The Commercial Aircraft Market is estimated to be valued at US$ 107.33 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The commercial aircraft market involves the production and sales of aircraft for commercial transportation purposes. The key products in this market include narrow-body aircraft, wide-body aircraft, regional jets and turboprops. Commercial aircraft enable air travel for passengers and cargo on scheduled flights as well as charter flights. Major commercial aircraft OEMs include design, development, manufacturing, marketing and sale of these aircraft worldwide.
Market Dynamics:
Increased passenger traffic drives demand for new aircraft: The rise in global passenger traffic year-on-year especially in emerging economies has fueled the demand for new commercial aircraft. More people are opting for air travel owing to increased disposable income and expanding aviation infrastructure which is driving OEMs to deliver new aircraft models.
Improving availability of airline finance: Availability of attractive financing and leasing options from banks and airliner lessors have made it easier for airlines to obtain funding required for fleet expansion. This improved financing environment has encouraged airlines worldwide to invest in new fuel-efficient aircraft.
Segment Analysis
The commercial aircraft market is dominated by the narrow-body aircraft segment. Narrow-body aircrafts have a smaller fuselage cross-section than wider-body aircrafts, allowing the former to service short and mid-haul routes more economically. The narrow-body segment witnessed increased orders owing to rising demand for short-haul flights across developing regions such as Asia Pacific and Middle East. Additionally, low-cost carriers (LCCs) favor narrow-body aircrafts as they have lower operational costs.
PEST Analysis
Political: Government initiatives promoting infrastructure development and aviation sectors influence the commercial aircraft market. Subsidies and tax waivers offered by various countries drive aircraft orders.
Economic: Rising per capita incomes across emerging nations increase air passenger traffic, augmenting demand for new aircraft. Additionally, LCCs thrive on economic routes connecting low-cost destinations.
Social: Increasing international tourist arrivals and business travel contribute to higher air traffic. Moreover, rising number of flying millennials stimulate demand.
Technological: Advancements in engine designs, lightweight materials, and flight control systems help manufacturers develop fuel-efficient aircraft with lower carbon footprints and operating costs.
Key Takeaways
The Global Commercial Aircraft Market Size was valued at US$ 107.33 Bn in 2023 and is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing air passenger traffic. Asia Pacific region dominates the commercial aircraft market owing to robust aviation infrastructure development and rising passenger air traffic in China and India. Key players operating in the commercial aircraft market include Airbus SE, The Boeing Company, Embraer SA, ROSTEC, ATR, Commercial Aircraft Corporation of China Ltd., and Mitsubishi Aircraft Corporation. The Boeing Company and Airbus SE collectively hold over 80% of the commercial aircraft market share.
Regional analysis related content comprises: Asia Pacific dominates the commercial aircraft market holding around 45% of the market share in 2023. Rapid expansion of aviation infrastructure and rising passenger air traffic especially in China and India fuels commercial aircraft demand in the region. Additionally, increasing aircraft orders from LCCs catering to the budget travel segment within the region enhances regional market growth.
Key players related content comprises: Key players operating in the commercial aircraft market include Airbus SE, The Boeing Company, Embraer SA, ROSTEC, ATR, Commercial Aircraft Corporation of China Ltd., and Mitsubishi Aircraft Corporation. The Boeing Company and Airbus SE collectively hold over 80% of the commercial aircraft market share owing to their dominance in wide-body and narrow-body aircraft segments including passenger and freighter aircraft types.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
