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Growth Strategies Focused on Electrification Driving Recovery
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Electric power systems providers are part of a broader ecosystem within the aerospace industry supply chain, where hundreds of companies co-exist with varying levels of complementarity and dependency.Commercial aviation has been seeing the highest levels of growth in recent years. Orders for new aircraft peaked in 2018, pushing the supply chain to capacity limits, which resulted in significant delays in deliveries and economic losses for OEMs and system integrators.A series of transformations in the supply chain included several deals that led to a strong market concentration in the hands of large participants—now vertically integrated to improve efficiency, increase productivity, and remain competitive.Given the integrated and interdependent supply chain, electric power system components manufacturers have not been immune to the various factors challenging the industry, notably the crisis triggered by the 737 MAX grounding order and the effects of COVID-19.In light of such unprecedented crises, transformation plans are designed with an eye on industry recovery. Growth is expected to be slow and give rise to a new business model and supply chain.There is much uncertainty with regard to the recovery process and the new market structure, but the post-pandemic normality is expected to bring profound changes in consumer behavior—in how they travel and interact with the industry. Increased safety regulations, as well as special attention to sustainability and healthcare issues, will help regain user confidence and return to the growth path that the market was able to maintain until 2018.
Key Issues Addressed
Global Additive Manufacturing in Aerospace, 2018
Global Aircraft Electric Power Systems Market, Forecast to 2023
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