Market Trends of Aircraft Switches Industry
Commercial Aviation Segment Will Showcase Remarkable Growth During the Forecast Period
The commercial segment is expected to dominate the market during the forecast period. The increasing use of IFEC systems in commercial aircraft and the growing procurement of these aircraft are the main growth drivers for the segment. With the increasing cabin sophistication to suit the tastes of the customers, the use of switches increased over the years. They are used in the cabin for controlling the IFEC systems, lighting, and calling cabin crew, among other purposes. Compared to military and general aviation aircraft, the number of switches in commercial aircraft is higher. The use of switches in the cockpits of commercial aircraft is more common compared to general aviation aircraft. In contrast, military aircraft do not contain as many switches in the cabin as compared to commercial aircraft.
Another major factor for the domination of the commercial aircraft segment is the high rate of production of commercial aircraft due to the growing demand from airlines. For instance, in June 2023, Indigo (India) ordered 500 Airbus A320neo family planes at the Paris Air Show. Similarly, Air India (India) signed purchase agreements for 250 Airbus aircraft and 220 new Boeing jets worth USD 70 billion. Air India's orders include 70 widebody planes, comprising 34 A350-1000s and six A350-900s from Airbus, 20 787 Dreamliners and 10 777Xs from Boeing. It also includes 140 Airbus A320neo, 70 Airbus A321neo, and 190 Boeing 737 MAX narrowbody aircraft. The airline also signed options to buy an additional 70 planes from Boeing, including 50 737 MAXs and 20 787 Dreamliners. Also, in May 2023, Ryanair placed a USD 40 billion order for 300 aircraft to Boeing. Out of a total of 300, 150 aircraft are 737-MAX-10 aircraft. Phased deliveries will start in 2027 and run until 2034, with half of the new purchases set to replace older aircraft in the Ryanair fleet. Thus, growing commercial aircraft procurement contracts from airlines and rising demand for air travel are driving the growth of the segment during the forecast period.
Asia-Pacific is Projected to Grow with the Highest CAGR During the Forecast Period
Asia-Pacific will showcase remarkable growth in the market during the forecast period. The region is projected to generate the highest demand for aircraft globally by virtue of the increasing passenger traffic in the region, which is making the airlines procure new aircraft. By the end of the forecast period, the region is projected to become the largest aviation market, primarily due to the demand from emerging economies like China and India. By 2025, the countries are projected to become two of the top three largest markets for commercial aviation in the world.
Countries like Japan and Indonesia, among others, are also generating significant demand. Due to this, the deliveries of commercial aircraft increased in the region to the extent that it will share around one-third of aircraft deliveries globally in the next five years. For instance, the International Air Transport Association (IATA) announced that China became the world's largest aviation market by the mid-2020s in terms of passenger capacity. By 2024, India will surpass the UK and become the third-largest aviation market in the world. The huge market potential encouraged aircraft OEMs to devise strategic expansion plans to increase their penetration into the region. It, in turn, will support the growth of the aircraft exhaust systems market.
Even in the military sector, with the increasing territorial conflicts in the region, countries are increasing their military aircraft strength either by indigenous production or by procurement. Thus, the production of indigenous military aircraft, combined with the procurement of new aircraft, is expected to generate a huge demand for aircraft switches for military aircraft in the years to come in the region. Thus, the growing demand for commercial and military aircraft and the rising number of business jet deliveries are driving the market growth across the region.
