European Airline Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Europe's Airline Industry Report is Segmented by Type (Commercial Aviation, Military Aviation, and General Aviation) and Geography (United Kingdom, Germany, France, Italy, Spain, Russia, and the Rest of Europe). The Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

Europe Aviation Market Size

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Europe Aviation Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 67.81 Billion
Market Size (2029) USD 78.53 Billion
CAGR (2024 - 2029) 2.98 %
Market Concentration High

Major Players

Europe Aviation Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Europe Aviation Market Analysis

The Europe Aviation Market size is estimated at USD 67.81 billion in 2024, and is expected to reach USD 78.53 billion by 2029, growing at a CAGR of 2.98% during the forecast period (2024-2029).

In Europe, some airlines’ financial performance has been curtailed by the war in Ukraine. Nevertheless, the region to return to profitability in 2023 when a net profit of USD 612 million is forecast. Furthermore, growing air traffic, an increasing number of airports, and rising spending on procuring business jets drive market growth across Europe.

Factors such as increasing demand for charter aviation and surging demand for electric aircraft across Europe propel the growth of the market. Several vendors and aviation research organizations have been working on the development of advanced power-efficient and low-emission aircraft models, such as hybrid electric and fully electric aircraft.

Furthermore, several major countries in the region are involved in the development of next-generation military aircraft. In contrast, many countries require rapid fleet modernization to maintain technological superiority over their adversaries.

However, volatile fuel prices and geopolitical uncertainties can act as restraints and are likely to impact the overall aviation industry in Europe during the forecast period.

Europe Aviation Market Trends

Military Segment to Showcase Remarkable Growth During the Forecast Period

Europe has a robust and technologically advanced military helicopter market that is driven by various factors, including geopolitical concerns, modernization efforts, and defense budget allocations. The defense budgets of European countries play a crucial role in shaping the military helicopter market. Despite economic challenges, defense spending has remained a priority for many European nations due to rising security concerns.

In 2022, Europe spent USD 480 billion on its military, an increase of 13% over 2021. By the end of March 2022, numerous European NATO member nations announced plans to increase military expenditures in reaction to the Russian invasion of Ukraine in February 2022, aiming to meet or exceed the NATO spending target of 2% of GDP or higher.

Upgrading aging platforms with state-of-the-art helicopters enables countries to enhance their operational effectiveness, increase mission versatility, and maintain interoperability with NATO and other allied forces. Germany, France, the United Kingdom, Russia, Italy, Spain, the Netherlands, and the Rest of Europe plan to purchase helicopters from 2024 to 2029.

For instance, in March 2022, Germany expressed its plans to procure 15 Eurofighter jets and up to 35 US-made F-35 fighter jets as part of a major boost to upgrade the armed forces in reaction to Russia's invasion of Ukraine. The F-35 jets made by Lockheed Martin would replace Germany's aging 40-year-old Tornado aircraft fleet.

Europe Aviation Market: Defense Expenditure, in USD Billion, By Country, Europe, 2022

The United Kingdom is Estimated to Dominate the Market During the Forecast Period

The UK-based airlines were responsible for uplifting a total of 206.35 million air passengers who traveled through the UK in 2022, compared to 189.64 million in 2021. The growth between 2022 and 2021 was 8.8%, and the growth between 2022 and 2020 was 566%. The country’s revenue passenger kilometers recorded a 644% growth in 2022 compared to 2021 and 501% compared to 2020. The inputs to the air transport industry and foreign visitors who arrive by air contribute 4.5% to the country’s GDP.

UK airlines are procuring new aircraft to cater to the demand generated by the rising rates of air travel and to replace aging aircraft with fuel-efficient models. In December 2023, Easyjet ordered 56 A320neo and 101 A321neo models. Similarly, in September 2023, British Airways finalized orders for 6 Boeing B787-10 and 10 A320neos.

General aviation employs around 12,000 people in the United Kingdom. About 96% of the 21,000 civilian aircraft registered in the United Kingdom are used for general aviation, and the GA fleet logs between 1.25 million and 1.35 million hours of flight time yearly. There are 10,000 certified glider pilots and 28,000 people with Private Pilot Licenses (PPL). The use of more accessible aircraft, such as microlights, locally built airplanes, and smaller helicopters, has risen in the past 20 years.

The country's military budget for 2022 was USD 68.5 billion, a rise of 3.7%. Out of the total government spending, the country has allocated 2.2% of its share to the military. Its NATO membership commits the UK to devote 2% of its annual GDP to defense. Currently, the United Kingdom dedicates more than 2% of its GDP to the military. The country is buying new-generation aircraft to improve its aviation capabilities, thus resulting in increased military spending.

Europe Aviation Market: Air Passengers Traffic, in Million, United Kingdom, 2018-2022

Europe Aviation Industry Overview

The European aviation market is consolidated, as few players hold significant amounts of shares. Airbus SE, Boeing, Lockheed Martin Corporation, Leonardo S.p.A., and Dassault Aviation SA are some of the major players in this region. Airbus dominates the market in Europe in commercial and military aviation.

The aircraft industry is expected to see innovations getting implemented in aircraft design, which is expected to change the landscape of safety, comfort, and efficiency for both passengers and aircraft manufacturers. Companies are looking forward to grabbing the opportunities offered by the new technological innovations, increasing their respective market shares. Multiple countries are partnering to develop new military aircraft models, which is expected to bolster the prospects of the local players in those countries.

For instance, Germany, France, and Spain are involved in the development of a next-generation fighter jet named Future Combat Air System (FCAS). Such programs are expected to drive the growth of the local players in these countries during the forecast period.

Europe Aviation Market Leaders

  1. Lockheed Martin Corporation

  2. Dassault Aviation

  3. The Boeing Company

  4. Airbus SE

  5. Leonardo S.p.A.

*Disclaimer: Major Players sorted in no particular order

Europe Aviation Market Concentration
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Europe Aviation Market News

  • October 2023: The UK announced that the country will likely start trials of new 16 Protector aircraft surveillance aircraft. Aircraft is expected to undergo test flights until entering service in late 2024. A new uncrewed RAF aircraft is capable of global surveillance operations.
  • October 2022: Jet2, a British airline, ordered 35 new A320neo family aircraft and retained an option to purchase an additional 36 aircraft. The deliveries will likely take place in 2031, and the approximate value of the contract is USD 3.9 billion. If the option for additional aircraft is exercised, the total value of the contract is expected to rise to USD 8 billion.
  • July 2022: The US State Department announced the foreign military sales (FMS) approval for up to 35 F-35A aircraft to Germany. The newly procured F-35 fighter jets are likely to replace its aging Tornado. Under the contract, Germany is expected to receive 35 F-35A aircraft, munitions, and related equipment for nuclear deterrence missions. The total value of the contract was USD 8.4 billion.

Europe Aviation Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    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 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Type

      1. 5.1.1 Commercial Aviation

        1. Passenger Aircraft

        2. Freighter Aircraft

      2. 5.1.2 Military Aviation

        1. Combat Aircraft

        2. Non-combat Aircraft

      3. 5.1.3 General Aviation

        1. Helicopters

        2. Piston Fixed-wing Aircraft

        3. Turboprop Aircraft

        4. Business Jet

    2. 5.2 Geography

      1. 5.2.1 United Kingdom

      2. 5.2.2 Germany

      3. 5.2.3 France

      4. 5.2.4 Italy

      5. 5.2.5 Spain

      6. 5.2.6 Russia

      7. 5.2.7 Rest of Europe


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Airbus SE

      2. 6.2.2 Saab AB

      3. 6.2.3 Pilatus Aircraft Ltd.

      4. 6.2.4 Dassult Aviation SA

      5. 6.2.5 Leonardo S.p.A.

      6. 6.2.6 Lockheed Martin Corporation

      7. 6.2.7 The Boeing Company

      8. 6.2.8 Bombardier Inc.

      9. 6.2.9 Textron Inc.

      10. 6.2.10 General Dynamics Corporation

      11. 6.2.11 Daher

      12. 6.2.12 Embraer SA


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Europe Aviation Industry Segmentation

The European aviation market encompasses the sales of fixed-wing and rotary-wing aircraft across the commercial, military, and general aviation sectors in the European 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 European aviation market is segmented by type and country. By type, the market is segmented into commercial aviation, military aviation, and general aviation. The commercial aviation segment is further divided into passenger aircraft and freighter aircraft. Military aviation is further segmented into combat and non-combat aircraft. The general aviation segment is further classified as helicopters, piston fixed-wing aircraft, turboprop aircraft, and business jets. The report also offers the market size and forecasts for six countries across the region. 

For each segment, the market sizing and forecasts have been done based on value (USD).

Commercial Aviation
Passenger Aircraft
Freighter Aircraft
Military Aviation
Combat Aircraft
Non-combat Aircraft
General Aviation
Piston Fixed-wing Aircraft
Turboprop Aircraft
Business Jet
United Kingdom
Rest of Europe
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Europe Aviation Market Research FAQs

The Europe Aviation Market size is expected to reach USD 67.81 billion in 2024 and grow at a CAGR of 2.98% to reach USD 78.53 billion by 2029.

In 2024, the Europe Aviation Market size is expected to reach USD 67.81 billion.

Lockheed Martin Corporation, Dassault Aviation, The Boeing Company, Airbus SE and Leonardo S.p.A. are the major companies operating in the Europe Aviation Market.

In 2023, the Europe Aviation Market size was estimated at USD 65.79 billion. The report covers the Europe Aviation Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Aviation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

European Airline Industry Report

Statistics for the 2024 European Airline market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. European Airline analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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European Airline Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)