Expectations for the year remain on target for the overall commercial aircraft market to grow at 3.5% annually compared to 2.1% in 2017. North America aerospace demand is expected to be up 4.3% year over year. Lagging aircraft retirement and the need for additional shop visits for older aircraft are driving the maintenance, repair, and overhaul (MRO) market to nearly $72 billion this year as airliner and aeroengine original equipment manufacturers (OEMs) ramp up production for the growing, multi-year backlog.
Market analyst Richard Aboulafia, vice president of Teal Group, says the outlook for the aircraft industry is the best it has been in decades.
Kevin Michaels, managing director at AeroDynamic Advisory, notes aircraft production for 2017 was about $164 billion, and with a 5.8% CAGR for the next 4 years will lead to a market value of about $218 billion.