• Home
  • .
  • Press
  • .
  • Aircraft Engine Outsource Market (Service provider......

Aircraft Engine Outsource Market (Service provider end) – An Exclusive Report | Sheer Analytics and Insights

Published: Nov 13,2018
165

The engine is the power plant of an aircraft which, along with producing the main thrust, also suffices for the main power requirements of the aircraft. Aircraft engines are either gas turbine driven or lightweight piston engines, except for small Unmanned Aerial Vehicles (UAVs) or generally referred to as drones. Pratt &Whitney (P&W), and Safran S.A. are the major engine manufacturers for narrow-body or single-aisle planes, while, Rolls-Royce and General Electric (GE) Aviation are the prime engine manufacturers and providers for wide-body planes.

An Exclusive Report on Aircraft Engine Outsource Market from Service Provider end by Sheer Analytics and Insights

 

Increase in Demand for Narrow body Engines

Narrow body planes such as the Airbus A320 and the Boeing 737 are in huge demand owing to the versatility and efficiency that allow airline operators make a profit flying the planes on an increasing number of routes. With such huge demand for narrow-body planes, the engine manufacturers are enthusiastic regarding the ever-growing opportunities.PurePower 1000G from Pratt & Whitney and the Safran-GE combination of the LEAP and CFM56 engines are used to power single-aisle aircraft like the Airbus A320 and the Boeing 737 and 737 Max. Rolls-Royce is putting its effort to reenter the narrow body segment which it had deserted a few years ago. Further down, the CFM56-5B is the most accepted engine for the A320 family owing to its simple and rugged architecture which offers it the highest durability, reparability, and reliability in its class. Moreover, the CFM56-7B is the engine of choice for the Boeing Next-Generation narrow body airliner. In recent days, more than 8,000 CFM56-7B engines are equipped on 737 aircraft, thereby making it the most favored engine in commercial aviation.

 

Outsource/Third Party Maintenance sector for Aero Engines

Moving forward, today, the practice of outsourcing has gained widespread acceptance. While some airline operators perform in-house maintenance tasks, the third-party maintenance sector is witnessing rapid growth. According to smaller startup airlines, contracting maintenance is much attractive because keeping a fully-staffed, fully-equipped maintenance department is quite often infeasible or even inefficient for them. As the maintenance and engineering activity is a highly profitable market, Boeing has initiated its ‘Global Services’ to retrieve margins on its maintenance, repair, and overhaul (MRO) services while Airbus announced its partnership with Thai Airways International and has made a huge investment in an MRO center based in Thailand.
 

  • Across the lifecycle of a commercial aircraft, an engine accounts for at least 40 to 50% of the total MRO expenditure and for a new aircraft, at least 35 to 40% of the overall cost of the jet.
  • The commercial aerospace industry reflects a rising after market, evident from the gradually increasing percentage of revenue of engine OEMs and third party suppliers from aftersales and services than new engine supplies [highlight % of revenue earned by PW, RR and GE from commercial aftersales, it should be more than 50% for each].

 

Total Addressable Market and Engine Outsource Market

 

The total addressable market(global revenue) for aircraft engine and engine components is USD XX billion in 2018 and is expected to reach USD XX billion by 2023, growing at a CAGR of XX% during the projection period. Similarly, the total addressable engine outsources market was USD XX billion in 2017. The growth in engine outsources market is expected to be on the higher side due to the ramp up for the production opportunity in the models for Airbus A350-1000, Boeing 777X, 787-10, COMAC C919, XX, XX, and others. The support from the Engineering Service Providers is expected to be at higher side due to the increasing Avionics capabilities by Boeing during the forecast period.

 

 

 

Research & Development (R&D) Spend

 

 

The expenditure involved in R&D activities which includes engineering expenditure, MRO (Manufacturing, Repair, and Overhaul), manufacturing engineering for the major aircraft providers will be USD XX billion by 2023, growing at a CAGR of XX%. Research discipline the Mechanical system holds the highest market share. The Embedded & Software System is expected to gain a significant market share by 2020.

 

 

Outsourcing

Outsourcing functions associated with a commercial aircraft engine:

 

  • Simulation & Structural Analysis of engine and engine components.
  • Creation of 3D model and 2D drawing.
  • Engine component design.
  • Engine software testing and validation.
  • CG reconciliation and Engine weight.

 

Where they Outsource?

 

The major outsourcing deals come from the Indian, Americans and European companies.

Manufacturers

Model

Outsourced Work

Service Provider

Boeing

777X

Engine Software

XX

Airbus

A330 Neo

Mechanical Systems

XX

Rolls Royce

XX

XX

XX

Safran

XX

XX

XX

Rockwell

XX

XX

XX

GECAS

XX

XX

XX

Stella

XX

XX

XX

Thales

XX

XX

XX

 

Insights

 

In the last 2 years, the competition among different aircraft engine manufacturers has been growing immensely in the manufacturing engineering activities. Moreover, nowadays, OEMs are moving towards more environment-friendly models like Boeing and Airbus gradually investing in these initiatives indicate their intentions. Furthermore, Boeing has its plan to perform manufacturing processes in-house rather than outsourcing. However, it can be still expected that the testing, inspection, and certification methods will be outsourced by Boeing to XX due to their significant capabilities. Moving forward, most of the civil and military aircraft are equipped with power and electrical systems provided by Safran. Moreover, some of the bracket design works and testing works are outsourced by Safran to a billion-dollar IT company.

 

Questions answered in the aircraft engine outsource market research report:

 

  1. What part of aircraft engine being outsourced?
  2. What is the global aircraft engine outsourcing market size?
  3. Which service providers do the aircraft engine manufacturer outsourced their work?
  4. Who are the major service providers?
  5. Which service providers do what type of outsourced job in an aircraft engine?
  6. How much aircraft engine manufacturer spend in research & development?
  7. What are the major deals for outsource job in the aircraft engine?
  8. What are the components that are being outsourced in the aircraft engine?
  9. What are the major outsourcing deals?

 

Copyright © 2018 Sheer Analytics and Insights

All Rights Reserved. This document contains highly confidential information and is the sole property of the Company. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of the company.