Market Trends of Aircraft Nacelle Systems Industry
This section covers the major market trends shaping the Aircraft Nacelle Systems Market according to our research experts:
The Commercial Aviation Segment Accounted for a Major Revenue Share in 2020
The commercial aviation segment in the aircraft nacelle systems market accounted for a major share in 2020 due to higher deliveries as compared to military and business jets. However, the commercial aircraft segment showed a decline in deliveries in 2019 and 2020 compared to 2018. The deliveries dropped due to the grounding of the 737MAX jets in 2019 and the outbreak of the COVID-19 pandemic in 2020. For the full year 2020, Boeing delivered 157 aircraft, compared to 380 and 806 in 2019 and 2018, respectively. In 2020, Airbus delivered 566 aircraft compared to 863 and 800 in 2019 and 2018, respectively. This resulted in lower demand for aircraft engines, impacting the demand for aircraft nacelle systems in 2020. Pratt & Whitney delivered 546 large commercial engines, a drop of 27% year-on-year. CFM International delivered 815 Leap engines, compared with 1,736 in 2019. Deliveries of legacy CFM56 engines fell to 157 units, down from 391 in 2019.
The situation is expected to improve in 2021 and 2022 as more vaccines are distributed across the globe. The number of domestic and international flights is expected to improve in the coming years, which will see airlines generating higher revenue and opting for new aircraft to reduce their cost of maintaining aging aircraft. The huge order backlog with Airbus and Boeing will also see higher deliveries during the latter half of the forecast period. The deliveries of new aircraft like Boeing's 777X, C919, and MC-21 during the forecast period will result in higher demand for engines and nacelles, which is expected to aid the growth of this segment in the coming years.
The Asia-Pacific Region is Expected to Generate the Highest Demand During the Forecast Period
The Asia-Pacific region is expected to witness the highest growth during the forecast period. The rapid growth in passenger traffic over the past few years has led to several orders of new aircraft from airlines in major economies in the region, such as China, India, and Japan, among others. China has an order book of more than 120 aircraft on order, Indian airlines have about 900 aircraft on order, and South Korea has over 150 aircraft on order. The planned aircraft orders and deliveries of the airlines in the region during the forecast period are expected to drive the growth of the aircraft nacelle systems market. However, the decline in passenger traffic in 2020 due to the COVD-19 pandemic has affected the delivery schedule for some of the airlines in the region.
In the military sector, the armed forces in the region are modernizing their fleet of aircraft, which will replace the aging aircraft in service to enhance their aerial capabilities. In July 2020, Boeing Defense Australia secured a USD 205 million sustainment contract for the Royal Australian Air Force's fleet of 12 P-8A maritime patrol aircraft. The six-year arrangement combines three previous contracts and covers maintenance, engineering, and logistics for the P-8A aircraft. The robust plans of the armed forces to procure new and advanced aircraft are expected to generate demand for the aircraft nacelle systems market in the coming years.
