Aviation Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 333.96 Billion |
| Market Size (2029) | USD 396.15 Billion |
| CAGR (2024 - 2029) | 2.87 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Aviation Market Analysis
The Aviation Market size is estimated at USD 333.96 billion in 2024, and is expected to reach USD 396.15 billion by 2029, growing at a CAGR of 2.87% during the forecast period (2024-2029).
The COVID-19 pandemic 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 fell dramatically in 2020 and 2021. However, the aviation industry has started to improve during 2022 and is gradually returning to its pre-COVID-19 level. According to the latest updates from IATA, ICAO, the Airports Council International (ACI), the UN World Tourism Organization (UNWTO), the World Trade Organization (WTO), and the International Monetary Fund (IMF), the international air passenger traffic in 2022 has improved compared to that of 2021. The international air passenger traffic in June 2022 increased by 229.5% compared to June 2021, and the revenue passenger kilometers (RPK) in June 2022 reached 65% of that of June 2019.
There has been a significant rise in demand for helicopters and business jets to transport medical supplies, cargo, VIPs, and charter operations. Thus, the aforesaid factors are expected to propel the growth of the market. The orders and deliveries improved during 2022 compared to 2021, signifying the growth in demand for general aviation aircraft and recovering the market to its pre-COVID-19 level.
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.
Aviation Market Trends
Commercial Aircraft Segment Projected to Witness the Highest CAGR During the Forecast Period
In 2020, there was a decline in commercial aircraft deliveries due to the COVID-19 pandemic. However, aircraft deliveries improved in 2021, and the major commercial aircraft OEMs, like Airbus and Boeing, increased their production and delivery rates. With the lifting of travel restrictions, air passenger traffic is improving.
With the increase in air passenger traffic, airlines have started operating on all major routes and added new routes. United Airlines has announced that it has started operating on new routes, describing it as its "largest transatlantic expansion." With everything returning to normal, new airlines have started operations. Akasa Air, a new Indian airline, started its operations in August 2022, starting with one route with 28 flights a week and gradually adding two more routes. In October 2022, Alaska Airlines ordered 52 Boeing B737 MAX aircraft with a plan to expand its fleet. The airline announced plans to have an all-Boeing mainline fleet by the end of 2023.
With the e-commerce operations increasing rapidly since COVID-19, the air cargo market has increased, and thus the orders for freighter aircraft have increased in 2022. For instance, in October 2022, Luxembourg's Cargolux airlines placed an order with Boeing for 10 B777-8 freighters along with options for 6 additional aircraft. China holds the position of second largest air freight market only next to the US. According to Boeing's Commercial Market Outlook 2022, China's commercial airfleet is expected to grow from 3900 to 9600 by 2041.
Asia-Pacific 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. Hence, the revenues from Asia-Pacific are projected to witness a high growth rate during the forecast period.
China is leading the recovery of global commercial aviation due to great domestic demand, helping the airlines witness financial recovery. It has become a major hub for the aviation industry over the years due to high demand from civilian and military customers. Commercial aviation has been a key contributor to China's aviation industry over the years. China is the largest market in aviation due to an increase in domestic air passenger traffic, which has surpassed the North American region and is expected to grow rapidly at a rate of 4.4% by 2040, according to Boeing. An increase in the number of airports in the region would also help in the growth of the market. In March 2022, the Indian aviation ministry approved the construction of 21 greenfield airports in the country. New airlines in the region have also helped to improve the market.
With the increase in military spending of the countries in the region due to tensions between neighboring countries and with foreign nations investing in arranging military base stations in countries like Australia, military aviation in the Asia-Pacific region is also increasing. China is increasing its military airborne capabilities, and a new stealth fighter aircraft, the new version of the J-20, which is the world's first twin-seat stealth fighter aircraft, was unveiled in October of 2021.
Aviation Industry Overview
The global aviation market is semi-consolidated, occupied by major manufacturers like Airbus SE, The Boeing Company, Lockheed Martin Corporation, Embraer, and Textron Inc., catering to market needs. The rivalry between The Boeing Company and Airbus SE continued during 2022, 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 over a decade now.
Though Boeing's commercial segment revenues 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 witness innovations implemented in aircraft design, which are 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 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.
Aviation Market Leaders
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The Boeing Company
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Airbus SE
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Lockheed Martin Corporation
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Textron Inc.
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Embraer S.A.
*Disclaimer: Major Players sorted in no particular order
Aviation Market News
December 2023: Air India rejigged the 250-aircraft order with Airbus to 140 A321neo and 70 A320neo aircraft. The remaining 40 widebody A1350s included six A350-900 and 34 A350-1000s.
October 2022: Alaska Airlines ordered 52 Boeing 737 MAX aircraft with a plan to expand its fleet. The airline stated that by the end of 2023, it is expected to have an all-Boeing mainline fleet.
September 2022: Lockheed Martin announced that it has been awarded a firm-fixed contract by the US Navy to produce 12 Sikorsky MH-60R Seahawk helicopters for the Royal Australian Navy. The OEM plans to deliver these 12 helicopters between mid-2025 and mid-2026.
Aviation Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Market Trends
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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
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5.1 Type
- 5.1.1 Commercial Aviation
- 5.1.1.1 Passenger Aircraft
- 5.1.1.2 Freighter
- 5.1.2 Military Aviation
- 5.1.2.1 Combat Aircraft
- 5.1.2.2 Non-combat Aircraft
- 5.1.3 General Aviation
- 5.1.3.1 Helicopter
- 5.1.3.2 Piston Fixed-wing Aircraft
- 5.1.3.3 Turboprop Aircraft
- 5.1.3.4 Business Jet
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5.2 Geography
- 5.2.1 North America
- 5.2.1.1 United States
- 5.2.1.2 Canada
- 5.2.2 Europe
- 5.2.2.1 United Kingdom
- 5.2.2.2 France
- 5.2.2.3 Germany
- 5.2.2.4 Italy
- 5.2.2.5 Rest of Europe
- 5.2.3 Asia-Pacific
- 5.2.3.1 China
- 5.2.3.2 India
- 5.2.3.3 Japan
- 5.2.3.4 South Korea
- 5.2.3.5 Rest of Asia-Pacific
- 5.2.4 Latin America
- 5.2.4.1 Mexico
- 5.2.4.2 Brazil
- 5.2.4.3 Rest of Latin America
- 5.2.5 Middle East and Africa
- 5.2.5.1 Saudi Arabia
- 5.2.5.2 United Arab Emirates
- 5.2.5.3 Qatar
- 5.2.5.4 South Africa
- 5.2.5.5 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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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.
- 6.2.7 PILATUS AIRCRAFT LTD
- 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
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Aviation Industry Segmentation
The aviation market encompasses the sales of fixed-wing and rotary-wing aircraft across the commercial, military, and general aviation segments. The market report offers an overview of air passenger traffic, aircraft orders and deliveries, variation in defense spending, the introduction of new routes, and investments by major countries into the aviation sector.
The aviation market is segmented by type into commercial aviation, military aviation, and general aviation. Commercial aviation is further segmented by passenger aircraft and freighter. Military aviation is further segmented by combat aircraft and non-combat aircraft. General aviation is further segmented by helicopter, piston fixed-wing aircraft, turboprop aircraft, and business jet. The report also covers the market sizes and forecasts for the aviation market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| Type | Commercial Aviation | Passenger Aircraft |
| Freighter | ||
| Type | Military Aviation | Combat Aircraft |
| Non-combat Aircraft | ||
| Type | General Aviation | Helicopter |
| Piston Fixed-wing Aircraft | ||
| Turboprop Aircraft | ||
| Business Jet | ||
| Geography | North America | United States |
| Canada | ||
| Geography | Europe | United Kingdom |
| France | ||
| Germany | ||
| Italy | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | Mexico |
| Brazil | ||
| Rest of Latin America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| Qatar | ||
| South Africa | ||
| Rest of Middle East and Africa |
Aviation Market Research FAQs
How big is the Aviation Market?
The Aviation Market size is expected to reach USD 333.96 billion in 2024 and grow at a CAGR of 2.87% to reach USD 396.15 billion by 2029.
What is the current Aviation Market size?
In 2024, the Aviation Market size is expected to reach USD 333.96 billion.
Who are the key players in Aviation Market?
The Boeing Company, Airbus SE, Lockheed Martin Corporation, Textron Inc. and Embraer S.A. are the major companies operating in the Aviation Market.
Which is the fastest growing region in Aviation Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Aviation Market?
In 2024, the Asia Pacific accounts for the largest market share in Aviation Market.
What years does this Aviation Market cover, and what was the market size in 2023?
In 2023, the Aviation Market size was estimated at USD 324.38 billion. The report covers the Aviation Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Aviation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors propelling the Aviation Market's growth?
Key factors propelling the Aviation Industry are: a) Rising demand for air travel b) Economic development and tourism surges in emerging markets, and c) New fuel-efficient aircraft and improved infrastructure contribute to sustainability & efficiency, driving further growth
Aviation Industry Report
The aviation market is segmented by type, including commercial aviation, military aviation, and general aviation, and by geography, spanning North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. The market is poised for significant expansion, driven by increasing efficiency in airlines, investments in airport infrastructure, and the construction of new airports and terminals. The commercial segment is expected to see substantial growth, fueled by the rising disposable income of the middle class and the emergence of low-cost carriers.
The adoption of RFID technology is enhancing manufacturing efficiency and maintenance. Despite supply chain complexities due to technological advancements, the Asia-Pacific region is anticipated to lead growth, thanks to a rise in air passenger transport and technological enhancements.
The market share is expanding, and industry growth is evident across all segments. An industry overview indicates a positive trend, with market size increasing steadily. Sector analysis shows that commercial aviation, particularly passenger and freighter services, is a major contributor to revenue. Industry information reveals that the market is benefitting from technological advancements and infrastructure investments.
A comprehensive industry report provides detailed insights into market size, industry trends, and market segmentation. Industry data highlights the growth forecast, with industry worth and market value showing promising increases. Market analysis and industry outlook suggest continued expansion, supported by industry statistics and market predictions.
Industry research and market forecast indicate that market growth will be sustained, driven by market leaders and evolving industry trends. The market overview and market review provide a detailed analysis of market segmentation and market structure. Market data and industry reports offer valuable insights into industry sales and market trends.
The report example and report pdf provide a thorough analysis of the aviation market, highlighting the contributions of various segments and regions. Research companies and industry sales data underscore the market's potential, with market outlook and industry size pointing to robust growth. Industry analysis and market review emphasize the importance of technological advancements and infrastructure investments in driving market expansion.
