COMMERCIAL AIRCRAFT MARKET ANALYSIS

Commercial Aircraft Market Size and Trends

The commercial aircraft market is estimated to be valued at US$ 158.83 Bn in 2024 and is expected to reach US$ 245.79 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.

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The commercial aircraft market is witnessing positive trends with increasing passenger air traffic globally. Low cost carriers are driving the demand for narrowbody aircraft while oils continue to see strong orders from established airlines. While COVID-19 impacted commercial aviation, vaccination programs and renewed economic activities have fueled optimism among aircraft manufacturers and airlines. Orders for new fuel efficient aircraft models and expansion of fleets suggest that the long term outlook remains robust. However, supply chain challenges, geopolitical issues, and rising costs could impact the market growth in the near term.

Growing international trade and tourism

The international trade and tourism industry has experienced robust growth due to increasingly globalized supply chains and lower trade barriers. This has driven significant demand for passenger and cargo air travel between countries. Major economies with well-developed transportation infrastructure have become hubs for the movement of goods and people across borders. The expansion of middle-classes in emerging markets has also boosted discretionary spending on international leisure travel and business trips abroad. Carriers require new aircraft to meet this rising cross-border traffic and freight volumes. Additionally, low-cost carriers have emerged as an affordable option for locally-based flyers to travel within and between regions. This has expanded the overall commercial aviation customer base. Overall higher incomes and greater desire to explore other cultures have played a role in air travel becoming an integral part of the global trade and tourism ecosystem, helping drive the demand for widebody and narrowbody aircraft.

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As commercial aircraft fleets age, airlines are increasingly undertaking fleet replacement and modernization programs to reduce maintenance and fuel costs through the adoption of new-generation fuel-efficient planes. While some carriers extend the operational lives of older planes through refurbishment and component replacements, most full-service network carriers prefer replacing their oldest and least economical jets with new aircraft featuring state-of-the-art engines and aerodynamic designs. This allows substantial reductions in operating expenses through lower maintenance and fuel burn. Additionally, newer aircraft meet enhanced safety and emission regulations while providing enhanced passenger comfort and services. Low-cost carriers too are standardizing their operations around specific modern aircraft types to benefit from common pilot/crew training, inventories, and maintenance practices. Global aircraft fleet age profiles indicate a large number of aircraft built in the 1990s and early 2000s will need replacement in the coming decade. This is driving requirements for new narrowbody and widebody deliveries to support fleet revamp programs across Asia Pacific, North America, Europe, and other regions.