by Commercial aircraft are utilized by commercial airlines to transport passengers and cargo across several domestic and international routes. Commercial aircraft are classified into narrow-body aircraft which usually carry up to 210 passengers and wide-body aircraft which can carry more than 210 passengers. Commercial aircraft also find applications in the form of VIP passenger aircraft and freight aircraft transporting primarily cargo. With the growing middle-class population and increasing disposable incomes, air travel is becoming more accessible driving heightened demand for new commercial aircraft.
The global commercial aircraft market is estimated to be valued at US$ 107.33 Bn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The commercial aircraft market is witnessing high growth owing to increasing demand for air travel. According to statista, global scheduled commercial airline traffic is projected to double between 2017 and 2037 with passenger traffic set to grow by 4.0% annually over the next 20 years. This surge in air travel will require airlines to expand their fleet size with new fuel-efficient commercial aircraft driving high demand. Furthermore, the growing middle-class population in emerging economies is having increased disposable incomes allowing more people to travel by air which is another factor boosting market growth. Rising freight transportation is also propelling the demand for new freight aircraft. With congested runways and rising pollution concerns, commercial aircraft manufacturers are developing new fuel-efficient aircraft with hybrid-electric propulsion technology meeting stringent emission norms and helping gain higher market share.
SWOT Analysis
Strength: The commercial aircraft market has significant opportunities for growth due to rising passenger traffic. Increased urbanization and growing middle class in emerging economies is leading to greater demand for air travel. Many airlines are expanding their fleet sizes and ordering new aircraft to accommodate more passengers.
Weakness: Development of new aircraft requires huge investments and can take several years. This results in long gestation periods for aircraft manufacturers. Airlines also face financing issues to purchase new aircraft and rising fuel costs impact their profitability.
Opportunity: There is potential for orders of more fuel efficient aircraft from airlines seeking to reduce operating costs. Growing freight transportation globally will drive demand for commercial freighters. Regional connectivity programs in developing nations are expanding aviation infrastructure and routes.
Threats: Economic slowdowns can negatively impact passenger traffic growth plans of airlines. Trade wars and geopolitical tensions increase risks for the aerospace industry. Entry of competing aircraft types from other manufacturers challenges leading providers.
Key Takeaways
The Global Commercial Aircraft Market Demand is expected to witness high growth over the forecast period supported by strong demand from air passenger travel as well as air cargo transportation. The global commercial aircraft market is estimated to be valued at US$ 107.33 Bn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2023 to 2030.
Regional analysis related content comprises The Asia Pacific region holds the largest share in the commercial aircraft market led by China, India, and South East Asian countries. China and India are among the fastest growing aviation markets stimulated by economic development, rising incomes, and government initiatives to improve domestic and international air connectivity. Majority of new aircraft deliveries during the forecast period are expected in the Asia Pacific region to modernize the fleets of airlines in China, India, and Association of Southeast Asian Nations (ASEAN) countries.
Key players
Key players operating in the commercial aircraft market are BEC Inc., Comcast, Sprint, AT&T Inc., Charter Communication, Inc., Verizon, CenturyLink, Singtel, Embarq Limited, and Cox Communications, Inc. Large manufacturers like Boeing and Airbus dominate aircraft orders while engine makers like General Electric and Rolls Royce are prominent suppliers to the industry. Regional aircraft are also seeing increased demand supported by programs like UDAN in India for which players like Bombardier are targeting.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
