May 24, 2024

The Commercial Aircraft Market Is Expected To Be Fueled By The Growing E-Commerce Industry

The commercial aircraft market refers to the manufacturing of airplanes and jets for commercial use by airlines and cargo operators. Some key products in this space include narrow-body aircraft, wide-body aircraft, regional aircraft, and freighters. Narrow-body aircrafts are commonly used for short- and medium-haul flights while wide-body jets are deployed in long-haul routes with more seats. Regional jets cater to regional routes and have up to 100 seats. Freighters are cargo aircraft used to transport packages and mail globally. With the rapid growth of e-commerce, package delivery companies are also investing in freighter jets to keep up with demand.

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 growing e-commerce industry has emerged as a key driver for the commercial aircraft market. Thanks toFactors such as convenience of online shopping, massive product catalogs, and fast delivery options, e-commerce sales have surged dramatically in recent years. Major online retailers like Amazon are increasingly relying on cargo jets and freighters to transport packages across cities and countries on a tight schedule. As e-commerce continues to penetrate new customer demographics and geographical regions, the demand for dedicated cargo aircraft is expected to grow substantially. Another factor fueling the aircraft market is the need for replacements of aging fleets. Many airline companies are replacing their older aircraft to improve fuel-efficiency and reduce maintenance costs. This has resulted in multiple high-value aircraft orders from carriers worldwide.

 

Segment Analysis

 

The commercial aircraft market has two dominant segments – narrowbody aircraft and widebody aircraft. The narrowbody aircraft segment dominates the market and accounts for over 60% of the market share. Factors such as their higher fuel efficiency, suitability for short distance routes as well as their lower production and operating costs make narrowbody aircraft highly preferred by airlines operating medium-haul routes. Key narrowbody aircraft models include Airbus A320, Boeing 737 etc. Widebody aircraft have a market share of around 35% and are mainly used for long range routes as they have larger cabin space and fuel capacity. Airbus A330, Boeing 777 and 787 Dreamliner are some important widebody aircraft models.

PEST Analysis

Political: The commercial aircraft market is significantly influenced by aviation policies, emission regulations and trade agreements between countries. Favorable policies promoting aviation sectors and bilateral air service agreements are helping expansion of routes and airports.

Economic: Rise in global GDP, higher passenger traffic as well as increased long distance tourism has fueled the demand for commercial aircraft over the past decade. A slowing global economy or financial crisis negatively impacts new aircraft orders from airlines.

Social: Increasingaspirations of middle class globally to travel more frequently for business and leisure is boosting air travel demand. Customers also prefer more fuel efficient aircraft with enhanced cabin amenities. Technological advancements further help expansion of domestic and international aviation networks.

Key Takeaways

The Global Commercial Aircraft Market Demand is expected to witness high growth during the forecast period of 2023-2030 supported by projections of rising passenger traffic globally as more people opt for air travel. 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.

Regionally, Asia Pacific region dominates the market with over 35% share led by China, India and Southeast Asian countries which are witnessing strongest growth in domestic and international aviation sectors. North America holds around 30% market share mainly driven by demand from the US commercial aviation market. Presence of leading manufacturers like BEC Inc., Comcast, Sprint etc. along with their large scale production facilities makes USA an important manufacturing base.

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. Among them, BEC Inc. and Comcast account for over 40% market share owing to their wide product portfolio and global distribution network for commercial aircraft. Charter Communication, Inc. also has sizable market share focused majorly in the US region.

The key players are investing in development of fuel-efficient, lightweight aircraft with digitally advanced cabin and engine systems to capitalize on projected high demand as well as compliance with stringent emission norms. Ongoing consolidation in the industry through mergers and acquisitions is also reshaping the competitive landscape to achieve more economies of scale.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it