Market Size of APAC Aviation Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 87.66 Billion |
| Market Size (2029) | USD 109.88 Billion |
| CAGR (2024 - 2029) | 4.62 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Aviation Market Analysis
The APAC Aviation Market size is estimated at USD 87.66 billion in 2024, and is expected to reach USD 109.88 billion by 2029, growing at a CAGR of 4.62% during the forecast period (2024-2029).
The Asia-Pacific aviation market is witnessing robust growth, driven by several key factors. The expanding middle class and rising disposable incomes fuel a significant uptick in air travel demand. Moreover, strong economic growth in nations like China, India, and Southeast Asia propels market expansion. Additionally, the relaxation of air transport regulations and proactive government measures to enhance air connectivity and infrastructure may further catalyze market growth.
The industry is seeing the development of fuel-efficient, low-emission aircraft. Increasingly stringent emission regulations are further driving market growth. Furthermore, the aviation landscape is evolving, with digital technologies like AI, IoT, and big data analytics revolutionizing operations, maintenance, and crew management. These technology integrations boost operational efficiency, elevate safety standards, and enhance passenger experiences.
While the aviation market in the region holds a positive outlook, it faces numerous challenges. High operational costs, particularly in fuel and maintenance, stand out as primary constraints to market growth. Additionally, the industry grapples with stringent regulations on safety and operations, demanding substantial investments in compliance. Furthermore, a persistent challenge looms in the form of a shortage of skilled human resources, from pilots to maintenance staff.
The military aviation industry in Asia-Pacific is buoyed by escalating defense budgets, notably in countries like China and India. These nations allocate significant portions of their increased defense budgets to bolster and expand their air force fleets. This surge is primarily attributed to heightened national security concerns and escalation of regional geopolitical tensions. Notably, acquisitions are heavily focused on advanced fighter jets and surveillance aircraft, further propelling growth in military aviation. For instance, in 2023, China's defense budget stood at USD 230 billion, marking a 7.1% year-on-year increase. Similarly, India allocated approximately USD 70 billion for defense, with a significant portion earmarked for enhancing its air force capabilities.
APAC Aviation Industry Segmentation
The Asia-Pacific aviation market covers the sales of both fixed-wing and rotary-wing aircraft in the commercial, military, and general aviation industries. It provides insights into air passenger traffic, aircraft orders, defense spending, the launch of new routes, and regional investments in aviation.
The market studied is segmented by type and geography. By type, the market is segmented into commercial aviation, military aviation, and general aviation. The commercial aviation segment is further segmented into passenger aircraft and freighter. The military aviation segment is further segmented into combat and non-combat aircraft. The general aviation segment is segmented into helicopters, turboprop aircraft, piston fixed-wing aircraft, and business jets. The report also offers the market size and forecasts for five countries across the region. For each segment, the market sizes and forecasts are provided in terms of value (USD).
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APAC Aviation Market Size Summary
The Asia-Pacific aviation market is poised for significant growth over the forecast period, driven by a robust recovery in domestic passenger traffic and strategic expansions by airlines in the region. Despite the initial setbacks caused by the COVID-19 pandemic, the market is expected to experience a resurgence, with countries like China and India emerging as key players in the global aviation landscape. The region's aviation sector is witnessing increased military spending due to geopolitical tensions, which is further propelling investments in new-generation aircraft for both combat and non-combat applications. The demand for leisure and business travel is also on the rise, fueled by a growing number of high-net-worth individuals and a strong tourism sector, thereby boosting the market for business jets and helicopters.
The commercial aircraft segment is anticipated to witness the highest growth rate, supported by a substantial order backlog and the expansion of low-cost airlines acquiring smaller aircraft. China, in particular, has become a major hub for aviation, with its domestic traffic rebounding strongly and significant investments in both civilian and military aircraft. The region is also seeing the development of indigenous aircraft manufacturing capabilities, with countries like India, South Korea, and Indonesia actively working on new aircraft models. Prominent global players such as Boeing, Airbus, and Lockheed Martin, along with local manufacturers like AVIC and Hindustan Aeronautics, are competing for market share. These developments, coupled with government initiatives to boost indigenous production, are expected to enhance the region's manufacturing capabilities and market presence during the forecast period.
APAC Aviation Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Commercial Aviation
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2.1.1.1 Passenger Aircraft
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2.1.1.2 Freighter
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2.1.2 Military Aviation
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2.1.2.1 Combat Aircraft
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2.1.2.2 Non-combat Aircraft
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2.1.3 General Aviation
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2.1.3.1 Helicopter
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2.1.3.2 Piston Fixed-wing Aircraft
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2.1.3.3 Turboprop Aircraft
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2.1.3.4 Business Jets
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2.2 Geography
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2.2.1 China
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2.2.2 India
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2.2.3 Japan
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2.2.4 South Korea
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2.2.5 Australia
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2.2.6 Rest of Asia-Pacific
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APAC Aviation Market Size FAQs
How big is the APAC Aviation Market?
The APAC Aviation Market size is expected to reach USD 87.66 billion in 2024 and grow at a CAGR of 4.62% to reach USD 109.88 billion by 2029.
What is the current APAC Aviation Market size?
In 2024, the APAC Aviation Market size is expected to reach USD 87.66 billion.
