Aerospace Market Forecasts to 2030 – Global Analysis By Type (Passenger Aircrafts, Military Aircraft, Commercial Aircrafts, Aircraft Maintenance, Repair & Overhauling Services, Aerospace Support & Auxiliary Equipment and Other Types), Size, Operation, End

Aerospace Market Forecasts to 2030 – Global Analysis By Type (Passenger Aircrafts, Military Aircraft, Commercial Aircrafts, Aircraft Maintenance, Repair & Overhauling Services, Aerospace Support & Auxiliary Equipment and Other Types), Size, Operation, End User and By Geography

According to Stratistics MRC, the Global Aerospace Market is accounted for $317.09 billion in 2023 and is expected to reach $641.90 billion by 2030 growing at a CAGR of 10.6% during the forecast period. The aerospace business is huge and diverse; encompassing many industries involved in the creation, advancement, production, and use of airplanes, spacecraft, and associated technology. It is essential to modern society because it makes communication, international travel, defence, and security possible. These aircraft are used by airlines to offer scheduled and charter flight services. Moreover, the sector of space exploration involves missions to investigate planets, asteroids, and other celestial bodies as well as the exploration of outer space

According to IATA (International Air Transport Association), the annual growth of global air traffic in 2020 during Covid declined by approximately 66%. For 2021, the growth rate was positive and stood around 18%, while 2022 forecasts project a 51% growth rate compared to the previous year.

Market Dynamics

Driver

Increasing demand for air travel worldwide

The aerospace sector is significantly and in several ways impacted by the rising demand for air travel around the world. Numerous sectors of the aerospace industry, including as commercial aviation, aircraft production, technology research, and related services, are heavily impacted by this demand driver. To fulfil the growing demand for passengers and cargo, airlines all over the world place sizable orders for new commercial aircraft. In order to fill orders, this forces aircraft producers like Boeing and Airbus to boost production rates and create new models. By adding jobs in aircraft manufacture, maintenance, and related services, the aerospace industry stimulates economic growth.

Restraint


Substantial development expenses

High development costs in the aerospace business are a frequent and serious issue that has an impact on a variety of components of the sector. These expenses are related to the design, development, testing, and certification of aeronautical technologies and objects including aircraft and spacecraft. For the sake of the public's safety as well as the safety of passengers, crew, and other users, aerospace products must abide by strict safety and regulatory criteria. Extensive testing, analysis, and documentation are required to meet these standards, all of which raise the price of development which hampers the market growth.

Opportunity

Expansion of commercial aviation

As commercial aviation grows, sustainability becomes more important. In order to lower carbon emissions and increase fuel efficiency, aircraft makers develop lighter engines, more fuel-efficient materials, and environmentally friendly technologies. Airlines place orders for new aircraft as they extend their operations to handle increasing passenger and freight demand. Commercial aircraft, including narrow-body, wide-body, and regional jets see an increase in demand as a result increased production rates and income are advantageous to major aircraft producers like Boeing and Airbus. Furthermore, the growth of commercial aviation frequently entails cooperation between aerospace businesses, suppliers, and clients. This promotes technology exchange and global collaboration in the aircraft industry.

Threat

Risks to cybersecurity

Digital systems and avionics are increasingly used in modern airplanes, and they can be targets of cyberattacks. The safety and integrity of flying operations are put in question by these vulnerabilities, due to its growing reliance on digital technology, networking, and data-driven operations; the aerospace market is exposed to a variety of cybersecurity threats. Aerospace cybersecurity risks can have major repercussions, including compromised safety, data breaches, and monetary losses. Intellectual property, confidential data, and proprietary information can all be stolen as a result of data breaches and can be affected by ransomware attacks that encrypt vital data and demand a fee to decrypt it. These assaults have the potential to cause outages, data loss, and financial extortion.

Covid-19 Impact

Governments implemented travel bans, quarantine procedures, and lockdowns in response to the pandemic, which dramatically reduced air travel. Aircraft were grounded, flights were cancelled, and passenger demand was drastically reduced. Commercial aviation businesses were immediately and directly impacted by this, which resulted in cash losses and job losses. Additionally, unprecedented financial difficulties were encountered by airlines as they tried to fund fixed expenses like aircraft leases, maintenance, and employee salaries while also dealing with sharply declining revenue. Many airlines were compelled to apply for bankruptcy protection or seek government bailouts.

The passenger aircrafts segment is expected to be the largest during the forecast period

The passenger aircrafts segment is estimated to have a lucrative growth, as this is crucial for simplifying international travel and connecting remote sites. People can access places all over the world thanks to the global connectivity network created by passenger aircraft. This connectivity is essential for cross-border trade, travel, and cultural exchange, compared to other forms of transportation like driving or sailing, flying saves a lot of time. Business travellers and people with busy schedules will particularly benefit from this. Modern passenger planes have smaller carbon footprints since they are built with fuel efficiency thereby enhancing the market growth.

The government segment is expected to have the highest CAGR during the forecast period

The government segment is anticipated to witness the highest CAGR growth during the forecast period, as military and national defence applications receive a significant amount of government funding on aerospace which covers the purchase of manned aerial vehicles (UAVs), helicopters, and associated machinery. Governments spend money on these technologies to support strategic mobility, monitoring, and national security. Governments play a significant role in space research and exploration. Funding is provided for missions, satellite development, planetary exploration, and space station operations to space agencies worldwide, including NASA in the United States, ESA in Europe, and Roscommon in Russia. These initiatives increase scientific understanding and foster international space collaboration further propelling the markets growth.

Region with largest share

Asia Pacific is projected to hold the largest market share during the forecast period because of the region's aviation industry's continued development, which is being fuelled by the economies of China, Japan, and other nations. An increase in international air travel and rising demand for international freight are predicted to fuel demand for MRO services and increase demand for aerospace components. Due to the region's growing number of aging fleets, the economy in Asia Pacific is quite advantageous for the manufacture of airplanes. The operating efficiency and revenue requirements for the operating airlines have decreased as a result of the replacement of the outdate aircraft which is driving the market growth.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to a minor rise in defence spending by several European nations, including Russia and Italy. Moreover, due to the fact that the top firms control a sizable portion of the industry's revenue, the European market is extremely consolidated. Additionally, a rise in per capita income is anticipated to enhance travel by air, increasing demand for aircraft and its components.

Key players in the market

Some of the key players profiled in the Aerospace Market include Boeing Company, Airbus Group, General Electric Company, Safran S.A., United Technologies Corporation , Northrop Grumman Corp., Rolls-Royce Holdings Plc., Honeywell International, Subaru Corporation, Honda Aircraft Company, Raytheon, Dassault Aviation, ATR Aircraft, Mitsubishi Aircraft Corporation, Aviation Industry Corporation of China, Commercial Aircraft Corporation of China, Ltd., Hindustan Aeronautics Limited (HAL) , BrahMos Aerospace, Embraer S.A, Kawanishi Aircraft Company and ShinMaywa Aircraft Industries, Ltd

Key Developments

In October 2023, the UAE’s clean energy powerhouse, Masdar, and aerospace leader, Boeing, to explore ways to advance the development of sustainable aviation fuel (SAF), including collaboration on exploring SAF accounting mechanisms

In October 2023, Easyjet signs up to Airbus’ pioneering carbon removal solution, easyJet have become the first airline in the world to sign a contract with Airbus for its carbon-removal initiative.

In June 2023, Honda Aircraft Company announced that it will commercialize the HondaJet 2600 Concept, an all-new light jet that was first introduced at the 2021 NBAA Business Aviation Convention & Exhibition (NBAA-BACE).

Types Covered
• Passenger Aircrafts
• Military Aircraft
• Commercial Aircrafts
• Aircraft Maintenance, Repair & Overhauling Services
• Aerospace Support & Auxiliary Equipment
• Other Types

Sizes Covered
• Wide-Body
• Narrow-Body
• Regional
• Other Sizes

Operations Covered
• Manual
• Autonomous Aircraft

End Users Covered
• Government
• Private Sector

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements