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MACHINIST - Aircraft consumption in India expected to reach US $24 bn by 2016: Lucintel

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Home arrow News arrow Aerospace arrow Aircraft consumption in India expected to reach US $24 bn by 2016: Lucintel

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Aircraft consumption in India expected to reach US $24 bn by 2016: Lucintel
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Written by Viswanath   
Saturday, 10 December 2011

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New Delhi: Aircraft consumption in India is expected to continue its growth momentum, reaching roughly US $24 billion by 2016 with a CAGR of 15% over the next five years. India’s domestic passenger growth is expected to reach a level of 150-180 million passengers by the year 2020.

Market research firm, Lucintel's research indicates that over the next five years, the Indian offset market is expected to witness double-digit growth and reach new highs over the next 10 years primarily driven by India’s procurement plans.

As per the study, increases in fleet size, low labor cost and government support to the industry are the major factors driving the Indian MRO market. The Indian MRO market is expected to reach US $1.8 billion by 2016. However there are some challenges in front of Indian MRO players which should be addressed quickly, including infrastructure development and technological advancements.

India's Maintenance, Repair and Overhaul (MRO) sector is witnessing increasing interest from foreign and domestic players. Boeing has recently set up its MRO unit in India. Various others companies such as Airbus and Dassault are planning to set up MRO units in India.

As per Lucintel, India is a promising market for global MRO companies because the Indian aviation industry has high passenger traffic, low cost airlines and an increasing numbers of aircraft. Currently, there are no full MRO service facilities within a five-hour flight of India.

 
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