June 18, 2024

Expanding Global Tourism Is Driving Growth In The Commercial Aircraft Market

The commercial aircraft market comprises of airplanes used for transporting passengers and cargo for commercial purposes. Commercial airplanes are manufactured to accommodate large number of passengers and facilitate rapid transportation of people across cities and countries. They are integrated with advanced communication and navigation systems to enable safe and reliable flight operations. With growing global tourism and increasing number of routes being launched by airliners, commercial airplanes play a vital role in connecting people worldwide. Additionally, rising freight transportation through air cargo is augmenting the demand for commercial freighters. The increasing urbanization and economic growth especially in emerging nations has bolstered long-distance travel, proliferating the requirement for commercial jets.

The global Commercial Aircraft Market is estimated to be valued at Us$ 107.33 Bn in 2023 and is expected to exhibit a CAGR Of 9.0% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends witnessed in the market is the increased focus on lowering carbon emissions from commercial aircraft. Major commercial aircraft manufacturers are investing heavily in the development of more fuel-efficient aircraft designs with lower carbon footprint. For instance, Boeing’s ecoDemonstrator program tests and validates technologies and sustainable aviation fuel that reduce emissions. Airbus’ Skywise digital platform leverages artificial intelligence and machine learning to optimize operations and flight planning to slash carbon emissions for airlines. Furthermore, sustainable aviation fuel which emits 50% less carbon as compared to conventional jet fuel is being adopted at major airports globally to reduce the environmental impact of air travel.

The market is also moving towards advanced electric and hybrid-electric propulsion systems to enable lower emission flights in the future. Companies like Eviation, Zunum Aero and magniX are developing all-electric and hybrid-electric commuter aircraft with significantly lower operating costs compared to traditional fuel jets. Successful testing of these aircraft indicates the rise of new propulsion technologies that will shape the future of cleaner commercial air transportation. Their increased adoption will largely depend on further technology advancements and infrastructure support for electric Aviation.

 

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the commercial aircraft market is low as significant capital investment is required to build and develop new commercial aircraft. High barriers exist for new companies to enter this market.

Bargaining power of buyers: The bargaining power of buyers in the commercial aircraft market is moderate. As major airline companies are the buyers of commercial aircrafts. They bargain for better prices and customization of aircraft as per their needs.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major component suppliers of aircraft parts and equipment include engine manufacturers, avionics systems providers, etc. Suppliers cannot influence prices significantly due to established global suppliers.

Threat of new substitutes: The threat of substitutes is low as there are no close substitutes for commercial aircraft required for passenger and airfreight transportation.

Competitive rivalry: The competitive rivalry in the commercial aircraft market is high. Major players like Airbus and Boeing compete on the basis of pricing, new product development, and product quality.

Key Takeaways

The Global Commercial Aircraft Market Demand is expected to witness high growth. The market has grown steadily over the past few years and is expected to grow at a CAGR of 9.0% during the forecast period of 2023-2030.

North America currently holds the largest share in the commercial aircraft market due to increased demand from air passenger transportation in the region. Major commercial aircraft manufacturers are based in North America which adds to its dominance. Asia Pacific is expected towitness the highest growth in the commercial aircraft market during the forecast period. Emerging economies like China and India are contributing to the rising passenger air traffic in the region which is driving the demand for commercial aircrafts. Airlines in Asia Pacific are expanding their fleets to cater to the increasing number of flyers.

Key players: Key players operating in the commercial aircraft market are BEC Inc., Comcast, Sprint, AT&T Inc., Charter Communication, Inc., Verizon, CenturyLink, Singtel, Embarq Limited, and Cox Communications, Inc. The aircraft market is highly competitive with major manufacturers like Boeing and Airbus continuously upgrading their aircraft families to cater to emerging requirements of airlines. They also focus on expanding their servicing and component manufacturing businesses globally.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it