Massive rise in the demand for fuel-efficient aircraft engines will foster power by the hour (PBH) market share over the projected timeframe. Bigger enterprises within the industry have been focused upon offering long-term maintenance contracts of engine to airlines.
For example, jetSMART had signed a contract for 12 years with Pratt and Whitney to maintain its GTF engines for the 85-firm order of the Airbus A320neo aircraft. Major services will be provided by the company under the EngineWise program which is expected to offer flexible maintenance options to the airline.
Power by the hour (PBH) industry share has been anticipated to surpass USD 30 billion by 2025 on account of a major rise in the demand for cargo movement and passenger traffic from countries like China, Africa and India as well as the favorable policies laid by the government in Africa and Asia Pacific.
Growing advancements in technology like augmented reality, virtual reality (AR/VR) and artificial intelligence (AI) will fuel PBH market outlook considerably. There has been a major rise in the investments in MRO maintenance by a few main airlines in Europe and North America, deploying digital services and AI-powered solutions.
Low cost carriers (LCC) have placed their focus on the outsourcing of MRO activities while there has been a surging demand for narrow body aircraft owing to the increase in the cargo movement and air traffic. Given below are a few trends that will impact PBH market trends over the coming years:
1) Government initiatives undertaken to boost the tourism sector
Several governments have lain down some important initiatives to accelerate tourism and trade in their countries, that play a major role in the expanded demand for wide body aircraft worldwide. This has resulted in a surge in the number of passengers for long-haul routes.
Growing migration towards cities, rapid development of the megacities and increasing passenger traffic coming from the non-traditional sector are prime reasons for the total growth of the aviation industry. Many established large airlines are laying heavy emphasis over long haul-routes to expand their geographical reach as well as their revenue pockets,
This could help fuel the demand for wide body aircraft and substantially increase opportunities for PBH industry players.
2) Increasing demand for modifications & upgrades of existing aircraft
Constant launch of more efficient aircraft engines in the market has stimulated the demand for reliable maintenance services. Manufacturers have been seeking additional modifications and upgrades of the existing aircraft fleet along with the demand for lightweight components that will escalate the demand for heavy maintenance.
Airlines in Europe and North America have been increasingly demanding for a wide body aircrafts of next-generation which shall boost the growth of segment over the projected time period.
For example, AirAsia X has reportedly extended its contract with AFI KLM E&M in June 2019 to assist the new A330neo aircraft. The company is obliged to offer repair services and component pool to the airlines as well as the logistic services for some key components.
3) Growing need for more fuel-efficient aircraft across North America
North America power by the hour (PBH) market share will observe a significant growth owing to the increase in the demand by the airlines for new long-range aircraft as well as the modification of the existing aircraft fleet. The region is home to the largest number of domestic and international airports, which significantly boosts its contribution towards the growth of associate industries.
The presence of important manufacturers of engine & components along with some major aircraft and maintenance service providers in the U.S. will support the growth of the regional PBH industry over the analysis time period. With higher requirements for wide body aircraft that should be more fuel-efficient, aviation sector is witnessing consistent advancements in manufacturing processes and component efficiency.