Global Aviation Market Size Was Worth US$ 332.6 Billion in 2020 and Is Projected to Grow to USD 744 Billion by 2026

October 22, 2021, New York, USA -

The Global Aviation Market Overview: 

The market for Aviation is estimated to be US$ 332.6 Billion in the year 2020. The market is predicted to increase to a size of $ 744 Billion in 2026. It is expected to grow at an annual rate of 12.7% during the forecast period.

The COVID-19 pandemic has impacted the aviation industry in a variety of different ways. The effects of the virus are expected to last in the coming forecast time. For commercial aviation passengers' traffic dropped drastically in 2020. It is predicted to take between 2 and 3 years to completely recover. The subsequent losses of airlines have led to the cancellation or delay of plane orders, which has reduced the demand.

However, even though the number of orders and deliveries for general aviation planes experienced decreases in 2020, there's an increase in demand for business and helicopter jets for medical equipment and cargo charter operations and VIP transportation, as well as others. This will aid the development of the industry. In the segment of military Aircraft, although there are interruptions in the supply chain and production problems, demand for military Aircraft. Aircraft is not affected since nations did not delay or cancel their purchases because of the importance and strategic importance of the requirements.

Despite the impact of the pandemic, some OEMs of Aircraft. Aircraft have been raising their production rates. They plan to bring back production rates for Aircraft. Aircraft across all segments back to pre-COVID-19 levels as soon as they can.

The latest generation of Aircraft offers greater fuel efficiency and safety for general aviation and commercial customers as well as improved ability to detect and react in a tactical manner for customers from the military. The arrival of such Aircraft. Aircraft is anticipated to fuel market growth over the forecast timeframe.

Market Trend and Dynamics of the Global Aviation Market:

During the forecast period, Commercial Aircraft Segment is to hit the highest CAGR

Commercial Aircraft is expected to see the largest CAGR in the forecasted timeframe. In the year 2020, there was a decrease in commercial Aircraft because of the COVID-19 pandemic.

However, some major commercial OEMs of Aircraft, such as Airbus and Boeing are in the process of increasing their aircraft output and delivery times. Before the outbreak of the pandemic, a number of airlines had placed orders for Aircraft to increase the size of their fleets and provide services to more customers and have a bright future for the aviation industry commercial, but the lack of fulfilment of the orders led to huge backlogs of orders for the OEMs of Aircraft.

Even after cancellations of airline orders and delays due to the COVID-19 epidemic, Airbus reported a backlog of 7,184 jets, whereas Boeing's backlog stood at 4,223 aircraft at the end of 2020. This means that despite the decline in demand for airlines commercial aviation, deliveries are expected to continue at a healthy rate over the forecast period. The passenger traffic on domestic airlines is expected to grow quicker, which will lead to a greater demand for smaller-bodied Aircraft in future.

However, the year 2020 witnessed an increase in demand for cargo operations, which forced numerous freighter operators to purchase new Aircraft. For Example, In the month of January 2021, Atlas Air Worldwide Holdings Inc. purchased four brand new Boeing freighter aircrafts 747-8, which could allow the company to meet increasing demand from customers in the airfreight industry. These developments are likely to boost the development of the commercial aviation sector in the coming years.

During the forecast period, Asia-Pacific is to dominate the Aviation Market. 

Asia-Pacific has grown into a major airport hub over time. The emerging economies of the region, including India and China, are witnessing huge growth in their respective markets for civil aviation because of the increased demand for flights within these nations. Thus, revenues from Asia-Pacific are predicted to experience an increase of over 5% during the forecast time.

Alongside being general aviation and commercial markets, the countries of Asia-Pacific have also become important military aviation markets. They are modernizing their aviation fleets because of the rise in territorial disputes and instability within the region. China is the leader in the way in the revival of commercial aviation because of the huge domestic demand, assisting the airlines to see financial growth.

However, the general aviation industry is one of the fastest-growing industries in China, and China has taken steps to accelerate its growth throughout the years. China is also looking toward the development of its own military and commercial Aircraft. It is anticipated to launch various indigenously designed Aircraft that include wide and narrow-body Commercial Aircraft's fighter jets, fighter aircraft, and non-combat and combat helicopters, in addition, over the period of forecast.

However, India became the biggest market for Airbus commercial aircraft in the year 2020 because the biggest commercial aircraft manufacturer worldwide delivered the largest number of Aircraft (57) to Indian carriers in the year. India has also become a crucial military aircraft market as the country is currently modernizing its capabilities in the air, in both purchasing new Aircraft as well as developing its own military Aircraft. Similar to this, other countries such as Japan, South Korea, Australia as well as the Southeast Asian countries are also witnessing a rise in the aviation industry's demand, increasing the market potential of the region.

The Key Market Segmentation of the Global Aviation Market: 

Global Aviation Market can be divided into Application, Component, End-User, Business Function and Geographical landscapes, etc. 

Aviation Market Segmentation By Application:

FLIGHT RISK MANAGEMENT

INVENTORY MANAGEMENT

FUEL MANAGEMENT

REVENUE MANAGEMENT

CUSTOMER ANALYTICS

NAVIGATION

Aviation Market Segmentation By End-User:

AIRLINES

AIRPORTS

OTHERS

Aviation Market Segmentation By Component:

SERVICES

SOFTWARE

Aviation Market Segmentation By Business Function:

Sales & Marketing

Finance

Maintenance, Repair & Operations

Supply Chain

Aviation Market Segmentation By Geographical Landscape:

North America

Europe

Asia Pacific

South America

The Middle East and Africa

Major Key Players in the Global Aviation Market Are:

Air France-KLM S.A.

American Airlines Group Inc.

Deutsche Lufthansa AG

Qantas Airways Limited

Ryanair DAC

Ana Holdings Inc.

British Airways Plc

Delta Air Lines, Inc.

Singapore Airlines

Japan Airlines Co., Ltd.

LATAM Airlines Group S.A.

Thai Airways International PCL

Southwest Airlines Co.

Hainan Airlines Co., Ltd.

United Airlines Holdings, Inc.

WestJet Airlines Ltd.

The Global Aviation Market Report Highlights:

FedEx Express declared an order for 767 freighters, 12 Boeing, and 777 freighters in January 2021. The total cost of the order is USD 6.6 billion.

The Civil Air Patrol (CAP) declared that it had chosen Textron Aviation to provide five Skylane 182T, one Turbo Stationair HD T206HD aircraft and 17 Cessna piston engine aircraft, which have 11 Skyhawk 172S. 

Lockheed Martin declared that it had been granted a USD 4.7 billion contract modification for 78 F-35 Lightning II Joint Strike Fighters.