The global aircraft landing gear repair and overhaul market is expected to grow significantly in the coming years due to the increasing demand for aircraft MRO outsourcing and rising investments in aircraft MRO services. The global aircraft landing gear repair and overhaul market is characterized by the presence of several global and regional vendors. The market is highly competitive with all the players trying to gain market share.
Market Share Analysis
The global aircraft landing gear repair and overhaul market comprises several global and regional players. However, the market is dominated by a few key players who hold nearly half of the market share. These players are adopting strategies, such as contracts and expansion, to improve their position in the market. Intense competition, rapid changes in technology, and integrated solutions by industry participants are the key factors impacting market growth. Vendors compete based on cost, service quality, and reliability. It is vital for these players to offer cost-effective services to succeed in the competitive environment.
The growth of market vendors depends on market conditions, government support, and industry development. Thus, they should focus on improving their services and expanding their regional presence. Air France Industries KLM Engineering & Maintenance (AFI KLM E&M), Lufthansa Technik AG, Singapore Technologies Engineering Ltd, Safran, and AAR Corporation being the leading players, held nearly 74.19% of the market share in 2018.
RUAG Group, Delta TechOps, Hong Kong Aircraft Engineering Company Limited (HAECO), Turkish Technic Inc., and FL Technics are some of the other key players operating in the global aircraft landing gear repair and overhaul market.
The leading players, as mentioned above, are dominating the market due to their advanced service offering, vast industry experience, and geographic reach. These players may strengthen their presence worldwide through strategic partnerships and acquisitions during the forecast period. Players with access to better technologies can provide advanced services, which could render the competitors’ offerings obsolete. The competitive environment in the market is likely to intensify further due to the rising number of contracts and expansions.
Major Growth Strategies In The Global Aircraft Landing Gear Repair And Overhaul Market
Threat Of New Entrants
The global aircraft landing gear repair and overhaul market is expected to grow at a significant rate during the forecast period; however, the need for high initial investments and formation of a client base are factors that could deter new players from entering the market. In addition, there are several established market players with a wide geographic reach and advanced technological capabilities which makes it difficult for new entrants to attain economies of scale. Therefore, new entrants are expected to present a low threat to the major stakeholders in the market.
Bargaining Power Of Suppliers
There are a limited number of suppliers in the global aircraft landing gear repair and overhaul market. For certification, all sub-components of landing gear go through stringent regulatory and review processes which limits the number of certified suppliers in the market. Thus, the bargaining power of suppliers in the market is expected to be low.
Bargaining Power Of Buyers
The buyers in the global aircraft landing gear repair and overhaul market are aircraft operators. Although there are limited certified suppliers in the market, buyers do not have any control over the cost of the MRO services. They are dependent on the regulations and policies set by the International Civil Aviation Organization (ICAO). However, the buyers dictate the specification and type of aircraft landing gear repair and overhaul required by them, which makes their bargaining power moderate.
Threat Of Substitutes
Aircraft landing gear is a critical component of the aircraft as it is crucial for take-off and landing operations. Therefore, there are no direct alternatives to the MRO services for the aircraft landing gear. So, the threat of substitutes in the global aircraft landing gear repair and overhaul market is deemed to be low.
Intensity Of Rivalry
There is intense competition among the existing players in the market as vendors are investing heavily and using extensive research and development to provide advanced and cost-effective MRO facilities and services for aircraft landing gear. Thus, the intensity of rivalry in the market is projected to be high during the forecast period.
