Description
The Global Commercial Aerospace Market size was USD 198.72 billion in 2023 and is projected to reach USD 255.4 billion by 2031, with a CAGR of 6.72 % during the forecast period.
Global Commercial Aerospace Market: Overview
The commercial aerospace business is undergoing substantial innovation, fueled by efficiency, sustainability, and technical breakthroughs. Key trends involve the return of supersonic flights, with United Airlines suggesting to buy 15 new supersonic airliners by 2029 to reduce travel time and increase efficiency. IoT technology is being used for proactive upkeep, allowing data-driven preventive steps that minimise downtime. Aerospace firms are undergoing digital transformation by utilising automation, artificial intelligence, and data analysis to optimise processes and improve supply chain management. Advanced Air Mobility (AAM) is gaining traction, with substantial resources going towards automated flight systems, which are expected to be readily accessible by 2025. The production of Electric Vertical Takeoff and Landing (eVTOL) aircraft is rapidly accelerating, with over 700 designs in the works, promising to revolutionise urban air mobility. Furthermore, the industry is focusing on Sustainable Aviation Fuel (SAF) to meet net zero carbon emissions targets by 2050, highlighting a strong commitment to environmental sustainability. These innovations collectively underscore the industry’s dynamic evolution towards a more efficient and sustainable future.
Global Commercial Aerospace Market: Covid-19 Impact
The COVID-19 pandemic severely impacted the commercial aerospace market, leading to drastic declines in air travel demand, production halts, and financial losses for airlines and manufacturers. The industry faced unprecedented challenges, including layoffs, supply chain disruptions, and delayed aircraft deliveries. Recovery efforts focus on adapting to new safety protocols, leveraging government support, and innovating to rebuild passenger confidence and meet evolving market demands.
Global Commercial Aerospace Market: Growth Drivers
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Increasing Global Air Traffic:
The global rise in passenger and cargo air traffic is a major growth driver for the commercial aerospace market. With more people traveling for business and leisure, and the expansion of e-commerce driving air freight demand, airlines are ordering more aircraft to meet this growing need. This trend is especially pronounced in emerging economies, where air travel is becoming more accessible to a larger portion of the population.
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Advancements in Aircraft Technology:
Ongoing innovations in aircraft design and technology, such as the development of more fuel-efficient engines, the use of lightweight composite materials, and advancements in aerodynamics, are boosting the market. These technological improvements help reduce operational costs for airlines, making air travel more affordable and accessible, thereby driving demand for new aircraft.
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Expansion of Low-Cost Carriers (LCCs):
The proliferation of low-cost carriers around the world has significantly increased the number of flights and routes available to passengers. LCCs often operate with newer fleets and drive demand for cost-effective, efficient aircraft to maintain their competitive edge. This expansion has made air travel more affordable and frequent, contributing to the overall growth of the commercial aerospace market.
Global Commercial Aerospace Market: Restraining Factors
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Economic Volatility:
Economic downturns and volatility can significantly impact the commercial aerospace market. During periods of economic uncertainty, consumers and businesses tend to cut back on travel, leading to reduced demand for air travel and new aircraft orders. This can result in delayed or canceled aircraft deliveries and financial strain on airlines and manufacturers.
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Environmental and Regulatory Pressures:
The commercial aerospace industry faces increasing pressure to comply with stringent environmental regulations aimed at reducing carbon emissions and noise pollution. Meeting these regulations often requires substantial investment in new technologies and processes, which can be costly and time-consuming. These regulatory pressures can act as a restraint on growth, particularly for smaller players who may struggle to meet compliance requirements.
Global Commercial Aerospace Market: Opportunity Factors
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Growth in Emerging Markets:
Emerging markets, particularly in Asia-Pacific, Africa, and Latin America, present significant growth opportunities for the commercial aerospace industry. Rising incomes, urbanization, and the expansion of the middle class in these regions are driving increased demand for air travel. This creates opportunities for aircraft manufacturers, maintenance providers, and related service companies to expand their presence and capture market share.
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Development of Sustainable Aviation Technologies:
The push for sustainability in aviation is creating opportunities for innovation and growth. The development and adoption of sustainable aviation fuels (SAFs), electric and hybrid aircraft, and other green technologies offer new avenues for growth. Companies that can successfully develop and implement these technologies stand to benefit from regulatory incentives and growing consumer demand for eco-friendly travel options.
Global Commercial Aerospace Market: Challenges
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Supply Chain Vulnerabilities:
The commercial aerospace supply chain is highly complex and global, involving numerous specialized suppliers. Disruptions due to geopolitical tensions, natural disasters, pandemics, or logistical challenges can significantly impact production and delivery schedules. Ensuring a resilient and adaptable supply chain is a critical challenge for the industry.
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Shortage of Skilled Labor:
The aerospace industry relies heavily on a skilled workforce, including engineers, technicians, and pilots. There is a growing shortage of qualified professionals in these areas, exacerbated by an aging workforce and insufficient numbers of new graduates entering the field. This labour shortage can lead to production delays, increased labour costs, and challenges in maintaining operational efficiency.
Global Commercial Aerospace Market: Segmentation
Based on Aircraft Type: The market is segmented into Rotorcraft, Fixed-wing Aircraft.
Based on Engine Type: The market is segmented into Turbofan, Turboshaft, Turboprop.
Based on Carrier Type: The market is segmented into Full-Service Carrier, Low-cost Carrier.
Global Commercial Aerospace Market: Regional Insights
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North America:
North America’s commercial aerospace market is growing rapidly, owing to rising air travel consumer demand, advances in technology in aircraft, and good economic growth. The region, dominated by the United States as well as Canada, benefits from an established aviation network and major investments in fleet modernization. Key competitors, like as Boeing and Airbus, are focusing on enhancing efficiency in manufacturing and expanding their service networks. Furthermore, the development of low-cost airlines and the comeback of corporate travel following the pandemic have contributed to the market’s growth. Sustainable aviation fuel (SAF) and next-generation aircraft are key trends that address both ecological issues and regulatory requirements. Furthermore, developments in avionics and communication are improving passenger experience, enhancing North America’s role as a worldwide aircraft hub.
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Asia Pacific:
The Asia Pacific commercial aerospace market is expanding rapidly, fueled by rising airline demand, economic expansion, and a rise in disposable income in the region. Key players including Boeing, Airbus, and regional manufacturers are growing their footprint to capitalise on the market opportunity. The industry is characterised by large investments in fleet modernization, infrastructure improvement, and the adoption of sophisticated technology such as fuel-efficient aircraft and digital solutions. China and India are leading the drive, with large orders for new aircraft and aggressive strategies to strengthen their aviation sectors. Regulatory constraints, geopolitical tensions, and shifting fuel prices remain obstacles, but the long-term picture is bright. Sustainable aviation practices and advancements in air traffic management are projected to drive future growth. The Asia-Pacific commercial aerospace market is set to become a pivotal arena for global aerospace giants, reflecting the region’s escalating influence on global air travel dynamics.
Global Commercial Aerospace Market: Competitive Landscape
Northstar Aerospace, Airbus SE, Bombardier, Lawrie Technology Inc., The Boeing Company, Textron Inc., SS White Aerospace, Embraer SA, Collins Aerospace, Lockheed Martin Corporation.
Global Commercial Aerospace Market: Recent Developments
- On June 11, 2024 Arajet considered the arrival of its tenth Boeing 737 MAX in Santo Domingo, Dominican Republic. This addition to the fleet, obtained under a leasing arrangement, is consistent with Arajet’s aim of expanding its fuel-efficient aircraft fleet. Over the next few years, the airline plans to considerably expand its route network throughout the Americas.
- On May 16, 2024 Boeing has launched the testing phase of its ecoDemonstrator initiative, which focuses on over three dozen innovative solutions aimed at enhancing operational efficiency and sustainability. The testing, set to begin this month using a 777-200ER aircraft, places special emphasis on addressing the recycling challenges associated with cabin interiors.
- June 03, 2024 – Avianca chooses RTXs Collins Aerospace for wheel and brake solutions. Avianca, a leading airline based in Colombia, selected Collins Aerospace, an RTX business to provide wheels and brakes to its new fleet of 103 A320neo aircraft over the next 15 years.