Market Trends of America Aircraft Engines Industry
Turbofan Segment is Expected to Grow with the Highest CAGR During the Forecast Period
- The turbofan segment accounts for a significant market share and is expected to witness the highest CAGR during the forecast period. This is due to the orders and deliveries of major turbofan aircraft programs across commercial, military, and general aviation sectors. The military modernization plans in Latin America and North America regions, as well as fleet expansion plans of airlines in the region, are majorly driving the segment's growth.
- As countries strive to bolster their military capabilities, they allocate substantial resources to acquiring state-of-the-art turbine engines that provide superior performance, reliability, and versatility. For instance, in June 2023, TEISAS and GE Aerospace agreed to extend the license of TEISAS to provide F110 depot-level maintenance services for several countries operating F16 and F15 fighter aircraft. The collaboration will further strengthen the relationship between TEI and its long-term partner, GE Aerospace, in the field of military engine services. TEI and GE Aerospace have successfully collaborated for many years and are now poised to play a critical role in supporting F110 engine support globally.
- Additionally, the stringent regulatory and compliance standards imposed on engines create a unique barrier to entry for other segments. These engines must meet exceptionally rigorous criteria, ensuring they can operate in extreme conditions, deliver exceptional power, and maintain strict security measures.
- Meeting these requirements necessitates substantial research, development, and manufacturing investments, which often only established engine manufacturers can undertake. Such investments in turbofan engine technology are anticipated to bolster the segment's growth during the forecast period.
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North America to Continue Market Share Domination
- The North American region currently dominates the market and is expected to continue its domination during the forecast period. This is mainly due to increasing passenger traffic in the US and Canada. The increasing passenger traffic is propelling the airlines' fleet and route expansion plans. Moreover, the huge budgets of the United States toward the military are enabling the procurement of new helicopters by the US military. This may also drive the engine suppliers to produce new helicopter engines for these helicopters.
- The increasing demand for military helicopters and private helicopter fleets in the United States and Canada is anticipated to accelerate the growth of the aircraft engines market in the region. For instance, in May 2023, GE Aerospace and NAVAIR were awarded a contract worth USD 683.7 million for three additional batches of T408 engines that will power the Sikorsky CH-53K King StallionTM, the US Marine Corps' heavy-lift helicopter.
- These engines' final assembly will occur at the GE Aerospace Lynn, Massachusetts, facility, and delivery is anticipated between 2024 and 2027. Similarly, in January 2023, Yellowhead Helicopters and Safran Helicopter Engines signed a contract to support Arriel in powering Arriel's AS350 and H125 fleets. A long-term Maintenance, Repair, and Overhaul (MRO) and services agreement covering 21 engines is formalized by this Support-By-the-Hour (SBH®) contract.
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