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The Middle East - aviation market size is forecast to increase by USD 9.55 billion, at a CAGR of 2.9% between 2023 and 2028. The market growth analysis depends on several factors such as the increase in the number of airports and terminals being constructed, the rise in investment in airport infrastructure, and the expected rise in the number of air travelers.
The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Type, which comprises commercial aircraft, military aircraft, and general aircraft. Additionally, it categorizes Application into airline and air cargo. The market report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
There has been a rise in investment in airport infrastructure for the expansion of the airport. For example, in May 2022, Hamad International Airport completed its expansion to increase the airport's capacity to more than 53 million passengers annually with a cargo terminal with an estimated investment of USD 1 billion. Likewise, in March 2021, New Sharjah International Airport completed its expansion. The expansion work involves the construction of new passenger terminals and supporting infrastructure of the airport.
Furthermore, Oman Musandam Airport is being developed at a cost of USD 250 million and is projected to be ready by Q4 2026. The project comprises the construction of two runways and a passenger terminal with a capacity of 250,000 passengers per year. Such investments in the development of infrastructure in the airport will thus drive the growth of the market during the forecast period.
The Middle East has proven to be a profitable market for the business and private aviation sectors because of the region's significant concentration of high-net-worth and ultra-high-net-worth individuals (HNWI/UHNWI). Large-cabin and long-range business aircraft are in high demand in the Middle East because of their exceptional comfort and level of luxury. Several countries in the Middle East, including the UAE, Saudi Arabia, and Qatar, have experienced economic prosperity driven by factors such as oil wealth, diversified economies, and strategic investments.
Additionally, the market is also being driven by the increased demand for charter operations, as many charter businesses are adding new business jets to their fleets. In December 2021, for example, Qatar Executive reported that it had received three Gulfstream G650ER aircraft, bringing its fleet total of G650 aircraft to eleven. Throughout the projected period, these improvements are anticipated to fuel the expansion of the Middle Eastern aviation industry. Such developments are expected to drive market growth during the forecast period.
Airlines in the Middle East, particularly those based in hubs like Dubai, have faced criticism for high operating costs. This includes expenses related to infrastructure, fuel, and labor. Controlling costs while maintaining high service standards is a constant challenge. Air-to-air refueling is a strategic imperative generally adopted by military aircraft groups.
Moreover, the high installation costs of aerial refueling systems prevent countries from adopting them. For instance, the cost of manufacturing and installing the Multipoint Refueling System (MPRS) per aircraft is expected to range between USD 5-6 million, with 6,000-7,000 labor hours. Hence, due to such factors, the growth of the market will be hampered during the forecast period.
The commercial aircraft segment will account for a major share of the market's growth during the forecast period.? A commercial aircraft is a type of plane that transports people or cargo from one area to another. Commercial aircraft encompasses both general aviation and scheduled airline services. Major components of commercial aircraft are wings, power plants, fuselage, tail or empennage, and landing gear. Commercial aircraft are used for various transportation such as tourism, passenger travel, business travel, and freight transportation.
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The commercial aircraft segment was valued at USD 25.06 billion in 2018. Factors such as the growth in disposable income of the middle-class population and the emergence of low-cost airlines had a positive impact on the number of air passengers, which, in turn, led to an increase in the demand for the commercial aircraft segment in the Middle East - aviation market. Commercial aircraft are an important part of the aviation system that help generate long-term improvements in economic, social, and environmental efficiency. Thus, such factors will drive the growth of the commercial aircraft segment of the market during the forecast period.
Based on application, the market has been segmented into airline and air cargo. The airline?segment will account for the largest share of this segment.?The Middle East serves as a strategic hub connecting Asia, Europe, and Africa. This geographical advantage has made Middle Eastern airlines popular choices for international travelers looking for convenient layovers. Middle Eastern countries such as UAE, Saudi Arabia, and Qatar have invested heavily in building state-of-the-art airports and infrastructure to accommodate the increasing demand for air travel. Additionally, middle Eastern airlines have gained a reputation for providing excellent customer service and luxurious in-flight experiences, attracting both business and leisure travelers. Thus, such factors will drive the growth of the airline segment as well as the Middle East - aviation market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Airbus SE, Arkia, Bombardier Inc., El Al, Embraer SA, General Dynamics Corp., Gulf Air, Iran Air, Kuwait Airways, Leonardo S.p.A., Lockheed Martin Corp., Mahan Air, Oman Air, Qatar Airways Group Q.C.S.C., Textron Inc., Thales Group, The Boeing Co., The Emirates Group, and Royal Air Maroc
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Middle East Aviation Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.9% |
Market Growth 2024-2028 |
USD 9.55 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.84 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Arabia PJSC, Airbus SE, Arkia, Bombardier Inc., El Al, Embraer SA, General Dynamics Corp., Gulf Air, Iran Air, Kuwait Airways, Leonardo S.p.A., Lockheed Martin Corp., Mahan Air, Oman Air, Qatar Airways Group Q.C.S.C., Textron Inc., Thales Group, The Boeing Co., The Emirates Group, and Royal Air Maroc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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