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

The Europe Commercial Aircraft market is segmented by Aircraft Type (Narrow-Body Aircraft, Wide-Body Aircraft, and Regional Aircraft), by Engine Type (Turbofan and Turboprop), by Application (Passenger Aircraft and Freighter), and by Geography (United Kingdom, Germany, France, Italy, and Rest of Europe). The report offers the market size and forecasts in value (USD million) for all the above segments.

Market Snapshot

europe commercial aircraft market size
Study Period: 2018-2027
Base Year: 2021
CAGR: 9.65 %
europe commercial aircraft market share

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Market Overview

The Europe Commercial market is expected to grow up to USD XX Billion by 2027, registering a CAGR of XX% during the forecast period (2022 – 2027).

The COVID-19 pandemic had a severe negative impact on the commercial aircraft market of the European region. With the global transportation halt, the total demand for commercial aviation and aircrafts has gone down significantly. According to the research by International Air Transport Association (IATA), the United Kingdom witnessed a total decrease of 65% in passenger traffic due to the pandemic, resulting in a total loss of USD 30.6 Billion for the airlines operating in this country. Furthermore, Germany experienced the next worse economic slump due to the pandemic. The airlines in the country have witnessed a loss of USD 17.9 Billion during the pandemic. However, the increasing expenditure and the forecasted revival of the market condition during the forecast period are expected to drive the market.

Scope of the Report

The Europe Commercial aircraft market encompasses the aircrafts used for the commercial passenger transport used by airlines. The market is segmented by aircraft type into narrow-body aircraft, wide-body aircraft, and regional aircraft. The market is further segmented by engine type into turbofan and turboprop. The market is also segmented by Application into passenger aircraft and freighter, along with market study across various countries. The report also offers market size and forecast in value (USD Billion) for all the above segments.

Aircraft Type
Narrow-Body Aircraft
Wide-Body Aircraft
Regional Aircraft
Engine Type
Turbofan
Turboprop
Application
Passenger Aircraft
Freighter
Geography
United Kingdom
Germany
France
Italy
Rest of Europe

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Key Market Trends

The Passenger Aircraft Segment is Expected to Witness Highest Growth Rate During the Forecast Period

Despite the major slowdown in 2020 due to the COVID-19 pandemic, the market for passenger aircrafts is estimated to be revived between 2024 and 2025 according to the International Air Transport Association (IATA). The potential increase in demand from passengers for faster, more efficient vehicles is expected to drive the demand for passenger aircraft segment during the forecast period. Owing to this, several airlines across the European region have been investing into expanding their fleet to better cater to the market. For instance, EasyJet, as of October 2021, operates a fleet of 308 aircraft. The airline has around 108 aircraft on order in total. As the travel restrictions were lifted, for the quarter ending September 2021, easyJet flew 17.3 million seats, operating 58% of FY19 capacity with a stronger performance on intra-European and UK domestic routes. The company stated that the demand for international routes from the United Kingdom continued to be impacted by travel restrictions. ​British Airways (BA) is the flag carrier airline of the United Kingdom. As of November 2021, the British Airways had 254 aircraft in service and 46 aircraft on order.​ Furthermore, in July 2021, British Airways owner International Consolidated Airlines Group (IAG) announced plans to operate at around 45% passenger capacity from July to September, compared with the same period in 2019, and further planned to operate at 75% of 2019 capacity in the final three months of the year.​ Owing to several such developments, the passenger aircraft segment of the market is expected to witness highest growth rate during the forecast period.

europe commercial aircraft market trends

Germany Is Expected To Dominate the Market During the Forecast Period

The German segment of the market has dominated the European commercial aircraft market over the past years and is expected to witness the highest growth rate to further lead the market during the forecast period. Europe’s second-largest airline Lufthansa Group is headquartered in Germany, driving the demand for both passenger and freighter aircrafts for transport across the European region. Lufthansa Group is a major airline based in Germany that carries most of the passengers to/from Germany. As of September 2021, the airline had a total fleet of 263 aircraft in service, with 156 more on order. Furthermore, As of October 2021, the airline operated 10 aircraft (3 A320 aircraft and 7 A330 aircraft) and it plans to operate 21 aircraft (10 A320 and 11 A330 aircraft) by mid 2022. With the increased fleet, Lufthansa plans to provide services to several mid-haul leisure routes to Eurowings Discover, including destinations, like Bridgetown, Canary Islands, Egypt, Las Vegas, Mauritius, and Montego Bay. The country’s airline Condor, in July 2021, announced that I plans to acquire 16 new Airbus A330 neo jets to replace older wide-bodied fleet of other aircrafts. The deal was valued at USD 619.3 million and will help restructure Condor to better cater to the demand from the industry. Furthermore, the increasing demand from the e-commerce and global trade sector for transport means, there is an increase in procurement of freighter aircrafts across Germany, leading to increased market value and growth. For instance, in May 2022, Lufthansa announced the purchase of 7 Boeing passenger aircrafts along with 10 new freighter aircrafts with a total list price of nearly USD 6 Billion. Several such developments are expected to drive the market towards significant growth rates during the forecast period (2022 – 2027).

 europe commercial aircraft market forecast

Competitive Landscape

The Europe commercial aircraft market is a highly consolidated market with prominent players dominating the industry and catering to its needs. With the world’s largest aircraft manufacturer Airbus valued at USD 78.9 Billion in 2019, headquartered in France, the demand for various aircrafts used across the European region is generally high. The main competitive rivalry in the region is in between major manufacturers like Airbus SA, Rolls Royce Holdings PLC (Engines), Leonardo S.p.A, and Dassault Aviation S.A among many other competitors. With the projected increase in air traffic passengers, airlines have taken to increasing their fleet size. Owing to this, Airbus has been leading the market via the high number of orders it receives from the airlines. For instance, as of April 2022, the company received a total number of 95 new orders, majorly for A321Neo models, clearly getting ahead of the competition.

Recent Development

In May 2022, Norwegian Air placed an order for 50 Boeing 737 MAX 8 aircrafts, with options for a further 30 planes in the pipeline for purchase. This increased the market opportunities for Boeing in the European region.

In June 2022, Airbus announced the successful accomplishment of its first flight test of the A321 XLR aircraft, that the company expects to further carry the existing leading position in the European market.

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

    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 United Kingdom

      2. 5.4.2 Germany

      3. 5.4.3 France

      4. 5.4.4 Italy

      5. 5.4.5 Rest of Europe

  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 Lockheed Martin Corporation

      4. 6.2.4 Embraer S.A.

      5. 6.2.5 Dassault Aviation S.A.

      6. 6.2.6 Diamond Aircraft Industries Inc.

      7. 6.2.7 Textron Aviation

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Europe Commercial Aircraft Market market is studied from 2018 - 2027.

The Europe Commercial Aircraft Market is growing at a CAGR of 9.65% over the next 5 years.

Airbus SE, The Boeing Company, Lockheed Martin Corporation, Dassault Aviation S.A., Embraer S.A. are the major companies operating in Europe Commercial Aircraft Market.

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