Commercial Aerospace Market Size was valued at USD 28.64 billion in 2022. The Commercial Aerospace market industry is projected to grow USD 315.54 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.06% during the forecast period (2023 - 2032). An increasing number of air passengers and environment-friendly and fuel-efficient aircraft are the key market drivers enhancing the market growth.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for commercial aerospace is being driven by the rising number of air passengers. The commercial aircraft demand is expected to rise ly as a result of increased air traffic, improved air networks, lower fuel prices, and an increase in travel frequency. Air traffic is expected to grow at a high rate in the future. The (ICAO) International Civil Aviation Organization projects that both passenger and freight traffic will rise by 2035. An increase in middle-class disposable income and the emergence of low-cost carriers were two factors that contributed to this rise in airline passengers.
Additionally, as more people fly, there is a huge rise in demand for commercial aviation services. The main nations include Brazil, Indonesia, Canada, the United States, Brazil, Indonesia, the Philippines, China, Saudi Arabia, and India.
The (ICCT) International Council on Clean Transportation estimates that roughly 3% of the world’s carbon dioxide emissions are caused by aviation. Commercial airplanes, on the other hand, are eco-friendly and emit little carbon dioxide and annoying noise into the atmosphere. Its reputation as one of the best forms of transportation around the world has increased as a result. It is projected that further improvements in air traffic control and aircraft manufacturing technologies would lower carbon emissions and increase fuel efficiency. For instance, current aero planes may produce 20db less noise, which decreases noise discomfort by up to 75% and increases fuel efficiency by 70%. Unburned hydrocarbon emissions have reduced by 90%, and carbon monoxide emissions have decreased by 50%.
Moreover, a number of airlines have announced future ambitions to adopt environmentally friendly practices. For instance, United Airlines pledged to achieve carbon neutrality by 2050, JetBlue promised to do so by 2040, and Delta Airlines pledged $ 1 billion to do so by 2030. As a result, it is anticipated that throughout the projection period, demand for commercial aerospace will increase due to the rising development of fuel-efficient and environment-friendly aircraft. Thus driving the Commercial Aerospace market revenue.
Commercial Aerospace Size Insights
The Commercial Aerospace market segmentation, based on Size, includes narrow body, wide body, regional & business jet, and freighter. The narrow body segment dominated the market, accounting for the maximum of market revenue due to low operating costs and fuel efficiency on short-haul routes, which is a byproduct of the low-cost carrier business model’s success. The most recent generation of narrow-body aircraft can now fly farther thanks to technical advancements. Among the most well-known in the annals of aviation are the Boeing and Airbus B737 and A320 aircraft families.
Commercial Aerospace Application Insights
The Commercial Aerospace market segmentation, based on application, includes passenger and cargo. The passenger aircraft category generated the most income due to the mounting air passenger traffic and the increasing middle-class population in developing economies. As per the UNWTO, with 57% of cross-border travelers utilizing aircraft, tourism is one of the major sources of money in the modern world, contributing 10% of the GDP. The passengers in commercial aviation have doubled during the past 15 years. Airbus predicts that more than 38,000 new aircraft will be provided over the next 20 years, some of which will swap the older models in the fleet now.
Figure 1: Commercial Aerospace Market, by Application, 2022 & 2032 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Commercial Aerospace Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Commercial Aerospace market area will dominate this market, owing to various significant aircraft manufacturers, aviation infrastructure, and technology innovators. In addition, the growing government initiatives, aerospace and defense development and technical improvements will boost market growth in this region.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: COMMERCIAL AEROSPACE MARKET SHARE BY REGION 2022 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Commercial Aerospace market accounts for the second-largest market share due to the large commercial airline, air traffic control, and transportation. Further, the German Commercial Aerospace market held the largest market share, and the UK Commercial Aerospace market was the fastest growing market in the European region.
The Asia-Pacific Commercial Aerospace Market is expected to grow at the fastest CAGR from 2023 to 2032 due to an increase in air travel demand, urbanization, disposable incomes, and low cost. Moreover, China’s Commercial Aerospace market held the largest market share, and the Indian Commercial Aerospace market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Commercial Aerospace market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Commercial Aerospace industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Commercial Aerospace industry to benefit clients and increase the market sector. In recent years, the Commercial Aerospace industry has offered some of the most significant advantages to commercial aerospace. Major players in the Commercial Aerospace market, including Raytheon Technologies Corporation, Embraer S.A., Commercial Aircraft Corporation of Chian, Ltd., Textron Inc., Lockheed Martin Corporation, General Electric, Dassault Aviation, The Boeing Company, Airbus Group, General Dynamics Corporation, and others, are attempting to increase market demand by investing in research and development operations.
Tata Sons Pvt. Ltd. is the main company of the Tata Group. It owns most of the shares in the Tata Group of companies, including its land holdings throughout India, tea plantations, and steel facilities. It receives its income from dividends from these businesses and through fees associated with customer loyalty. It is a privately held conglomerate made up of close to 100 firms, covering a number of important industry groups like chemicals, consumer goods, energy, engineering, information, systems, materials, and services. Its main office is in Mumbai. Originally founded as a commercial company in 1917, Tata Sons specialized in the lucrative opium and tea trade with China and Mongolia before operating businesses directly to serve as the main holding company of the Tata Group. Philanthropic trusts donated by Tata family members hold about 66% of Tata Sons’ equity capital. In January 2022, Tata Sons owned a resurrected Air India (AI), and the airline is on the verge of placing a sizable aircraft order for close to 500 aircraft. AI will purchase four hundred single-aisle jets and 100 twin-aisle aircraft. The article went on to say that the orders might include twin-aisle Airbus A350 and Boeing 787/777 aircraft, with the overall contract value estimated to be $ 100 billion at the time of publishing. Because the order numbers could include both firm orders and options, the number of aircraft bought could fluctuate if options are later exercised.
United Airlines, Inc. is a significant American airline. The broad domestic and international route network of United serves all six inhabited continents as well as numerous US cities. It rose to become the third-largest airline in the world in terms of fleet size and the number of routes after its 2010 merger with Continental Airlines. United has eight hubs, with Chicago-O’Hare being the busiest in terms of passengers carried and outbound flights. The United brand was created by The United Corporation. Several airlines were amalgamated under the United banner, the oldest of which was Varney Air Lines, originated in 1926. In 2022, United Airlines placed a sizable order for at least 200 Boeing airplanes, split between the 737 Max and the 787 Dreamline.
Key Companies in the Commercial Aerospace market include
August 2022 Boeing invests USD 5 million in a St. Louis site for advanced manufacturing innovation. The money invested will contribute to the construction of a cutting-edge advanced industrial facility, the speeding up of workforce development initiatives, and the expansion of the technical and production capacities of the area.
July 2022 20 Embraer E 195-E2s are ordered by Porter Airlines to support a substantial expansion plan.
June 2022 Qantas and Airbus plan to have invested up to $200 million in the growth of the sustainable aviation fuel (SAF) sector.
Commercial Aerospace Size Outlook
Commercial Aerospace Application Outlook
Commercial Aerospace Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 28.64 Billion |
| Market Size 2023 | USD XX Billion |
| Market Size 2032 | USD 315.54 Billion |
| Compound Annual Growth Rate (CAGR) | 4.06% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Size, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â Raytheon Technologies Corporation, Embraer S.A., Commercial Aircraft Corporation of China, Ltd., Textron Inc., Lockheed Martin Corporation, Dassault Aviation, The Boeing Company, Airbus Group, General Dynamics Corporation |
| Key Market Opportunities | Increasing advanced technology |
| Key Market Dynamics | Increasing number of air passengers Growing environment-friendly and fuel-efficient aircrafts |
Frequently Asked Questions (FAQ) :
The Commercial Aerospace market size was valued at USD 315.54 Billion in 2022.
The market is projected to grow at a CAGR of 4.06% during the forecast period, 2023-2032.
North America had the largest share in the market.
The key players in the market are Raytheon Technologies Corporation, Embraer S.A., Commercial Aircraft Craft Corporation of China, Ltd, Textron Inc., Lockheed Martin Corporation, General Electric, Dassault Aviation, The Boeing Company, Airbus Group, and General Dynamics Corporation.
The narrow body category dominated the market in 2022.
The passenger had the largest share in the market.
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