Report : Aircraft Turbine Fuel System Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type [Hydromechanical, Full Authority Digital Engine Control (FADEC), and Hydromechanical/Electronics] and Application (Commercial Aircraft, Military Aircraft, and General Aviation Aircraft)
According to the new research report titled “Aircraft Turbine Fuel System Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 3,303.73 million by 2028, registering a CAGR of 6.4% from 2021 to 2028.
As the manufacturing of commercial and military aircraft is witnessing significant growth, the spending for MRO operations for military and commercial aircraft has risen significantly. For instance, in March 2021, Sichuan Airlines awarded a five-year MRO services contract to MTU Maintenance for its fleet of A319, A320, and A321 aircraft. In April 2021, IndiGo Airlines extended its MRO contract with Air France Industries KLM Engineering & Maintenance for its A320 fleet. In November 2020, SupplyCore and Noble Supply & Logistics were jointly awarded contract worth US$ 90 million by Department of Defense of US for MRO services of Air Force, Marine Corps, U.S. Army, Navy, and Coast Guard air fleet. In November 2020, Boeing was awarded MRO contract of worth US$ 9.8 billion for Saudi Arabia’s F-15 fleet. In September 2020, RUAG was awarded MRO contract for US Navy’s F/A-18 Hornet fleet. The MRO operations comprises periodic inspection, defect rectification, overhaul, replacement, and the embodiment of modification of aircraft for continuous airworthiness of an aircraft and its parts. The aircraft turbine fuel systems are periodically serviced as well as replaced in aircraft for optimal functioning of aircraft. Thus, the increasing MRO spending for military and commercial aircraft is subsequently driving the growth of the aircraft turbine fuel system market.
The aircraft turbine fuel system market is segmented on the bases of type, application, and geography. Based on type, the market is segmented into hydromechanical, full authority digital engine control (FADEC), and hydromechanical/electronics. In 2020, the full authority digital engine control (FADEC) segment accounted for the significant market share. In terms of application, the global aircraft turbine fuel system market is segmented into commercial aircraft, military aircraft, and general aviation aircraft. In 2020, the commercial aircraft segment accounted for the significant share in the market. Geographically, the global aircraft turbine fuel system market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, the North America accounted for the significant share in the market.
Impact of COVID-19 Pandemic on Aircraft Turbine Fuel System Market
The COVID-19 outbreak is adversely affecting the world and is continuing to shatter several countries. Until the outbreak, the aerospace industry was experiencing substantial growth in terms of production, despite huge backlogs from the aircraft manufacturers. Also, the global aviation industry witnessed a significant rise in the number of passengers count and increase in aircraft procurement. Unfortunately, the COVID-19 outbreak have decimated the demand for aircraft globally. The decline in production volumes hampered the businesses of various component manufacturers and associated technologies. Thus, the businesses of the aircraft turbine fuel system market players have been severely affected by destabilization in aircraft production. During the outbreak, the entire commercial aviation industry came to a halt with minimal resources to foresee the future. Several production units in the US, France, Russia, and China were temporarily paused to adhere to the government rules regarding the lockdown and physical distancing. The aircraft manufacturers witnessed 30%–50% reduction in demand for most of the aircraft models, especially, commercial aircraft models. The lower aircraft production and assembly declined the demand for aircraft turbine fuel system, resulting in lower revenue generation. This factor restrained the aircraft turbine fuel system market. Moreover, the strategy to retire various wide body jets and narrow body jets by different airlines across the globe with an objective to cut down operational costs is hindering the aviation aftermarket industry. Also, this is expected to l the demand for turbine fuel system in the coming years. Hence, the negative impact on aviation aftermarket also affected the businesses of numerous aircraft turbine fuel system market players.
Key Findings of Study:
The global aircraft turbine fuel system market is segmented into five major regions—North America, Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South America (SAM). In 2020, the North America segment accounted for a significant share in the market. North America comprises significantly large number of aircraft (commercial, military, and general aviation) manufacturers as well as numerous components or part suppliers. The presence of both in the region, especially in the US, boosts the aircraft turbine fuel system market. During the period before COVID-19 outbreak, aircraft manufacturers in the region were experiencing a huge volumes of orders, which led the manufacturers to pressurize their component suppliers including different types of aircraft turbine fuel systems. North America houses the substantial number of Full Authority Digital Engine Control (FADEC) developers that facilitates the aircraft manufacturers in the region to integrate the same on a large number of aircraft fleet. These factors would propel the growth of the aircraft turbine fuel system market in the region in the coming years.
Owing to the incidents involving two Boeing 737 Max accidents following the recall of all Boeing 737 Max aircraft and the massive COVID-19 outbreak resulting in a drastic decline in aircraft demand among the commercial aircraft fleet, the production volume of commercial aircraft dropped drastically that hampered the growth of the aircraft turbine fuel system market. However, the general aviation aircraft production and military aircraft production sector remained active. This factor led the aircraft turbine fuel system market players to supply their products, thereby generating revenues, which supported the growth of the market.