Trends in the Aerospace Manufacturing Industry in the Next 20 Years
Market News

Trends in the Aerospace Manufacturing Industry in the Next 20 Years

In recent years, driven by the internationalization of enterprises and the quality of aviation services, the turnover of air passengers has shown steady growth. The estimated average annual growth rate of air transportation in the next 20 years is 4.7%, and Taiwan's aviation industry output value has maintained a steady growth trend in the past 10 years.
Published: May 05, 2021
Trends in the Aerospace Manufacturing Industry in the Next 20 Years

Speaking of the strong growth of global passenger aircraft demand in the future, it is necessary to mention the estimation of the CEO of Boeing: Believes that the world will need 43,000 new aircraft in the next 20 years, with a total value of US$8.1 trillion.

The global aerospace industry’s annual shipments are about 5,000, and the value of each aircraft is very high, so the annual output value can reach 1.7 trillion US dollars. In addition, according to different uses, it can be divided into five major products, namely civil aviation aircraft, military aircraft, private passenger aircraft, propeller aircraft, and helicopters, among which civilian aircraft are the most demanded, accounting for 78%, and military aircraft demanding 22%.

The driving force of global air transportation demand comes from the growth of the overall economy and the value of services experienced by customers. In recent years, driven by the internationalization of enterprises and the quality of air services, the turnover of air passengers has shown steady growth. The estimated average annual growth rate of air transportation in the next 20 years (2018-2037) is 4.7%, which will create business opportunities in the aviation manufacturing industry. Therefore, it is estimated that the global demand for new passenger aircraft in the next two decades will be about 42,000, with a market value of up to US$6.3 trillion. Among them, the demand for new aircraft in the Asia-Pacific region is the most prosperous. At the same time, Airbus's Global Market Forecast also has a similar estimate.

Taiwan's aviation industry output value

The output value of Taiwan's aviation industry has changed in the past 10 years. Overall, it has shown a trend of steady growth. In 2019, the output value reached NT$134 billion. The aviation industry is a high-tech industry with complex quality management and system integration technologies. Compared with the rest of Taiwan’s superior industries such as biotechnology, information, and communications, cultural creativity, tourism, and exhibitions, etc., the aviation industry has relatively low linkages with the global economy. After manufacturers enter the industry, manufacturers have been able to obtain long-term stable production orders, which reflects recent years. Taiwan's aviation industry has grown steadily in terms of output value. In addition to the evaluation and analysis of global aerospace business opportunities, it is expected that the global aerospace industry and commercial passenger aircraft production value will reach 200 billion U.S. dollars in 2025, and related research reports also pointed out that the global aviation maintenance market will grow to 116 billion U.S. dollars in 2029. (The average annual compound growth rate is expected to reach 3.5%). With global demand growth, Taiwan’s industrial output value is expected to continue to grow.

Prospects and expectations of Taiwan's aerospace industry

Taiwan is located at the hub of a high economic growth region in the Asia-Pacific region. With experience in international aviation cooperation, manufacturing technology, and quality management of international aviation standards, Taiwan has become an important partner for foreign businessmen. Therefore, the government has designated the defense aerospace industry as an innovative industry. , And promote the national manufacturing of SINOMACH, hoping to produce benefits for the overall development of the country’s industry in the future, and enhance the industrial technology level and industrial energy. In recent years, Taiwan has gradually become an important production base in Asia for aircraft structural components, engines, or avionics components, and has successfully secured international orders, with a steady growth of approximately 9% each year.

Looking back at Taiwan’s aviation industry, it has grown rapidly with the joint efforts of the industry. The annual output value has grown from NT$6.56 billion in 1991 to NT$120.7 billion in 2018; and since 2016, the government has promoted the national independent manufacturing of national aircraft and self-made high-end aircraft. Trainer aircraft and follow-up plans for military aircraft have added growth momentum to Taiwan’s aerospace industry.

However, since the China-US trade dispute spread in 2018, it has hurt the global economic environment. However, looking forward to the demand for air transportation in the future, Taiwan’s aerospace industry still has ample room for growth. The main goal is to explore business opportunities in the international aerospace market to promote industrial growth, cultivate talents and expand industry participation, and enhance overall industrial energy. The industry has become a link in the international aerospace supply chain.

Entering the European and American aviation supply chain, the aviation maintenance market has a promising future

Global air transportation continues to grow. To ensure flight safety and airworthiness, aircraft maintenance and repairs are in demand in the market. Taiwan, which is in the Asia-Pacific hub, is actively expanding its aerospace maintenance business. Quality and technology are favored by international manufacturers, and the output value of aircraft engine and airframe maintenance has been growing in double digits year after year. In the field of aviation maintenance, Taiwan already has the energy for body maintenance of various aircraft and helicopters and the refurbishment of various engine accessories. After becoming the world's exclusive Boeing 747-400LCF passenger aircraft modification freighter manufacturer, it has also received another Boeing 767-300 modification order. The maintenance industry can be said to be the hidden champion of the entire aviation-related industry, accounting for 60% of the overall aviation industry output value.

As far as the current situation in Taiwan is concerned, although Taiwan has a stable and sound industrial chain, it still faces the problem of higher costs. The government continues to track industry trends and promote policy development. For example, the "National Machinery Manufacturing" and the "5+2 Industrial Innovation Plan" have accelerated the development and transformation of the aerospace industry. Taiwan's aviation industry has established a supply chain system for related civil aviation products and has established partnerships with world-renowned aviation companies such as The Boeing Company, Airbus SE, Bombardier, General Electric, Pratt & Whitney, Snecma S.A., etc. The total output value of Taiwan's aviation industry will reach nearly 93.5 billion New Taiwan dollars in 2020. Due to the impact of the new crown pneumonia, it has declined by 30.22% from the previous year.

2021 Global Aerospace Market Report

The aerospace market includes entities (organizations, individual traders, and partnerships) that produce commercial aircraft, perform aircraft maintenance, repair, and overhaul services, and produce support and auxiliary equipment (such as radar, air traffic) and sell aviation equipment (including aircraft) for Civilian control towers and satellites. The aerospace industry consists of companies engaged in prototype development and the manufacture or assembly of complete aircraft and aircraft parts for commercial use. The industry also includes companies that provide modifications or alterations, repairs, parts replacement, and thorough overhaul and reconstruction of commercial aircraft. The types of aircraft manufactured include gliders, helicopters, unmanned aerial vehicles, ultralight aircraft, passenger aircraft, and private jets. The aviation market is segmented into commercial aircraft; aircraft maintenance, repair and overhaul services, and aerospace support and auxiliary equipment.

North America is the largest region in the global aerospace market, accounting for 50% of the market by 2020. The Asia-Pacific region is the second-largest region, accounting for 22% of the global aerospace market. Eastern Europe is the smallest region in the global aerospace market.

Helicopter manufacturing companies are increasingly using parts made of carbon fiber reinforced plastic composite material (CFRP) because this material provides higher strength for helicopter parts than traditional metal parts. CFRP material can increase the strength of the helicopter and reduce its weight and has higher corrosion resistance. These features enable the helicopter to handle a higher load capacity.

Aircraft manufacturers are using machine learning technologies such as artificial intelligence (AI) to improve the safety and quality of aircraft and increase production efficiency. Machine learning algorithms collect data from machine-to-machine and machine-to-human-machine interfaces and use data analysis to drive effective decision-making. These technologies can optimize manufacturing operations and reduce costs. For example, machine learning and data analysis are used to identify faults in the engine, thereby increasing the service life of components and reducing maintenance costs. Boeing has successfully built machine learning algorithms to design aircraft and automate factory operations.

The overall economic growth of emerging economies is expected to have a positive impact on the commercial aircraft manufacturing market. As a result of economic growth, the increase in disposable income in emerging markets has had a positive impact on the demand for air travel. IMF predicts that by 2021, global GDP growth will reach 5.4%. In addition, it is expected that during the forecast period, emerging markets will continue to grow faster than developed markets. Stable economic growth is expected to increase investment in national security, which in turn will promote the development of the aerospace market in the future.

Published: May 05, 2021 Source :credit, Source :taia, Source :globenewswire

  • Aerospace Industry
  • Asia / Pacific
  • Global

Further reading

You might also be interested in ...

Headline
Market News
Current Status of Taiwan's Transportation and Shipping Industries Under the Epidemic
Transportation is the main artery of the city. A well-functioning transportation system must be closely linked with the three major elements of "people, vehicles, and roads." In order to optimize traffic efficiency and optimize the energy use and mobility efficiency of cities, countries have introduced smart mechanisms in recent years.
Headline
Market News
Global Economic Market Prospects for 2021
The United States, the European Union, and China are the world’s three largest economies, which together are estimated to account for 60.92% of the global economy in 2021.
Headline
Market News
South Korea's Future Economic Blueprint and Investment Strategy After Ten Years
South Korea is a country lacking natural resources. Its economic development is export-oriented, and its industrial structure is dominated by heavy chemical industries. The five major industries, including automobiles, shipbuilding, semiconductors, steel, and smartphones, earn a lot of foreign exchange for the country's economic growth.
Headline
Market News
South Korea Ranks Third in The World in Terms of Manufacturing Competitiveness
The United Nations Industrial Development Agency (UNIDO) announced the World Manufacturing Competitiveness Index (CIP) in July 2020 based on the 2018 indicators. South Korea ranks third after Germany and China among 152 countries in the world. CIP is a composite index of 8 items including per capita manufacturing value-added and manufacturing export value. It reflects the overall competitiveness of the manufacturing industry in each country. UNIDO publishes it every other year.
Headline
Market News
Trends in Japan's Manufacturing and Machinery Industry
Although the share of manufacturing in Japan's GDP has declined in the past few decades, Japan still has a very large manufacturing base. In addition, Japanese manufacturers have extensive global connections, especially in Southeast Asia, many of which have substantial operations in countries such as Thailand.
Headline
Market News
The Labor Cost Advantage of Mexican Manufacturing Industry
There are many reasons for manufacturers to move offshore or near-shore production bases to Mexico. The advantage of cheap labor is one of the most prominent.
Headline
Market News
Analysis and Forecast of the British Manufacturing Market
The manufacturing industry occupies an important position in the British economy. Although the UK has declined in industrial scale, it still has the world’s top companies in steel, pharmaceuticals, biological breeding, aerospace, machinery, microelectronics, military, environmental sciences, etc. All aspects are among the best in the world.
Headline
Market News
Southeast Asia Renewable Energy Market
According to estimates, by 2050, nearly half of the world's electricity will be generated by wind and solar power. Since the 1970s, fossil fuels have accounted for most of the world's electricity. By the middle of the 20th century, global electricity production will be converted from two-thirds of fossil fuels to two-thirds of renewable energy.
Headline
Market News
Current Status of Global Renewable Energy
Renewable energy refers to natural resources that can be regenerated in a short period compared to fossil fuels that take more than 100 million years to generate, and will not produce other pollutants during the conversion into energy, such as solar energy, wind energy, Geothermal energy, hydropower, tidal energy, biomass energy, etc., are all renewable energy sources currently under development in the world.
Headline
Market News
Analysis of Global Electric Vehicle Markets
In 2021, the global electric vehicle market will grow by 40%, with total sales exceeding 3 million units. As of 2019, more than 2 million electric vehicles have been sold worldwide, accounting for 2.5% of all vehicle sales. It is estimated that the compound annual growth rate of global electric vehicles in the next ten years will reach 29%; the total sales of electric vehicles It will increase from 2.5 million in 2020 to 11.2 million in 2025 and 31.1 million in 2030.
Headline
Market News
The Rise of Electric Vehicles, Subverting the Auto Industry
With the rise of the global electric vehicle market, how should Taiwan’s opportunities be grasped?
Headline
Market News
The Prosperity of the Electric Vehicle Market and the Development of Power Battery Systems
At present, ordinary automobiles mainly use fossil fuels as their power source, which not only consumes a lot of petroleum resources but is also one of the main culprits of greenhouse gas emissions. In order to cope with the global trend of energy-saving and carbon reduction, many countries have adopted vehicle electrification as a greenhouse gas reduction important measure.
Agree