LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global commercial aircraft gas turbine engine market to grow at a CAGR of more than 5% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global commercial aircraft gas turbine engine market for 2017-2021. The report also lists narrow-body, wide- body and regional jets gas turbine engine, as the three major application segments, of which the narrow body aircraft gas turbine engines dominated the market with more than 81% of the market share in 2016.
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global commercial aircraft gas turbine engine market:
- Advances in existing gas turbine engine technology
- Preference for procurement of new aircraft
- Growing investments in aircraft and engine leasing activities
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Advances in existing gas turbine engine technology
The primary intent of aircraft operators/airlines is to ensure an operational engine that can reflect increased fuel efficiency while lowering the overall cost incurred during operation or maintenance. Aircraft OEMs, in collaboration with engine manufacturers, have been extensively integrating improved engines into their new aircraft designs to ensure enhanced performance and range of aircraft. This also helps in ensuring the viability of the aircraft in the highly competitive and rapidly evolving aerospace industry. For instance, the growing adoption of Pratt & Whitney's new generation GTF engine technology has been progressing the aerospace industry's vision of low-carbon emissions.
Preference for procurement of new aircraft
The demand for air travel is likely to double over the next 20 years due to the rapid growth in air travel in key countries like China, India, Indonesia, Russia, and the US. Technavio anticipates that global air travel will register a CAGR of 3.67% during the forecast period.
“The year-over-year increase in air traffic has made procurement of new aircraft essential for airlines to facilitate the growing demand. The increasing order books for new generation fuel-efficient aircraft will remain a major propelling factor for the growth of the global commercial aircraft gas turbine engine market during the forecast period,” says Avimanyu Basu, a lead analyst at Technavio for research on aerospace products.
Growing investments in aircraft and engine leasing activities
A new engine can cost around one-third of the total aircraft cost. Therefore, the lack of adequate funds for procuring new aircraft can simultaneously hinder the adoption of new engines. Since airlines mostly operate in low-profit margins (merged profits), it becomes challenging for them to pay significant amounts of cash for the purchase of fleets or new engines. However, with the evolving dynamics of aircraft or engine leasing businesses, airlines can access a comfortable option for adding new aircraft or new engines in their fleets through leasing arrangements from aircraft financing entities. Such a model not only provides financial relief to airlines but also allows them to avail temporary access to an increased capacity.
“A rise in the orders for leading edge aviation propulsion engines would simultaneously propel the global market growth for commercial aircraft gas turbine engines during the forecast period,” says Avimanyu.
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