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The aviation market size is estimated to grow by USD 636.7 billion at a CAGR of 8.09% between 2023 and 2028. The aviation market is experiencing significant growth, driven by several key factors. Firstly, the increasing efficiency of airlines, resulting from advancements in technology and operational improvements, is boosting market expansion. Additionally, investments in airport infrastructure are on the rise, with an increasing number of airports and terminals being constructed to accommodate growing passenger traffic. This infrastructure development enhances the overall travel experience and contributes to the market's continued growth. Furthermore, the global economic recovery and the increasing affordability of air travel are also fueling demand in the aviation sector. Overall, these factors are propelling the aviation market forward, ensuring its continued growth and development.
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The market encompasses various segments, including Commercial Aviation, Military Aviation, General Aviation, and Helicopter sectors. Commercial Aviation is further categorized into Passenger Aircraft and Freighter segments. Passenger traffic continues to grow, driving the demand for new aircraft and airport infrastructure. Airports Council International reports a steady increase in passenger numbers. Military Aviation includes Combat Aircraft and Non-Combat Aircraft. The Military sector invests heavily in new technology and upgrades, driving demand for advanced materials like steel, rubber, and aluminum in aircraft manufacturing.
Also, General Aviation includes Piston Fixed-Wing Aircraft, Turboprop Aircraft, Business Jets, and Helicopters. Private jet owners and government private airlines are key consumers. Overhaul services and third-party sales through distributors are essential for maintaining the fleet. Electrification is a growing trend in aviation, with a focus on reducing carbon emissions and improving fuel efficiency. Aircraft component manufacturers are investing in research and development to meet these demands. The market is a complex network of nodes, with various players, including manufacturers, private owners, and third-party distributors, contributing to its growth. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing efficiency of airlines is notably driving market growth. Aviation's focus on better aircraft utilization and fleet renewal is contributing significantly to improved energy efficiency. The increasing average number of passengers and cargo weight per flight signifies less energy usage per unit of service delivered. To meet global climate goals, the aviation sector must enhance its energy efficiency by more than 3% annually by 2040. Various countries, under the Paris Agreement on Climate Change and other related frameworks, have established targets for domestic aviation efficiency improvements. The International Civil Aviation Organization (ICAO) has implemented policies to optimize aircraft efficiency and regulate CO2 emissions from international flights. These initiatives are instrumental in promoting sustainable growth within the aviation industry, particularly for high-net-worth individuals and those utilizing light sports aircraft. Thus, such factors are driving the growth of the market during the forecast period.
The shift toward radio-frequency identification (RFID) is the key trend in the market. RFID technology, which utilizes electromagnetic fields to transfer data wirelessly, plays a significant role in the aviation industry, particularly in tracking light sports aircraft. High-net-worth individuals are major consumers of these aircraft, and RFID tags offer an efficient and effective solution for monitoring their whereabouts. These tags come in two types: those with electronically stored data and those powered by electromagnetic induction. The aviation sector, including military and aerospace industries, benefits immensely from RFID technology. It enhances manufacturing efficiency by enabling better management of spare parts inventory and ensuring the authenticity of the parts during procurement or usage. RFID tags provide a contactless and automated method for tracking assets, making them an indispensable tool for aviation businesses. Thus, such trends will shape the growth of the market during the forecast period.
Complexities in the supply chain due to growing technological advancement is the major challenge that affects the growth of the market. The industry caters to a significant number of high-net-worth individuals who prefer private and recreational flying through light sports aircraft. However, the integration of advanced technologies, composites, and structures into new aircraft has created challenges for the industry's supply base. Old aircraft fleets, which are still in operation in various parts of the world, may not be compatible with these modern technologies. As a result, the supply chain for aircraft parts and materials faces difficulties in keeping up with the demands of Original Equipment Manufacturers (OEMs). Moreover, the cost of incorporating advanced technologies into aircraft line maintenance is substantial. The introduction of new advanced platforms, such as the B787 MAX, A330neo, A320neo, and Bombardier's C-Series, has increased the demand for retrofitting old fleets with advanced technology. This pressure on spare part manufacturers and suppliers to deliver on time is a significant challenge for the aviation industry. Despite these challenges, the industry continues to evolve, with a focus on improving efficiency, reducing costs, and enhancing passenger experience. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The commercial aviation 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 812 billion in 2018. 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.
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APAC is estimated to contribute 53% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The aviation sector is a significant contributor to the global economy, driven by aircraft manufacturers producing various aircraft types, including business jets, helicopters, and general aviation aircraft. Nodes of production include materials such as steel, rubber, and aluminum, which are integral to the manufacturing of aircraft components.
Also, the aviation industry's carbon emissions and environmental pollution are a growing concern, leading aviation research organizations to focus on developing advanced, power-efficient, low-emission aircraft models. Hybrid electric and fully electric aircraft, with electric aircraft systems, electric motors, propellers, and electricity from batteries, are in the intense flight-testing phase. Carbon emission levels are being addressed through the development of electric powertrains, battery packs, and avionics, including airframes, landing gears, engines, and fixed wing or rotary wing designs. Small training aircraft and intercontinental business jets are among the aircraft types undergoing innovation, with public airports and commercial airlines also adapting to these advancements. Third-party sales and distribution play a crucial role in the aviation industry, with key players being third-party distributors of aircraft components.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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Aviation marketing encompasses various sectors, including Commercial Aviation, General Aviation, Military Aviation, and Helicopter industries. In Commercial Aviation, passenger traffic is a significant focus, with Airports Council International and the International Monetary Fund tracking trends. Passenger aircraft, such as Boeing and Airbus, dominate this market, while freighters transport medical supplies, cargo, and VIPs through charter operations. Newer generation aircraft prioritize fuel efficiency, leading to increased commercial aircraft deliveries. Commercial aircraft OEMs, including Boeing and Airbus, face challenges from travel restrictions and e-commerce operations' growing impact on the air cargo market. Military Aviation includes Combat Aircraft and Non-Combat Aircraft, with Military spending on Stealth fighter aircraft and fixed-wing aircraft driving demand. Overhaul services cater to private jet owners, government private airlines, and business aircraft owners, emphasizing electrification and maintenance. The Indian aviation ministry also plays a crucial role in shaping the industry, with ongoing developments in helicopter and piston fixed-wing aircraft sectors. Additionally, turboprop aircraft and business jets cater to specific market segments.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2024-2028 |
USD 636.7 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.32 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, UK, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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 Corp., Pilatus Aircraft Ltd., RTX 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 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 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. |
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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