Market Trends of commercial aircraft cabin interior Industry
An increase in international passenger traffic post the COVID-19 pandemic is driving market demand
- As cross-border travel was progressively restored in 2022 post the COVID-19 pandemic, the carriers in Asia-Pacific raced to increase their flights to meet runaway demand, stimulated by people's desire to travel and cash in on savings accumulated in the two years of isolation. As a result, in 2022, the air passenger traffic in the region recovered more rapidly from the pandemic than in the other regions. For instance, in 2022, air passenger traffic in the whole of Asia-Pacific was recorded at 1.9 billion, a growth of 6% compared to 2021 and 151% compared to 2020. Airline companies in the region are implementing fleet expansion plans to cater to the growing air passenger traffic in the major countries. China, India, Japan, and Indonesia accounted for 70% of the total air passenger traffic in the region, generating higher demand for new aircraft compared to other Asia-Pacific countries.
- Airlines in Asia-Pacific also witnessed a good recovery in international air passenger markets as travel demand continued to fuel growth despite increasingly challenging global economic conditions. For instance, in August 2022, the region recorded 13.1 million international air passenger traffic, an 836% increase compared to August 2021, when it was recorded at 1.4 million. The healthy growth in international passenger traffic in the first eight months of the year showed strong travel demand from business and leisure consumers. The rapid increase in air passenger traffic in the region is expected to drive the air transport industry in the future.
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Demand in major industries, such as manufacturing and construction, boosting the GDP
- The Asia-Pacific region had a GDP of around USD 36 trillion in 2022. Of the total GDP, the air transport industry in China contributes around USD 80 billion annually. In India and South Korea, the aviation industry contributed around USD 13 billion and USD 30 billion, respectively, to the GDP. In terms of GDP per capita in the region, China recorded the highest growth rate of 61% during 2017-2022. In contrast, other major countries, such as India and South Korea, accounted for 27% and 11%, respectively.
- The COVID-19 pandemic severely impacted the GDP per capita of regional countries, with major economies witnessing a decline in demand in major industries, such as manufacturing and construction, leading to many job losses. The GDP per capita income of the overall Asia-Pacific region declined by 1% in 2020. The supply of domestic goods and services supported the Asia-Pacific countries in mitigating the impact of the pandemic.
- By country, Japan's GDP per capita declined by 1.3% in 2020, while India's GDP declined by 6%. In 2022, the recovery in economic activities, with surging demand for goods and services from these countries, was reflected in the region's GDP per capita, which increased by over 7% compared to 2021. The penetration of air travel is correlated with GDP per capita. Countries with higher GDP per capita tend to have higher numbers of air passengers. Asia-Pacific's GDP per capita income surged by around 30% during 2017-2022, which is expected to aid the overall passenger aviation industry in the future.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The growth in air passenger traffic is expected to be supported by the increasing demand for domestic and international air travel
- Consistent growth in air travel is the driving factor for air passenger traffic in North America
- The introduction of long-range narrowbody aircraft is the key market driver in Asia-Pacific
- The main reasons for market growth are the expansion of the fleet and the increased demand for passenger air travel in Middle Eastern countries
- Rising tourism, the growing middle class, and increasing low-cost carrier (LCC) fleets will continue to contribute to the South American market’s growth
- Saudi Arabia records the highest GDP per capita in the region
- The driving factor behind the revenues of aircraft manufacturers is the burgeoning demand for air travel, which leads to increased orders for commercial aircraft from airlines
- The aviation industry's growth is fueled by the recovery of air travel and the high volume of aircraft orders placed by various airlines
- Airlines planning to reduce aircraft fuel consumption by opting for innovative lightweight cabin interior products is a driving factor
- Consistent growth in air travel is the driving factor for air passenger traffic in the Middle East
- Growing demand for air travel in African countries is driving the demand for new aircraft deliveries
- The main reasons for market growth are the expansion of the fleet and the increased demand for passenger air travel in Europe
- Airlines are placing huge orders for new fuel-efficient aircraft, and the expansion of LCCs is contributing to the growth of the market
- The economic development initiatives implemented in the European Union are expected aid the GDP per capita income growth in the region
- Rising economic stability, particularly in the United States, is expected to support North America's GDP per capita growth
- Boeing and Airbus, two of the largest OEMs in the industry, are projected to grow their production from 2023 to 2030, creating a healthy aircraft supply chain
- The growing demand for commercial aviation in emerging markets such as Asia-Pacific and the Middle East is expected to aid the expenditure on aviation infrastructure
