by Freedonia Industry Studies
September 15, 2020
New parts suppliers to the airline industry are getting hit with a double whammy this year. Not only are planes being flown less and therefore need less routine maintenance and part replacement, there is also increased competition from used parts. As airlines are accelerating the retirement schedule of their fleet due to reduced need, an increasing number of planes are being dismantled and sold for parts.
As this increasing supply of used parts appears on the market, downward pricing pressure will result. Some expect as many as 2,000 aircraft will be retired in 2020, more than double the 2019 level (which was only 680). However, not all these planes will be immediately dismantled and sold for parts; some carriers will choose to wait until the market improves and prices tick back up.
Even aerospace components that are not subject to the competition from used parts – including industrial fasteners, turbines, gaskets, seals, adhesives, and bearings – will see reduced sales from fewer miles flown and fewer planes in use, including industrial fasteners, turbines, gaskets, seals, adhesives, and bearings.
For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, including Global Adhesives & Sealants, Adhesives & Sealants, Global Turbines, Global Bearings, Global Gaskets & Seals, Gaskets & Seals, Industrial Fasteners, Global Industrial Fasteners, and Freedonia Focus Civil Aircraft: United States. Freedonia Custom Research is also available for questions requiring tailored market intelligence.