Aviation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >5 %
aviation industry

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Market Overview

The aviation market is anticipated to register a CAGR of over 5% during the forecast period (2022 - 2027).

The COVID-19 pandemic 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 2021. With the advent of multiple pandemic waves in many countries, it is expected to take 2-3 years to recover completely. However, the return of the Boeing 737MAX into service and the recovery in domestic demand helped the OEMs in obtaining more orders and increasing aircraft deliveries in 2021.

On the other hand, though the orders and deliveries of general aviation aircraft witnessed a decline in 2020 compared to 2019, there is a growth in demand for helicopters and business jets to transport medical supplies, cargo charter operations, and VIP transport. This is expected to help the growth of the market. The orders and deliveries improved in 2021, signifying the growth in demand for general aviation aircraft even during the pandemic.

Though there were supply chain disruptions and production-related issues in the military aircraft segment, military aircraft demand has not been affected as countries did not postpone or cancel their procurements due to the criticality and tactical importance of the requirements.

Several manufacturers are now focusing on developing newer generation aircraft in various aviation segments. 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
Type
Canada
Type
Europe
United Kingdom
Type
France
Type
Germany
Type
Italy
Type
Rest of Europe
Type
Asia-Pacific
China
Type
India
Type
Japan
Type
South Korea
Type
Malaysia
Type
Rest of Asia-Pacific
Type
Latin America
Brazil
Type
Mexico
Type
Rest of Latin America
Type
Middle-East and Africa
Saudi Arabia
Type
United Arab Emirates
Type
Qatar
Type
South Africa
Type
Rest of Middle-East and Africa
Type

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Key Market Trends

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

In 2020, there was a decline in commercial aircraft deliveries due to the COVID-19 pandemic. However, the aircraft deliveries improved in 2021, and the major commercial aircraft OEMs, like Airbus and Boeing, increased their aircraft production and delivery rates. In 2021, Boeing delivered 340 aircraft, of which 245 deliveries were of the 737MAX model. In November 2020, Boeing’s 737MAX returned to service after being temporarily grounded since March 2019. The return of the 737MAX back to service has helped the revenue growth of Boeing in 2021. The Boeing Company received orders for 909 aircraft in 2021, of which 749 orders were for 737MAX aircraft.

On the other hand, in 2021, Airbus SE delivered 611 aircraft, including 533 narrowbody aircraft, 18 A330, 55 A350, and 5 A380 aircraft. The aircraft manufacturer also received 771 new orders in the same year. These numbers reveal that commercial aircraft deliveries will continue at a healthy rate during the forecast period. The aircraft fleet modernization and destination expansion plans of the airlines lead to the gradual revival of aircraft demand, thereby strengthening the order books of aircraft OEMs. In addition to the recovery in demand for passenger aircraft, 2021 also witnessed an increased demand for cargo operations, propelling several freighter operators to order new aircraft. For instance, in December 2021, Boeing announced that UPS placed an order for 19 B767 freighters to enable the company to meet the strong demand for airfreight movements. Such developments are expected to propel the growth of the commercial aircraft segment during the forecast period.

airline industry analysis

Asia-Pacific 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. Hence, the revenues from Asia-Pacific are projected to witness a high growth rate during the forecast period. In 2021, The Boeing Company delivered 91 aircraft in the Asia-Pacific region, while 30% of the deliveries of Airbus were in the Asia-Pacific in the same year. 

China is leading the recovery of global commercial aviation due to great domestic demand, helping the airlines witness financial recovery. It has become a major hub for the aviation industry over the years due to high demand from civilian and military customers. Commercial aviation has been the key contributor to China's aviation industry over the years.

On the other hand, the Indian carrier, IndiGo, took delivery of a record 36 Airbus planes between January and November 2021. Overall, IndiGo has ordered 730 A320-A321 families of aircraft so far. It has taken delivery of 186 such aircraft till November. India is also a critical military aircraft market, as the country has been modernizing its aerial capabilities 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 industry growth

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 continued in 2021, 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 over a decade now. Though Boeing's commercial segment revenues 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 innovations 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 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 2022, Boeing announced that it had won a major order from Qatar Airways. The order, worth USD 34 billion at list prices, includes a provisional order for 25 737 Max 10 jets and options to buy 25 more aircraft.
  • In November 2021, Indigo Partners portfolio airlines, including the airlines Wizz Air (Hungary), Frontier (United States), Volaris (Mexico), and JetSMART (Chile, Argentina), together announced an order for 255 A321neo Family aircraft from Airbus SE. The order brings the total number of aircraft ordered by the Indigo Partners’ airlines to 1,145 Airbus A320 family aircraft.
  • In September 2021, the Indian Government approved a deal to procure 56 transport aircraft for the Indian Air Force. Out of the 56 aircraft, 16 aircraft will be delivered in flyaway condition from Spain, and 40 aircraft will be manufactured in India by TATA Consortium within 10 years.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of Study

    3. 1.3 Currency Conversion Rates for USD

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

    1. 3.1 Market Size and Forecast, Global, 2018 - 2027

    2. 3.2 Market Share by Type, 2021

    3. 3.3 Market Share by Geography, 2021

    4. 3.4 Structure of the Market and Key Participants

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Market Trends

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Buyers/Consumers

      2. 4.5.2 Bargaining Power of Suppliers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2027)

    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

          1. 5.2.1.1.1 Type

        2. 5.2.1.2 Canada

          1. 5.2.1.2.1 Type

      2. 5.2.2 Europe

        1. 5.2.2.1 United Kingdom

          1. 5.2.2.1.1 Type

        2. 5.2.2.2 France

          1. 5.2.2.2.1 Type

        3. 5.2.2.3 Germany

          1. 5.2.2.3.1 Type

        4. 5.2.2.4 Italy

          1. 5.2.2.4.1 Type

        5. 5.2.2.5 Rest of Europe

          1. 5.2.2.5.1 Type

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

          1. 5.2.3.1.1 Type

        2. 5.2.3.2 India

          1. 5.2.3.2.1 Type

        3. 5.2.3.3 Japan

          1. 5.2.3.3.1 Type

        4. 5.2.3.4 South Korea

          1. 5.2.3.4.1 Type

        5. 5.2.3.5 Malaysia

          1. 5.2.3.5.1 Type

        6. 5.2.3.6 Rest of Asia-Pacific

          1. 5.2.3.6.1 Type

      4. 5.2.4 Latin America

        1. 5.2.4.1 Brazil

          1. 5.2.4.1.1 Type

        2. 5.2.4.2 Mexico

          1. 5.2.4.2.1 Type

        3. 5.2.4.3 Rest of Latin America

          1. 5.2.4.3.1 Type

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

          1. 5.2.5.1.1 Type

        2. 5.2.5.2 United Arab Emirates

          1. 5.2.5.2.1 Type

        3. 5.2.5.3 Qatar

          1. 5.2.5.3.1 Type

        4. 5.2.5.4 South Africa

          1. 5.2.5.4.1 Type

        5. 5.2.5.5 Rest of Middle-East and Africa

          1. 5.2.5.5.1 Type

  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

      13. 6.2.13 Cirrus Design Corporation

      14. 6.2.14 Diamond Aircraft Industries

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Aviation Market market is studied from 2018 - 2027.

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

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

Asia Pacific holds highest share in 2021.

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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