Commercial Aircraft Market is Estimated to Witness High Growth Owing to Opportunity of Rising Air Passenger Traffic

The commercial aircraft industry consists of various aircraft used for transportation of passengers along with freight on scheduled flights and charters. Aircrafts in this industry include airplanes as well as helicopters used for transportation purposes by commercial airlines and other operators. Commercial aircraft provide efficient, fast and reliable mode of transport over long distances. Growing airline industry coupled with rising disposable income levels have increased air passenger traffic globally over the years.

The global Commercial Aircraft Market is estimated to be valued at US$ 123.65 billion in 2024 and is expected to exhibit a CAGR of 9.0% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Rising air passenger traffic presents a major market opportunity for commercial aircraft manufacturers. According to the International Air Transport Association (IATA), the number of air passengers globally is expected to double to 8.2 billion by 2037. Growing middle class population along with increasing international travels for business, education and tourism purpose are major factors driving the air passenger traffic worldwide. In order to cater this rising demand, airlines are procuring newer and advanced aircrafts with higher fuel efficiency and passenger capacity. This growing need for commercial aircraft fleet expansion by airlines to accommodate more passengers offers significant growth prospects for manufacturers over the coming years. Continuous development of aviation infrastructure such as new airports and expansion of existing facilities further supports the air traffic growth.

Porter’s Analysis
Threat of new entrants: The commercial aircraft manufacturing market has high capital requirements and economies of scale play a key role in being competitive. This creates significant barriers to entry for new players.
Bargaining power of buyers: Airlines are the main buyers and have significant bargaining power since there are only a few large manufacturers. However, manufacturers have strong brands which provide some stability.
Bargaining power of suppliers: A few key suppliers provide engines, avionics, and other components. Their specialized expertise creates some dependency for aircraft manufacturers.
Threat of new substitutes: There are no close substitutes for commercial aircraft since they offer unique value in long distance passenger and cargo transportation.
Competitive rivalry: The commercial aircraft industry is highly competitive with only a few large global players. Intense competition on pricing and new product development requires huge R&D investments.

SWOT Analysis
Strengths: Large production capacity and vertical integration allows established players to achieve economies of scale. Strong brand reputation and long-term relationships with airlines are also advantages.
Weaknesses: High dependence on economic cycles makes demand volatile. Managing large project risks and costs is challenging. Supply chain disruptions can impact manufacturing.
Opportunities: Growing global economy and expanding middle class in emerging markets is increasing air travel. More regional routes and low-cost carriers are opening new opportunities.
Threats: Economic slowdowns significantly reduce orders and cash flows. Rising fuel costs and regulatory changes increase operating challenges for airlines. Trade tensions pose risks for integrated global supply chains.

Key Takeaways
Global Commercial Aircraft Market Size is expected to witness high growth over the forecast period of 2024-2030 supported by the rising demand for air travel across the world. The market size for 2024 is estimated to be US$ 123.65 Billion.

Regional analysis: North America remains the dominant region in the global commercial aircraft market led by the presence of major OEMs like Boeing. Asia Pacific is expected to be the fastest growing market fueled by growth in aircraft fleet across China, India and ASEAN countries to support their expanding aviation sectors. Countries are investing heavily in new airport projects which will boost aircraft procurement.

Key players: Key players operating in the commercial aircraft market are Boeing, Airbus, Embraer, Bombardier, ATR, and COMAC. Boeing and Airbus account for over 85% share of aircraft deliveries globally due to their large product portfolio and customer base. They are engaged in new product development and production rate increases to meet rising demand.