LONDON--(BUSINESS WIRE)--Technavio’s latest global commercial aircraft propeller systems market report highlights three key emerging trends predicted to impact market growth through 2020. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.
“As a result of rising fuel prices, turboprop engine and aircraft manufacturers are currently in a favorable situation to develop and expand the market for turboprop aircraft and engines. Therefore, the development of an improved version of turboprop engine and aircraft is a subject of interest,” said Abhay Singh, one of Technavio’s lead industry analysts for aerospace components.
“In 2015, GE Aviation and Textron teamed up to produce new turboprop aircraft and engine for the general aviation market. GE Aviation expects that by 2020, the market for these engines could be upward of USD 1 billion in annual sales. GE Aviation has plans to invest USD 1 billion in this project in the near future, USD 400 million, which will be spent to set up a new factory in Europe. The location for the engine plant will be selected in 2016,” added Abhay.
Technavio’s market research study identifies the following three emerging trends expected to propel the growth of the global commercial aircraft propeller systems market:
- Growing demand from APAC
- Growth in PMA strength
- Market consolidation
Growing demand from APAC
APAC has emerged as one of the potential markets for turboprop aircraft. Therefore, manufacturers are focusing their new product launch targeting this region. ATR has recently launched two new versions of its ATR 72-600 in APAC. The end-users for both the versions of its ATR 72-600 are from APAC: Cebu Pacific from Philippines and Air Niugini from Papua New Guinea.
ATR 72-600 consists of 568F-bladed propellers from Hamilton Sundstrand. The company provides complete propeller system solutions including blades, hubs, and digital electronic controls that incorporate aerodynamics as well as control dynamics.
Growth in PMA strength
A PMA component is an approved part that has been produced under the Federal Aviation Administration (FAA) design and production approval process. It is only since the 1950s that the FAA has granted third-party manufacturers' PMA; in the absence of which, OEMs would have had entire control over the aircraft replacement parts market. PMA parts have received significant attention in the last few years. They are being manufactured for almost every Air Transport Association (ATA) chapter (common referencing standard for aircraft parts) on aircraft, including parts of aircraft engines.
Aircraft operators continually seek cost-effective methods. PMA parts offer cost savings ranging between 30% and 50%, along with design improvements. They are less expensive compared to OEM original parts and are widely available. A PMA part manufacturer has to invest only in engineering and manufacturing costs to produce components. As the demand for new aircraft production is increasing the lead times for OEM parts, PMA providers are using this opportunity to gain market share and make their products more widely available in the market.
A trend for consolidation and restructuring in the aerospace industry has become popular worldwide. The aircraft aftermarket parts sector is one of the primary sources of income for the majority of the aerospace firms and suppliers. Thus, this trend of consolidation is also felt in the aircraft parts industry, which includes propeller manufacturers. Two major factors are responsible for this change.
First, vendors are trying to meet customer demands for broader offerings, and second, the ease of capital availability in the market. Consolidation of aircraft part manufacturers and suppliers, both in OEM and aftermarket segments has always been high. Now, with the motive of providing broader offerings, it is evident that bigger and more diversified companies can provide services that are more comprehensive to customers. Along with the growth in scale and market presence of the company, one can offer more services across the globe. Thus, the parts market consolidation is likely to increase over the forecast period.
Browse related reports:
- Global Commercial Aircraft Gas Turbine Engine Market 2015-2019
- Global Military Aerospace Engine and Engine Parts Market 2015-2019
- Global Helicopter Flight Control Systems Market 2016-2020
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