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

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  • 130 Pages
  • February 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 4515741

The aviation market is anticipated to register a CAGR of over 5% during the forecast period (2022 - 2027).

The COVID-19 pandemic has affected the aviation market in many ways, and the effect of the pandemic is expected to continue even during the forecast period. In the commercial sector, passenger traffic plummeted drastically in 2020 and 2021, and with the advent of multiple waves of the pandemic in many countries, it is expected to take 2-3 years to recover completely. However, the return of the Boeing 737MAX into service and the recovery in domestic demand have helped the OEMs in obtaining more orders and increasing aircraft deliveries in 2021.

On the other hand, though the orders and deliveries of general aviation aircraft witnessed a decline in 2020 as compared to that of 2019, there is a growth in demand for helicopters and business jets to transport medical supplies, cargo charter operations, and VIP transport, among others. This is expected to help the growth of the market. Furthermore, the orders and deliveries improved in 2021, signifying the growth in demand for general aviation aircraft even during the pandemic.

In the military aircraft segment, though there were supply chain disruptions and production-related issues, military aircraft demand has not been affected as countries did not postpone or cancel their procurements, due to the criticality and the tactical importance of the requirements.

Several manufacturers are now focusing on developing newer generation aircraft in various aviation segments. 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. The advent of such aircraft is expected to drive market growth during the forecast period.

Key Market Trends

Commercial Aircraft Segment is Projected to Grow with the Highest CAGR during the Forecast Period

In 2020, there was a decline in the deliveries of commercial aircraft due to the COVID-19 pandemic. However, the deliveries of the aircraft improved in 2021, and the major commercial aircraft OEMs, like Airbus and Boeing, are currently increasing their aircraft production and delivery rates. In 2021, Boeing delivered a total of 340 aircraft, of which 245 deliveries are of the 737MAX model. In November 2020, Boeing company’s 737MAX returned to service after being temporarily grounded since March 2019. The return of the 737MAX back to service has helped the revenue growth of Boeing in 2021. The Boeing Company has received orders for 909 aircraft in 2021 of which 749 orders were for 737MAX aircraft. On the other hand, in 2021, Airbus SE delivered 611 Aircraft which includes 533 narrowbody aircraft, 18 A330, 55 A350, and 5 A380 aircraft. The aircraft manufacturer also received 771 new orders in the same year. These numbers reveal that the deliveries of commercial aircraft will continue at a healthy rate during the forecast period. The aircraft fleet modernization and destination expansion plans of the airlines are leading to the gradual revival of aircraft demand, thereby strengthening the order books of aircraft OEMs. In addition to the recovery in the demand for passenger aircraft, the year 2021 witnessed an increased demand for cargo operations, propelling several freighter operators to order new aircraft. For instance, in December 2021, Boeing has announced that UPS has placed an order for 19 B767 freighters that will enable the company to meet the strong demand for airfreight movements. Such developments are expected to propel the growth of the commercial aircraft segment during the forecast period.

Asia-Pacific is Expected to Dominate the Aviation Market During the Forecast Period

Asia-Pacific has become a significant hub for the aviation industry over the years. The emerging economies in the region, like India and China, are experiencing a massive surge in their respective civil aviation markets, due to an increased demand for air travel in these countries. Hence, the revenues from Asia-Pacific are projected to witness a high growth rate during the forecast period. In 2021, The Boeing company delivered 91 aircraft in the Asia-Pacific region, while 30% of the deliveries of Airbus were in the Asia-Pacific in the same year. China is leading the recovery of global commercial aviation due to great domestic demand, helping the airlines witness financial recovery. China has become a major hub for the aviation industry over the years, due to high demand from civilian and military customers. Commercial Aviation is the key contributor to China’s aviation industry over the years. On the other hand, the Indian carrier, IndiGo, took delivery of a record 36 Airbus planes between January and November 2021. Overall, IndiGo has ordered 730 A320-A321 families of aircraft so far. It has taken delivery of 186 such aircraft till November-end. India is also a critical military aircraft market, as the country has been modernizing its aerial capabilities, both by procuring new aircraft and indigenously developing military aircraft. Similarly, other countries like Japan, South Korea, Australia, and the Southeast Asian countries are also experiencing a growth in the aviation sector demand, thereby bolstering the region's market prospects.

Competitive Landscape

Airbus SE, The Boeing Company, Lockheed Martin Corporation, Embraer, and Textron Inc. are some of the prominent players in the market. The rivalry between The Boeing Company and Airbus SE continued in 2021, mainly in the commercial aviation sector. Along with Lockheed Martin Corporation, a key player in the military segment, these two companies have maintained their market dominance for a little over a decade now. Though the revenues of Boeing’s commercial segment were down in the last two years, a strong performance in the defense segment has helped it gain a significant market share. The aviation industry is expected to see new innovations being implemented in aircraft design, which is likely to alter the meaning of safety, comfort, and efficiency for commuters. Companies are looking for opportunities offered by the latest technological innovations that can help them improve their revenue shares. The military segment of the market is witnessing increased collaborations between the players to develop next-generation combat and non-combat aircraft, which is expected to help the players' collective growth during the forecast period.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of Study
1.3 Currency Conversion Rates for USD
3.1 Market Size and Forecast, Global, 2018 - 2027
3.2 Market Share by Type, 2021
3.3 Market Share by Geography, 2021
3.4 Structure of the Market and Key Participants
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Trends
4.5 Porter's Five Forces Analysis
4.5.1 Bargaining Power of Buyers/Consumers
4.5.2 Bargaining Power of Suppliers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2027)
5.1 Type
5.1.1 Commercial Aviation Passenger Aircraft Freighter
5.1.2 Military Aviation Combat Aircraft Non-combat Aircraft
5.1.3 General Aviation Helicopter Piston Fixed-wing Aircraft Turboprop Aircraft Business Jet
5.2 Geography
5.2.1 North America United States Type Canada Type
5.2.2 Europe United Kingdom Type France Type Germany Type Italy Type Rest of Europe Type
5.2.3 Asia-Pacific China Type India Type Japan Type South Korea Type Malaysia Type Rest of Asia-Pacific Type
5.2.4 Latin America Brazil Type Mexico Type Rest of Latin America Type
5.2.5 Middle-East and Africa Saudi Arabia Type United Arab Emirates Type Qatar Type South Africa Type Rest of Middle-East and Africa Type
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 The Boeing Company
6.2.2 Airbus SE
6.2.3 Embraer SA
6.2.4 Textron Inc.
6.2.5 Lockheed Martin Corporation
6.2.6 Bombardier Inc.
6.2.8 Leonardo SpA
6.2.9 Honda Aircraft Company
6.2.10 Piper Aircraft Inc.
6.2.11 General Dynamics Corporation
6.2.12 Dassault Aviation SA
6.2.13 Cirrus Design Corporation
6.2.14 Diamond Aircraft Industries

Companies Mentioned

A selection of companies mentioned in this report includes:

  • The Boeing Company
  • Airbus SE
  • Embraer SA
  • Textron Inc.
  • Lockheed Martin Corporation
  • Bombardier Inc.
  • Leonardo SpA
  • Honda Aircraft Company
  • Piper Aircraft Inc.
  • General Dynamics Corporation
  • Dassault Aviation SA
  • Cirrus Design Corporation
  • Diamond Aircraft Industries