|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The Aircraft Nacelle Systems Market was valued at about USD 2.5 billion in 2020, and it is projected to grow to approximately USD 4.4 billion in 2026 with a CAGR of approximately 7.5% during the forecast period (2021-2026).
The aircraft nacelle systems market witnessed a significant decline in 2020 due to the COVID-19 pandemic as the overall aircraft deliveries decreased greatly compared to the previous year. Aircraft OEMs reduced their production rate in 2020 and 2021, which will hamper the aircraft nacelle systems market. However, with the distribution of vaccines around the world, air passenger traffic is expected to return to pre-COVID levels by 2023, which is likely to result in higher aircraft deliveries in the latter half of the forecast period.
Growing demand for business jets and military aircraft will support the growth of the aircraft nacelle systems market during the initial half of the forecast period, as both these sectors have experienced less impact due to the COVID pandemic.
The introduction of advanced technologies like additive manufacturing in the production of nacelle systems and their components are expected to lower the manufacturing cost and decrease the weight of aircraft due to the reduction of smaller parts. Additionally, the development of new engines for future aircraft programs will generate the need for new aircraft nacelle systems.
Scope of the Report
Aircraft engine nacelle is an engine housing structure in an aircraft. The market study includes various types of parts and components integrated into the design of aircraft nacelle systems like engine cowling, fan cowl, inlet cowl, thrust reverser, pylon, and exhaust system. The market is segmented on application into commercial aviation, military aviation, and general aviation. By engine type, the market is segmented into turbofan and turboprop. The report also covers the market size and forecasts for the market in major countries across different regions. The market sizing and forecasts have been provided in value (USD billion). The study excludes engine housing equipment onboard rotorcraft.
Key Market Trends
The Commercial Aviation Segment Accounted for a Major Revenue Share in 2020
The commercial aviation segment in the aircraft nacelle systems market accounted for a major share in 2020 due to higher deliveries as compared to military and business jets. However, the commercial aircraft segment showed a decline in deliveries in 2019 and 2020 compared to 2018. The deliveries dropped due to the grounding of the 737MAX jets in 2019 and the outbreak of the COVID-19 pandemic in 2020. For the full year 2020, Boeing delivered 157 aircraft, compared to 380 and 806 in 2019 and 2018, respectively. In 2020, Airbus delivered 566 aircraft compared to 863 and 800 in 2019 and 2018, respectively. This resulted in lower demand for aircraft engines, impacting the demand for aircraft nacelle systems in 2020. Pratt & Whitney delivered 546 large commercial engines, a drop of 27% year-on-year. CFM International delivered 815 Leap engines, compared with 1,736 in 2019. Deliveries of legacy CFM56 engines fell to 157 units, down from 391 in 2019.
The situation is expected to improve in 2021 and 2022 as more vaccines are distributed across the globe. The number of domestic and international flights is expected to improve in the coming years, which will see airlines generating higher revenue and opting for new aircraft to reduce their cost of maintaining aging aircraft. The huge order backlog with Airbus and Boeing will also see higher deliveries during the latter half of the forecast period. The deliveries of new aircraft like Boeing’s 777X, C919, and MC-21 during the forecast period will result in higher demand for engines and nacelles, which is expected to aid the growth of this segment in the coming years.
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The Asia-Pacific Region is Expected to Generate the Highest Demand During the Forecast Period
The Asia-Pacific region is expected to witness the highest growth during the forecast period. The rapid growth in passenger traffic over the past few years has led to several orders of new aircraft from airlines in major economies in the region, such as China, India, and Japan, among others. China has an order book of more than 120 aircraft on order, Indian airlines have about 900 aircraft on order, and South Korea has over 150 aircraft on order. The planned aircraft orders and deliveries of the airlines in the region during the forecast period are expected to drive the growth of the aircraft nacelle systems market. However, the decline in passenger traffic in 2020 due to the COVD-19 pandemic has affected the delivery schedule for some of the airlines in the region.
In the military sector, the armed forces in the region are modernizing their fleet of aircraft, which will replace the aging aircraft in service to enhance their aerial capabilities. In July 2020, Boeing Defense Australia secured a USD 205 million sustainment contract for the Royal Australian Air Force’s fleet of 12 P-8A maritime patrol aircraft. The six-year arrangement combines three previous contracts and covers maintenance, engineering, and logistics for the P-8A aircraft. The robust plans of the armed forces to procure new and advanced aircraft are expected to generate demand for the aircraft nacelle systems market in the coming years.
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The aircraft nacelle systems market is highly competitive, with a majority share in terms of revenue being held by established global aerospace companies. Some prominent players in the aircraft nacelle systems market include Raytheon Technologies Corporation, Safran SA, General Electric Company, and Spirit AeroSystems Inc. These companies are majorly into the manufacturing of engine nacelles for major aircraft programs of Airbus SE, The Boeing Company, Embraer SA, Dassault Aviation SA, etc. There are also many component providers in the market who support the nacelle manufacturers like Spirit AeroSystems Inc., Triumph Group Inc., Aernnova Aerospace SA, Barnes Group Inc., and Leonardo SpA.
The major players are partnering with the aircraft engine providers to increase their market dominance. For instance, in November 2020, Collins Aerospace Systems signed an agreement with Boom Supersonic to provide nacelles for the planned Overture, the supersonic airliner under development. Under the contract, the company will design, produce, and deliver inlet, nacelle, and exhaust systems for the aircraft. Additionally, the engine providers are moving towards electric architecture and the use of 3D printing technology to develop fuel-efficient engines, which will simultaneously generate demand for new lightweight nacelle structures.
In November 2020, Collins Aerospace Systems signed a collaboration agreement with Boom Supersonic to advance nacelle technology on Boom’s forthcoming flagship supersonic airliner, Overture. Under the contract, the company will design, produce, and deliver inlet, nacelle, and exhaust systems for the aircraft.
In June 2020, Airbus announced that the company canceled its plans to develop and manufacture nacelle for A320neos powered by Pratt & Whitney PW1100G turbofans. However, the company plans to continue with its plan to manufacture nacelles for A320neos powered by CFM International Leap-1As. The plans have been scrapped due to the effect of the COVID-19 pandemic on the company's revenues.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD billion)
5.1.1 Commercial Aviation
5.1.2 Military Aviation
5.1.3 Business Jets
5.2 Engine Type
5.3.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.3.4 Latin America
18.104.22.168 Rest of Latin America
5.3.5 Middle East & Africa
22.214.171.124 Saudi Arabia
126.96.36.199 United Arab Emirates
188.8.131.52 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Raytheon Technologies Corporation
6.2.2 Safran SA
6.2.3 General Electric Company
6.2.4 Leonardo SpA
6.2.5 GKN Aerospace
6.2.6 CTRM Sdn Bhd
6.2.7 The NORDAM Group LLC
6.2.8 Spirit AeroSystems Inc.
6.2.9 Aernnova Aerospace SA
6.2.10 Triumph Group Inc.
6.2.11 Barnes Group Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Aircraft Nacelle Systems Market market is studied from 2018 - 2026.
What is the growth rate of Aircraft Nacelle Systems Market?
The Aircraft Nacelle Systems Market is growing at a CAGR of 7.5% over the next 5 years.
What is Aircraft Nacelle Systems Market size in 2018?
The Aircraft Nacelle Systems Market is valued at 2 Billion USD in 2018.
What is Aircraft Nacelle Systems Market size in 2026?
The Aircraft Nacelle Systems Market is valued at 4 Billion USD in 2026.
Which region has highest growth rate in Aircraft Nacelle Systems Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Aircraft Nacelle Systems Market?
North America holds highest share in 2020.
Who are the key players in Aircraft Nacelle Systems Market?
Safran SA, General Electric Company, Raytheon Technologies Corporation, Leonardo S.p.A., Spirit AeroSystems, Inc. are the major companies operating in Aircraft Nacelle Systems Market.