Aviation Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Commercial aviation retained a 61.56% share of the aviation market in 2024, supported by global passenger traffic normalization and targeted capacity discipline that restores pricing power. The aviation market size for commercial aviation is projected to grow from USD 221.0 billion in 2025 to USD 308.9 billion in 2030 at a 6.90% CAGR. Network carriers pivot toward more efficient narrow-bodies, while low-cost carriers steadily raise average stage length to tap cross-border leisure demand.

Advanced air mobility (AAM) represents the industry’s most disruptive vector, clearing 18.90% CAGR through 2030 as municipalities approve vertiport frameworks and first-generation eVTOL prototypes log meaningful flight hours. Dubai’s plan to launch Joby services by 2026 illustrates the push to integrate urban air taxis into multimodal transport grids. Although current AAM revenue is minimal, its high growth rate compels incumbents to invest in minority stakes or joint ventures to preserve future relevance.

Turbofan engines held 52.67% of the aviation market size in 2024, buoyed by the prolific A320neo and B737 MAX programs. LEAP and GTF engine families drive double-digit order books as airlines prize double-digit fuel savings. Yet, electric propulsion is scaling at 15.76% CAGR, focusing first on sub-200 nm regional segments where battery mass trade-offs are feasible.

NASA’s Electric Propulsion Flight Demonstration program with industry partners targets commercial-service entry by 2030. GE Aerospace allocates USD 1 billion in 2025 to additive manufacturing lines that will produce next-generation electrical machines.^{[3]GE Aerospace, “2025 U.S. Manufacturing Investment,” geaerospace.com} Hybrid-electric systems bridge today’s range limitations, combining turbogenerator sets with battery packs to cut fuel burn 30% on 400 nm sectors—a pathway sustains turbofan supply chains while advancing electrification.

Conventional fuel still accounts for 83.21% of the aviation market in 2024, but long-term decarbonization agendas shift capital toward hydrogen and SAF pathways. Fuel-cell propulsion posts the strongest 19.43% CAGR, championed by ZeroAvia’s 2025 flight-test campaign of a 19-seat Dornier 228 retrofitted with a 600 kW hydrogen-electric drivetrain.^{[4]ZeroAvia, “Hydrogen Hubs Agreement with Airbus,” zeroavia.com} Major airports in Canada, Germany, and the United Kingdom are now evaluating hydrogen-production hubs that will co-locate electrolysers with airside distribution, signaling regulatory momentum for mid-2030s entry of 100-seat hydrogen aircraft.

Battery-electric options target 9- to 30-seat regional aircraft that fly under 200 nm, segments accounting for 17% of global departures yet only 4% of fuel burn, offering a credible early decarbonization win. Combining liquid-fuel turbines with battery packs, hybrid systems secure certification credibility by relying on existing infrastructure while delivering double-digit fuel savings.

Line-fit installations held an 82.76% share in 2024, and their share remains high because integrated avionics and powerplant packages confer performance guarantees and finance-lease advantages. The aviation market size for retrofit solutions will nevertheless climb from USD 54.3 billion in 2025 to USD 85.1 billion in 2030, a 9.45% CAGR, as operators pursue cabin densification, in-flight connectivity, and winglet retrofits that pay back in under five years.

Delayed narrow-body deliveries make retrofit necessary, with airlines extending leases on 10-15-year-old aircraft. Engine OEMs capitalize by selling performance upgrade kits that cut fuel burn by 2-3%, and interiors specialists see rising demand for slimline seats that free an additional row in older cabins. Regulators support retrofit pathways by streamlining Supplemental Type Certificates, lowering downtime, and cost barriers.

North America’s aviation market size was USD 134.8 billion in 2025 and will advance to USD 175.3 billion by 2030 at a 5.4% CAGR. The United States drives most of this value, leveraging B737 MAX recovery, an expanding defense backlog for the T-7A trainer, and aftermarket revenue from a fleet of 9,600 registered commercial jets. Canada’s aerospace hubs in Quebec and Ontario diversify regional propulsion research, especially in hydrogen storage and fuel-cell testing. Mexico’s free-trade zones attract tier-2 suppliers for wiring harnesses and interiors, improving supply-chain resilience.

Asia-Pacific adds USD 88.5 billion of incremental value between 2025 and 2030, reflecting the fastest growth among major blocs. China’s Civil Aviation Administration simplifies type-certificate validation for the C919, while India’s Airports Authority earmarks USD 11.8 billion in green-field developments to alleviate metro congestion. Japan’s electrified regional-aircraft venture and Australia’s SAF hub in Queensland further enlarge the aviation market footprint. ASEAN regionals such as Thailand and Vietnam pivot to cargo-focused models amid e-commerce booms, employing passenger-to-freighter conversions of A321s to serve intra-Asia logistics corridors.

Europe maintains a balanced growth trajectory at 6.1% CAGR, underpinned by Airbus’s Hamburg and Toulouse production ramp that supports widebody A350 slate extensions. The continent is also the first to propose a binding 2% SAF mandate in 2025, rising to 70% by 2050, pressuring regional airlines to sign long-term offtake deals. Eastern European low-cost carriers enlarge their fleets, encouraging second-line airports to invest in new aprons and maintenance bays. South America rebounds as low-cost penetration exceeds 40% of passenger volumes, with airports from Bogotá to Lima advancing USD 24.4 billion in modernization projects that unlock additional slots for narrowbody aircraft.

The Middle East and Africa contributed a combined aviation market size of USD 47.6 billion in 2025, climbing to USD 70.2 billion by 2030. Gulf carriers reinvest pandemic-era windfalls into A350 and B777X orders, while African carriers benefit from the Single African Air Transport Market, which harmonizes bilateral agreements. Airbus projects the African commercial fleet to surge from 1,250 aircraft in 2025 to 2,650 by 2043, enabling connectivity growth on the continent’s 20 busiest intra-regional routes.