Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 86.72 Billion |
| Market Size (2030) | USD 105 Billion |
| Growth Rate (2025 - 2030) | 3.90% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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US Aviation Market Analysis by Mordor Intelligence
The US aviation market size stands at USD 86.72 billion in 2025 and is projected to reach USD 105.00 billion by 2030, translating into a 3.9% CAGR over the forecast period. Commercial, military, and general aviation activities shape a mature yet steadily expanding landscape framed by post-pandemic traffic recovery, robust defense spending, and persistent fleet-modernization cycles. Airlines continue to up-gauge cabins while redirecting capacity toward leisure-heavy domestic routes, keeping load factors high and spurring replacement demand for fuel-efficient aircraft. Military procurement accelerates under the Next Generation Air Dominance (NGAD) and B-21 Raider programs, channeling sustained revenue toward prime contractors. Meanwhile, general aviation benefits from rising business jet utilization, a revived pilot-training pipeline, and venture funding for electric aircraft prototypes. Across all segments, supply-chain resilience and vertical integration emerge as competitive differentiators as manufacturers counter material shortages, cybersecurity risks, and workforce gaps.
Key Report Takeaways
- By aircraft type, commercial aviation led with 52.9% of the US aviation market share in 2024, while military aviation recorded the fastest segment growth at a 4.67% CAGR through 2030.
- By propulsion technology, turbofan engines commanded a 54.66% share of the 2024 US aviation market; turboshaft engines are forecasted to post the highest 4.45% CAGR between 2025 and 2030.
- By end user, civil and commercial operators held a 64.45% share of the US aviation market in 2024. Still, government and defense agencies represent the fastest-growing end-user group, with a 4.87% CAGR through 2030.
US Aviation Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Recovery in domestic passenger traffic | +0.6% | National, strongest at hub airports | Short term (≤ 2 years) |
| Continued growth of e-commerce boosting air cargo demand | +0.5% | National, focused on logistics hubs | Medium term (2-4 years) |
| Sustained DoD outlays for next-generation combat and support aircraft | +0.7% | National, defense-contractor concentrations | Long term (≥ 4 years) |
| Airline fleet renewal programs favoring fuel-efficient models | +0.5% | National, major airline hubs | Medium term (2-4 years) |
| FAA “Innovate 2028” digital tower rollout accelerating regional airport upgrades | +0.3% | National, smaller regional airports | Medium term (2-4 years) |
| Venture capital funding surge for electric short-haul aircraft creating new OEM revenue pools | +0.2% | California, Washington, Texas innovation centers | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Recovery in Domestic Passenger Traffic
Checkpoint screenings averaged 2.9 million daily during peak 2024 periods versus 2.4 million in 2019, confirming that leisure-oriented demand has surpassed pre-pandemic baselines.[1]Transportation Security Administration, “TSA Checkpoint Travel Numbers,” tsa.gov Airlines added frequencies on sun-belt and mountain-west routes, reinforcing a structural shift toward point-to-point networks that elevate the US aviation market’s reliance on narrowbody aircraft. Hybrid work patterns limit corporate travel growth, yet regional carriers capture redistributed demand by opening nonstop links into secondary cities. The traffic mix prompts incremental terminal-capacity projects and supports small-aircraft OEM order books that cater to lower-volume destinations. Aircraft lessors also benefit as operators seek short-term lift while awaiting factory slots for new fuel-efficient jets. Overall, higher domestic volumes strengthen airline cash flows, enabling continued investment in sustainability and digital operations initiatives that enhance the broader US aviation market.
Continued Growth of E-Commerce Boosting Air-Cargo Demand
E-commerce parcel volumes exceeded 24 billion units in 2024, sustaining double-digit growth that elevates freighter utilization rates and slot demand at integrated-cargo hubs. Express carriers lengthen aircraft lease terms and convert older widebodies to freighters, while passenger airlines dedicate belly-hold space to priority goods. The resulting yield resilience cushions carriers against passenger-fare volatility and incentivizes procurement of dedicated B777- and A330-freighter platforms. Airport operators respond by expanding ramp-side cold-chain and hazardous-goods handling facilities, creating cross-segment opportunities for equipment suppliers. Engine OEMs gain spares revenue from high-cycle cargo operations, further diversifying the revenue profile of the US aviation market.
Sustained DoD Outlays for Next-Generation Combat and Support Aircraft
The fiscal-year 2024 defense budget earmarked USD 165 billion for aircraft procurement and research, up 12% year over year.[2]Department of Defense, “Fiscal Year 2024 Budget Request,” comptroller.defense.gov Investment into the B-21 Raider, F-35 program extensions, and classified autonomous systems stimulates demand for low-observable materials and advanced propulsion. The future-proofing push gives turbine-engine suppliers multi-year order visibility and raises entry barriers for late-stage competitors. Concurrently, technology spillovers—such as additive-manufactured titanium and network-centric avionics—translate into incremental efficiency gains for the US aviation market’s civil segment.
Airline Fleet Renewal Programs Favoring Fuel-Efficient Models
US carriers committed USD 47 billion to aircraft orders in 2024, with 78% directed toward new-generation fuel-efficient platforms. The B737 MAX and A320neo families capture the bulk of narrowbody demand due to 15-20% fuel-burn advantages. Widebody commitments center on the B787-9 and A321XLR, supporting route flexibility while aligning with net-zero emission roadmaps. Lessors finance a rising share of deliveries, enabling operators to balance capital-expenditure cycles. Increased purchase volumes funnel predictable workloads to tier-2 aerostructure suppliers, even as OEMs prioritize vertical-integration strategies to mitigate component shortages and strengthen the resilience of the US aviation market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Persistent pilot, airframe, and powerplant mechanic shortages inflating labor costs | -0.5% | National, acute in rural and smaller metro areas | Medium term (2-4 years) |
| Supply chain bottlenecks for titanium, composites, and avionics | -0.4% | National, hitting all major manufacturing centers | Short term (≤ 2 years) |
| Community-level opposition delaying SAF blending and storage infrastructure | -0.3% | Regional, refining and airport communities | Long term (≥ 4 years) |
| Escalating cyber insurance premiums for connected aircraft systems | -0.2% | National, affecting operators of modern connected fleets | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Persistent Pilot, Airframe, and Powerplant Mechanic Shortages Inflating Labor Costs
FAA workforce projections indicate an 18,000-pilot and 23,000-technician gap by 2030. Regional airlines responded with 45% pay hikes since 2022, yet attrition to mainline carriers persists. Maintenance providers raised hourly wages by 32%, pressuring margins and lengthening aircraft ground time as slots wait for qualified personnel. Training academies ramp class sizes, but 18-24 months certification timelines limit near-term supply. Union negotiations increasingly tie wage escalators to CPI and productivity, embedding higher cost structures across the US aviation market.
Supply Chain Bottlenecks for Titanium, Composites, and Avionics
Lead times for aerospace titanium stretched to 52 weeks in 2024, double pre-pandemic norms, while composite preform shortages delayed B787, A350, and defense-program output.[3]Aerospace Industries Association, “Supply Chain Resilience Report 2024,” aia-aerospace.org Semiconductor constraints continue to ripple through avionics line-replaceable units, forcing service bulletin deferrals. OEMs accelerate dual-source qualification and expand strategic inventories, but working capital needs rise accordingly. Airframe manufacturers pay premium spot prices to secure scarce alloys, eroding operating margins. The bottlenecks dampen delivery schedules, curbing the growth trajectory of the US aviation market in the near term.
Segment Analysis
By Aircraft Type: Military Aviation Drives Growth Acceleration
Military aviation registered a 4.67% CAGR forecast to 2030, eclipsing the growth of commercial and general-aviation segments even though commercial aviation retained 52.90% US aviation market share in 2024. Ongoing B-21 Raider low-rate production and sixth-generation fighter development underpin consistent order flows for defense OEMs. Autonomy and electronic-warfare capabilities advance quickly as multi-domain operational concepts take root, ensuring follow-on upgrade cycles. Commercial aviation sustains the most significant revenue base through continued fleet-renewal orders; however, yield compression and airline focus on debt reduction moderate volume expansion. General aviation remains a resilient niche, buoyed by sustained business-jet demand and recreational-flying interest that lifted piston-aircraft shipments 11% yearly. FAA Part 23 reforms cut certification times, enabling start-ups to field innovative electric VTOL demonstrators that could reshape regional mobility routes, adding future optionality to the US aviation market.
Commercial traffic normalization stabilizes production planning for narrow and widebody programs, giving suppliers clearer capacity signals. Military backlog strength, by contrast, smooths revenue visibility for tier-1 integrators across fiscal cycles, encouraging capital investment in additive-manufacturing cells and advanced-materials R&D. General-aviation OEMs pivot toward aftermarket packages to extend legacy-fleet life while simultaneously launching new-generation turboprop and light-jet models. These cross-currents create a balanced demand foundation that supports the overall US aviation market.
Note: Segment shares of all individual segments available upon report purchase
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By Propulsion Technology: Turboshaft Engines Lead Innovation Wave
Turboshaft engines achieved the fastest 4.45% CAGR through 2030, propelled by the US Army’s Future Long-Range Assault Aircraft (FLRAA) prototypes. Upgrades emphasize full-authority digital engine control, improved hot-and-high performance, and 10% fuel-burn reductions. The turboshaft momentum diversifies revenue streams away from the dominant turbofan segment that still captured 54.66% of the US aviation market size in 2024. Turbofan developments center on geared architectures and lean-burn combustors, with Pratt & Whitney’s GTF and CFM’s LEAP engines setting efficiency benchmarks. Turboprop demand persists in regional operations and special-mission defense roles, where rugged reliability and lower runway-length requirements matter. Piston-engine innovation focuses on unleaded-fuel compatibility to meet emerging environmental mandates. Collectively, propulsion advances lower life-cycle costs and emissions, crucial variables for sustaining US aviation market growth.
Supply-chain alignment for next-gen engine programs demands concurrent production-readiness of ceramic-matrix composites, high-temperature alloys, and digital-thread quality-control systems. Tier-2 hot-section suppliers invest in capacity while seeking long-term agreements that hedge material-price volatility. Meanwhile, aftermarket service providers expand on-wing diagnostics and predictive-maintenance offerings to support complex engine configurations. These developments weave propulsion technology evolution tightly into the competitive fabric of the US aviation market.
By End User: Defense Agencies Accelerate Procurement Cycles
Government and defense agencies chart a 4.87% CAGR, the highest among end users, reflecting increased appropriation for multi-role platforms, unmanned assets, and integrated-sensor suites. F-35 production stabilizes at 156 aircraft annually due to international-partner orders, keeping assembly lines active and feeding global sustainment networks. In contrast, civil and commercial operators preserve a 64.45% share of the US aviation market size in 2024, cementing their dominant purchasing clout. Airlines leverage improved cash generation to retire older fleets and negotiate favorable lease packages on newer models. Business aviation flight hours remain elevated, supporting aircraft management and charter-service revenue even as corporate-travel budgets recalibrate around hybrid work norms.
The rising defense footprint spurs collaboration between military prime contractors and commercial OEMs on avionics, advanced materials, and autonomous algorithms, reinforcing technology diffusion across segments. Civil operators, for their part, press regulators for streamlined Supplemental Type Certificate pathways to integrate emerging cockpit and connectivity upgrades. These dynamics sustain robust order books and strengthen the US aviation market’s multi-segment resilience.
Note: Segment shares of all individual segments available upon report purchase
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Geography Analysis
Pacific-coast states anchor the highest concentration of large-aircraft final-assembly operations and aerospace-technology startups. Washington hosts the B737 MAX and B787 lines, employing more than 58,000 workers and sustaining a dense supplier base. California’s Mojave-to-San-Diego corridor blends legacy military contractors with new-space ventures, seeding cross-sector innovation. These hubs collectively generated a sizeable share of the US aviation market size in 2024 through high-value exports and engineering services. Gulf Coast logistics pipelines supply titanium sponge and composite sub-assemblies that feed into Pacific Coast factories, illustrating inter-regional supply interdependence.
The Southeast advances as the fastest-growing aerospace manufacturing region. The A320-family final-assembly line in Mobile and B787 operations in Charleston draw clusters of aerostructure, avionics, and interiors suppliers. Alabama and South Carolina workforce development initiatives funnel graduates into apprenticeships, easing skilled labor shortages that hamper lesser-resourced areas. Florida capitalizes on proximity to Cape Canaveral’s launch complex, adding MRO centers catering to commercial and military fleets. The resulting ecosystem diversification cushions regional economies against single-program volatility and heightens competitive intensity across the US aviation market.
Texas anchors the nation’s most significant general aviation footprint. Business-jet operations concentrate around Dallas-Fort Worth and Houston, serving corporate energy and technology clients. Lockheed Martin’s F-35 production in Fort Worth integrates avionics and final assembly, linking defense supply chains to civil-sector logistics. The state’s central geography supports charter demand for medium-range aircraft, stimulating piston and turboprop activity at secondary airfields. State-level incentives attract component manufacturers seeking proximity to airframers and low-cost utilities, reinforcing Texas’s outsized role in the US aviation market.
Competitive Landscape
The US aviation market exhibits moderate concentration with a duopoly in commercial airliners, diversified prime contractors in defense, and fragmentation in general aviation. The Boeing Company and Airbus SE compete on production cadence, after-sales support, and life-cycle-cost guarantees, leveraging in-house digital-aviation platforms to lock in long-term customer relationships. Supply chain resilience takes center stage as material shortages and geopolitical frictions prompt OEMs to broaden supplier bases and invest in in-house component machining. Lockheed Martin Corporation, Northrop Grumman Corporation, and General Dynamics Corporation vie for defense contracts by integrating autonomous capabilities and mission-system commonality, thereby driving down sustainment costs for federal agencies.
Technological differentiation intensifies. The Boeing Company filed multiple autonomy-related patents in 2024, signaling future single-pilot or remotely supervised commercial-flight concepts.[4]United States Patent and Trademark Office, “Patent Database Search,” uspto.gov General aviation players like Textron Inc., Bombardier Inc., and Honda Aircraft Company, LLC, diversify through cabin-experience upgrades and avionics commonality to shorten pilot transition times. M&A activity, exemplified by General Dynamics’ USD 4.9 billion Jet Aviation acquisition, consolidates aftermarket and MRO capabilities, further shaping competitive dynamics across the US aviation market.
Cybersecurity mandates push OEMs and airlines to embed end-to-end data protection protocols, raising development costs but differentiating premium service offerings. As a result, competitive strategies span digital, operational, and sustainability dimensions, collectively reinforcing the steady evolution of the US aviation market.
US Aviation Industry Leaders
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Airbus SE
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Lockheed Martin Corporation
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Textron Inc.
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The Boeing Company
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General Dynamics Corporation
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- October 2025: The Boeing Company secured a deal worth more than USD 173 million to manufacture eight additional MH-139A Grey Wolf helicopters for the US Air Force.
- September 2025: Lockheed Martin Corporation and the F-35 Joint Program Office (JPO) finalized an agreement for lots 18-19, covering the production and delivery of up to 296 F-35 aircraft for US services, international partners, and Foreign Military Sales (FMS) customers. Deliveries are scheduled to begin in 2026.
- September 2025: Bombardier Defense delivered its ninth Bombardier Global aircraft to the United States Air Force.
US Aviation Market Report Scope
By Aircraft Type
| Commercial Aviation | Passenger Aircraft | Narrowbody Aircraft |
| Widebody Aircraft | ||
| Regional Jets | ||
| General Aviation | Business Jets | Large Jet |
| Mid-Size Jet | ||
| Light Jet | ||
| Piston and Turboprop Aircraft | ||
| Commercial Helicopters | ||
| Military Aviation | Fixed-Wing Aircraft | Combat Aircraft |
| Multi-Role Aircraft | ||
| Transport Aircraft | ||
| Training Aircraft | ||
| Rotorcraft | Multi-Mission Helicopter | |
| Transport Helicopter | ||
| Others | ||
By Propulsion Technology
| Turboprop |
| Turbofan |
| Piston Engine |
| Turboshaft |
| Others |
By End User
| Civil and Commercial Operators |
| Government and Defense Agencies |
| Business and General Aviation Owners |
| By Aircraft Type | Commercial Aviation | Passenger Aircraft | Narrowbody Aircraft |
| Widebody Aircraft | |||
| Regional Jets | |||
| General Aviation | Business Jets | Large Jet | |
| Mid-Size Jet | |||
| Light Jet | |||
| Piston and Turboprop Aircraft | |||
| Commercial Helicopters | |||
| Military Aviation | Fixed-Wing Aircraft | Combat Aircraft | |
| Multi-Role Aircraft | |||
| Transport Aircraft | |||
| Training Aircraft | |||
| Rotorcraft | Multi-Mission Helicopter | ||
| Transport Helicopter | |||
| Others | |||
| By Propulsion Technology | Turboprop | ||
| Turbofan | |||
| Piston Engine | |||
| Turboshaft | |||
| Others | |||
| By End User | Civil and Commercial Operators | ||
| Government and Defense Agencies | |||
| Business and General Aviation Owners | |||
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Market Definition
- Aircraft Type - All the aircraft related to commercial, military and general aviation have been included in this study
- Sub-Aircraft Type - Fixed-Wing passenger aircraft, freighter aircraft, business jets, piston fixed-wing aircraft, military fixed-wing aircraft, and rotorcraft are included under this study.
- Body Type - Body type includes all types of aircraft segmented based on application/size/capacity/role.
| Keyword | Definition |
|---|---|
| IATA | IATA stands for the International Air Transport Association, a trade organization composed of airlines around the world that has an influence over the commercial aspects of flight. |
| ICAO | ICAO stands for International Civil Aviation Organization, a specialized agency of the United Nations that supports aviation and navigation around the globe. |
| Air Operator Certificate (AOC) | A certificate granted by a National Aviation Authority permitting the conduct of commercial flying activities. |
| Certificate Of Airworthiness (CoA) | A Certificate Of Airworthiness (CoA) is issued for an aircraft by the civil aviation authority in the state in which the aircraft is registered. |
| Gross Domestic Product (GDP) | Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period by countries. |
| RPK (Revenue Passenger Kilometres) | The RPK of an airline is the sum of the products obtained by multiplying the number of revenue passengers carried on each flight stage by the stage distance - it is the total number of kilometers traveled by all revenue passengers. |
| Load Factor | The load factor is a metric used in the airline industry that measures the percentage of available seating capacity that has been filled with passengers. |
| Original Equipment Manufacturer (OEM) | An original equipment manufacturer (OEM) traditionally is defined as a company whose goods are used as components in the products of another company, which then sells the finished item to users. |
| International Transportation Safety Association (ITSA) | International Transportation Safety Association (ITSA) is an international network of heads of independent safety investigation authorities (SIA). |
| Available Seats Kilometre (ASK) | This metric is calculated by multiplying Available Seats (AS) in one flight, defined above, multiplied by the distance flown. |
| Gross Weight | The fully-loaded weight of an aircraft, also known as “takeoff weight,” which includes the combined weight of passengers, cargo, and fuel. |
| Airworthiness | The ability of an aircraft, or other airborne equipment or system, to operate in flight and on the ground without significant hazard to aircrew, ground crew, passengers or to other third parties. |
| Airworthiness Standards | Detailed and comprehensive design and safety criteria applicable to the category of aeronautical product (aircraft, engine or propeller). |
| Fixed Base Operator (FBO) | A business or organization that operates at an airport. An FBO provides aircraft operating services like maintenance, fueling, flight training, charter services, hangaring, and parking. |
| High Net worth Individuals (HNWIs) | High Net worth Individuals (HNWIs) are individuals with over USD 1 million in liquid financial assets. |
| Ultra High Net worth Individuals (UHNWIs) | Ultra High Net worth Individuals (UHNWIs) are individuals with over USD 30 million in liquid financial assets. |
| Federal Aviation Administration (FAA) | The division of the Department of Transportation is concerned with aviation. It operates Air Traffic Control and regulates everything from aircraft manufacturing to pilot training to airport operations in the United States. |
| EASA (European Aviation Safety Agency) | The European Aviation Safety Agency is a European Union agency established in 2002 with the task of overseeing civil aviation safety and regulation. |
| Airborne Warning and Control System (AW&C) aircraft | Airborne Warning and Control System (AEW&C) aircraft is equipped with a powerful radar and on-board command and control center to direct the armed forces. |
| The North Atlantic Treaty Organization (NATO) | The North Atlantic Treaty Organization (NATO), also called the North Atlantic Alliance, is an intergovernmental military alliance between 30 member states – 28 European and two North American. |
| Joint Strike Fighter (JSF) | Joint Strike Fighter (JSF) is a development and acquisition program intended to replace a wide range of existing fighter, strike, and ground attack aircraft for the United States, the United Kingdom, Italy, Canada, Australia, the Netherlands, Denmark, Norway, and formerly Turkey. |
| Light Combat Aircraft (LCA) | A light combat aircraft (LCA) is a light, multirole jet/turboprop military aircraft, commonly derived from advanced trainer designs, designed for engaging in light combat. |
| Stockholm International Peace Research Institute (SIPRI) | Stockholm International Peace Research Institute (SIPRI) is an international institute that provides data, analysis, and recommendations for armed conflict, military expenditure, and arms trade as well as disarmament and arms control. |
| Maritime Patrol Aircraft (MPA) | A maritime patrol aircraft (MPA), also known as maritime reconnaissance aircraft is a fixed-wing aircraft designed to operate for long durations over water in maritime patrol roles, in particular, anti-submarine warfare (ASW), anti-ship warfare (AShW), and search and rescue (SAR). |
| Mach Number | The Mach number is defined as the ratio of true airspeed to the speed of sound at the altitude of a given aircraft. |
| Stealth Aircraft | Stealth is a Common term applied to low observable (LO) technology and doctrine, that makes an aircraft near invisible to radar, infrared or visual detection. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. For sales conversion to volume, the average selling price (ASP) is kept constant throughout the forecast period for each country, and inflation is not a part of the pricing.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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