The aviation market size was valued at USD 196.47 billion in 2022 and is projected to reach USD 379.85 billion by 2031, expanding at a CAGR of 7.6% during the forecast period, 2023 – 2031. The growth of the market is attributed to globalization, rising population and increased demand for air travel.
The aviation market encloses the sales of rotary-wing and fixed-wing aircraft across the military, commercial, and general aviation sectors. The market offers an overview of variation in defense spending, air passenger traffic, aircraft orders and deliveries, the introduction of new routes, and investments by major countries into the aviation sector.
The Covid-19 pandemic had an adverse impact on the aviation market. The commercial sector, passenger traffic plummeted drastically in 2020, and it is expected to take 2-3 years to recover completely.
The airlines' subsequent losses have resulted in the cancellation or deferral of aircraft orders, thereby reducing the demand; however, the government’s steps and strategies have helped to neutralised the situation. This pandemic has encouraged the key players to implement advance technologies to overcome these challenges and expand the market growth.
Market Trends, Drivers, Restraints, and Opportunities
Globalisation and rising population are expected to create lucrative opportunities to boost the market during the forecast period
The newer generation aircraft offer better fuel efficiency and safety for commercial and general aviation customers and better situational awareness and tactical advantage for military customers are the key factors propelling the market growth.
high jet fuel prices and sluggish economic growth are anticipated to impede the market in coming years
R&D investment and technological advancement in aviation market are expected to offer lucrative opportunities for the market players.
Scope of the Report
The report on aviation market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Aviation Market – Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Type (Commercial Aviation, Military Aviation, and General Aviation)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
The Boeing Company, Airbus SE, Lockheed Martin Corporation, Textron Inc., and Embraer S.A
Market Segment insights
The commercial aviation segment is projected to constitute a large market share
Based on type, the aviation market is segregated into commercial aviation, military aviation, and general aviation.
The commercial aviation segment is expected to account for a key share of the market during the forecast period owing to major commercial aircraft OEMs, like Airbus and Boeing, are currently increasing their aircraft production and delivery rates; however, military aviation segment is anticipated to expand at a rapid pace during the forecast period owing to increased demand for cargo operations, forcing several freighter operators to create new aircraft.
Asia Pacific is expected to dominate the market
In terms of geography, the market is broadly classified into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is anticipated to expand at a robust CAGR during the forecast period.
Increased demand for air travel in these countries is expected to drive the market growth in near future. Furthermore, the governments are modernizing their aircraft fleets due to the growth in territorial disputes and instability in the region.
The aviation market has been segmented on the basis of:-
- Commercial Aviation
- Military Aviation
- General Aviation
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- The Boeing Company
- Airbus SE
- Lockheed Martin Corporation
- Textron Inc.
- Embraer S.A
Key players competing in the aviation market include The Boeing Company, Airbus SE, Lockheed Martin Corporation, Textron Inc., and Embraer S.A.
Some of these players are using several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares. For instance,
In January 2021, FedEx Express declared an order for 12 Boeing 767 freighters and 12 Boeing 777 freighters. The total value of the order is USD 6.6 billion at list prices.
In June 2020, the US Civil Air Patrol (CAP) declared that it had selected Textron Aviation to provide 17 Cessna piston engine aircraft consisting of 11 Skyhawk 172S, five Skylane 182T, and one Turbo Stationair HD T206HD aircraft. The aircraft is supposed to be used for disaster relief, search and rescue, and homeland security missions and others.
In April 2020, Lockheed Martin declared that it was awarded a USD 4.7 billion contract modification for 78 F-35 Lightning II Joint Strike Fighters. The contract includes 48 conventional takeoff and landing F-35As for the US Air Force, 14 short takeoff and vertical landing F-35Bs for the Marine Corps, and 16 carrier-borne F-35C stealth fighters.