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The Aviation Market size is estimated to increase by USD 438.72 billion, at a CAGR of 6.2% between 2022 and 2027. The growth of the market depends on several factors such as the increasing efficiency of airlines, a rise in investments in airport infrastructure and an increase in the number of airports and terminals being constructed.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Better aircraft utilization is one of the major reasons for improved energy efficiency in aircraft. The average number of passengers and cargo weight per flight has increased, lowering energy use per useful service delivered. Fleet renewal is another driver of efficiency improvement. To align with global climate goals, aviation energy efficiency needs to improve by more than 3% per year by 2040. Some of the infrastructure is already in place to achieve these objectives. Policy measures such as carbon pricing and even more stringent efficiency standards will rise the demand for aviation fuel in the upcoming years.
Innovations and improvements in the design of the wings in aircraft can result in a considerable rise in efficiency as it reduces fuel costs and pollution. Another important aspect is by using flexible navigation systems along with real-time updates and replacing current aircraft navigation plans, aircraft can avoid unfavourable weather conditions, such as high winds and storms, and take advantage of favorable weather conditions. The blended wing body (BWB), which is currently in the progressive stage, could reduce fuel use as well as emissions. These factors are expected to drive the growth of the global market during the forecast period.
Radio-Frequency Identification (RFID) is a method in which electromagnetic fields are used to transfer data using a wireless network to track tags attached to objects. RFID tags are beneficial for aircraft and are used to track them electronically. They are widely used in the military, aerospace, and retail industries. Using RFID tags can enhance manufacturing efficiency, as these tags allow manufacturers to manage their spare parts inventory. On the other hand, these tags allow manufacturers to verify the authenticity of the parts during purchase or use. Aircraft maintenance companies can use this technology to get access to an aircraft's full maintenance history and identify defective parts quickly, thereby reducing flight delays and cancellations. These factors will positively impact the market growth during the forecast period.
Though new aircraft already integrate new technologies, composites, and structures, the old fleet of aircraft that are still operational across many countries may not be compatible with advanced manufacturing technologies and new electrical systems. These changes have reduced the upgrading of old aircraft and created multiple challenges across the supply chain for aircraft parts and materials. The supply base of the aviation industry constantly faces problems in keeping pace with the demands of aircraft OEMs.The availability of new advanced platforms, such as the B787 MAX, A330neo, A320neo, and Bombardier's C-Series, has intensified the demand for the integration of advanced technology into old fleets, thus putting pressure on spare part manufacturers and suppliers to make their products available on time. The complexities in the aviation supply chain due to growing technological advancements will badly impact the growth of the market during the forecast period.
The commercial aircraft segment in the global market is expected to witness significant growth in terms of market revenue when compared. Commercial aircraft are used for various transportation purposes, such as tourism, passenger travel, business travel, and freight transportation.
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The commercial aviation segment was valued at USD 755.00 billion in 2017 and continued to grow until 2021. Commercial aircraft are used for different transportation purposes, such as passenger travel, tourism, business travel, and freight transportation. However, factors such as the growth in disposable income of the middle-class population and the emergence of low-cost airline companies have had a good impact on the number of air passengers, which, in turn, has led to an increase in the demand for commercial aircraft in the global market. Such factors will thus drive the growth of commercial aircraft.
The passenger aircraft segment holds an important position in the global market. This segment is very much critical as it includes large commercial airlines that continuously require fuel for their operations. The aviation industry has witnessed an increase in passenger traffic, leading to a rise in demand for commercial aircraft. For FY2023, domestic passenger traffic is estimated at 1360 million and marginally higher than ICRA's (Indian aviation industry) estimates of 1300-1350 million. For FY2023, the overall airline capacity deployment was higher by 38% as compared to FY2022. For March 2023, domestic air passenger traffic has witnessed an increase of 8% compared to February 2023. This trend has resulted in the growth of the passenger aircraft segment in aviation.
APAC is estimated to contribute 52% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The market in APAC is expected to witness considerable growth during the forecast period. For instance, India's airline industry is poised for expansion with over 1,100 aircraft on order from several domestic airlines in 2023. Air India, placed orders for a total of 470 planes with Airbus and Boeing. The country's largest airline, IndiGo, has around 500 aircraft on order, and Akasa Air has ordered 72 Boeing narrow-body aircraft, of which 16 have been delivered. This is primarily attributed to an increase in air passenger transportation across the region. APAC, with about half of the global population residing in it, is a large consumer base with an increasing number of middle-class households. Emerging economies in APAC, such as India and China, are witnessing a surge in air passenger travel, which is primarily attributed to the growing spending by middle-class households. The increase in airline connectivity at a domestic level and a decrease in the average fare due to the. However, advancements in technology, such as automation and digitalization, are enhancing the overall efficiency and safety of the market in the region. Therefore, these factors will escalate the growth of the market in APAC 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.
Airbus SE: The company offers aviation services such as Passenger Aircraft.
Bombardier Inc: The company offers aviation services such as Business aircraft.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market players, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The Market in the commercial sector encompasses a wide range of aircraft, including helicopters, business jets, and general aviation aircraft. With a focus on medical supplies and catering to VIPs through charter operations, the market is closely monitored for orders and deliveries.
The shift towards newer generation aircraft is driven by factors such as fuel efficiency, situational awareness, and tactical advantage. Production and delivery rates are crucial metrics in this competitive market, especially amidst travel restrictions and evolving routes.
Transatlantic expansion and the rise of e-commerce operations have led to an increased demand for freighter aircraft, including models like the B777-8 freighters. Boeing's Commercial division plays a significant role in shaping the market through its innovative aircraft designs and solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 6.2% |
Market growth 2023-2027 |
USD 438.72 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.12 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 52% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, BAE Systems Plc, Bombardier Inc., DAHER, Dassault Aviation SA, Embraer SA, General Dynamics Corp., General Electric Co., Leonardo Spa, Lockheed Martin Corp., Northrop Grumman Systems Corp., Pilatus Aircraft Ltd., Raytheon Technologies Corp., Rolls Royce Holdings Plc, Saab AB, Safran SA, Textron Inc., Thales Group, The Boeing Co., and United Aircraft Corp. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Revenue Stream
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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