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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 notable rise in investment in airport infrastructure aimed at expanding airport capacities. For instance, in May 2022, Hamad International Airport completed a significant expansion, increasing its capacity to over 53 million passengers annually and adding a new cargo terminal, involving an estimated USD 1 billion investment. Similarly, in March 2021, New Sharjah International Airport completed its expansion, which included the construction of new passenger terminals and supporting infrastructure. These infrastructure expansions are crucial as they support the growing demand in the aviation sector, facilitating smoother operations and accommodating increasing passenger numbers. Additionally, investments in airport infrastructure often include enhancements to facilities for handling aviation fuel, ensuring efficient supply and storage capabilities to sustain the expanding operations and services at these airports.
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. Similarly, in the Europe aviation market, there is a growing trend towards expanding charter services and fleet enhancements, reflecting a broader adoption of business jets and increased charter activities. These dynamics contribute to the overall growth of the aviation sector in Europe, bolstered by investments in new aircraft and expanded service offerings catering to corporate and luxury travel needs.
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.
The aviation market's growth in the Middle East is further supported by investments in Aviation Test Equipment (ATE), crucial for maintaining high operational standards. As Middle Eastern airlines expand their fleets and enhance service offerings, the demand for ATE rises to ensure safety, efficiency, and compliance with global aviation regulations. ATE plays a pivotal role in testing and maintaining aircraft systems, avionics, and components, contributing to the reliability and performance of these airlines. This strategic integration of advanced testing technologies aligns with the region's commitment to top-tier infrastructure and customer satisfaction, reinforcing its position as a leading hub for international air travel.
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. |
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 Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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