Asia-Pacific Aviation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Asia-Pacific Aviation Market is segmented by Type (Commercial Aircraft, Military Aircraft, and General Aviation) and Geography. The report offers market size and forecasts for the Asia-Pacific aviation market in value (in USD billion) for all the above segments.

Market Snapshot

Asia-Pacific Aviation Market Overview
Study Period: 2018 - 2026
Base Year: 2020
CAGR: 8.75 %

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Market Overview

The Asia-Pacific Aviation Market was valued at USD 50.92 billion in 2020, and it is projected to reach USD 97.13 billion by 2026, registering a CAGR of 8.75% during the forecast period (2021-2026).

In the Asia-Pacific region, the COVID-19 pandemic has resulted in a decline in sales of aircraft in the commercial and general aviation segments in 2020. In the commercial sector, though passenger traffic plummeted drastically in 2020, it has shown signs of recovery in late 2020, driven by the recovery in domestic traffic. While the general aviation aircraft sales also plummeted slightly in 2020, military aircraft sales witnessed growth, due to the ongoing tensions between some countries in the region.

During the forecast period, the revival of the aviation industry in Asia-Pacific is expected to be faster than the other regions in the world, as the operators in the region currently account for a significant aircraft backlog. By the end of the forecast period, China and India are expected to be among the top aviation markets in the world.

Several countries in the region are currently developing indigenous newer generation aircraft across the commercial and military segments. This move is expected to enhance the manufacturing capabilities and the market share of the players during the forecast period.

Scope of the Report

The Asia-Pacific Aviation market encompasses the sales of fixed-wing and rotary-wing aircraft across the commercial, military, and general aviation sectors in the Asia-Pacific region. The market offers an overview of air passenger traffic, aircraft orders and deliveries, defense spending analysis, the introduction of new routes, and investments by country into the aviation sector in the region. The Asia-Pacific Aviation Market is segmented by type into Commercial Aircraft, Military Aircraft, and General Aviation. The Commercial Aircraft segment is further segmented into Passenger Aircraft and Freighter. The Military Aircraft segment is further segmented into Combat and Non-combat aircraft, while the General Aviation segment is further segmented into Helicopters, Turboprop Aircraft, Piston Fixed-wing Aircraft, and Business Jets. The report also offers the market size and forecasts for the aviation market in major countries in the region. For each segment, the market size and forecasts are represented by value (USD billion).

Type
Commercial Aircraft
Passenger Aircraft
Freighter
Military Aircraft
Combat Aircraft
Non-combat Aircraft
General Aviation
Helicopter
Piston Fixed-wing Aircraft
Turboprop Aircraft
Business Jet
Geography
China
India
Japan
South Korea
Australia
Rest of Asia-Pacific

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Key Market Trends

The Commercial Aircraft Segment is Projected to Witness the Highest CAGR During the Forecast Period

The commercial aircraft segment is projected to witness the highest CAGR during the forecast period. Though the demand for commercial aircraft came down in 2020 because of the COVID-19 pandemic, airlines in the region still have a huge order backlog for commercial aircraft. The demand for domestic travel is recovering in the region, driven by the growth in the Chinese airline industry. Commercial aircraft witnessed a strong demand from India, which became the largest market for Airbus commercial aircraft in 2020, as the OEM delivered 57 aircraft to the carriers in the country. With domestic travel showing signs of recovery, the demand for smaller aircraft like narrow-body aircraft and regional jets is expected to drive the growth of the segment in the region. Accordingly, most of the demand for commercial aircraft in the region is for narrow-body aircraft. In October 2019, India’s largest airline, IndiGo, placed an order for 300 Airbus A320neo family aircraft in a deal worth about USD 33 billion. Anticipating a quick recovery of domestic airline traffic, the airline did not cancel or defer any orders in 2020. However, widebody deliveries came down in 2020, even in the Asia-Pacific region. In February 2021, Singapore Airlines announced that it would defer over USD 3 billion in spendings on Airbus and Boeing widebody aircraft after reaching agreements with the aircraft manufacturers to delay deliveries. During the forecast period, aircraft from the manufacturers in the region, like Mitsubishi SpaceJet from Japan’s Mitsubishi and COMAC C919 and CRAIG C929 from the Commercial Aircraft Corporation of China, are expected to enter the market, thus driving the growth of the segment during the forecast period. However, the two incidents involving the crash of Boeing 737 MAX aircraft have raised concerns all over and have forced Boeing to temporarily ground all its 737 MAX aircraft. Such events can affect the supply chain associated with the particular aircraft model and can have a negative impact on the commercial aircraft market. Lion Air, whose 737 MAX aircraft crashed, had canceled all of its 737 orders, following official reports that the faults were in the certification of the aircraft and corrective measures were neglected by Boeing even though it was aware of the faults.

Asia-Pacific Aviation Market Key Trends

China is Expected to Dominate the Aviation Market During the Forecast Period

China has become a major hub for the aviation industry over the years, due to high demand from civilian and military customers. China has experienced double-digit growth rates over the past two decades in the commercial aviation market. Even during the pandemic-affected 2020, China’s relatively stable domestic traffic helped the financial recovery of airlines in the country. In the military segment, China has been increasing its aircraft fleet, in line with its plans to strengthen its airborne military capabilities. The country has also strengthened its indigenous military aircraft manufacturing capabilities. While the J-20B, a new variant of China's first fifth-generation fighter J-20, was unveiled in July 2020, the country’s second fifth-generation fighter jet, FC-31, is also expected to enter service during the forecast period. 

On the other hand, the general aviation industry is one of the strategic emerging industries in China, and it has taken measures to boost its development over the years. In 2019, the Commercial Aircraft Corporation of China unveiled its new CBJ business jet, based on the nation’s first home-developed regional jet, the ARJ21, and is currently awaiting orders. Thus, with growing demand from the civilian and military segments and the growing capabilities in aircraft production, the country is expected to dominate the market in the Asia-Pacific region during the forecast period.

Asia-Pacific Aviation Market Share

Competitive Landscape

The Boeing Company, Airbus SE., Lockheed Martin Corporation, United Aircraft Corporation, and Textron Inc. are some prominent players in the market. In addition to these players, local manufacturers such as Aviation Corporation of China, Hindustan Aeronautics Limited, and Kawasaki Heavy Industries are also actively pitching their aircraft models to gain a significant share in the market. The growth of the market can be attributed to various governments' initiatives in the region facilitating and encouraging indigenous aircraft development and manufacturing capabilities. Especially in the military sector, countries like China, India, Japan, South Korea, and Indonesia, among others, are working on developing their military aircraft models. This is expected to help the growth of the local players in these countries. In the commercial segment, new players like COMAC and Mitsubishi are also expected to introduce their new aircraft in the market during the forecast period, which may further increase the competition in this region.

Recent Developments

In January 2021, Comac announced that its C919 narrowbody program had completed cold-weather testing. The company hopes to get the type certificated by the end of 2021 before commencing the initial deliveries to its launch customer China Eastern Airlines.

In January 2020, the US State Department approved a possible foreign military sale of up to 12 Lockheed Martin F-35B Lightning II stealth fighters to Singapore for an estimated USD 2.75 billion. The potential deal would be for an initial package of four aircraft, with the option to buy eight more aircraft after evaluation.

In October 2019, IndiGo placed an order for 300 Airbus aircraft worth an estimated USD 33 billion to replace old planes in its fleet. The latest IndiGo order comprises a mix of A320neo, A321neo, and A321XLR aircraft.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD billion)

    1. 5.1 Type

      1. 5.1.1 Commercial Aircraft

        1. 5.1.1.1 Passenger Aircraft

        2. 5.1.1.2 Freighter

      2. 5.1.2 Military Aircraft

        1. 5.1.2.1 Combat Aircraft

        2. 5.1.2.2 Non-combat Aircraft

      3. 5.1.3 General Aviation

        1. 5.1.3.1 Helicopter

        2. 5.1.3.2 Piston Fixed-wing Aircraft

        3. 5.1.3.3 Turboprop Aircraft

        4. 5.1.3.4 Business Jet

    2. 5.2 Geography

      1. 5.2.1 China

      2. 5.2.2 India

      3. 5.2.3 Japan

      4. 5.2.4 South Korea

      5. 5.2.5 Australia

      6. 5.2.6 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Airbus SE

      2. 6.1.2 Textron Inc.

      3. 6.1.3 Lockheed Martin Corporation

      4. 6.1.4 Dassault Aviation SA

      5. 6.1.5 Leonardo SpA

      6. 6.1.6 Kawasaki Heavy Industries Ltd

      7. 6.1.7 Mitsubishi Aircraft Corporation

      8. 6.1.8 General Dynamics Corporation

      9. 6.1.9 United Aircraft Corporation

      10. 6.1.10 The Boeing Company

      11. 6.1.11 Hindustan Aeronautics Limited (HAL)

      12. 6.1.12 Commercial Aircraft Corporation of China Ltd

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Asia Pacific Aviation Market market is studied from 2018 - 2026.

The Asia Pacific Aviation Market is growing at a CAGR of 8.75% over the next 5 years.

The Asia Pacific Aviation Market is valued at 51 Billion USD in 2018.

The Asia Pacific Aviation Market is valued at 97 Billion USD in 2026.

Lockheed Martin Corporation, Airbus SE, The Boeing Company, United Aircraft Corporation, Textron Inc. are the major companies operating in Asia Pacific Aviation Market.

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