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

The Aviation Market is segmented by Type (Commercial Aviation, Military Aviation, and General Aviation), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers market size and forecast for all the above segments in value (USD billion).

Market Snapshot

Aviation Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >4 %

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Market Overview

The aviation market was valued at USD 169.72 billion in 2020 and is anticipated to register a CAGR of over 4% during the forecast period (2021 - 2026).

The COVID-19 pandemic has affected the aviation market in many ways, and the effect of the pandemic is expected to continue even during the forecast period. In the commercial sector, passenger traffic plummeted drastically in 2020, and it is expected to take 2-3 years to recover completely. The airlines' subsequent losses have resulted in the cancellation or deferral of aircraft orders, thereby reducing the demand.

On the other hand, though the orders and deliveries of general aviation aircraft witnessed a decline in 2020, there is a growth in demand for helicopters and business jets to transport medical supplies, cargo charter operations, and VIP transport, among others. This is expected to help the growth of the market. In the military aircraft segment, though there are supply chain disruptions and production-related issues, military aircraft demand has not been affected as countries did not postpone or cancel their procurements, due to the criticality and the tactical importance of the requirements.

Despite the pandemic's impact, several aircraft OEMs have started increasing their production rates. They are planning to take back aircraft production rates across segments to the pre-COVID-19 levels as early as possible.

The newer generation aircraft offer better fuel efficiency and safety for commercial and general aviation customers and better situational awareness and tactical advantage for military customers. The advent of such aircraft is expected to drive market growth during the forecast period.

Scope of the Report

The aviation market encompasses the sales of fixed-wing and rotary-wing aircraft across the commercial, military, and general aviation sectors. The market offers an overview of air passenger traffic, aircraft orders and deliveries, variation in defense spending, the introduction of new routes, and investments by major countries into the aviation sector. The aviation market is segmented by type into commercial aviation, military aviation, and general aviation. The report also offers the market sizes and forecasts for the aviation market in major countries across all the regions. For each segment, the market sizes and forecasts are represented by value (USD billion).

Type
Commercial Aviation
Passenger Aircraft
Freighter
Military Aviation
Combat Aircraft
Non-combat Aircraft
General Aviation
Helicopter
Piston Fixed-wing Aircraft
Turboprop Aircraft
Business Jet
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Italy
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Qatar
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Commercial Aircraft Segment is Projected to Grow with the Highest CAGR during the Forecast Period

The commercial aircraft segment is projected to witness the highest CAGR during the forecast period. In 2020, there was a decline in the deliveries of commercial aircraft due to the COVID-19 pandemic. However, major commercial aircraft OEMs, like Airbus and Boeing, are currently increasing their aircraft production and delivery rates. Before the advent of the pandemic, several airlines placed aircraft orders to expand their fleet sizes and cater their services to more passengers, with a positive outlook for the commercial aviation industry; unfulfillment of those orders translated to high levels of backlogs for the aircraft OEMs. Even after airline order cancellations and deferrals due to the COVID-19 pandemic, Airbus reported a backlog of 7,184 jets, while Boeing’s backlog was 4,223 aircraft by the end of 2020. Thus, despite the reduction in demand from the airlines, deliveries of commercial aircraft may continue at a healthy rate during the forecast period. Domestic airline passenger traffic is expected to recover faster, leading to a higher demand for narrow-body aircraft in the years to come.

On the other hand, the year 2020 also witnessed an increased demand for cargo operations, forcing several freighter operators to order new aircraft. For instance, in January 2021, Atlas Air Worldwide Holdings Inc. ordered four new Boeing 747-8 freighter aircraft that may enable the company to meet the strong customer demand in the airfreight market. Such developments are expected to propel the growth of the commercial aircraft segment during the forecast period.

Aviation Market Revenue Share

Asia-Pacific is Expected to Dominate the Aviation Market During the Forecast Period

Asia-Pacific has become a significant hub for the aviation industry over the years. The emerging economies in the region, like India and China, are experiencing a massive surge in their respective civil aviation markets, due to an increased demand for air travel in these countries. Hence, the revenues from Asia-Pacific are projected to witness a high growth rate during the forecast period.

In addition to being commercial and general aviation markets, countries in Asia-Pacific have also become crucial military aviation markets. They are modernizing their aircraft fleets due to the growth in territorial disputes and instability in the region. China is leading the recovery of global commercial aviation due to great domestic demand, helping the airlines witness financial recovery. On the other hand, the general aviation industry is one of the emerging industries in China, and the country has taken measures to boost its development over the years. The country is also aiming at the indigenous development of commercial and military aircraft. It is expected to launch several indigenously developed aircraft, including narrow and wide-body commercial aircraft, fighter jets, and combat and non-combat helicopters, among others, during the forecast period. On the other hand, India became the biggest market for Airbus commercial aircraft in 2020 as the largest commercial aircraft manufacturer in the world delivered the highest numbers of aircraft (57) to the Indian carriers in that year. India is also a critical military aircraft market, as the country has been modernizing its aerial capabilities, both by procuring new aircraft and indigenously developing military aircraft. Similarly, other countries like Japan, South Korea, Australia, and the Southeast Asian countries are also experiencing a growth in the aviation sector demand, thereby bolstering the region's market prospects.

Aviation Market Growth Rate By Region

Competitive Landscape

Airbus SE, The Boeing Company, Lockheed Martin Corporation, Embraer, and Textron Inc. are some of the prominent players in the market. The rivalry between The Boeing Company and Airbus SE continues, mainly in the commercial aviation sector. Along with Lockheed Martin Corporation, a key player in the military segment, these two companies have maintained their market dominance for a little over a decade now. Though the revenues of Boeing’s commercial segment were down in the last two years, a strong performance in the defense segment has helped it gain a significant market share. The aviation industry is expected to see new innovations being implemented in aircraft design, which is likely to alter the meaning of safety, comfort, and efficiency for commuters. Companies are looking for opportunities offered by the latest technological innovations that can help them improve their revenue shares. The military segment of the market is witnessing increased collaborations between the players to develop next-generation combat and non-combat aircraft, which is expected to help the players' collective growth during the forecast period.

Recent Developments

  • In January 2021, FedEx Express announced an order for 12 Boeing 767 freighters and 12 Boeing 777 freighters. The total value of the order is USD 6.6 billion at list prices.
  • In June 2020, the US Civil Air Patrol (CAP) announced that it had selected Textron Aviation to provide 17 Cessna piston engine aircraft consisting of 11 Skyhawk 172S, five Skylane 182T, and one Turbo Stationair HD T206HD aircraft. The aircraft will be used for search and rescue, disaster relief, and homeland security missions, among others.
  • In April 2020, Lockheed Martin announced that it was awarded a USD 4.7 billion contract modification for 78 F-35 Lightning II Joint Strike Fighters. The contract includes 48 conventional takeoff and landing F-35As for the US Air Force, 14 short takeoff and vertical landing F-35Bs for the Marine Corps, and 16 carrier-borne F-35C stealth fighters.

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 Revenue - USD billion)

    1. 5.1 Type

      1. 5.1.1 Commercial Aviation

        1. 5.1.1.1 Passenger Aircraft

        2. 5.1.1.2 Freighter

      2. 5.1.2 Military Aviation

        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 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 United Kingdom

        2. 5.2.2.2 France

        3. 5.2.2.3 Germany

        4. 5.2.2.4 Italy

        5. 5.2.2.5 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 India

        3. 5.2.3.3 Japan

        4. 5.2.3.4 South Korea

        5. 5.2.3.5 Rest of Asia-Pacific

      4. 5.2.4 Latin America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Mexico

        3. 5.2.4.3 Rest of Latin America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 United Arab Emirates

        3. 5.2.5.3 Qatar

        4. 5.2.5.4 South Africa

        5. 5.2.5.5 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 The Boeing Company

      2. 6.2.2 Airbus SE

      3. 6.2.3 Embraer SA

      4. 6.2.4 Textron Inc.

      5. 6.2.5 Lockheed Martin Corporation

      6. 6.2.6 Bombardier Inc.

      7. 6.2.7 PILATUS AIRCRAFT LTD

      8. 6.2.8 Leonardo SpA

      9. 6.2.9 Honda Aircraft Company

      10. 6.2.10 Piper Aircraft Inc.

      11. 6.2.11 General Dynamics Corporation

      12. 6.2.12 Dassault Aviation SA

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Aviation Market market is studied from 2018 - 2026.

The Aviation Market is growing at a CAGR of >4% over the next 5 years.

The Aviation Market is valued at 170 Billion USD in 2018.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

The Boeing Company, Airbus SE, Lockheed Martin Corporation, Textron Inc., Embraer S.A. are the major companies operating in Aviation Market.

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