Aircraft Exhaust Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The aircraft exhaust systems market is poised to register a CAGR of over 5% during the forecast period, 2020-2025. As exhaust systems are necessary to operate continuously in extreme temperatures, they are made of advanced metals and alloys, with a low weight profile and high fusion point, in order to withstand the extreme operating conditions.Key Highlights
Aviation is a major source of greenhouse gas emission, and is, hence, being subjected to global scrutiny from the environmental protection agencies. This has led to the imposition of stringent emission norms, to curb environmental degradation caused by the combustion of aviation fuel. In March 2017, the International Civil Aviation Organization (ICAO) adopted a new aircraft CO2 emission standard, to be enforced on the new aircraft type designs, from 2020, and on the aircraft type designs already in production. The regulation also states the provisions for engine modification, to ensure full compliance by 2028. The aircraft combustion cycle is directly influenced by the engine design, including subsystems, such as exhaust systems. The stringent emission norms are anticipated to drive the technological innovations in the design of fuel-efficient engines with sophisticated exhaust systems.
In an effort to curb the emission levels, R&D initiatives are being undertaken to develop an electric powertrain for aviation. In November 2017, Rolls-Royce partnered with Siemens and Airbus to develop a hybrid aircraft, on which one of the four gas-turbine engines would be purely electric. The model is scheduled to undergo testing in 2020. Besides, Rolls-Royce is also developing a new power gearbox that can comparatively enhance the fuel efficiency of the large turbofan engines by 25%. Hence, the exhaust system would also be aptly modified to fulfill the desired performance criteria. Such efforts are envisaged to enhance the business prospects of the aircraft exhaust systems, market during the forecast period.The Asia-Pacific Region to Generate the Highest Demand during the Forecast Period
The Asia-Pacific region is anticipated to generate the highest demand for the aircraft exhaust systems market, during the forecast period. This demand can be attributed to the increasing orders of new aircraft, propelled by ever-growing passenger traffic in the region. During 2013-2018, the proliferation of air tourism drove the passenger traffic in Vietnam, India, Thailand, China, and Indonesia, by 130.30%, 117.01%, 76.75%, 73.31%, and 40.91%, respectively. The International Air Transport Association (IATA) has projected that China will eventually become the world’s largest aviation market by the mid-2020s. By 2030, India will usurp the title of the third-largest aviation market and Indonesia will develop to become the fourth-largest aviation market. The huge market potential has encouraged the aircraft OEMs to devise strategic expansion plans, to increase their penetration into the region, which, in turn, will support the growth of the aircraft exhaust systems market.
Furthermore, the Asia-Pacific region registered the second-largest military expenditure across the world. The tense geopolitical scenario prevalent in the region is fostering the initiation of fleet modernization programs, for enhancing the aerial defense capabilities of the countries. Such developments are anticipated to drive the market for aircraft exhaust systems, during the forecast period.Competitive Landscape
The aircraft exhaust systems market is characterized by the presence of a limited number of dominant vendors, operating at the global level. The market is highly competitive, with the players competing to gain the largest market share. Constraints associated with the design of aircraft exhaust systems and cancellation of aircraft orders, due to macroeconomic factors, impede the growth of the market. It is crucial for the vendors to provide advanced systems to aircraft OEMs, to survive in an intensely competitive market environment. The dominant market players include GKN Aerospace (Melrose Industries PLC), Triumph Group Inc., Magellan Aerospace Corp., Rolls-Royce Holding PLC, and Esterline Technologies Corporation (Transdigm Group Inc.). These players compete, mainly based on their in-house manufacturing capabilities, their global footprint network, their product offerings, their R&D investments, and a strong client base. The increase in the aircraft procurement rate, due to the rapid increase in air passenger traffic, is expected to fuel the market growth during the forecast period. The competitive environment in the market is likely to further intensify, due to an increase in the product/service extensions and technological innovations.Additional Benefits:
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