Commercial Aircraft Market is Estimated to Witness High Growth Owing to Increased Air Passenger Traffic
Commercial aircraft, also known as airliners, are large fixed-wing aircrafts that are used to carry paying passengers on scheduled or charter airlines from one location to another. Commercial aircrafts come in a variety of sizes from small capacity turboprop airplanes that transport up to 20 passengers to huge wide-body jets that can carry over 500 passengers. They are used by commercial airlines, charters, air taxi, and military airlift operators for transporting groups of passengers and cargo.
The global commercial aircraft market is estimated to be valued at US$ 123.65 Bn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increased air passenger traffic has been a major driver for the growth of the global commercial aircraft market over the past few years. Rising global economic prosperity has resulted in an expanding middle class across developing nations which has augmented the demand for both domestic and international air travel. Additionally, low airfares offered by budget carriers in countries like India and growing preference of travelers to choose air travel over other modes of transport has significantly boosted the demand for new commercial aircrafts. The emergence of new air routes within countries and internationally has prompted airline operators to expand their fleets which is fueling the sales of aircrafts.
SWOT Analysis
Strength: The commercial aircraft market is witnessing strong growth due to rising passenger traffic. Increasing demand for modern aircraft and focus on reducing carbon emissions are strengthening market opportunities. Many companies are investing in R&D activities to offer aircraft with new fuel-efficient technologies.
Weakness: Volatility in raw material prices can hamper aircraft manufacturing costs. Geopolitical tensions pose risks to global business travel and freight transportation. Delay in aircraft delivery timelines due to supply chain disruptions is another challenge faced by OEMs.
Opportunity: Market players can tap opportunities in developing economies witnessing significant air passenger traffic growth in Asia Pacific and Middle East regions. Sustainable aviation fuels offer scope for reducing carbon footprint of aviation industry. New aircraft models equipped with advanced connectivity and entertainment solutions can enhance passenger experience.
Threats: Economic slowdowns may negatively impact commercial aviation activities and fleet expansion plans of airlines. Natural calamities and health emergencies can decline short-term air travel demand. Intensifying competition among aircraft manufacturers can squeeze profit margins.
Key Takeaways
Global Commercial Aircraft Market Size is expected to witness high growth over the forecast period.
The Asia Pacific region is emerging as the fastest growing market for commercial aircraft. Countries like China, India, Indonesia, and Japan are experiencing significant rise in domestic and international air travel. Major global aircraft manufacturers have announced plans to boost local production and MRO capacities in Asia to reduce supply chain risks.
Key players operating in the commercial aircraft market are BEC Inc., Comcast, Sprint, AT&T Inc., Charter Communication, Inc., Verizon, CenturyLink, Singtel, Embarq Limited, and Cox Communications, Inc. They are investing heavily in new product development and enhancing service capabilities to strengthen market share. Partnerships with airlines are helping key industry participants to better understand dynamic customer requirements.
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