Market Size of Aviation Industry
| 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 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).
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Aviation Market Size Summary
The aviation industry is on a path to recovery following the significant disruptions caused by the COVID-19 pandemic. The market is gradually regaining its pre-pandemic levels, with a notable increase in international air passenger traffic and a resurgence in aircraft deliveries. The demand for helicopters and business jets has also risen, driven by the need to transport medical supplies, cargo, and VIPs. Manufacturers are focusing on developing newer generation aircraft that offer enhanced fuel efficiency and safety, which is expected to further stimulate market growth. The commercial aviation sector is witnessing a resurgence as airlines expand their operations and introduce new routes, while the air cargo market is experiencing growth due to the surge in e-commerce activities.
The Asia-Pacific region has emerged as a significant hub for the aviation industry, with countries like China and India experiencing rapid growth in their civil aviation markets. China's domestic air passenger traffic has surpassed that of North America, making it the largest aviation market globally. The region's military aviation sector is also expanding due to increased military spending and geopolitical tensions. The global aviation market remains semi-consolidated, with major players like Airbus, Boeing, and Lockheed Martin maintaining their dominance. Innovations in aircraft design and technology are expected to enhance safety, comfort, and efficiency, driving further growth in the industry.
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 Market Trends
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1.5 Porter's Five Forces Analysis
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1.5.1 Bargaining Power of Buyers/Consumers
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1.5.2 Bargaining Power of Suppliers
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1.5.3 Threat of New Entrants
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1.5.4 Threat of Substitute Products
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1.5.5 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 Jet
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2.2 Geography
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2.2.1 North America
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2.2.1.1 United States
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2.2.1.2 Canada
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2.2.2 Europe
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2.2.2.1 United Kingdom
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2.2.2.2 France
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2.2.2.3 Germany
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2.2.2.4 Italy
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2.2.2.5 Rest of Europe
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2.2.3 Asia-Pacific
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2.2.3.1 China
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2.2.3.2 India
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2.2.3.3 Japan
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2.2.3.4 South Korea
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2.2.3.5 Rest of Asia-Pacific
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2.2.4 Latin America
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2.2.4.1 Mexico
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2.2.4.2 Brazil
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2.2.4.3 Rest of Latin America
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2.2.5 Middle East and Africa
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2.2.5.1 Saudi Arabia
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2.2.5.2 United Arab Emirates
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2.2.5.3 Qatar
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2.2.5.4 South Africa
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2.2.5.5 Rest of Middle East and Africa
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Aviation Market Size 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.
