Aircraft Engine Market Trends

Market Driver - Increasing Global Air Passenger Traffic

According to estimates from various industry sources, the number of passengers flying every year is projected to double over the next 20 years, reaching an estimated 8.2 billion by 2037. Globalization is also acting as a driver as more companies set up offices and conduct business across borders which necessitates intercontinental travel.

All these favorable trends are generating huge opportunities for aircraft and aircraft engine manufacturers to expand their fleets to match this capacity expansion by airlines. Sustained growth in passenger numbers means airlines need to acquire new fuel-efficient aircraft fitted with latest generation engines to replace aging planes as well as expand their networks to cater to new markets.

This stable increase in air traffic is expected to drive significant demand for new commercial aircraft engines across all regions over the next two decades. This will continue to boost growth of the global aircraft engine market.

Market Driver - Rising Investments in Fleet Modernization and Lightweight Aircraft Engine Development

In response to rising environmental regulations aimed at curbing carbon emissions, aircraft manufacturers have been making big investments in technology innovation. Players in the aircraft engine market focus on developing newer generation aircraft engines that burn less fuel and emit lesser greenhouse gases.

A major area of focus has been on developing lightweight aircraft structures and engines through usage of advanced composite materials and design optimizations. Similarly, aircraft engine makers are striving to build advanced lightweight engines with fewer parts through coordinated investments in engineering simulation tools, advanced alloys and additive manufacturing.

Fleet modernization offers dual benefits of meeting environmental norms as well as improving the bottom-line economics for carriers. This is spurring healthy demand for latest engine technologies from airlines looking to green their operations. Original equipment manufacturers are actively engaged in product development activities to capitalize on this upcoming replacement and modernization cycle.

Market Challenge - High maintenance costs associated with aircraft engines

One of the major challenges in the aircraft engine market is the high maintenance costs associated with aircraft engines. Aircraft engines are complex machines that require regular maintenance checks and overhauls to ensure optimum performance and safety. Engine parts experience high stresses and wear and tear due to factors like exposure to extreme climate conditions, vibration, heat and pressure during operation.

Engine overhaul processes require the engine to be removed from the aircraft as well, resulting in aircraft downtime. Additionally, unexpected engine failures also contribute to unplanned maintenance costs. With labor and material costs being high, aircraft engine maintenance poses a huge financial burden for airlines.

According to estimates, maintenance, repair and overhaul expenses account for over 20% of total operating costs for many airlines. This remains a major challenge for the sustainment of profitable operations in the aircraft engine market.

Market Opportunity - Adoption of 3D-printed Parts in Engine Manufacturing

One of the key opportunities for the aircraft engine market is the increasing adoption of 3D-printed parts in engine manufacturing and maintenance. 3D printing or additive manufacturing allows the complex internal passages, chambers and components of an aircraft engine to be produced with precision directly from CAD files without relying on labor-intensive machining.

Aircraft engine manufacturers are now actively exploring the use of 3D printing to produce fuel nozzles, turbine blades, combustor parts etc. directly at shop floors. Use of 3D printed parts is gaining popularity in engine maintenance as well, as it facilitates on-demand manufacture of replacements for high-wear components. This helps minimize aircraft downtime and delays. The customizable nature of 3D printing also supports build-to-print business models.

Wider adoption of 3D printed parts offers opportunities to optimize engine designs, reduce production cycles and costs as well as provide a boost to the aftermarket services. It has potential to be a major game changer for the aircraft engine market in the coming years.