Impact analysis of COVID-19 on the aerospace industry
The global aerospace industry faced an unprecedented crisis due to the COVID-19 pandemic. With business restrictions and travel regulations in place, airline travel has plummeted, leading to a significant decrease in air travel demand for the rest of 2020. Governments and businesses are prioritizing the health and safety of their workforce and consumers. Swift government support packages are urgently needed to support aircraft manufacturers and airlines during this challenging time. The cancellation of orders has resulted in excess inventory for original equipment manufacturers (OEMs) and their suppliers in the aircraft production ecosystem. To weather the economic challenges, loan guarantees and a cash infusion of up to $200 billion are required to sustain the airline industry, as the International Air Transport Association estimates. The global pandemic has also led to a decrease in commercial aircraft orders, particularly for wide-body aircraft that serve Asian hubs.
Long-term Scenario for the aerospace industry post COVID-19
The aerospace industry is projected to experience substantial growth after the COVID-19 pandemic due to an expected increase in air fleet operations. As a result, there will be a surge in demand for new commercial aircraft, leading to an upgrade in the aerospace manufacturing sector. Factors such as the recovery of the global GDP, stable commodity prices, and a rise in passenger travel demand, particularly from the Middle East, Latin America, and the Asia Pacific regions, are expected to drive this growth. The production of commercial aircraft is anticipated to be driven by the rising demand for improved commercial aircraft, especially in the Middle East & Africa and the Asia Pacific, due to the growing passenger traffic. Over 20 years, from 2021 to 2036, passenger and freight traffic is projected to grow at an annual compounded rate of 4.8% and 4.2%, respectively, which will further drive aircraft production. The increase in industrial operations in the Asia Pacific and Central & South American markets has also led to a higher demand for affordable and fast transport, thereby positively impacting the aerospace industry. Consequently, the use of investment casting in aerospace part manufacturing applications is expected to increase. The growth in passenger traffic can be attributed to the rise in per capita income and positive gross domestic product worldwide. Notably, India and China have witnessed the highest growth in air travel over the past five years, resulting in a significant increase in orders for new aircraft. By the end of 2017, the global aircraft manufacturing industry had an order backlog of 17,018 aircraft, equivalent to 9.8 years of annual production. This backlog is expected to prompt manufacturers to expand their production capacities, thereby driving the growth of investment casting in aerospace parts manufacturing.
The investment casting manufacturing process is instrumental in creating precise objects with precise dimensions. It ensures that components are manufactured with exact specifications for various applications. This process has been particularly beneficial for industries such as aerospace, automotive, oil & gas, and packaging, as it enables the production of critical objects. Additionally, the demand for investment casting is driven by the need for components with specific dimensions in custom-designed machinery and tools. Aerospace and automotive parts manufacturing applications extensively utilize investment casting processes due to the requirement for components of different sizes and dimensions. This process allows for the creation of small parts using ceramic molds that accurately replicate the shape and size of the original components. Many industries are adopting this process to manufacture components with intricate dimensions. The investment casting process is relatively simple and precise, as it utilizes molds to shape the components. Wax patterns, which reflect the detailed measurements of the original element, are used as templates and coated with ceramic materials. Once the ceramic coatings harden, the patterns are melted and removed from the mold, leaving behind exact specification cavities. These cavities are then heated to a specific temperature, allowing the metal castings to occupy minimal space. As a result, the casting fills every tiny space in the mold and takes on the exact dimensions of the components.
The investment casting process incurs significant costs, primarily due to the raw materials, such as steel and superalloys. These materials are expensive and have limited availability, leading to higher prices. Additionally, the use of wax patterns and ceramic or refractory coatings also contributes to the overall expenses of the process. Furthermore, the skilled workforce in foundries faces hazardous and extreme working conditions, necessitating higher wages. Steel and superalloys are crucial raw materials in investment casting, with steel being widely used in automotive, construction, and manufacturing industries. Its price movement often reflects economic activity, and global steel demand is expected to grow in line with world GDP, driven by emerging economies. However, this demand is projected to remain stagnant for the next decade or so. In China, production restrictions aimed at reducing pollution during the winter heating season resulted in decreased steel production capacity, leading to a slight increase in steel prices. On the other hand, steel prices in Europe experienced a slight decline following the U.S. government's imposition of a 25% tariff on steel imports in March 2018. However, the possibility of exempting European steel from this tariff led to decreased prices. Meanwhile, the anticipation of increased steel production to meet domestic demand supported higher steel prices in the U.S. Overall, global steel prices are expected to rise due to strong demand and restructuring measures in China. However, the presence of excess capacity may limit the extent of these price hikes.
This section will provide insights into the contents included in this investment casting market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Market drivers and restraints
Key market opportunities prioritized
Latest strategic developments
Market size, estimates, and forecast from 2018 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance
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