Power by the Hour Market Size
Power by the Hour Market size was valued over USD 20 billion during 2018 and is further estimated to extend at more than 6% CAGR in the forecast period of 2019-2025.
In order to attain major market trends
Power by the Hour (PBH) refers to a program of maintenance, which is supplied by aircraft engine & component companies as well as aircraft manufacturers to aircraft operators. The program serves as an insurance policy for the unscheduled aircraft maintenance for the commercial airlines, air charter, and corporate jet operators. The program is a deal between component suppliers and aircraft operators. According to this deal, the component supplier or the MRO service provider commits to supplying a specified quantity of component/scheduled maintenance within the agreement period.
Year by year, the aviation market has transformed to accommodate growing airline needs. Today, the market is attempting to reduce expenses by investing less on maintenance and part tracking. In 1962, Rolls-Royce initiated the initial “Power by the Hour” scheme to assist with Viper engines on 125 business aircraft. With this program, the firm would replace and repair all the engine components for a fixed amount per flying hour. Nowadays, firms that repair airplanes, produce airplanes, produce engines, and produce parts sell various types of such programs. The courses generally include such things as engines, landing gear, and brakes since these are the most critical components of an aircraft and must be inspected regularly to ensure they’re functioning adequately. For instance, in August 2019, Air Canada acquired a new contract with Rolls-Royce to purchase Trent 700 engines for its Airbus A330 aircraft. The airline opted for the TotalCare Flex program, which will provide them with Trent 700 engines until their A330 fleet is retired. The TotalCare Flex program is designed for airlines that possess older engines and require an economical means of keeping them in good condition.
| 𝐑𝐞𝐪𝐮𝐞𝐬𝐭 𝐅𝐫𝐞𝐞 𝐒𝐚𝐦𝐩𝐥𝐞 𝐏𝐃𝐅 (Enter Corporate Email ID’ for a Free Sample Report): https://www.marketinsightsresearch.com/request/download/6/241/Power-by-the-Hour-PBH–Market |
Power by the Hour Market Report Attributes
Report Attribute Details
Base Year 2018
Power by the Hour Market Size in 2018 USD 20 Billion
Forecast Period 2019 to 2025
Forecast Period 2019 to 2025 CAGR 6.3%
2025 Value Projection USD 30 Billion
Historical Data for 2014 to 2018
No. of Pages 260
Tables, Charts & Figures 327
Segments covered Component, Platform, Application, and Region
Growth Drivers
Increase in air traffic in Asia Pacific
Increasing transparency among industry players and customers
Strategic shift towards service-oriented from product-oriented approach
Stringent government regulations to maintain quality of operations
Introduction of Aerospace 4.0
Pitfalls & Challenges
High cost of manufacturing
Low resources
What are the opportunities for growth in this market?
The growing demand for the low-cost airline segment is boosting the demand for aircraft maintenance since the majority of the airlines outsource the maintenance service to third parties. The majority of the service providers provide different kinds of programs based on customer specifications to satisfy this demand. With the increasing usage of digitalization in aircraft maintenance, the demand for cost-effective maintenance programs will drive the power by the hour market growth.
Power by the Hour Market Analysis
With regard to the “power by the hour” idea, the most important items that enable it are the engine, landing gears and brakes, spare parts, and the plane itself. Spare parts are forecast to experience an increase of over 6% in the next few years, as increasingly airlines globally are seeking to better manage their inventories of replaceable parts. For instance, in 2016, Braathens Regional Airways entered into an agreement with Sabena Technics to assist their inventory of replaceable parts. This agreement encompasses everything from monitoring warranties to handling a stock of spare parts and logistics. This type of agreement assists airlines in reducing their maintenance expenditures and operating more efficiently.
Find out more about the important segments defining this industry
The spare parts and components comprise pumps, avionics, temperature sensors, oil coolers, heat exchanges, and propeller equipment. Large component and spare parts suppliers provide aircraft operators with a full inventory management package comprising logistics, parts certification, and other paperwork to be carried out by operators. For example, in June 2016, CommutAir ordered component support from AAR Corp. Under the agreement, AAR will deliver component support for the ERJ 145 aircraft. AARs supply chain service management shall manage the total inventory management for all the rotatable & replaceable parts.
All major airlines are attempting to reduce their operational expenses through minimizing the usage of fuel & aircraft maintenance cost incurred for un-scheduled maintenance. The low-cost airlines to a great extent will lower their operational expenses through having one common fleet type and lowering the airline maintenance & training cost incurred by them. The program assists airlines in lowering their operating expense as by minimizing risks of unplanned maintenance and lower their Aircraft on Ground (AoG) by having a pool of rotable parts for repair & replacement.
Passenger traffic growth in regions such as India and China and increasing tourism in the Middle East & Africa regions are the major factors supporting commercial aviation growth. The increasing demand for narrow body aircraft by low-cost airlines will fuel the demand for power by the hour programs across regions.
Learn more about the key segments shaping this market
Air travel is about to take off! The use of aircraft for short-haul flights is expected to increase steadily at a rate of more than 6% per annum. This growth is fueled by more flights connecting smaller towns and cities, as well as increasing demand for air travel in nations such as China and India. Based on the International Air Transport Association (IATA), the number of passengers traveling around the world is forecast to grow by 3.5% annually over the next 20 years. The Asia Pacific region will be driving this growth, with passenger traffic forecast to grow by 4.8% per year. Another 2.35 billion passengers will be traveling to or from Asia Pacific annually by 2037. This expansion is driven by an increase in tourism and growing incomes, making air travel more affordable for the masses. To match this boom, airports throughout the region are pouring money into infrastructure improvements.
North America is at a major advantage in the aviation industry. In 2018, it led the market with more than 25% of business. This is partly due to the region having a strong aviation sector, with key players such as airlines, engine producers, and aircraft manufacturers. A prime example in recent times was the agreement between VivaAerobus and Pratt & Whitney. In June 2019, VivaAerobus purchased 41 Airbus A321 Neo aircraft and Pratt & Whitney GTF engines. Under the terms of the deal, Pratt & Whitney will also service the engines for 12 years under its EngineWise program. EngineWise provides full engine maintenance coverage at a predetermined hourly rate. This saves airlines on maintenance and keeps the engines in the air longer.
| Buy this Premium Research Report to explore detailed market trends – https://www.marketinsightsresearch.com/report/buy_now/6/241/Power-by-the-Hour-PBH–Market |
Power by the Hour Market Share
The companies operating in the power by the hour market are focusing on long-term contracts to capture market share in the market. For instance, in June 2019, Pratt & Whitney signed a contract with Mandarin Airlines for Fleet Management Program (FMP). Under this contract, the company will provide maintenance service for 18 PW127M engines. FMP is a tailor-made flexible maintenance agreement for fleet operators and the company provides hot section inspection, unscheduled engine maintenance, engine refurbishments, and diagnostics under this. The company also provides additional services, which include parts replacement, rental engine support, and repair.
Some of the major companies operating in the market are
- Lufthansa Technik
- Rolls-Royce plc
- United Technologies
- MTU Aero Engines AG
- Textron Inc.
- A J Walter Aviation Limited
- AAR
- AFI KLM E&M
- Turkish Technic
- GE Aviation
- Singapore Technologies Engineering LTD
- SIA Engineering Company
- Exodus Aviation
- Ameco
- JSSI
- EFTEC UK LTD
- Hong Kong Aircraft Engineering Company Ltd.
- Guangzhou Aircraft Maintenance Engineering Company Ltd (GAMECO)
- Honeywell International Inc.
- Evergreen Aviation Technologies (EGAT)
