Market Trends of Aircraft Paints Industry
Commercial Aviation Segment to Dominate Market Share
The market is currently led by the commercial aircraft segment, a trend projected to persist in the forecast period. As global passenger traffic stages a recovery post-pandemic, it's on track to surpass pre-pandemic levels by the close of 2023, largely fueled by a surge in domestic travel. This uptick in domestic passengers will propel a robust demand for commercial aircraft in the coming years, subsequently impacting the aircraft paints market.
Airlines have significantly ramped up their aircraft procurement to meet the rising air travel demand. By the close of 2023, Airbus had delivered 735 aircraft, while Boeing's deliveries were around 528. This pace indicates a sustained production and delivery momentum for commercial aircraft in the forecast period.
In a significant move in February 2023, Air India ordered 250 aircraft from Airbus, including 140 A320neo, 70 A321neo, six A350-900, and 34 A350-1000 aircraft. However, in December 2023, the airline modified its order to 140 A321neo, 70 A320neo, 20 A350-900, and 20 A350-1000 aircraft. Such robust commercial aircraft production and delivery are poised to drive growth in the aircraft paints market's commercial segment.
Asia-Pacific to Showcase Remarkable Growth During the Forecast Period
Strong economic growth and favorable demographics are propelling air passenger traffic in developing nations across the Asia-Pacific. Over the past decade, the region witnessed a notable surge in air travel, driven largely by its appeal as a tourist destination and the increasing accessibility of air travel. This trend is poised to continue through the forecast period.
China stands at the forefront of the global commercial aviation rebound, buoyed by robust domestic demand. This surge not only aids airlines in their financial recovery but has also solidified China's position as a pivotal hub in the aviation landscape. Notably, commercial aviation has been a cornerstone of China's aviation sector, with Boeing highlighting China as the world's largest aviation market. Bolstered by a surge in domestic air travel, surpassing even North America, China's aviation market is projected to grow at a rapid 4.4% rate by 2040.
As tensions simmer between neighboring nations and with foreign powers establishing military bases, countries in the Asia-Pacific are ramping up their military spending. For instance, in July 2023, Australia finalized an order to buy 20 Hercules military transport planes in a USD 6.6 billion deal. The new C-130J Hercules aircraft will replace and expand upon the aging fleet of a dozen planes currently operated by the Royal Australian Air Force, with delivery of the first expected from 2027. Such developments will drive the demand in the region during the forecast period.
