The aircraft paint market is anticipated to grow at a CAGR of 3.14% during the forecast period to reach a market size of US$5.393 billion in 2026 from US$4.342 billion in 2019. Aircraft have to endure extreme weather conditions, flex, bending, and other forces since they are travelling miles above the ground. To protect and maintain their look, a wide range of materials and finishes are applied to them. Aircraft paint is a type of paint that is used on both new and old commercial aircraft. Primers, enamels, lacquers, epoxy, and other multipart finishing formulas are some of the paints used on aircraft. The primary purpose of this paint is to offer corrosion resistance for various parts so that they can withstand pressure.
The increasing number of air travellers has increased the number of journeys for aircraft. According to the International Civil Aviation Organization (ICAO), the overall number of passengers transported on scheduled flights increased to 4.5 billion in 2019, a 3.6% increase from the previous year, while the number of departures increased by 1.7% to 38.3 million in 2019. The increasing number of air travellers will contribute to higher aircraft wear and tear, which will drive the market demand for aircraft paints throughout the forecast period. Aircraft paints are used to protect the interiors and exteriors of an aircraft. Since the interiors are not exposed to severe conditions, aircraft paint is utilised to prevent corrosion and degradation, on the other hand, these paints are employed to offer protection and provide an attractive look to exposed areas such as the exteriors of the aircraft. Airlines also utilise decorative paints to improve the physical appearance of the aircraft by painting the company's brand and insignia, as well as apply decals, identification numbers, and letters on the aircraft. Last year, Garud Indonesia painted masks on their aircraft to spread awareness towards COVID. The numerous applications for aviation paints are expected to boost the market in the coming years.
Airlines across the globe are investing heavily in the development of new next-generation aircraft, which, along with increasing expenditure by corporations on aircraft repairs and maintenance, will fuel the expansion of the aviation paints market. Furthermore, recent advancements in new environmentally friendly aircraft painting and coating materials that can reduce weight and maximize fuel efficiency are likely to drive market expansion throughout the projection period.
Aircraft Paint Industry players are also employing various strategies in order to gain a competitive advantage. For example, in May 2021, PPG Industries Inc., a global supplier of paints, coatings, and specialty materials, announced that it had received regulatory approval from Russia's Federal Antimonopoly Service to complete its tender offer for all shares of Tikkurila Oyj, a Finnish paints and lacquers manufacturer.
Air Travel Continues to Increase Due to Affordable Carriers in the Emerging Regions
The commercial air travel segment is growing internationally. Low-cost carriers (LCCs) have proven to be formidable market rivals, notably in the growing economies of Asia Pacific, the Middle East and Africa, and South America. More travellers are expected to fly more often in these regions. Emirates (UAE), Qatar Airways (Qatar), and Etihad Airways (UAE) are among the major commercial aviation operators in the Middle East area. These carriers also handle the majority of commercial air traffic between Europe and Asia. The number of people utilising commercial flights is growing, which is pushing the demand for larger planes. This need is expected to stimulate the expansion of aircraft coatings.
Additionally, the launch of new aircraft, such as Airbus' A320neo and A350, and Boeing's 737 MAX and 787, has increased demand for aircraft coatings and paints, resulting in the expansion of the North American aircraft paint industry.
Increased Aviation Transport and Business Travel Will Support the Market Growth
According to IATA, airlines carry approximately 52 million metric tonnes of cargo every year, accounting for more than 35% of global trade in terms of value but less than 1% in terms of volume. This amount translates to products worth $6.8 trillion yearly or $18.6 billion per day. Demand for air cargo increased by 9% in April 2021 and is anticipated to rise more in the next years. As a result, the rise in air transport will fuel market development since the aircraft would need to make more flights, resulting in frequent wear and tear, boosting the market need for aircraft paints.
Along with other factors, such as government assistance, the demand for aircraft coatings consumption throughout the projection period is expected to rise.
Expenditure Required for Aircraft Paints Will Be a Major Market Restraint
The expenditures of constantly painting an aircraft's interiors or exteriors are quite significant airlines may not want to spend large sums of money on repainting aircraft on a regular basis. The airline may seek cheaper alternatives, which may stifle market development.
Asia-Pacific Region Is Expected to Have a Prominent Market Share
The rise in air travel, as well as rising military aircraft procurements by developing nations such as India and China, is projected to drive market development. Furthermore, in order to attract more travellers, airlines such as China Eastern Airlines and Hainan Airlines are introducing unique themes, which are projected to enhance demand for aircraft paints throughout the projection period.
Due to the increase in air cargo, the total commercial aircraft fleet is anticipated to reach 8,270 in 2037, according to the Federal Aviation Administration (FAA). In addition, owing to the obsolescence of the present fleet, the US mainliner carrier fleet is anticipated to increase at a rate of 54 aircraft each year which will eventually boost the aircraft paint market.
The Coronavirus Pandemic Had a Negative Effect on the Airline Business
The passenger count plummeted by 60%, according to ICAO, with just 1.8 billion passengers travelling during the first year of the outbreak, compared to 4.5 billion in 2019. These figures also show that the COVID-19 pandemic cost airlines 370 billion dollars in financial losses, with airports and air navigation service providers (ANSPs) losing another 115 billion and 13 billion, respectively. Any improvement in the global picture is predicted to be only by the second quarter of 2021, depending on the efficacy of pandemic management and vaccine rollout. Passenger counts are anticipated to rebound to 71% of their 2019 levels by June 2021, according to the most optimistic scenario. A more gloomy scenario predicts just a 49% recovery.