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

The Commercial Aircraft Market is segmented by Aircraft Type (Narrow-body Aircraft, Wide-body Aircraft, Regional Aircraft), Engine Type (Turbofan, Turboprop), Application (Passenger Aircraft, Freighter), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle-East and Africa). The report offers market size and forecasts for the commercial aircraft market in value (USD billion) for all the above segments.

Market Snapshot

commercial aircraft market overview
Study Period: 2018-2027
Base Year: 2021
Largest Market: Asia Pacific
CAGR: 12.32 %

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Market Overview

The Commercial Aircraft Market was valued at USD 85.45 billion in 2020 and is projected to reach USD 173.08 billion by 2026 with a CAGR of 12.32% during the forecast period (2021 - 2026).

The COVID-19 pandemic affected air passenger traffic globally in 2020, reducing flight activity and impacting airline cash flows. As a result, most airlines decided to cancel or defer their aircraft orders. The commercial aircraft OEMs trimmed their production rates as the pandemic decreased demand for new jets. The effect of the pandemic is expected to continue even during the forecast period. The passenger traffic is expected to take 3-4 years to recover completely. However, the large-scale backlog with aircraft OEMs is expected to drive the market during the forecast period. In addition, passenger traffic numbers are expected to recover by 2024. Thus, the commercial aviation industry outlook for the latter half of the forecast period is positive.

The aircraft fleet modernization and destination expansion plans of the airlines are leading to the gradual revival of aircraft demand, thereby strengthening the order books of aircraft OEMs. The existing order backlog with the aircraft OEMs is still high. By the end of November 2021, Airbus reported a backlog of 7,036 jets. Boeing’s backlog was 4,210 aircraft. These numbers reveal that despite the reduction in demand from the airlines, the deliveries of commercial aircraft will continue at a healthy rate during the forecast period.

The demand for narrow-body aircraft is expected to recover faster than wide-body aircraft as domestic demand is expected to return to pre-COVID-19 levels earlier than the international passenger demand. Also, the return of the 737 MAX into service in late 2020 will help the growth of the narrow-body segment.

Scope of the Report

Commercial aviation is a part of civil aviation involving scheduled airline services that involve operating aircraft to transport passengers and cargo. The study gives a brief description of the commercial aircraft market worldwide and includes details on air passenger traffic, new routes, investments in airport infrastructure, air freight, and procurement of new aircraft. The commercial aircraft market is segmented by aircraft type, engine type, application, and geography. By aircraft type, the market is segmented into Narrow-body Aircraft, Wide-body Aircraft, and Regional Aircraft. By engine type, the market is segmented into Turbofan and Turboprop segments. By application, the market is segmented into Passenger Aircraft and Freighter. The report also covers the market sizes and forecasts for the commercial aircraft market in major countries across different regions. For each segment, the market size is provided in terms of value (USD billion).

Aircraft Type
Narrow-body Aircraft
Wide-body Aircraft
Regional Aircraft
Engine Type
Turbofan
Turboprop
Application
Passenger Aircraft
Freighter
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Italy
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
Latin America
Mexico
Brazil
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

Narrow-body Aircraft Segment Held the Largest Market Share in 2020

The narrow-body aircraft segment held the largest market share in 2020. The success of the low-cost carrier business model has generated a massive demand for newer generation narrow-body aircraft in recent years due to their advantages like low cost of operation and fuel efficiency in short-haul routes. Technological advancements in newer generation narrow-body aircraft are making them possible to fly longer distances. Boeing’s B737 and Airbus A320 are two of the most sold aircraft families in aviation history. In 2020, Boeing has delivered 43 narrow-body aircraft, while Airbus delivered 484 narrow-body aircraft. Furthermore, in the first eleven months of 2021, Airbus has delivered 460 narrow-body aircraft while Boeing has deliveried 230 narrow-body aircraft. The B737 MAX issues have dampened Boeing’s narrow-body single-aisle jet orders and deliveries. However, with the aircraft coming back to service at the end of 2020, Boeing is again vying to increase its sales share in the segment. With the first deliveries of MC-21 and COMAC C919 models expected in the coming years, the respective Russian and Chinese manufacturers plan to compete with the existing market giants like Airbus and Boeing in the narrow-body aircraft segment. Also, with the domestic demand recovering faster than the international passenger demand, the demand for narrow-body aircraft is expected to remain high during the forecast period.

Commercial Aircraft Market_Segmentation

Asia-Pacific to Generate a Healthy Demand for Commercial Aircraft During The Forecast Period

Asia-Pacific is expected to generate a healthy demand for commercial aircraft during the forecast period. The growth in air passenger traffic is predominant in the region, and China and India are expected to be among the biggest aviation markets in the world during the forecast period. As a result of a huge drop in passenger traffic in the US due to the COVID-19 pandemic, China crossed the US to become the largest aviation market in 2020. China’s aviation industry has also shown signs of recovery in 2020, driven by the recovery in domestic traffic. As a result, Chinese airlines are expected to take deliveries of new aircraft in the coming years. In 2020, China's three major state-owned airlines have canceled the delivery of over 100 aircraft from Boeing and Airbus, but kept every single order from COMAC, in a show of support for the domestic manufacturer during the pandemic. On the other hand, the passenger traffic in India is also expected to recover fast, driven by the huge domestic demand. Since October 2021, the airlines in India were allowed to operate domestic flights at their full capacity. The Indian low-cost carrier IndiGo took delivery of 44 aircraft in 2020, only two less than that of 2019. The addition of newer aircraft will help IndiGo to meet the demand of the recovering domestic market with more fuel-efficient aircraft. Similarly, the aviation industries in other countries in the region are also expected to recover faster than the countries in other regions due to a large domestic demand, thereby propelling the growth of the commercial aircraft market in Asia-Pacific in the years to come.

Commercial Aircraft Market_Geography

Competitive Landscape

The commercial aircraft market is consolidated, with two aircraft OEMs, Airbus SE and The Boeing Company, occupying a major chunk of the total market revenue. In addition, Embraer SA, Commercial Aircraft Corporation of China Ltd, and Mitsubishi Aircraft Corporation also have a significant share in the market. Several commercial aircraft manufacturers are currently focusing on the development of newer generation commercial aircraft, as the enforcement of new safety regulations and emission norms are demanding the integration of sophisticated subsystems and advanced technologies onboard the commercial aircraft. Also, airlines are looking for aircraft with better fuel efficiency and range, and the development of newer generation aircraft will help the OEMs to attract more airline customers in the years to come. Aircraft models like Irkut MC-21 and Comac C919 are expected to enter service in the next two years while other aircraft like Mitsubishi SpaceJet, CRAIC CR929, Boeing 777X, and the Embraer E175-E2 are under development. In this regard, aircraft OEMs and the players in the supply chain are collaborating to bring newer technologies into the aircraft.

Recent Developments

  • In November 2021, Wizz Air (Hungary), Frontier (United States), Volaris (Mexico) and JetSMART (Chile, Argentina), Indigo Partners portfolio airlines, announced an order for 255 additional A321neo Family aircraft under a joint Indigo Partners agreement. The firm order was signed at the Dubai Airshow. This order brings the total number of aircraft ordered by the Indigo Partners’ airlines to 1,145 A320 Family aircraft. The aircraft ordered are a mix of A321neos and A321XLRs, which will be delivered to the individual airlines.
  • In June 2021, United Airlines announced a new aircraft order with Boeing and Airbus as it plans to acquire 270 new planes consisting of 200 Boeing aircraft and 70 Airbus jets. The aircraft models considered are 150 Boeing 737MAX 10, 50 Boeing 737MAX 8, and 70 Airbus A321neo.
  • In January 2021, FedEx Express announced an order for 12 767 Freighters and 12 777 Freighters from Boeing. The total value of the order is USD 6.6 billion at list prices.
  • In December 2020, FedEx Express announced that it has taken the delivery of the first ATR 72-600F aircraft from ATR. The ATR 72-600F is the first-ever production freighter built by ATR and can carry heavier payloads as compared to the passenger-configured ATRs.
  • In January 2020, Boeing announced that it has completed the first test flight of the world's largest twin-engined aircraft, the Boeing 777X. The aircraft is expected to compete with the Airbus A350-1000 which seats about 360 passengers.

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 Aircraft Type

      1. 5.1.1 Narrow-body Aircraft

      2. 5.1.2 Wide-body Aircraft

      3. 5.1.3 Regional Aircraft

    2. 5.2 Engine Type

      1. 5.2.1 Turbofan

      2. 5.2.2 Turboprop

    3. 5.3 Application

      1. 5.3.1 Passenger Aircraft

      2. 5.3.2 Freighter

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

      2. 5.4.2 Europe

        1. 5.4.2.1 United Kingdom

        2. 5.4.2.2 France

        3. 5.4.2.3 Germany

        4. 5.4.2.4 Italy

        5. 5.4.2.5 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 India

        3. 5.4.3.3 Japan

        4. 5.4.3.4 South Korea

        5. 5.4.3.5 Australia

        6. 5.4.3.6 Rest of Asia-Pacific

      4. 5.4.4 Latin America

        1. 5.4.4.1 Mexico

        2. 5.4.4.2 Brazil

        3. 5.4.4.3 Rest of Latin America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 Saudi Arabia

        2. 5.4.5.2 United Arab Emirates

        3. 5.4.5.3 Qatar

        4. 5.4.5.4 South Africa

        5. 5.4.5.5 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 Airbus SE

      2. 6.2.2 The Boeing Company

      3. 6.2.3 Embraer SA

      4. 6.2.4 Rostec

      5. 6.2.5 ATR

      6. 6.2.6 Commercial Aircraft Corporation of China Ltd

      7. 6.2.7 Mitsubishi Aircraft Corporation

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Commercial Aircraft Market market is studied from 2018 - 2026.

The Commercial Aircraft Market is growing at a CAGR of 12.32% over the next 5 years.

The Commercial Aircraft Market is valued at 85 Billion USD in 2018.

The Commercial Aircraft Market is valued at 173 Billion USD in 2026.

Asia Pacific holds highest share in 2020.

The Boeing Company, Airbus SE, Embraer SA, Commercial Aircraft Corporation of China Ltd, Mitsubishi Aircraft Corporation are the major companies operating in Commercial Aircraft Market.

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