Aircraft Docking Systems Market

The global aircraft docking systems market is growing at a rapid rate due to the increase in air passenger traffic, fleet renewal & delivery of new commercial aircraft, and requirement for short turnaround times. However, airline carriers ceasing operations and the complexity of customized solutions are expected to hamper the growth of the global market during the study period.

Globally, air passenger traffic has been increasing at a significant pace over the last couple of years. Factors such as decreasing airfares, increasing per capita disposable incomes, especially in developing countries, and higher living standards have influenced this growth. According to the International Air Transport Association (IATA), global air travel is likely to double by 2036. It also estimates that China is likely to surpass the US and become the largest aviation market, in terms of passenger traffic, in the world, by 2024. The US air passenger traffic is growing at a rate of 6.34%, while in China, the air passenger traffic is expected to grow at a rate of 5.69% during the forecast period, 2019 to 2025.

The figure below depicts the number of domestic and international aircraft passengers globally.

To cater to the increasing number of passengers, there has been a corresponding increase in the demand for new aircraft. For instance, in 2017, in one of the biggest deals in the history of commercial aviation, Airbus signed a USD 50 billion contract with Indigo Partners (US) to deliver 430 aircraft. In 2017, Airbus and Boeing booked net orders for 1,109 and 912 aircraft, respectively. Furthermore, new airlines are being established in almost every region to tap into the rapidly growing passenger base. For instance, in 2017, more than 70 new airlines were launched around the world.

The figure below represents the gross orders for aircraft of Airbus and Boeing from 2009 to 2019. In 2019, the gross orders for Airbus increased by 26.5% from 2018. In contrast, the gross orders for Boeing decreased by 77.7% from 2018. This was due to the ongoing 737 Max crisis and trade wars. Moreover, around 182 orders fell through, primarily due to Indian low-cost airline, Jet Airways, which went out of business in 2019. Although Boeing’s orders reduced in 2019, the orders are expected to increase during the forecast period.

With the increasing demand for new aircraft, there has been a significant increase in demand for aircraft docking systems. A docking system is a vital component during the manufacturing and maintenance of an aircraft. It facilitates aircraft manufacturing, maintenance, and aircraft painting operations through the provision of work platforms to the required areas of the aircraft to complete the work efficiently and quickly. Therefore, the increase in air passenger traffic and the subsequent increased demand for new aircraft is expected to drive the growth of the global aircraft docking systems market during the forecast period.

Systems such as automated docking guidance systems, fully automated docking systems, and self-propelled docking systems are safe, save time, and ensure sustainable maintenance for many aircraft types. Therefore, the demand for these systems has been increasing in the last few years. For instance, NIJL Aircraft Docking has developed a universal tail docking system, which is self-propelled with a height-adjustable vertical stabilizer floor and sliding panels to fit the contour for safe access. Moreover, the automated and self-propelled docking systems are suitable for many aircraft types, which is also boosting demand. Therefore, the demand for automated and self-propelled docking system is expected to create lucrative growth opportunities for the players operating in the global aircraft docking systems market during the forecast period.

With the increasing air passenger traffic and budget travelers, there has been a significant increase in the number of low-cost airlines globally. However, due to reasons such as financial problems, unavailability of skilled labor, growing competition, increasing incidences of plane crashes, and reducing profit margins have led to the ceasing of operations of many airlines. Therefore, as the operations of an airline cease, the demand for MRO services for that airline’s fleet also reduces, and the demand for new aircraft from the airline also get canceled. For example, around 182 aircraft orders were canceled by Indian low-cost airline, Jet Airways, which went out of business in 2019 due to financial problems.

Moreover, due to the COVID-19 outbreak, there has been a significant decrease in air travelers globally, due to which the revenues of airline companies are likely to decrease in 2020. According to the International Air Transport Association (IATA), the COVID-19 crisis will reduce airline passenger revenues by USD 314 billion in 2020, a 55% decline compared to the revenue recorded in 2019. This is also expected to lead to the ceasing of airline operations. For example, Avianca Air, one of the oldest airlines in the world, declared bankruptcy, and Miami Air announced that it would cease operations due to the impact of COVID-19.

Such factors are also expected to reduce the demand for aircraft docking systems in the upcoming years, which is expected to restrain the growth of the global aircraft docking systems market to some extent during the forecast period.

Universal docking systems that are suitable for many aircraft types are larger in height compared to conventional docking systems. Moreover, the demand for universal docking systems has been increasing in the last few years. This requires hangars with higher ceilings. Furthermore, due to the large size of some aircraft, hangars must be built with large inner space and without any central support, which limits the height of the hangar because, without central support, it is hard to build hangar with more height. Thus, hangar building limitations are expected to pose a challenge for the players operating in the global aircraft docking systems market during the forecast period.