February 26, 2024
Commercial Aircraft Market

Commercial Aircraft Market: Increasing Demand for Air Travel to Drive Market Growth

The global Commercial Aircraft Market is estimated to be valued at US$96.8 billion in 2021 and is expected to exhibit a CAGR of 5.3% over the forecast period 2022 to 2030, according to a new report published by Coherent Market Insights.

Market Overview:

Commercial aircraft are designed for passenger transportation and cargo services. These aircraft play a crucial role in the transportation industry, connecting different destinations across the globe. The demand for air travel has been steadily increasing due to factors such as rising disposable income, growing tourism industry, and increasing trade activities. Commercial aircraft offer several advantages such as faster travel time, convenience, and cost-effectiveness, which further boosts their demand. The need for efficient and modern commercial aircraft with advanced features is driving the market growth.

Market Key Trends:

One of the key trends in the commercial aircraft market is the growing demand for fuel-efficient aircraft. With increasing concerns over environmental sustainability and rising fuel costs, airlines are focusing on reducing their carbon footprint and operational expenses. Manufacturers are developing aircraft that are more fuel-efficient and incorporate advanced technologies such as lightweight materials, improved aerodynamics, and efficient engines. These advancements not only reduce fuel consumption but also help in reducing emissions, making them more eco-friendly. Furthermore, fuel-efficient aircraft offer cost savings to airlines in the long run. Hence, the demand for fuel-efficient commercial aircraft is expected to witness significant growth in the coming years.

Porter’s Analysis

Threat of New Entrants:
The threat of new entrants in the commercial aircraft market is relatively low due to the high barriers to entry. The capital requirements and technological expertise needed to manufacture commercial aircraft are significant, which limits the number of potential new players in the market.

Bargaining Power of Buyers:
Buyers in the commercial aircraft market, primarily airlines, have limited bargaining power as there are few suppliers in the market. Additionally, the high switching costs and criticality of the product make it difficult for buyers to negotiate favorable terms.

Bargaining Power of Suppliers:
Suppliers in the commercial aircraft market, such as aircraft engine manufacturers, have considerable bargaining power due to their specialized expertise and limited number of competitors. They can dictate terms, pricing, and supply conditions to aircraft manufacturers, affecting their profitability.

Threat of New Substitutes:
The threat of new substitutes in the commercial aircraft market is relatively low. There are no viable alternatives to commercial aircraft for long-distance travel, and the high costs associated with developing alternative transportation methods make it impractical for new substitutes to emerge.

Competitive Rivalry:
The commercial aircraft market is characterized by intense competitive rivalry among key players. Airbus SE, The Boeing Company, Embraer SA, ROSTEC, ATR, Commercial Aircraft Corporation of China Ltd., and Mitsubishi Aircraft Corporation are the dominant players in the market. They compete on factors such as price, technology, fuel efficiency, and customer support.

Key Takeaways

The global Commercial Aircraft Market Growth is expected to witness high growth, exhibiting a CAGR of 5.3% from 2022 to 2030. The market is driven by increasing air travel demand, particularly in emerging economies, the expansion of global airline fleets, and technological advancements in aircraft design and performance.

In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the commercial aircraft market. The region’s robust economic growth, rising disposable incomes, and increasing tourism activities have fueled the demand for air travel, driving the demand for commercial aircraft.

Key players operating in the commercial aircraft market include Airbus SE, The Boeing Company, Embraer SA, ROSTEC, ATR, Commercial Aircraft Corporation of China Ltd., and Mitsubishi Aircraft Corporation. These companies have a strong market presence, extensive product portfolios, and advanced manufacturing capabilities, positioning them as key players in the industry.

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