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 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The commercial aircraft market comprises aircraft used for the purpose of transportation of passengers, cargo or mail. The various types of commercial aircraft include narrow body aircraft, wide body aircraft and regional jets. Commercial aircraft offer advantages such as reliability, comfort, and safety in transportation. Growing air traffic and global connectivity needs has increased the demand for commercial aircraft globally.
Market key trends:
One of the key trends in the commercial aircraft market is focus towards newer aircraft programs. Major aircraft manufacturers such as Airbus and Boeing are developing new aircraft programs such as Airbus A320neo and Boeing 737 MAX to replace existing aircraft. These new aircraft are more fuel efficient and offer enhanced technologies. Further, increasing demand for fuel-efficient narrow body aircraft from budget carriers is also a major trend. Budget airlines prefer narrow body aircraft as they have lower operating costs and suit short haul operations. This is expected to drive sales of narrow body aircraft in the forecast period.
Threat of new entrants: The commercial aircraft market requires huge capital investments and establishment of supply chain networks which pose significant entry barriers for new players.
Bargaining power of buyers:Large airline companies have significant bargaining power over aircraft manufacturers due to huge order volumes. They can negotiate on price and payment terms.
Bargaining power of suppliers: Aircraft manufacturers rely on a limited number of suppliers for critical components which gives suppliers an edge in negotiations.
Threat of new substitutes:There exists no close substitute for air travel over long distances. High-speed railroads are localized substitutes for short-haul routes.
Competitive rivalry:The commercial aircraft manufacturing industry is an oligopoly dominated by top playersAirbus and Boeing. Intense competition exists between these giants on the basis of product innovations, pricing and customer service.
The Global Commercial Aircraft Market Demand is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period 2023-2030, due to increasing air passenger traffic worldwide. Rising middle-class population and economic growth in emerging nations are driving more people to fly.
Regional analysis: North America dominates the commercial aircraft market currently owing to presence of Boeing and large fleets of American airlines. Asia Pacific is expected to witness fastest growth due to rising incomes and establishment of low-cost carriers in countries like India and Indonesia. China is emerging as a key manufacturer with COMAC’s expansion plans.
Key players: Key players operating in the commercial aircraft market are Airbus SE, The Boeing Company, Embraer SA, ROSTEC, ATR, Commercial Aircraft Corporation of China Ltd., and Mitsubishi Aircraft Corporation. Airbus and Boeing together have over 90% market share currently. While Airbus leads in the single-aisle segment, Boeing has wide-body aircraft advantage.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it