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

The North America Aviation Market is segmented by Type (Commercial Aircraft, Military Aircraft, and General Aviation) and Geography (United States and Canada). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Market Snapshot

north america aviation market
Study Period: 2018-2027
Base Year: 2021
CAGR: >1.72 %

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Market Overview

The North America Aviation Market is valued at USD 64.22 billion in 2021 and is poised to grow at a CAGR of 1.72% by 2027. 

The impact of the COVID-19 pandemic on the North America aviation market is moderate. Though the COVID-19 pandemic has affected the commercial airline industry in the region, airlines in the region are expected to benefit from strong domestic demand from the United States, one of the largest domestic aviation markets in the world. This may result in an earlier recovery of the region’s commercial airline industry. Passenger traffic has slowly started to recover, which is expected to help the revival of the commercial aviation sector in North America.

The aviation industry in North America is matured and has the presence of several aircraft OEMs. The defense sector is benefitted due to this fact, owing to the growing government investment in R&D and the procurement of advanced fighter jets, helicopters, and transport and trainer aircraft from the regional players. The growing focus on enhancing the infrastructure of private airports, along with favorable changes in regulations, may support the growth of the general aviation market in North America during the forecast period.

Scope of the Report

The North American aviation market encompasses the sales of fixed-wing aircraft and rotorcraft across the commercial, military, and general aviation sectors. The market offers an overview of air passenger traffic, aircraft orders and deliveries, defense spending analysis, the introduction of new routes, and investments by countries into the aviation sector in the region. The North America aviation market is segmented by type into commercial aircraft, military aircraft, and general aviation segments. The commercial aircraft segment is further segmented into passenger aircraft and freighter aircraft. The military aircraft segment is further segmented into combat and non-combat aircraft, while the general aviation segment is further segmented into business jets, turboprop aircraft, piston fixed-wing aircraft, and helicopters. 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).

Type
Commercial Aircraft
Passenger Aircraft
Freighter Aircraft
Military Aircraft
Combat Aircraft
Non-combat Aircraft
General Aviation
Helicopter
Piston Fixed-wing Aircraft
Turboprop Aircraft
Business Jet
Geography
North America
United States
Type
Canada
Type

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Key Market Trends

The Commercial Aircraft Segment is Expected to Register the Highest CAGR During the Forecast Period

As per the International Air Transport Association (IATA), North American carriers are expected to outperform other regions on the back of the fast recovery of the US domestic market. Also, the opening of the US market to vaccinated travelers from November 2021 is expected to drive the recovery of international markets. The US industry started to turn cash-positive in the second quarter of 2021, and it will be the only region in the positive financial territory in 2022 with an expected USD 9.9 billion profit. Passenger traffic has been gradually recovering from the impact of the pandemic and is expected to recover compared to pre-pandemic levels by 2023. With the growing number of domestic passengers in the region, the demand for narrow-body aircraft is expected to witness robust growth in the coming years. According to the International Air Transport Association (IATA), as of December 2021, there were 231 narrow-body aircraft deliveries and 41 wide-body aircraft deliveries in the region. Furthermore, in 2022, 361 narrow-body and 52 wide-body aircraft are expected to be delivered to North American airlines. Airlines in the region have strong strategies in place and have restructured extensively, which is expected to help the recovery of the commercial airline industry in the region. Before the advent of the pandemic, airlines based in the United States and Canada had placed orders for several hundred aircraft, which are scheduled to be delivered during the forecast period. Also, witnessing the rebound of the domestic passenger traffic, airlines in the region have started to order new aircraft to upgrade and expand their fleets. American Airlines, Delta Air Lines, and United Airlines, some of the major airlines in the region have large-scale aircraft deliveries planned in 2022 and 2023. In addition to this, cargo carriers based in the region are also expanding and modernizing their fleets aggressively. For instance, Air Canada plans to procure three dedicated freighter aircraft into its fleet in 2022. The implementation of such plans are expected to aid the growth of this market during the forecast period.

North America Aviation Market_Type

The United States is Expected to Dominate the Market During the Forecast Period

The United States is one of the largest aviation markets in the world. •According to the US Bureau of Transportation Statistics, the airlines in the country carried 674 million passengers in 2021, which increased by 82.5% compared to 2020 (369 million passengers). Nevertheless, the overall passenger traffic in 2021 was less than the passenger traffic in 2019 by 27.3%. Nevertheless, the rebound in passenger traffic has enabled US-based airlines to procure new aircraft. For instance, in February 2022, US-based American Airlines ordered 30 new 737 Max 8 jets from the major aircraft manufacturing firm Boeing. This shows the growing demand for commercial aircraft to cater to the demands of an increasing number of passengers, which is expected to aid the growth of the aviation market in the country. Apart from commercial aviation, the United States has the largest expenditure on the armed forces. As per the Stockholm International Peace Research Institute (SIPRI), the US military expenditure increased by almost 2.9% in 2021 to reach USD 801 billion. The United States remained the largest defense spending country in 2021 and represented 38% of the global spending. Furthermore, the fiscal 2023 budget calls for USD 56.5 billion for airpower. Earlier, in the FY2022 defense budget, USD 52.4 billion was requested for aircraft and related systems, including the budget for procurement of 115 rotary-wing aircraft, 85 F-35A/B/C fighter jets, 12 F-15EX jets, 73 logistics and support aircraft. In the defense sector, the United States is expected to deliver steady growth over the next decade as it is planning to replace its aging fighter jets with advanced jets. The US Marine Corps has plans to procure about 340 F-35B and 80 F-35C models that can replace the AV-8B Harrier II and the aging F/A-18 Hornet jets. The country is also modernizing its transport aircraft fleet. Furthermore, due to the impact of COVID-19 on commercial aviation, there was an increase in demand for business aviation in 2020. Although the overall flight activity dropped in 2020, the business aviation flight activity began to gradually recover from May 2020 and robustly increase in 2021, following the easing of social restrictions in the region. The business jet utilization in the United States increased by 42% in 2021 compared to 2020. Also, charter services are expanding their destinations from the United States and are offering flights at competitive prices to attract passengers during the pandemic, which may boost the growth of the market in the country.

North America Aviation Market_Country

Competitive Landscape

The prominent players in the market are The Boeing Company, Airbus SE, Lockheed Martin Corporation, General Dynamics Corporation, and Textron Inc. The aviation market in North America is highly competitive due to the presence of several aircraft manufacturing giants. Also, as most of the aircraft manufacturing is concentrated in this region, several global aerospace suppliers have manufacturing, sales, and support facilities based in this region. The adoption of innovative methods, increasing product and service offerings, efficient workforce, strategic acquisitions of supply chain players, mergers, tapping into new markets, and competitive pricing are some of the growth strategies adopted by the established players to increase their dominance in the region’s aviation market. Several North America-based aerospace manufacturers are collaborating with companies based in other parts of the world to share their expertise and technical know-how in developing innovative technologies and products. For instance, Boeing and Lockheed Martin have partnered with Bell over the years to develop tiltrotor aircraft. Such partnerships are expected to drive the growth of the players in the market.

Recent Developments

oIn April 2022, Exclusive Jets, LLC (operating as flyExclusive) was awarded an order for five Cessna CJ3+ light jets with the option for additional 25 aircraft. The delivery of the five aircraft is scheduled for 2023, and the purchase option for additional aircraft is planned to be delivered through 2025.

In February 2022, US-based American Airlines announced that it is ordering 30 new 737 Max 8 jets from Boeing. American has orders for 57 of the 737 Max 8 jets through 2025. The airline is scheduled to get 15 of the jets in 2023 and the other 15 in 2024.

In November 2021, Lynx Air, a new Canadian ultra-low-cost carrier, announced its plan to launch flight operations with three Boeing 737 Max 8 in the first quarter of 2022. The airline was formerly called Enerjet, a charter provider to Canada’s oil and gas industry. The airline also announced its plan to increase its fleet to 46 aircraft over a period of seven years.

In August 2021, STARS Air Ambulance became the first customer in North America to operate the new five-bladed H145, following the acceptance of its new helicopter. STARS is a physician-driven non-profit helicopter air ambulance organization that operates the H145 helicopters fitted with helicopter emergency medical service (HEMS) interiors across Western Canada. The new helicopter is powered by two Safran Arriel 2E engines and equipped with full authority digital engine control (FADEC) and Airbus’s own Helionix digital avionics suite.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    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 and Forecast by Value - USD million, 2018 - 2027)

    1. 5.1 Type

      1. 5.1.1 Commercial Aircraft

        1. 5.1.1.1 Passenger Aircraft

        2. 5.1.1.2 Freighter Aircraft

      2. 5.1.2 Military Aircraft

        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

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Airbus SE

      2. 6.1.2 Lockheed Martin Corporation

      3. 6.1.3 The Boeing Company

      4. 6.1.4 General Dynamics Corporation

      5. 6.1.5 Textron Inc.

      6. 6.1.6 Embraer SA

      7. 6.1.7 Bombardier Inc.

      8. 6.1.8 PILATUS AIRCRAFT LTD

      9. 6.1.9 Leonardo SpA

      10. 6.1.10 Dassault Aviation SA

      11. 6.1.11 Piper Aircraft Inc.

      12. 6.1.12 Honda Aircraft Company

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The North America Aviation Market market is studied from 2018 - 2027.

The North America Aviation Market is growing at a CAGR of >1.72% over the next 5 years.

The Boeing Company, Airbus SE, Lockheed Martin Corporation, General Dynamics Corporation, Textron Inc. are the major companies operating in North America Aviation Market.

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