Commercial aircraft are highly sophisticated machines used to transport passengers and cargo through airways. These aircraft offer state-of-the-art in-flight entertainment systems, improved seating arrangements to enhance passenger comfort and are equipped with latest flight control and navigation technologies for secure transportation. The growing need for faster mode of travel and transportation of goods is driving the demand for commercial aircraft across the globe.
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 Opportunity:
Expanding air travel and cargo transport is estimated to provide new growth opportunities for commercial aircraft market. Rapid urbanization, rising disposable incomes and increasing international trade are fueling the demand for air travel and transportation of goods via air cargo. The International Air Transport Association predicts air passenger numbers to double and cargo carried to more than double by 2036. This growing demand for air transportation provides opportunities for aircraft OEMs to ramp up production and developing fuel efficient aircraft models to capitalize the market potential. The adoption of new generation aircraft would assist airlines to efficiently operate routes and help coping with increasing traffic, thus offering meaningful growth prospects for commercial aircraft market over the coming years.
Porter's Analysis
Threat of new entrants: The commercial aircraft market requires massive capital investments for R&D, manufacturing facilities and technology. Established players such as Boeing and Airbus have significant resources and economies of scale which create high entry barriers.
Bargaining power of buyers: Airlines have significant bargaining power due to the large order volumes. They can negotiate on aircraft specifications and pricing. The availability of replacement substitutes also empowers buyers.
Bargaining power of suppliers: A few key suppliers dominate the supply of critical components like engines. This allows them to exert pressure on pricing. However, aircraft OEMs try to reduce this dependence through diversified sourcing.
Threat of new substitutes: New aircraft technologies and fuel sources pose a long term threat. However, certified alternatives are yet to emerge at scale in commercial aviation.
Competitive rivalry: Boeing and Airbus have a duopoly with each other. Intense competition on pricing and new models has led to significant consolidation within the industry.
SWOT Analysis
Strength: Large scale manufacturing and global service network allows consistent product quality and customer support.
Weakness: Huge capital requirements and long development cycles expose manufacturers to business risks.
Opportunity: Growing middle class in emerging markets is driving demand for new aircraft and aftermarket services.
Threats: Economic slowdowns significantly impact commercial aircraft sales. Stringent regulations around carbon emissions present technological challenges.
Key Takeaways
The Global Commercial Aircraft Market Demand is expected to witness high growth over the forecast period supported by increased passenger traffic and fleet replacement demands. The global Commercial Aircraft Market is estimated to be valued at US$ 107.33 Bn in 2024 and is expected to exhibit a CAGR of 9.0% over the forecast period 2023 to 2030.
The Asia Pacific region is projected to be the fastest growing market due to rising incomes and expanding airline operations in countries like China and India. North America dominates currently due to presence of leading OEMs Boeing and Airbus in the US. However, Asia Pacific is likely to take the lead with China emerging as a major manufacturer and customer. Countries like China, India and Indonesia will drive exponential market growth in the coming decade.
Key players: Key players operating in the commercial aircraft market are Boeing, Airbus, Bombardier, Embraer, ATR, Beechcraft and De Havilland. Boeing and Airbus have a virtual duopoly with over 80% of the market between them. However, regional players like Bombardier and Embraer are gaining share with their narrow body jet programs.
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