What Fueled Aircraft Manufacturing Market?
The aircraft manufacturing market has seen considerable growth due to a variety of factors.
• In recent times, there has been a significant expansion in the market size of aircraft manufacturing. The industry is projected to develop from $451.77 billion in 2024 to $478.65 billion in 2025, observing a compound annual growth rate (CAGR) of 5.9%.
Factors such as a surge in commercial air travel, global expansion of air transport, replacement cycles, emergence of budget-friendly airlines, and environmental regulations have all contributed to the growth witnessed during the historic time period.
What Is the Forecasted Market Size and Growth Rate for The Aircraft Manufacturing Market?
The aircraft manufacturing market is expected to maintain its strong growth trajectory in upcoming years.
• The expected market size of aircraft manufacturing is anticipated to witness significant expansion in the coming years, reaching $607.65 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 6.1%.
Several factors are contributing to this predicted growth during the forecast period, including increasing requirements for sustainable aviation, rapid expansion in emerging markets, urban air mobility (am), strategic partnerships, and a global focus on the passenger experience. Some of the major trends expected to be prominent throughout the forecast period encompass digitalization, industry 4.0, cutting-edge innovation in electric and hybrid aircraft, technological progression, the rising need for fuel efficiency, expansion in the electric and hybrid aircraft market, and the incorporation of sophisticated avionics and connectivity.
What Are The Primary Growth Drivers In The Aircraft Manufacturing Market?
The upswing in air passenger traffic is anticipated to fuel the expansion of the aircraft manufacturing market in the future. The traffic of air passengers is gauged by the count of passengers transported by airlines or airports over a specific duration. Factors that impact this key demand indicator for air travel include economic situations, customer choices, travel restrictions, and competition among airlines. The surging requirement for air travel combined with escalated passenger traffic presents opportunities for growth within the aircraft manufacturing sector. This is because airlines need more aircraft to enlarge their fleets and introduce new routes and services, thereby triggering demand for new aircraft orders. For instance, the International Air Transport Association, a Canada-based trade association, noted that in 2023, traffic jumped by 41.6% compared to 2022. By the end of December 2023, international traffic had surged by 24.2% compared to December 2022. Hence, the increasing air passenger traffic is expected to push the aircraft manufacturing market forward.
What Key Areas Define The Segmentation Of The Global Aircraft Manufacturing Market?
The aircraft manufacturing market covered in this report is segmented –
1) By Product: Gliders, Helicopters, Ultra-Light, Passenger, Unmanned Aerial Vehicles and Drones, Blimps (Airship)
2) By Aircraft Type: Freighter Aircraft, Passenger Aircraft
3) By Application: Military And Defense, Civil, Commercial (Freight), Other Applications
Subsegments:
1) By Gliders: Sailplanes, Motor Gliders, Thermal Gliders
2) By Helicopters: Light Helicopters, Medium Helicopters, Heavy Lift Helicopters, Military Helicopters
3) By Ultra-Light: Fixed-Wing Ultra-Light Aircraft, Powered Paragliders, Trikes and Powered Hang Gliders
4) By Passenger Aircraft: Regional Jets, Narrow-Body Aircraft, Wide-Body Aircraft, Business Jets
5) By Unmanned Aerial Vehicles and Drones: Fixed-Wing Drones, Multi-Rotor Drones, Hybrid Drones, Military UAVs
6) By Blimps (Airship): Rigid Airships, Semi-Rigid Airships, Non-Rigid Airships (Blimps), Advertising and Surveillance Airships
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How Are Emerging Trends Reshaping The Dynamics Of The Aircraft Manufacturing Market?
Key players in the aircraft manufacturing sector are concentrating on the production of innovative systems, such as electric aircraft manufacturing plants, to secure a competitive advantage. Electric aircraft are flying vehicles that utilize electric propulsion systems and rely on electric motors for propulsion. In October 2023, Beta Technologies, a top aerospace firm in the United States, opened a high-tech electric aircraft production establishment at Patrick Leahy Burlington International Airport. The installation, a 188,500-square-foot state of the art facility designed to be net-zero, uses sustainable technology and will produce BETA's all-electric aircraft, including the ALIA CTOL and the ALIA VTOL, which are aimed at the military and commercial sectors. The plant is outfitted with sustainability-focused features like geothermal wells, rooftop solar panels, and design elements aimed at both efficiency and human comfort. BETA’s approach to manufacturing balances vertical integration with collaboration with leading aerospace suppliers, with the intention to manufacture up to 300 aircraft a year.
Who Are the Key Players in the Aircraft Manufacturing Market?
Major companies operating in the aircraft manufacturing market include:
• The Boeing Company
• Lockheed Martin Corporation
• Airbus SE
• General Dynamics Corporation
• Northrop Grumman Corporation
• BAE Systems plc
• Leonardo S.p.A.
• Textron Aviation Inc.
• Kawasaki Heavy Industries Aerospace Company
• Commercial Aircraft Corporation of China Ltd. (COMAC)
• Gulfstream Aerospace Corporation
• Dassault Aviation
• Bombardier Inc.
• United Aircraft Corporation
• Mitsubishi Aircraft Corporation
• Embraer S.A.
• Saab AB
• Irkut Corporation
• Korea Aerospace Industries Ltd. (KAI)
• Sukhoi Company
• Arianespace SA
• Piper Aircraft Inc.
• Diamond Aircraft Industries GmbH
• Antonov State Company
• Hindustan Aeronautics Limited
• Pilatus Aircraft Ltd.
• ATR - GIE Avions de Transport Régional
What Is The Most Dominant Region In The Aircraft Manufacturing Market?
North America was the largest region in the aircraft manufacturing market in 2024. Asia-pacific is expected to be the fastest-growing region in the global aircraft manufacturing market report during the forecast period. The regions covered in the aircraft manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
