The global market for Commercial Aircraft is expected to grow between 2023 and 2032, due to the increasing air travel demand, expanding middle-class population, fuel efficiency and environmental concerns, and rising tourism industry.
The Global Commercial Aircraft Market was valued at USD 147.32 Billion in 2022 and is projected to reach USD 212.68 Billion by 2032, registering a CAGR of 4.65% for the forecast period 2023-2032.
Global Commercial Aircraft Market Drivers
- Increasing air travel demand: Higher passenger traffic is correlated with rising demand for air travel. More people are choosing to travel by air for both business and pleasure, which means that more aircraft are required to handle the increasing number of passengers. Airlines increase the size of their fleets in response to growing demand. Expanding the fleet is a calculated move to satisfy a burgeoning market. In a competitive market, airlines aim to draw customers by providing more routes, improved services, and more flight options.
- Expanding middle-class population: A growing middle class is frequently linked to rising incomes. Spending on non-essential goods and services, such as air travel, is more likely to occur when individuals and families have more disposable income. A greater percentage of people can afford to travel by air for both business and pleasure as their income rises. Due to its affordability, air travel is becoming a more appealing and accessible means of transportation for the expanding middle class.
- Fuel efficiency and environmental concerns: Numerous airlines have established voluntary targets for reducing emissions and achieving sustainability. By reducing carbon dioxide (CO2) emissions and other airborne pollutants, fuel-efficient aircraft are essential to airlines in meeting these targets. Airlines are under more pressure than ever to adopt greener practices as a result of growing global awareness of climate change and the aviation industry's role in greenhouse gas emissions. Public perception has been influenced by consumer awareness and worries about the effects of air travel on the environment.
- Rising tourism industry: The demand for air travel rises in tandem with the expansion of the tourism sector. Due to its convenience and speed, air travel is frequently used by tourists for both leisure and business travel. The demand for air travel is rising as a result of the establishment of new tourist destinations and the development of infrastructure in already-existing ones. The demand for international travel has increased as a result of the interconnectedness of regions and the globalization of economies. To take advantage of this trend, airlines invest in wide-body and long-haul aircraft to connect major cities and promote international travel.
- SMBC Aviation Capital Completes Acquisition of Goshawk Management Ltd. (2022)
- CEMEX Ventures and TEKFEN Ventures Sign Collaboration Agreement (2019)
- Safran to acquire Collins Aerospace’s actuation and flight control business (2023)
- KPMG Mergers and acquisitions in aerospace and defense (2021)
Challenges Impacting the Global Commercial Aircraft Market
- High Initial Cost: The demand for air travel rises in tandem with the expansion of the tourism sector. Due to its convenience and speed, air travel is frequently used by tourists for both leisure and business travel. The demand for air travel is rising as a result of the establishment of new tourist destinations and the development of infrastructure in already-existing ones. The demand for international travel has increased as a result of the interconnectedness of regions and the globalization of economies. To take advantage of this trend, airlines invest in wide-body and long-haul aircraft to connect major cities and promote international travel.
- Aging Aircraft Fleet: Airlines incur greater operating costs as a result of older aircraft models' frequent lack of fuel efficiency compared to their more modern counterparts. An aging fleet's rising maintenance costs can put a pressure on airline budgets and profitability, deterring new aircraft investment. Airlines with aging fleets may find it difficult to meet their goals of providing passengers with modern amenities, enhanced safety systems, and improved operational efficiency.
- Rising Fuel Prices: Because they use more fuel, long-haul flights are especially vulnerable to the effects of growing fuel prices. Maintaining profitability on long-haul services can pose a challenge for airlines that operate extensive international routes. The operational flexibility of airlines is limited by rising fuel prices. The potential for overall growth may be limited if they have to optimize routes, lower frequencies, or even reevaluate some services.
- Environmental Regulations: Strict limits on aircraft emissions are frequently imposed by environmental regulations, especially when it comes to greenhouse gases. Adopting and developing cleaner propulsion technologies will require large investments in research and development to comply with strict emission standards. Certain aircraft types may not be able to operate in areas with high population densities due to noise regulations. Environmental laws may require aircraft to meet minimum fuel efficiency requirements.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 147.32 Billion |
| Market Forecast in 2032 | USD 212.68 Billion |
| Compound Annual Growth Rate (CAGR) | 4.65 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Aircraft Type, By Application, By Engine Type & By Region |
| By Aircraft Type |
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| By Application |
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| By Engine Type |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2032 |
Category-wise Analysis:
By Aircraft Type:
- Narrow-Body Aircraft: Single-aisle, or narrow-body, aircraft are adaptable and ideal for short- to medium-distance travel. Their broad adoption is partly due to their effectiveness in bridging pairs of high-density and regional cities. Due to their low operating costs, narrow-body aircraft are appealing to low-cost and established airlines alike. There is a sizable demand worldwide for short-haul flights that connect cities a few hours apart.
- Wide-Body Aircraft: Because wide-body aircraft are built for long-haul travel, they are vital to airlines that run routes that necessitate lengthy flight times. For cross-border travel, they provide more passenger capacity and fuel efficiency. When it comes to seating capacity, wide-body jets are more than narrow-body aircraft. Because of this, they can effectively service heavily populated routes, satisfying the demand for many passengers on well-liked long-distance travel.
- Regional Aircraft: Regional planes are ideal for short-haul travel and are essential for establishing connections between smaller towns and regional airports. The popularity of these aircraft can be attributed to the need for better regional connectivity. Regional planes are made to operate efficiently on shorter routes carrying fewer passengers. Because of their economic viability, airlines operating in regional markets with high demand for shorter flights tend to favor them. The typical seating capacity of a regional aircraft is between 70 and 150 people.
- Passenger Aircraft: A significant portion of the market is now occupied by passenger aircraft as a result of the ongoing increase in demand for air travel around the world brought about by growing populations, rising incomes, and improved affordability. The number of people who can afford to travel by air has increased due to the global middle class's growth, which has aided in the passenger aircraft segment's dominance. To accommodate the increasing demand for passenger flights, airlines regularly modernize and expand their fleets. Significant orders for new passenger aircraft are driven by this trend.
- Freighter: There is a significant demand for freighter aircraft due to the expansion of international trade and the thriving e-commerce sector. These planes are essential for shipping packages and goods across international borders. Airlines that provide express cargo and package delivery services—like FedEx, UPS, and DHL—strongly depend on freighter aircraft to make sure that deliveries are made on time and effectively. The need for expedited shipping services has grown as e-commerce has expanded. Just-in-time supply chain models, which prioritize prompt and effective delivery of goods, have been adopted by numerous industries.
Regional Analysis:
North America:
- United States: In the aerospace sector, American-based aircraft manufacturers are at the forefront of innovation and technology. American companies are frequently the source of new, fuel-efficient aircraft models and avionics advancements. Due to their access to significant financial and technological resources, American aerospace companies are able to invest in R&D, create innovative aircraft, and keep a competitive edge in the global market. With some of the busiest airline hubs in the world located here, extensive air travel connectivity is made possible.
- Canada: Canada boasts a thriving aerospace sector that specializes in avionics, aerospace technologies, and aircraft manufacturing. This knowledge helps the nation compete in the international market for commercial aircraft. Canadian aerospace firms make investments in R&D, creating cutting-edge technologies and helping to design and produce parts for commercial aircraft. Canadian aerospace manufacturer Bombardier has played a major role in the manufacturing of business and regional aircraft. Airlines all over the world have made use of the company's turboprops and regional jets.
- China: The demand for air travel has significantly increased as a result of China's rapid economic growth. The need for new aircraft to accommodate the growing passenger base has been fueled by this growth. The Chinese government has made significant investments to build a strong domestic aerospace sector. The goal of programs like COMAC is to make China a significant player in the production of commercial aircraft. The demand for both domestic and international air travel is rising, making China one of the world's fastest-growing aviation markets. This expansion has resulted in significant orders for brand-new aircraft.
- India: India's aviation industry is growing as a result of the country's rapid economic growth. The demand for domestic and international air travel is rising as the economy expands. There are now more people in India who can afford to travel by air thanks to the country's growing middle class. The demand for commercial flights has increased as a result of this demographic shift. Aviation is growing as a result of urbanization and the development of tier 2 and tier 3 cities. Increased accessibility and the preference for air travel are brought about by improved connectivity between cities.
- Southeast Asia: Southeast Asia's middle-class population growth has increased disposable income and made it easier for people to afford air travel. The demand for commercial aircraft and the volume of passengers it carries are both boosted by this demographic trend. With a variety of attractions, Southeast Asia is a well-liked travel destination. The region's tourism boom generates a steady stream of foreign visitors, which in turn fuels demand for commercial aircraft and air travel. Both full-service and low-cost airlines operating in Southeast Asia have been growing and updating their fleets.
- Western Europe: Western Europe has long been a center for the aerospace industry, especially nations like France, Germany, and the United Kingdom. This area is home to the headquarters of major aircraft manufacturers and suppliers as well as their substantial operations. Western Europe is home to several major aircraft manufacturers, such as Airbus, which has its headquarters in Toulouse, France. Airbus, a prominent global aircraft manufacturer, makes a substantial contribution to the market share of the region through its production and worldwide sales of commercial aircraft. Western European nations are renowned for their cutting-edge technological prowess and inventiveness in aerospace design.
- Eastern Europe: Strong economic growth in Eastern European nations may raise demand for air travel, which would increase the market share of commercial aircraft. There may be a need for more commercial aircraft to meet the rising demand for air travel as a result of an increase in both business and leisure travel within Eastern Europe. Major airline hubs being established and developed in Eastern European cities may help to boost air traffic, which would increase the market share of commercial aircraft in the area.
- Brazil: Brazil has proven its innovation, design, and engineering prowess in aerospace through Embraer. The nation's aerospace sector has helped to develop aircraft with cutting-edge technology. Companies like Embraer now have the chance to penetrate particular markets for commercial aircraft thanks to the expansion of regional aviation and the growing need for smaller, more fuel-efficient aircraft. Embraer has expanded its global market reach and visibility by partnering and cooperating with other aerospace companies on a global scale.
- Mexico: Mexican airlines may add more new commercial aircraft to their fleets in response to the rising demand for air travel. Expanding their fleet is a common strategy used by airlines to enhance their offerings and capture more market share. Engaging in international airline alliances or partnerships could improve connectivity and draw in more tourists from other countries. The need for commercial aircraft servicing Mexican airports may rise as a result of this improved connectivity. By supporting more flights and passengers, investments in airport infrastructure, such as the building of new airports and the expansion of existing ones, can support the expansion of the commercial aircraft market.
- Middle East: The main airlines operating in the area use a hub-and-spoke strategy, with their hubs serving as hubs for connecting flights. To effectively service both short- and long-haul routes, this model needs a diverse fleet of commercial aircraft, including both narrow-body and wide-body aircraft. Nations like the United Arab Emirates have made significant investments in the infrastructure of aviation and tourism, including building world-class airports. Due to the investment's stimulation of the demand for air travel, more aircraft are being ordered to accommodate the increasing number of passengers.
- Africa: In comparison to more developed regions, there might be less connectivity among African nations and regions. The demand for new commercial aircraft as well as the amount of air travel within the continent may be impacted by this. Due to financial limitations, some African airlines fly older aircraft, and the adoption of newer, fuel-efficient models may be slower than in other regions with stronger economies. In certain African nations, operating expenses, such as fuel prices, maintenance, and regulatory compliance, can be rather high. This may have an impact on airlines' capacity to make investments in new, fuel-efficient aircraft as well as their financial sustainability.
- Australia and New Zealand: The main producers and suppliers in areas like North America, Europe, and Asia form the core of the global supply chain for commercial aircraft. As consumers, Australia and New Zealand are increasingly entwined with the global supply chain. Australia and New Zealand are involved in the leasing and operating of aircraft; airlines there frequently rent aircraft from foreign lessors or manufacturers instead of manufacturing and owning them there.
List of Prominent Players:
- The Boeing Company
- Textron Inc.
- Dassault Aviation
- Lockheed Martin Corporation
- General Electric
- General Dynamics Corporation
- Commercial Aircraft Corporation of China, Ltd
- Raytheon Technologies Corporation
- Airbus Group
- Embraer S.A.
- Others
By Aircraft Type:
- Narrow-Body Aircraft
- Wide-Body Aircraft
- Regional Aircraft
- Roads & Bridge Construction
- Freighter
- Turbofan
- Turboprop
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, UK, Italy, Spain, Rest of Europe)
- Asia Pacific (China, Japan, India, Southeast Asia, Rest of APAC)
- Latin America (Brazil, Argentina, Rest of Latin America)
- Middle East & Africa (GCC Countries, UAE, Rest of MEA)
