Aircraft Parts Distributors

Business for Sale Industry Economics

$50,535,000,000

Revenue

4.76%

Projected CAGR

2002 - 2020

Historical

2020 - 2026

Projection

1.88%

CAGR

$4,194,000,000

Profit

Quick Scroll

Summary

Aircraft Parts Distributors operators mainly sell aircraft parts and equipment ranging from engine components to fasteners.

Few operators also sell full aircraft, mostly general aviation planes and helicopters, and provide value-added services including supply chain management and warehousing.

The industry has done well in the five years leading up to 2020, with both demand for commercial aviation services and military spending increasing during that period.

In general, growing business profits and customer incomes have fuelled increases in demand for both air travel and freight transportation services.

As a result of its critical position in the larger air transportation industry, demand for aircraft component distributors has risen in tandem with the general economy.

Overall, Research anticipates that market sales will grow at a 1.7 percent annualized pace to $50.5 billion in the five years to 2020.

Performance

The Aircraft Parts Distributors industry has struggled to sustain altitude over the next five years, preventing it from achieving significant sales growth.

Operators in the aviation industry mainly sell aircraft parts and supplies ranging from engine components to fasteners.

Few operators also sell full aircraft, mostly general aviation planes and helicopters, and provide value-added services including logistics outsourcing and warehousing.

The overall US economy has done well in the five years leading up to 2020, resulting in increased commercial air traffic.

As a result, the use of aircraft increased, as did the need for spare parts and the use of industry facilities.

Furthermore, aircraft production increased, increasing demand for logistics facilities among manufacturers.

As a result, market revenue is forecast to grow at a 1.7 percent annualized rate to $50.5 billion over the next five years.

The 2020 COVID-19 (coronavirus) has, on the other hand, drastically altered the economic environment.

The coronavirus is expected to reduce market sales by 2.4 percent in 2020 alone.

Outlook

The Aircraft Parts Distributors industry is expected to develop in line with air travel patterns and defense spending over the next five years, until 2025.

However, with the prospect of tempered economic growth over the next five years, Research expects the sector to expand at a more subdued rate.

Furthermore, the number of operating general aviation and air taxi aircraft is expected to drop slightly over the next five years, according to the Federal Aviation Administration (FAA).

While a downturn in the general aviation fleet does not necessarily put industry operators under pressure, it is representative of a period of moderating development in the air transport industry cluster.

Taking these considerations into account, Research anticipates that market sales will rise at a 1.6 percent annualized rate to $54.7 billion in the five years to 2025.

aviation and aerospace

Industry

Operators in this industry market a variety of original equipment manufacturer (OEM), non-OEM, and aerostructure parts (including fuselage, wings, and flight control surfaces) to industrial, freight, and defense customers for use in aircraft servicing and repair.

Distributors sell all aircraft parts and, in most cases, also sell completed aircraft or provide aircraft repair and maintenance services.

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