Middle-East Aviation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Middle-East Aviation Market is Segmented by Aircraft Type (Fixed-wing Aircraft and Rotorcraft), Application (Commercial Aircraft, Military Aircraft, and General Aviation), and Geography (Saudi Arabia, United Arab Emirates, Qatar, Israel, and Rest of the Middle-East). The report offers market size and forecasts for the Middle-East aviation market in value (USD billion) for all the above segments.

Market Snapshot

Middle-East Aviation Market Overview
Study Period: 2018-2026
Base Year: 2020
CAGR: 7.86 %

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Market Overview

The Middle-East aviation market was valued at USD 13.19 billion in 2020, and it is projected to reach USD 23.07 billion in 2026, with a CAGR of 7.86% during the forecast period (2021 - 2026).

Aviation passenger traffic in the Middle-East increased every year over the past decade until 2019. However, the passenger traffic growth decreased in 2019 compared to 2018, and the advent of the COVID-19 pandemic has further slashed passenger traffic in 2020. The region is home to some prominent full-service carriers operating long-haul routes, like Emirates, Etihad, and Qatar Airways, which witnessed huge losses due to the closure of international borders.

Additionally, with the international passenger traffic projected to recover slower than domestic travel, several full-service carriers in the region have canceled or deferred their aircraft orders in 2020. Nevertheless, the advent of new budget carriers, like Air Arabia Abu Dhabi and Wizz Air Abu Dhabi, is expected to propel the demand for new narrow-body aircraft in the future.

On the other hand, the general aviation sector is recovering quickly due to the high demand for private travel in the region. A large number of high-net-worth individuals in the region have resulted in a higher preference for business jet and helicopter travel during the pandemic.

Military aviation has not witnessed any major disruption in demand in the region, as countries are proceeding with their procurement plans without delays in delivery timelines. Military aviation in the Middle-East is expected to witness impressive growth in the coming years, owing to various combat aircraft procurement plans by countries, like Turkey, Kuwait, Qatar, and Bahrain.

Scope of the Report

The Middle-East Aviation market encompasses the sales of fixed-wing and rotary-wing aircraft across the commercial, military, and general aviation sectors in the Middle-East 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 Middle-East Aviation Market is segmented by type into the Commercial Aircraft, Military Aircraft, and General Aviation segments. The Commercial Aircraft segment is further segmented into Passenger Aircraft and Freighter. The Military Aircraft segment is further segmented into Combat and Non-combat aircraft. In contrast, the General Aviation segment is further segmented into Helicopters, Turboprop Aircraft, Piston Fixed-wing Aircraft, and Business Jets. The report also offers the market size and forecasts for the aviation market in major countries in the region. For each segment, the market sizes and forecasts are done based on value (USD billion).

By Aircraft Type
Fixed-wing Aircraft
Rotorcraft
By Application
Commercial Aircraft
Passenger Aircraft
Freighter
Military Aircraft
Combat Aircraft
Non-combat Aircraft
General Aviation
Helicopter
Piston Fixed-wing Aircraft
Turboprop Aircraft
Business Jet
By Geography
Saudi Arabia
United Arab Emirates
Qatar
Israel
Rest of the Middle-East

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Key Market Trends

Growing Demand for Business Jets will Drive the General Aviation Segment During the Forecast Period

Middle-East has been a lucrative market for both the business and private aviation verticals, due to the presence of large high net worth and ultra-high net worth individual (HNWI/UHNWI) population in the region. There is a high demand for large-cabin and long-range business jets in the Middle-East due to their high luxury and comfort. Though there is a single business jet delivery in the region in 2020, the business jet demand is expected to grow in the coming years in the region, after a downfall for several years. Due to the growing concerns regarding the spread of the COVID-19, first-class and corporate travelers are expected to prefer general aviation options for safer and quicker transport, which is expected to drive the segment in the future. Business jet manufacturers have also shifted their focus onto the region. They are considering the Middle-East as a high potential region for future business jet sales, as several companies in the United States and Europe are cutting back on frills like the corporate plane charter to save money and appease investors. Additionally, the growth in demand for charter operations is driving the segment. For instance, in 2019, Qatar Airways confirmed an order valued at USD 1 billion for 18 Gulfstream aircraft to be operated by Qatar Executive, the business jet subsidiary of Qatar Airways. The deliveries are expected to be completed by 2022. Such orders are expected to drive the growth of the segment during the forecast period.

Middle-East Aviation Market Latest Trends

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Saudi Arabia is Expected to Dominate the Market During the Forecast Period

In the Middle-Eastern aviation market, Saudi Arabia currently accounts for a major market share. The country is undergoing a progressive change to become a key aviation-related industry in the region and is witnessing an increase in the number of developments related to the market. Saudi Arabia has long recognized the aviation sector as a means to drive economic growth. The privatization of airports has played a major role in increasing the growth of the aviation industry in Saudi Arabia. Moreover, in the last two decades, the aviation market in Saudi Arabia witnessed significant growth in terms of airport infrastructure. Prior to the advent of the pandemic, the increasing number of air passengers in Saudi Arabia led to an increase in the number of aircraft orders. In 2019, Saudi Arabian Airlines, the country's national airline, announced that it ordered 65 A320neo-type aircraft from Airbus, worth more than USD 7.4 billion at list prices. Additionally, as of March 2021, Saudia is reportedly considering a massive aircraft order from both Airbus and Boeing. The airline plans to buy 70 aircraft in total, including the A321, 777, and 787 aircraft. With the air passenger traffic showing signs of recovery and the government offering financial aid, it is unlikely that there may be further aircraft order cancellations or deferrals in the future. On the other hand, military aviation in Saudi Arabia is witnessing significant growth and changes. Saudi Arabia is expanding its military aviation fleet, for which they have already placed orders for several military aircraft. The ongoing rivalry between Saudi Arabia and Iran may be the main driver, which is likely to lead to a growth in terms of military aircraft acquisitions in Saudi Arabia. In March 2021, Lockheed Martin subsidiary, Sikorsky, announced that it had obtained a USD 53.87 million contract modification to produce four UH-60M Black Hawk helicopters for Saudi Arabia. The deliveries are expected to be completed by June 2022. Saudi Arabia is also a lucrative market for general aviation in the Middle-East region. The only business jet delivered in the Middle-East region in 2020 was delivered to a customer in Saudi Arabia. Furthermore, the high wealth in the country is projected to drive the market for general aviation during the forecast period.

Middle-East Aviation Market Revenue Share

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Competitive Landscape

Lockheed Martin Corporation, Bombardier Inc., The Boeing Company, Airbus SE, and Textron Inc. are some of the prominent players in the Middle-East aviation market. Various initiatives and product innovations have led the companies to strengthen their presence in the market. For Airbus and Boeing, the Middle-East has been a major demand-generating region for wide-body aircraft over the years. However, this is expected to change due to the emergence of new LCCs and the slump in demand for long-haul flights. Despite a fall in deliveries in 2020, the Middle-East still remains a lucrative market for business jets in the future. Additionally, as the countries look to strengthen their aerial combat capabilities, several military aircraft orders are expected from this region over the next decade. Therefore, the rivalry among the existing players in the market is expected to intensify further in the coming years.

Recent Developments

In January 2021, the United Arab Emirates signed an agreement with the United States to purchase 50 F-35 jets and 18 armed drones. The deliveries of the F-35 jets are expected to begin beyond 2027.

In December 2020, the Royal Saudi Air Force received the F-15SA advanced fighter aircraft, marking the final delivery of the Boeing-produced aircraft as part of a USD 29 billion foreign military sales (FMS) agreement signed in 2010.

In February 2019, Emirates announced that it had signed a deal worth USD 21.4 billion with Airbus to purchase 40 A330-900 aircraft and 30 A350-900 aircraft, which are to be delivered by 2024.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    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 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      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 By Aircraft Type

      1. 5.1.1 Fixed-wing Aircraft

      2. 5.1.2 Rotorcraft

    2. 5.2 By Application

      1. 5.2.1 Commercial Aircraft

        1. 5.2.1.1 Passenger Aircraft

        2. 5.2.1.2 Freighter

      2. 5.2.2 Military Aircraft

        1. 5.2.2.1 Combat Aircraft

        2. 5.2.2.2 Non-combat Aircraft

      3. 5.2.3 General Aviation

        1. 5.2.3.1 Helicopter

        2. 5.2.3.2 Piston Fixed-wing Aircraft

        3. 5.2.3.3 Turboprop Aircraft

        4. 5.2.3.4 Business Jet

    3. 5.3 By Geography

      1. 5.3.1 Saudi Arabia

      2. 5.3.2 United Arab Emirates

      3. 5.3.3 Qatar

      4. 5.3.4 Israel

      5. 5.3.5 Rest of the Middle-East

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 ATR Aircraft

      2. 6.1.2 Bombardier Inc.

      3. 6.1.3 Embraer SA

      4. 6.1.4 The Boeing Company

      5. 6.1.5 Airbus SE

      6. 6.1.6 Leonardo SpA

      7. 6.1.7 Textron Inc.

      8. 6.1.8 Dassault Aviation SA

      9. 6.1.9 General Dynamics Corporation

      10. 6.1.10 Cirrus Aircraft Corp.

      11. 6.1.11 Honda Aircraft Company

      12. 6.1.12 Lockheed Martin Corporation

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Middle-East Aviation Market market is studied from 2018 - 2026.

The Middle-East Aviation Market is growing at a CAGR of 7.86% over the next 5 years.

The Middle-East Aviation Market is valued at 13 Billion USD in 2018.

The Middle-East Aviation Market is valued at 23 Billion USD in 2026.

Textron Inc., Airbus SE, The Boeing Company, Bombardier Inc., Lockheed Martin Corporation are the major companies operating in Middle-East Aviation Market.

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