Advanced Ceramics / Ceramic Industry News

U.S. Aerospace and MRO Market to Reach $100 Billion by 2016

The U.S. aerospace industry, which was hit by recession in 2009, began showing signs of recovery in 2010 and is expected to reach $100 billion by 2016 with a CAGR of 6.9% over the next five years, according to “Opportunities in U.S. Aerospace and MRO Market 2011–2016,” a new report by Lucintel. Aerospace is a prominent driving factor in the U.S. economy, the study reports. Aerospace is not only a source of employment; revenues generated by exports support research and development activities. The aerospace industry has the largest trade surplus of all the U.S. manufacturing sectors, and is expected to maintain its robust export activity.

According to the study, major aerospace industry markets such as the U.S. and UK will likely reach saturation, whereas demand should increase from APAC nations such as China and India. Rising fuel prices are expected to generate demand for fuel-efficient aircraft, and the commercial and general aviation segment will propel the industry. Government purchases will drive the defense segment.

The U.S. maintenance, repair and operations (MRO) market captures approximately 45% of the world aerospace MRO market. The efficient air transportation system in the U.S. provides a solid market for MRO activities. U.S. aerospace MRO market is reportedly expected to reach $20 billion by 2016.

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