Strategic Assessment of Aerospace Aftermarket

1. s Strategic Assessment of Aerospace Aftermarket Focus on Type, Aircraft Class, and Industry - Analysis and Forecast, 2020-2030 March 2020 TOC

2. Global Aerospace Aftermarket BIS Research is a leading market intelligence and technology research company. BIS Research publishes in-depth market intelligence reports focusing on the market estimations, technology analysis, emerging high-growth applications, deeply segmented granular country-level market data and other important market parameters useful in the strategic decision making for senior management. BIS Research provides multi-client reports, company profiles, databases, and custom research services. Copyright © 2020 BIS Research Inc. All Rights Reserved. This document contains highly confidential information and is the sole property of BIS Research. Disclosing, copying, circulating, quoting or otherwise reproducing any or all contents of this document is strictly prohibited. Access to this information is provided exclusively for the benefit of the people or organization concerned. It may not be accessed by or offered whether for sale or otherwise to any third party. All rights reserved at BIS Research 2

3. Global Aerospace Aftermarket Preface Preface In recent years, OEMs are focusing toward introducing aftermarket services such as parts, maintenance, repair, and digital services as such kind of aftermarket services enable OEMs to leverage significant revenue streams with higher profit margins than sales of new equipment. However, OEMs at times may lose ground to independent MROs or other third-party part manufacturers attributed to less expensive services offered by such MROs and third-party part manufacturers. Thus, to retain the market share, OEMs must identify the loopholes by having a detailed examination of aftermarket lifetime value, which, in turn, also help them boost the core business during the forecast period. Currently, narrowbody aircraft are gaining more popularity owing to significant new additions of narrowbody fleets by replacing old narrowbody and turboprop fleets during the forecast period. The market has considerably evolved in developed regions such as North America and Europe and is gaining popularity in geographies such as the Asia-Pacific and Middle East and Africa (ME&A). Further, it is experiencing further growth because of continued research and development activities through huge investments by various MRO service providers for the maintenance of intermediate narrowbody aircraft. The market research study offers a wide perspective of the different types and industries pertaining to the global aerospace aftermarket and analyzes its impact on different regions by providing critical insights into the direction of its future expansion. The research is based on extensive primary interviews (in-house experts, industry leaders, and market players) and secondary research (a host of paid and unpaid databases), along with the analytical tools that have been used to build the forecast and the predictive models. All rights reserved at BIS Research 3

4. Global Aerospace Aftermarket This report is designed to address some of the most crucial questions about the global aerospace aftermarket: ▪ What are the trends in the global aerospace aftermarket across different regions? ▪ What are the major driving forces that tend to increase the demand for aerospace aftermarket during the forecast period 2020-2030? ▪ What are the major challenges inhibiting the growth of the global aerospace aftermarket? ▪ Which type (line and base maintenance, components, engine, airframe) is expected to dominate the aerospace aftermarket in the coming years? ▪ What is the total revenue generated in global aerospace aftermarket by aircraft class in 2019 and what are the estimates by 2030? ▪ Which industry of aerospace aftermarket (commercial and military) is expected to dominate the market in the coming years? ▪ What was the total revenue generated by the global aerospace aftermarket across different regions (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa) in 2019, and what are the estimates by 2030? ▪ Who are the key players in the global aerospace aftermarket, and what are the new strategies adopted by them to make a mark in the industry? ▪ What major opportunities do the aerospace aftermarket companies foresee in the next 10 years? ▪ What is the competitive strength of the key leading players in the aerospace aftermarket? The report highlights the key driving factors and challenges for this market as well as the opportunities for the aerospace aftermarket. In the extensive primary research process undertaken for this study, the primary sources include industry experts and key executives from prominent companies, and their distributors in the aerospace aftermarket industry. This report segments the market and breaks down the industry geographically as North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. BIS Aerospace and Defense March 2020 All rights reserved at BIS Research 4

5. Global Aerospace Aftermarket T Table of able of C Contents ontents Executive Summary……………………………………………...…………….11 1.Market Dynamics .................................................................................................... 21 1.1 1.2 Impact Analysis of Drivers and Restraints ................................................. 22 Drivers ............................................................................................................ 22 1.2.1 Increase in Defense Budget for Aircraft Maintenance ................ 22 1.2.2 Upsurge in Passenger Air Traffic .................................................. 24 1.2.3 Increase in Aircraft Fleet ................................................................ 24 Market Challenges ........................................................................................ 26 1.3.1 Lack of Expertise for MRO Services ............................................. 26 1.3.2 Material Shortages ......................................................................... 26 Market Opportunities .................................................................................... 27 1.4.1 Expansion of New Facilities by Service Providers ...................... 27 Industry Trends ............................................................................................. 28 1.3 1.4 1.5 2.Competitive Insights .............................................................................................. 31 2.1 2.2 Key Companies in the Aerospace Aftermarket .......................................... 31 Key Strategies and Developments .............................................................. 34 2.2.1 Partnerships, Collaborations, Joint Ventures, and Contracts .... 36 2.2.2 Service or Program Launches ....................................................... 37 2.2.3 Facility Expansion .......................................................................... 38 2.2.4 Other Key Developments ............................................................... 38 Competitive Benchmarking .......................................................................... 39 2.3 3.Global Aerospace Aftermarket, 2019-2030 ........................................................... 42 3.1 3.2 Assumptions and Limitations ...................................................................... 42 Market Overview ............................................................................................ 43 4.Global Aerospace Aftermarket (by Type), 2019-2030 .......................................... 44 4.1 Market Overview ............................................................................................ 44 4.1.1 Engine ............................................................................................. 45 4.1.2 Components.................................................................................... 46 All rights reserved at BIS Research 5

6. Global Aerospace Aftermarket 4.1.3 4.1.4 Line and Base Maintenance .......................................................... 47 Airframe ........................................................................................... 49 5.Global Aerospace Aftermarket (by Aircraft Class), 2019-2030 .......................... 50 5.1 Market Overview ............................................................................................ 50 5.1.1 Narrowbody .................................................................................... 51 5.1.2 Widebody ........................................................................................ 53 5.1.3 Helicopter ........................................................................................ 54 5.1.4 Transport ......................................................................................... 55 5.1.5 Fighters ........................................................................................... 56 5.1.6 Regional Jet .................................................................................... 56 5.1.7 Turboprop ....................................................................................... 58 6.Global Aerospace Aftermarket (by Industry), 2019-2030 .................................... 59 6.1 Market Overview ............................................................................................ 59 6.1.1 Commercial ..................................................................................... 60 6.1.2 Military ............................................................................................. 61 7.Global Aerospace Aftermarket Market (by Region) ............................................. 63 7.1 7.2 7.3 7.4 7.5 7.6 Market Overview ............................................................................................ 63 North America ............................................................................................... 64 Europe ............................................................................................................ 67 Asia-Pacific .................................................................................................... 69 Middle East and Africa .................................................................................. 72 Latin America ................................................................................................ 75 8.Research Scope and BIS Methodology ................................................................ 78 8.1 8.2 Scope of the Report ...................................................................................... 78 Global Aerospace Aftermarket Research Methodology ............................ 79 9.Appendix ................................................................................................................. 85 9.1 Related Reports ............................................................................................. 85 All rights reserved at BIS Research 6

7. Global Aerospace Aftermarket List of Tables List of Tables Table 1: Market Snapshot: Global Aerospace Aftermarket, $Billion, 2019 and 2030 ........................ 14 Table 2.1: Overview: Key Companies in Aerospace Aftermarket ...................................................... 31 Table 7.1: Global Aerospace Aftermarket (by Region), $Billion, 2019-2030 ..................................... 64 Table 7.2: Key Stats of North America Aerospace Aftermarket ......................................................... 66 Table 7.3: Key Stats of Europe Aerospace Aftermarket ..................................................................... 68 Table 7.4: Key Stats of Asia-Pacific Aerospace Aftermarket .............................................................. 71 Table 7.5: Key Stats of Middle East and Africa Aerospace Aftermarket ............................................ 74 Table 7.6: Key Stats of Latin America Aerospace Aftermarket .......................................................... 77 All rights reserved at BIS Research 7

8. Global Aerospace Aftermarket List of List of Figures Figures Figure 1: Market Dynamics of the Aerospace Aftermarket ................................................................. 12 Figure 2: Aerospace Aftermarket Value ($Billion)- Scenario Forecast, 2019 and 2030 .................... 12 Figure 3: Global Aerospace Aftermarket, $Billion, 2019, 2025, 2030 ................................................ 13 Figure 4: Global Aerospace Aftermarket (by Type), Share (%), 2019, 2025, and 2030 .................... 15 Figure 5: Global Aerospace Aftermarket (by Aircraft Class), Share (%), 2019, 2025, and 2030 ......................................................................................................................... 16 Figure 6: Global Aerospace Aftermarket (by Industry), Share (%), 2019, 2025, and 2030 ............... 17 Figure 7: Global Aerospace Aftermarket (by Region), $Billion, 2019 ................................................. 19 Figure 1.1: Market Dynamics Snapshot .............................................................................................. 21 Figure 1.2: Impact Analysis: Drivers and Restraints ........................................................................... 22 Figure 1.3: Global Defense Budget, $Billion, 2019 ............................................................................. 23 Figure 1.4: Aircraft Delivery Scenario, Units, 2018-2038 .................................................................... 25 Figure 1.5: New Technicians Demand by Region, 2020-2040 ........................................................... 26 Figure 1.6: Problems with Spare Parts Inventory ................................................................................ 27 Figure 2.1: Key Strategies Adopted by Market Players ...................................................................... 34 Figure 2.2: Percentage Share of Strategies Adopted by the Market Players, January 2018-February 2020 ....................................................................................................... 35 Figure 2.3: Partnerships, Collaborations, Joint Ventures, and Business Contracts by Key Market Players, January 2018 – February 2020 ........................................................... 36 Figure 2.4: Service or Program Launches by the Key Market Players, January 2018 – February 2020 ................................................................................................................. 37 Figure 2.5: Facility Expansion by the Key Market Players, January 2018–February 2020 ............... 38 Figure 2.6: Other Key Developments Made by the Key Market Players, January 2018 – February 2020 ................................................................................................................. 39 Figure 2.7: Competitive Benchmarking, 2019 ..................................................................................... 40 Figure 3.1: Global Aerospace Aftermarket, Revenue ($Billion), 2019-2030 ...................................... 43 Figure 4.1: Global Aerospace Aftermarket (by Type) ......................................................................... 44 Figure 4.2: Global Aerospace Aftermarket (by Type), $Billion, 2019-2030 ........................................ 45 Figure 4.3: Global Aerospace Aftermarket for Engine, $Billion, 2019-2030 ...................................... 45 Figure 4.4: Global Aerospace Aftermarket for Components, $Billion, 2019-2030 ............................. 46 All rights reserved at BIS Research 8

9. Global Aerospace Aftermarket Figure 4.5: Global Aerospace Aftermarket for Line and Base Maintenance, $Billion, 2019-2030 ......................................................................................................... 47 Figure 4.6: Global Aerospace Aftermarket for Airframe, $Billion, 2019-2030 .................................... 49 Figure 5.1: Global Aerospace Aftermarket (by Aircraft Class) ............................................................ 50 Figure 5.2: Global Aerospace Aftermarket (by Aircraft Class), $Billion, 2019-2030 .......................... 51 Figure 5.3: Global Aerospace Aftermarket for Narrowbody, $Billion, 2019-2030 .............................. 51 Figure 5.4: Global Aerospace Aftermarket for Widebody, $Billion, 2019-2030.................................. 53 Figure 5.5: Global Aerospace Aftermarket for Helicopter, $Billion, 2019-2030 ................................. 54 Figure 5.6: Global Aerospace Aftermarket for Transport, $Billion, 2019-2030 .................................. 55 Figure 5.7: Global Aerospace Aftermarket for Fighters, $Billion, 2019-2030 ..................................... 56 Figure 5.8: Global Aerospace Aftermarket for Regional Jet, $Billion, 2019-2030.............................. 56 Figure 5.9: Global Aerospace Aftermarket for Turboprop, $Billion, 2019-2030 ................................. 58 Figure 6.1: Global Aerospace Aftermarket (by Industry)..................................................................... 59 Figure 6.2: Global Aerospace Aftermarket (by Industry), $Billion, 2019-2030 ................................... 60 Figure 6.3: Global Aerospace Aftermarket for Commercial, $Billion, 2019-2030 .............................. 60 Figure 6.4: Global Aerospace Aftermarket for Military, $Billion, 2019-2030 ...................................... 61 Figure 7.1: Classification of Global Aerospace Aftermarket Market (by Region) ............................... 63 Figure 7.2: North America Aerospace Aftermarket, $Billion, 2019-2030 ........................................... 64 Figure 7.3: Europe Aerospace Aftermarket, $Billion, 2019-2030 ....................................................... 67 Figure 7.4: Asia-Pacific Aerospace Aftermarket, $Billion, 2019-2030 ................................................ 69 Figure 7.5: Middle East and Africa Aerospace Aftermarket, $Billion, 2019-2030 .............................. 72 Figure 7.6: Latin America Aerospace Aftermarket, $Billion, 2019-2030 ............................................ 75 Figure 8.1: Global Aerospace Aftermarket Segmentation .................................................................. 78 Figure 8.2: Global Aerospace Aftermarket Research Methodology ................................................... 79 Figure 8.3: Data Triangulation.............................................................................................................. 81 Figure 8.4: Top-Down and Bottom-Up Approach ................................................................................ 82 Figure 8.5: Influencing Factors for the Global Aerospace Aftermarket .............................................. 83 Figure 8.6: Assumptions and Limitations ............................................................................................. 84 All rights reserved at BIS Research 9

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