The global aerospace market reached a value of nearly $298.0 billion in 2020, having decreased at a compound annual growth rate (CAGR) of -0.3% since 2015. The market is expected to grow from $298.0 billion in 2020 to $430.9 billion in 2025 at a rate of 7.7%. The global aerospace market is then expected to grow at a CAGR of 5.9% from 2025 and reach $573.6 billion in 2030.
Growth factors in the historic period include increased demand for air travel technological advances, emerging economies, change in social behavior and affordability. Factors that negatively affected growth in the historic period were high exchange rate fluctuations, political uncertainties, volatile raw material prices and grounding of planes.
Going forward, growing demand for commercial use of drones, emerging economies, rapid advances in technology. Factors that could hinder the growth of the aerospace market in the future include budget airlines’ bankruptcy, order cancellations, increased cyber-attacks, global warming, poor aviation infrastructure, geo-political tensions, global recession, and another pandemic.
AEROSPACE MARKET TRENDS
Major trends influencing the aerospace market focus on construction and training. Of note:
Use Of Smart Materials
Companies in the aircraft manufacturing market are focusing on the use of smart materials for manufacturing. New materials such as graphene and carbon nanotubes help to make airplane wings more efficient by reducing weight and fuel consumption. These materials make the wings lighter, thus increasing efficiency, than those with conventional designs, whether made from metal or composites. In 2019, researchers from MIT and NASA developed a morphing wing using these new materials. It is assembled from hundreds of tiny identical pieces which can morph to control the plane’s flight, and could provide a significant boost in aircraft production, flight, and maintenance efficiency.
Virtual Reality (VR) In Aerospace Manufacturing
Aerospace manufacturing companies are using VR technologies to improve manufacturing efficiency. The technology is getting deployed in areas of training, maintenance, and design and manufacturing. VR helps create a virtual environment that allows engineers to view composite structures and learn how to manage them well. It also helps perfecting prototypes as designers can explore a virtual mock-up of the entire aircraft and can work to eliminate issues faster than normal which also reduces the investment in costly and time intrusive prototypes.
Virtual Reality in Training
Companies have long known that simulation improves proficiency at a fraction of the cost when compared to actual in-flight training. With the advent of the full flight simulator, we have seen in the commercial space a significant reduction in accidents and incidents over the past 25 years. Recently with the grounding of airplanes during the Covid 19 pandemic, some airlines noted issues with pilot proficiency. Simple yet embarrassing items like leaving the parking brake on when trying to taxi etc. Although additional time in full flight simulators could remedy this, we now see some companies adapting simple over the counter VR training for those non-emergency aviation tasks. Procedures like working a flow before takeoff, many times different between the airlines and all prior to engine start, yet, companies are finding that practicing this on a computer using VR with gloves gives the same benefit as being in a full flight simulator at again, a fraction of the cost.
Bottom line is the Aerospace Market both government and commercial is growing and there is plenty of space for your small business to accelerate. OCC is aware of the entirety of the Aerospace environment and can help your company navigate through the hurdles while helping you find those niche spaces where you can make the most difference in the shortest amount of time. OCC is also very aware of other companies that are in adjacent and the VR space that can partner with you and help you achieve your training objectives to FAA or EASA standards at a lower cost.
OPPORTUNITIES AND RECOMMENDATIONS IN THE AEROSPACE MARKET
The top opportunities in the aerospace market segmented by type will arise in the commercial aircraft market segment, which will gain $102.6 billion of global annual sales by 2023.
The top opportunities in the aircraft maintenance, repair and overhauling services market segmented by type will arise in the commercial aircrafts MRO services market segment, which will gain $11.4 billion of global annual sales by 2023.
Other opportunities in the aerospace support and auxiliary equipment market segmented by type will arise in the satellites market segment, which will gain $3.6 billion of global annual sales by 2023.