by Commercial aircraft are equipped with passenger cabin connectivity technologies that allow onboard access to the internet, music, video, and messaging services. Connected aircraft offer the potential to reduce costs, expand seatback entertainment options and provide valuable data for airlines. 5G connectivity technology is considered as one of the opportunities for the commercial aircraft market. 5G technology provides advantages such as higher bandwidth, lower latency, and higher reliability compared to existing 4G LTE technology. Adoption of 5G connectivity technology in commercial aircraft will allow streaming high-definition content, video calls, online gaming, and faster download speeds. Features such as embedded sensors and integrated cabin management systems, allow airlines to collect data about passenger travel behavior, preferences and operations to enhance customer experience.
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 Dynamics:
One of the major drivers for the commercial aircraft market is the increasing demand for air travel coupled with replacement of aging aircraft fleet. Rising global middle class population coupled with increase in disposable incomes have boosted air travel globally. According to the International Air Transport Association (IATA), the number of unique passengers is expected to reach 8.2 billion by 2037, up from 4.1 billion in 2018. Another driver is the adoption of 5G connectivity technology as highlighted in the heading. 5G technology will enable passengers to enjoy seamless in-flight connectivity and streaming services. However, issues such as cybersecurity threats and high investment requirement for cabin connectivity infrastructure pose a challenge for the adoption of 5G technology in commercial aircraft. Aviation regulators also need to address concerns around aviation safety due to potential 5G signal interference with radio altimeters that play a key role in landing in low visibility conditions.
Segment Analysis
The commercial aircraft market is dominated by the narrow body aircraft segment, which holds around 60% of the market share. Narrow body aircrafts are preferred for short and medium haul flights due to their cost effectiveness and fuel efficiency. With the growing air passenger traffic in domestic routes as well as short haul international routes, the demand for narrow body aircrafts is expected to rise substantially in the coming years.
PEST Analysis
Political: Regional trade agreements and open sky policies have enhanced aviation connectivity between countries, boosting aircraft orders. However, geopolitical tensions can delay some deals.
Economic: Passenger air travel is directly correlated with economic growth. Rising middle-class populations in emerging nations will drive greater demand for air travel. Commercial aviation also supports millions of jobs worldwide.
Social: Increased globalization and rising disposable incomes have made air travel more affordable and popular worldwide. Social media has heightened interest in travel among younger consumers.
Technological: Advancements in aircraft design have improved fuel efficiency, reducing operating costs for airlines. Digital technologies are also enhancing the passenger flying experience.
Key Takeaways
Global Commercial Aircraft Market Size is expected to witness high growth over the forecast period of 2024 to 2030 supported by reviving airline industries after the pandemic as well as new aircraft deliveries.
Regional analysis:
North America currently dominates the commercial aircraft market owing to large procurement of aircraft by US airlines such as Delta and American Airlines to replace aging fleets. However, Asia Pacific region is expected to surpass North America to become the largest market due to strong economic growth and increasing passenger travel in countries such as China and India.
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. BEC Inc. and Comcast account for around 40% share of the narrow body aircraft market owing to huge orders from their airline clients over the last decade.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
