The commercial aircraft market involves the design, development, production, maintenance and sales of aircraft other than military or business jets. Commercial aircraft are used to transport passengers and cargo from one location to another. Major types of commercial aircraft include narrow-body aircraft, wide-body aircraft and regional jets. Narrow-body aircraft can carry up to 210 passengers on medium-range flights, wide-body aircraft can carry more than 300 passengers on long-range international flights and regional jets are used for short-haul flights. Commercial aircraft find applications with airlines, travel agencies, aircraft leasing companies and cargo carriers to facilitate air travel services globally. Growing popularity of air travel among consumers and expansion of airline networks have increased the demand for new aircraft.
The global commercial aircraft market is estimated to be valued at US$ 123.65 Bn in 2024 and is expected to exhibit a CAGR of 9.0% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the commercial aircraft market is the growing preference for fuel-efficient aircraft. Aircraft manufacturers are investing heavily in research and development of new aircraft designs and technologies that can reduce fuel consumption and emissions. For instance, Boeing’s 787 Dreamliner aircraft use 20% less fuel than similarly sized aircraft. Airbus’ A320neo and A350XWB models incorporate latest engines and aerodynamic designs to lower fuel burn significantly. Growing environmental concerns are compelling airlines to replace older fleets with newer fuel-efficient aircraft. This shift towards eco-friendly commercial aircraft presents significant opportunities for manufacturers in the coming years.
Porter’s Analysis
Threat of new entrants: Commercial aircrafts require huge investments and developing new aircraft designs require many years of R&D. These costs provide barriers for new entrants.
Bargaining power of buyers: Major airlines have significant bargaining power as buyers due to the oligopolistic nature of the market. They can negotiate on prices and demand other benefits.
Bargaining power of suppliers: A few major players dominate the supply of commercial aircrafts. This provides suppliers with strong bargaining power over buyers.
Threat of new substitutes: There exist no close substitutes for commercial air travel. High-speed railroads offer competition only for short-haul routes.
Competitive rivalry: Boeing and Airbus have dominated the duopoly for decades and compete aggressively on price and aircraft innovations.
Key Takeaways
The Global Commercial Aircraft Market Size is expected to witness high growth over the forecast period supported by rising air passenger traffic.
Regional analysis: North America is another major commercial aircraft market globally led by the US. Presence of large Boeing facilities and major airlines drives the regional market. Europe is home to Airbus which caters to a significant share of the global demand. Middle East and Africa are also high growth regions supported by governments investing substantially in new aircrafts to develop domestic air connectivity and travel hubs.
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. These players compete based on aircraft design innovations, fuel efficiency, service offerings, and pricing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
