Market Trends of Aircraft Survival Equipment Industry
Commercial Segment to Lead Market Share
The commercial segment is expected to lead the aircraft survival equipment market during the forecast year. Ensuring passenger safety is the primary goal of the commercial aviation industry. With the increase in passenger movement, the demand for commercial aircraft survival equipment also increased. According to the Airports Council International (ACI) World, in 2022, the global air passenger traffic stood at 6.6 billion, an increase of 43.8% from 2021. A few of the airports that handled the maximum passenger traffic were Atlanta, Dallas, Denver, and Chicago in the US, and Dubai (UAE) was in the fifth position globally.
Aviation stakeholders such as airline companies must continue to focus on building a safe, secure, efficient air transport system fit to welcome the rising passenger traffic. The rise in commercial aircraft deliveries also adds to market growth. For instance, in 2022, Airbus delivered 661 commercial aircraft to 84 customers and registered 1,078 gross new orders. Similarly, in the same year, Boeing delivered 480 airplanes and won 774 net new orders.
In July 2023, Moroccan state-owned airline Royal Air Maroc (RAM) announced its plans to quadruple its fleet to 200 aircraft by 2037 to meet increasing passenger demand. In June 2023, IndiGo Airlines placed an order for 500 Airbus A320 aircraft to be delivered between 2030 and 2035. Such factors will contribute to the growth of the aircraft survival equipment market during the forecast years.
Asia-Pacific Will Showcase the Highest Growth During the Forecast Period
Asia-Pacific is expected to register the highest CAGR during the forecast period. Growing urbanization, rising air traffic, and increasing demand for new aircraft would boost the market growth across the region. An increase in the number of air travelers and growing expenditure on the aviation sector from emerging economies such as China and India are likely to lead to market growth in the near future.
According to the data presented by COMAC, a Chinese aircraft manufacturing company, China will grow to become the largest aviation market globally by 2040, with the fleet size of Chinese aircraft increasing to reach 9,957 by the same time and shall account for 22% of the global passenger aircraft fleet.
According to the International Air Transport Association (IATA) report, India will surpass the United Kingdom to become the third-largest aviation market by 2024. Increasing spending on the aviation industry and the development of new airports will lead to increased demand for new aircraft. The Indian government holds a strong focus on strengthening military capabilities. China and India were the second and third largest defense spenders, respectively, in 2021. In September 2021, India signed a contract with Airbus Defence and Space for the procurement of 56 C-295 transport aircraft.
The new fleet will replace the Avro-748 planes of the Indian Air Force. Thus, growing spending on aircraft procurement from countries such as India, China, Japan, and South Korea would lead to the Asia-Pacific region with the highest growth during the forecast period.
