Commercial, Military

Outsourcing to Asia-Pacific Will Grow Test Equipment Market By Leaps and Bounds

By Juliet Van Wagenen | April 18, 2016
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Photo: Boeing

[Avionics Today 04-18-2016] The global aviation test equipment market is expected to reach over $7 billion in revenue by 2020 driven by outsourcing to Asia-Pacific countries, according to the latest research study released by Technavio.

According to Abhay Singh, one of Technavio’s lead analysts for aerospace components research, aircraft flight-testing equipment manufacturers have moved toward developing regions such as Mexico, Brazil, India, Egypt, Algeria, Libya and Morocco, which offers an opportunity to third-party companies to partner with Original Equipment Manufacturers (OEMs) and create Maintenance, Repair and Overhaul (MRO) service centers in these areas.

“Asia is an emerging region in the long-haul international market, and it relies heavily on small and medium widebody aircrafts. The region has a current fleet size of more than 1,500 widebody aircraft that will likely be replaced by an additional 3,500 aircraft by 2034. Due to low labor costs, the North American region outsources almost 60 percent of their heavy maintenance MRO to Asia, which is also a primary source of income for vendors in this space,” Abhay said.

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