Market Trends of Commercial Aircraft Landing Gear MRO Industry
Increasing Air Passenger Traffic May Propel The Market Growth
- In 2021, air passenger traffic gradually increased in several parts of the world, which can be attributed to the robust vaccine programs in various regions. As a result, governments have eased air travel regulations, leading to a rise in the total number of air passengers. This increase in air traffic will result in a higher demand for MRO landing gears, as aircraft deliveries are expected to remain slow and inadequate to keep up with the demand growth.
- The retirement of larger aircraft that are currently in service to reduce operating costs further worsens the situation. According to the International Air Transport Association (IATA), the total number of air passengers is expected to almost double over the next two decades, providing huge opportunities for MRO providers in the coming years.
- The aviation sector is experiencing growth due to increasing investment and an increasing number of airports, which create a demand for new aircraft, thus driving the market's growth. In 2021, Boeing and Airbus showcased recovery in aircraft deliveries after the pandemic. Boeing delivered 340 commercial aircraft in 2021 compared to 157 in 2020, while Airbus delivered 611 aircraft, up from 566 in 2020. The demand for new aircraft will result in a higher demand for landing gear MRO services.
- The demand for narrow-body aircraft is expected to recover faster than wide-body aircraft as domestic demand is expected to return to pre-COVID-19 levels earlier than the international passenger demand. The return of the 737 MAX into service will help the growth of the narrow-body subsegment, which is the most dominant in the commercial aviation segment.
- Aircraft OEMs are increasing the production rates of aircraft above pre-pandemic levels due to the growth in orders. Airbus plans to raise the output of its A320 family to 65 jets per month by 2023 and is considering rates as high as 75 per month by 2025. It reached 60 per month in 2019 before dropping to 40 per month in 2020 due to the COVID-19 pandemic. Furthermore, Boeing published a Commercial Market Outlook 2022, forecasting that the world's in-service commercial fleet would nearly double over the next 20 years. The aircraft fleet would grow from 25,900 aircraft in 2019 to 47,080 by 2041, creating a demand for 41,170 new aircraft during 2022-2041. The report stated that China would require 8,485 new aircraft by 2041.
- Thus, an increasing number of commercial aircraft deliveries and growing investment from airlines will drive the growth of the MRO landing gear market in the coming years.
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United States Held the Largest Market Share
- The aviation industry in the United States has experienced significant changes due to the COVID-19 pandemic. In 2020, the total number of passengers boarding flights in the country decreased by 61%, and the number of flights operated by airlines dropped by 49% compared to 2019, according to data from Transportation Security.
- However, the situation gradually improved. According to the Bureau of Transportation Statistics, in May 2022, US airlines carried 71.2 million systemwide passengers, down 0.7% from April. This is an indication that demand for air travel has started to rebound, and airlines are responding by expanding their fleet sizes and adding more international flights.
- In December 2022, United Airlines placed a massive order for 100 Boeing 787 Dreamliners with the option to purchase 100 more. This is a significant boost for Boeing and United Airlines, one of its largest customers, and comes as United returns to profitability after the pandemic's travel slump. The new planes will replace older, less fuel-efficient aircraft and enable the airline to fly longer routes.
- The increase in air logistics industry demand has also resulted in logistics companies increasing their fleet sizes. In 2020, air cargo demand in the United States rose, prompting air cargo carriers to order new aircraft to expand their fleets. For example, DHL Express increased its firm orders for 777Fs from Boeing by eight units in January 2021 and added options for four more.
- Considering the rise in passenger traffic, commercial segment procurement, and increasing demand for air logistics services, the aviation industry in the United States is poised for growth in the coming year.
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