Worldwide Commercial Aircraft Landing Gear Industry to 2027 - Asia-Pacific is Expected to Register the Highest CAGR
DUBLIN, April 5, 2022 /PRNewswire/ -- The "Commercial Aircraft Landing Gear Industry" report has been added to ResearchAndMarkets.com's offering.
The commercial aircraft landing gear market is expected to grow from USD 16.39 billion in 2020 to USD 21.33 billion in 2026, witnessing a CAGR of more than 4% during the forecast period (2021 - 2026).
The COVID-19 pandemic resulted in a full-scale crisis, with the imposition of travel restrictions and the suspension of flights in a global effort to contain the spread of the virus. The aviation industry is in survival mode, crippled by the loss of traffic and revenues. According to the latest updates from IATA, ICAO, the Airports Council International (ACI), the UN World Tourism Organization (UNWTO), the World Trade Organization (WTO), and the International Monetary Fund (IMF), the international air passenger traffic in 2021 experienced a drop of about 40%-50% compared to the pre-COVID situation.
Airline revenue-per-kilometer (RPK) is anticipated to drop by 48% compared to the pre-COVID phase. The airlines are expected to record potential losses of USD 289 billion-USD 387 billion in gross operating revenues. Europe and Asia-Pacific are anticipated to be the worst hit in terms of international passenger traffic and revenues. This led to the cancelation of orders and the deferral of deliveries by several airlines across the world, thus, affecting the procurement aspect of the market.
Airlines are inclined toward maintaining the optimum health of their fleet and choose to procure new aircraft only as a last resort, owing to the high investment involved. With the COVID-19 pandemic severely hampering revenue sources and eroding the profit margins of the airlines, more airlines are expected to resort to MRO to maintain fleet efficiency. Furthermore, several government initiatives have been formulated to encourage airports to support various types of MRO as a strategic activity. The governments are now undertaking various holistic approaches to ensure that adequate space is allocated at various airports within the country for MRO, which may enhance commercial aircraft MRO activities, including landing gear MRO, during the forecast period.
Due to the international travel restrictions, the airline operators are more inclined toward the integration of the fleet in domestic routes. Several airline operators in the US aligned their aircraft fleet toward domestic routes in 2020. Such operational change resulted in higher take-off and landing operations as compared to international travel, supporting the business opportunities for MRO players.
Key Market Trends
The Main Landing Gear Segment Held the Largest Market Share in 2021
The main landing gear bears the whole weight of the aircraft during the first impact. Hence, the number of tires used in them is more compared to the nose landing gears. The main landing gear manufacturing involves more costs due to a higher number of parts compared to the nose landing gears. Thus, the revenues from this segment are more compared to the nose landing gears segment. Widebody aircraft and large freighter aircraft are the main revenue generators for the segment, as they require large main landing gear equipment to support the weight of the aircraft. The cost of purchasing a new landing gear, the cost for MRO, and aftermarket costs for the multi-bogey landing gear used in widebody aircraft are high. For instance, in A380, the world's largest commercial aircraft, the main landing gear consists of 20 wheels in total.
To cater to business opportunities in this highly challenging environment, industry players are engaged in long-term business agreements and Y-o-Y contracts. In April 2021, Magellan received a contract extension for the delivery of its landing gear components for Boeing 737, 767, and 777. The main landing gear assembly of the aircraft is the largest and most complex ever developed for a commercial aircraft. Thus, the cost per unit landing gear assembly of the main landing gear is high due to a larger number of subsystems involved, thus, resulting in high revenues for the segment.
Asia-Pacific is Expected to Register the Highest CAGR During the Forecast Period
The growth of the commercial aviation industry is projected to be the highest in Asia-Pacific. With a high passenger traffic growth, several airlines in the region have ordered new commercial aircraft in recent years. A major portion of commercial aircraft deliveries is expected to be in Asia-Pacific during the forecast period. Correspondingly, the demand for new commercial aircraft landing gear is also expected to be highest in Asia-Pacific in the coming years. China's commercial aviation sector made great strides in the past five years, and further improvements are expected in the coming years.
China crossed the United States to become the largest aviation market in 2020. The Chinese state-owned aerospace manufacturer, COMAC, launched the ARJ21 aircraft in 2015 and planned to make the first delivery of C919 in 2021. Liebherr LAMC Aviation Co. Ltd is the supplier of landing gear for the ARJ21 program and is home to the assembly line of C919 landing gear struts. The growing fleet size in China also generated significant demand for MRO services in the country. In 2019, India was the second-fastest growing aviation market in Asia-Pacific.
The international and domestic air passenger traffic in India more than doubled between 2010 and 2019. The increasing air passenger traffic forced some of the airlines in India to expand their fleet size. Currently, Indian airlines are operating domestic flights at around 70% of their pre-COVID levels. They are expected to reach their pre-COVID levels by 2023. Airlines in India are mostly dependent on foreign MRO players for landing gear MRO services. With the construction of new regional and international airports in the coming years and the growth in fleet size, there is a huge potential for the commercial aircraft landing gear MRO market to grow in India.
In addition to China and India, the aviation industries in several other regions are also expected to recover faster than the countries in other regions due to huge domestic demand, thereby helping the growth of the related commercial aircraft landing gear markets in the coming years. Initiatives taken by countries, like India and China, to establish indigenous manufacturing capabilities will gradually support the MRO segment within the commercial aircraft landing gear market. For instance, in October 2021, the aerospace unit of Wipro Infrastructure Engineering inaugurated a 25,000 sq ft precision manufacturing facility in Bengaluru. The facility will be used to mass manufacture aircraft landing gear components and hydraulic actuators.
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
3.1 Market Size and Forecast, Global, 2018 - 2027
3.2 Market Share by Landing Gear Type, 2021
3.3 Market Share by Aircraft Type, 2021
3.4 Market Share by Region, 2021
3.5 Structure of the Market and Key Participants
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Challenges
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2027)
5.1 Landing Gear Type
5.1.1 Main Landing Gear
5.1.2 Nose Landing Gear
5.2 Aircraft Type
5.2.1 Narrowbody
5.2.2 Widebody
5.2.3 Regional Jet
5.3 Landing Gear MRO
5.4 Geography
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Heroux-Devtek Inc.
6.2.2 CIRCOR International Inc.
6.2.3 Magellan Aerospace Corp.
6.2.4 Triumph Group Inc.
6.2.5 Safran SA
6.2.6 Raytheon Technologies Corporation
6.2.7 Sumitomo Precision Products Co. Ltd
6.2.8 AAR Corp.
6.2.9 Liebherr-International Deutschland GmbH
6.2.10 Honeywell International Inc.
6.2.11 Revima Group
6.2.12 Meggitt PLC
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/c9xs5q
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