passenger traffic is predominant in the region. China and India are expected to be among the biggest aviation markets in the world during the forecast period.
The airline industry in the region has shown signs of recovery in 2020, driven by the recovery in domestic traffic. As a result of a huge drop in passenger traffic in the US due to the COVID-19 pandemic, China crossed the US to become the largest commercial aviation market in 2020. On the other hand, the demand for business jets in the country is also expected to increase, driven by the growing interest in private travel from China and South-East Asian countries. Economic growth, military modernization plans, and territorial disputes are some of the factors driving the procurement of advanced military aircraft in the Asia-Pacific region. China and India are leading among the Asia-Pacific countries and are among the top five global defense spending countries.
During the forecast period, India plans to launch a major USD 1.4 billion (INR 10,500 crore) project to indigenously develop six airborne warning and control system (AWACS) aircraft. The front end of the Radar and the Identification Friend or foe (IFF) systems shall be housed in an ellipsoidal radome on top of the fuselage of the aircraft installed using pylons. Dassault is currently delivering 36 Rafale jets to India in batches. The Indian government also plans to place an order for an additional 36 jets in 2021. Other countries, like Japan, South Korea, Australia, and some of the southeast Asian countries, are modernizing their aerial capabilities by procuring newer generation aircraft with advanced features. Such developments will generate demand for aircraft radomes from this region during the forecast period.
