GLOBAL AEROSPACE 4.0 MARKET SIZE (2024 - 2030)

The estimated size of the global Aerospace 4.0 Market is projected to increase from USD 11.78million in 2023 to USD 19.59 billion by 2030, experiencing a robust Compound Annual Growth Rate (CAGR) of 7.54% over the period from 2024 to 2030. The primary driver stimulating this growth trajectory is the extensive commercial utilization of drones across various industries.

Industry Overview:

Aerospace 4.0 essentially encompasses the integration of emerging digital technologies into the aerospace sector. These technologies include but are not limited to Big Data, 3D printing, mobile and edge computing, augmented reality, machine learning, and the Internet of Things. Historically, aerospace companies encountered challenges in autonomously and promptly transmitting data throughout the product lifecycle, encompassing design, maintenance, manufacturing processes, and in-service data. Present-day digital technologies ensure real-time accessibility and adaptability of product lifecycle data, revolutionizing operations within the aerospace industry.

Remaining competitive in the global market necessitates aerospace companies to continually enhance their products in terms of speed, cost-efficiency, and quality. Embracing the digital tools offered by Aerospace 4.0 is imperative for achieving these objectives. By adopting a digital-centric approach, organizations can circumvent past challenges and transition towards a more efficient operational model that meets deadlines and satisfies customer demands. The tools underpinning Aerospace 4.0 facilitate cost reduction, quality enhancement, inventory minimization, productivity amplification, waste reduction, accelerated time to market, and increased opportunities for introducing new products.

COVID-19 Impact on the Aerospace 4.0 Market:

The emergence of the COVID-19 pandemic has exerted a detrimental influence on the aerospace market during the specified period. While pandemics like COVID-19 are fortunately infrequent, their impact on the aerospace industry, particularly for small-to-midsize suppliers, is profound. The ongoing COVID-19 crisis exacerbates an already challenged supplier landscape, particularly in the North American market, which is burdened by the Boeing 737 Max situation. This has resulted in reduced demand, supply disruptions, financial strain, and workforce impairment, culminating in one of the most significant global shocks in the industry's history.

With the crisis unfolding and nations implementing shutdown measures, the prospects for economic recovery are uncertain, with a rapid rebound becoming increasingly improbable. The reverberations of COVID-19 are adversely affecting global GDP and pose significant challenges to the revenue, earnings before interest and taxes (EBIT), and cash flow of aerospace OEMs and suppliers.

MARKET DRIVERS:

The expansion of commercial drone usage propels market growth.

The widening authorization for commercial drone usage serves as a catalyst for market expansion, offering aircraft manufacturers a more extensive revenue stream. Under Part 107 regulations, drone pilots are permitted to conduct operations at night, over populated areas, and involving moving vehicles without necessitating a waiver, provided they adhere to specified requirements. The relaxation of regulations is anticipated to bolster the market for commercial drones in the forecast period. Numerous countries are following the lead of the FAA in deregulating commercial drone operations, both domestically and internationally. Coupled with the introduction of reliable and enhanced drones, particularly tailored for commercial purposes, such as those manufactured by DJI, a Chinese company, and the increasing public adoption of commercial drones, significant growth is expected in the drone segment of the aerospace market.

MARKET RESTRAINTS:

An upsurge in bankruptcy filings hampers market growth.

The escalation in bankruptcy cases among budget airlines poses a hindrance to the expansion of the aerospace market. Instances such as the closure of Wow Air, an Icelandic budget airline, in March 2019, due to the inability to secure adequate funding, highlight the vulnerability of airlines operating on narrow profit margins. Factors contributing to these closures include fluctuating fuel costs, overcapacity, and intense fare competition across Europe, resulting in the shutdown of several airlines like Primera Air, SkyWork, and VLM.

Aerospace 4.0 Market - By Type:

• Commercial Aircraft
• Aircraft Maintenance, Repair, and Overhauling Services
• Aerospace Support and Auxiliary Equipment

Segmented by type, the commercial aircraft sector historically held the largest share within the aerospace market, comprising 69.7% of the total in 2021. Projections suggest it will maintain its position as the fastest-growing segment, with a projected Compound Annual Growth Rate (CAGR) of 8.4%.

Further segmentation reveals that within the commercial aircraft sector, passenger aircraft dominated with a 53.5% share in 2021. Looking ahead, the industrial gliders and drones segment is expected to experience the most rapid growth, with a projected CAGR of 28.2%. Similarly, in the realm of aircraft maintenance, repair, and overhauling services, the business aircraft MRO services segment constituted the largest portion, accounting for 62.9% of the market in 2021. Forecasts indicate that the MRO services for industrial gliders and drones will emerge as the fastest-growing segment within this category, with an anticipated CAGR of 49.9%.

Aerospace 4.0 Market - By Size:

• Narrow
• Wide
• Others

In terms of size segmentation, narrow-body aircraft constituted the largest share of the aerospace market at 71.5% in 2021. Projections indicate that this segment will continue to lead in growth, with a forecasted CAGR of 8.4%. Both narrow and wide-body aircraft are expected to see growth during the forecast period.

Aerospace 4.0 Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

Geographically, North America asserted dominance in aerospace component manufacturing, capturing over 51% of revenue in 2021. This was attributed to the presence of key aircraft component manufacturers and a well-established aircraft manufacturing industry. The region is expected to witness further growth due to increasing demand for next-generation aircraft. The U.S. market, in particular, is marked by rising demand for landing gear and support components, driven by the trend of upgrading older systems. Additionally, the growing demand for fixed-wing aircraft in the U.S. is anticipated to fuel market growth in the forecast period.

Asia-Pacific is poised to be the fastest-growing market for aerospace component manufacturing, with a projected CAGR of 7.3%. This growth is fueled by the rapid expansion of the aviation industry and the development of the Maintenance, Repair, and Overhaul (MRO) sector in the region, which is expected to positively impact regional market growth. Europe, with its balanced investments in aerospace and defense R&D, is also expected to experience growth in the aircraft component manufacturing industry. The sector benefits from a modern research approach, and the rapid expansion of cabin interior manufacturing is forecasted to drive market growth in the region.

Aerospace 4.0 Market Share by Company: Airbus

1. Boeing Company
2. United Technologies Corporation
3. General Electric Company
4. Safran S.A.
5. General Dynamics Corp.
6. Honeywell International
7. Rolls Royce Holdings plc
8. Embraer S.A.
9. Northrop Grumman Corp.
10. BrahMos Aerospace

Recent Developments in the Global Aerospace 4.0 Market:

• Agreement - In January 2021, Teijin Limited forged an agreement with Boeing for the supply of unidirectional pre-impregnated tape (TENAX TPUD). This strategic move aimed to bolster the company's medium-term growth prospects in the aircraft business.