Commercial Aviation Market Research Reports

"Flight Path Ahead: Trends, Challenges, and Future Outlook for Global Commercial Aviation (2024 Market Size: USD 1.5 trillion)"!

Commercial Aviation Industry Overview

In 2023 and 2024, the commercial aviation market underwent substantial transformations as a result of technological advancements, evolving market dynamics, and post-pandemic recovery initiatives. The global commercial aviation market size was USD 1.4 trillion in 2023, with a growth rate of 5.9%. In 2024 the commercial aviation market size is USD 1.5 trillion and will be USD 2.37 trillion by 2031, with a compound annual growth rate (CAGR) of 5.90%. The resurgence in air travel demand was a significant factor, as passenger traffic in 2023 increased by 22% compared to 2022, reaching 4.4 billion. This upward trend continued in 2024, with an passenger count of 4.7 billion. 

Strong economic growth and increasing disposable incomes have propelled Asia-Pacific to become the fastest-growing region, with a 10% increase in passenger traffic in 2023. The passenger numbers in Europe and North America also experienced a robust recovery, with an 8% and 7% increase, respectively. Conversely, the Middle East and Latin America experienced more moderate growth, with rates of 5% and 6%, respectively, as a result of economic and geopolitical obstacles. In order to satisfy the increasing demand, airlines worldwide increased their fleet sizes. Around 1,500 new aircraft were delivered in 2023, with Boeing and Airbus contributing over 85% of the deliveries. This number is increase to 1,650 in 2024 as a result of a robust order backlog and rising production rates. 

Fuel-efficient and environmentally favorable aircraft, including the Boeing 737 MAX and Airbus A320neo, continued to be the primary focus. SAF utilization would represent 3% of total fuel consumption by the end of 2024, a substantial increase from the 1.5% percentage in 2023. In 2023, airline profitability experienced a substantial increase, with global net profits surpassing USD 16 billion from USD 8 billion in 2022. This upward trajectory would persist into 2024, with an net profit of USD 20 billion. Effective cost management strategies, increased ticket prices, and higher load factors were among the primary factors. The emergence of urban air mobility (UAM) and eVTOL (electric vertical takeoff and landing) aircraft marked a significant transformation, resulting in the establishment of pilot programs and regulatory frameworks in major cities across the globe.

Top Countries of Commercial Aviation Industry

United States (2024 Market Size: USD 260 billion)

According to cognitive market research, The United States maintained its status as a global leader in the commercial aviation market in 2023 and 2024. In 2023, the Federal Aviation Administration (FAA) reported that there were 850 million passengers, a modest increase from 2022 as a result of the post-pandemic recovery. The domestic market remains robust, with prominent airlines such as American Airlines, Delta Air Lines, and United Airlines at the forefront. The commercial aviation market in the United States is primarily comprised of business travel, tourism, and cargo conveyance, with business travel accounting for 30% of the total revenue. United States holds a revenue share of 25% of the global commercial aviation market. Technological advancements and the growing demand for aviation travel are the primary drivers of the sector's expansion. Key statistics for 2023 suggest that the total revenue is USD 248 billion, with increase to USD 260 billion in 2024. The expansion and modernization of main airport facilities to accommodate the growing passenger traffic and enhance operational efficiency are significant trends, as are investments in airport infrastructure and sustainable aviation initiatives.

China (2024 Market Size: USD 180 billion)

In 2023 and 2024, the commercial aviation market of China maintained its rapid expansion, which was fueled by the government's support and a growing middle class. According to the Civil Aviation Administration of China (CAAC), the number of passengers exceeded 720 million in 2023, and 750 million in 2024. Tourism, business travel, and e-commerce-driven cargo conveyance are the primary sectors that employ commercial aviation. The global market share of commercial aviation is 20% held by China. Major airlines, including China Southern Airlines, China Eastern Airlines, and Air China, assist the market. The China commercial aviation market size was USD 170 billion in 2023, and USD 180 billion in 2024. Growth is significantly influenced by government policies that promote domestic travel, as well as investments in airport infrastructure and the expansion of the high-speed rail network. Furthermore, China is emphasizing sustainable aviation by investing in energy-efficient aircraft technologies and alternative fuels.

United Kingdom (2024 Market Size: USD 55 billion)

In 2023, the commercial aviation market of the United Kingdom encountered obstacles as a result of economic uncertainties and Brexit-related regulatory changes. However, it demonstrated signs of recovery in 2024. The UK Civil Aviation Authority (CAA) reported 200 million passengers in 2023, with a increase to 210 million in 2024. Business travel, tourism, and air freight are among the primary sectors that employ commercial aviation. The UK commercial aviation market holds a 6% of the total revenue generated and its market size was USD 50 billion in 2023, and USD 55 billion in 2024. The market is dominated by major airlines, including British Airways, EasyJet, and Virgin Atlantic. In order to enhance the passenger experience, enhance sustainability practices, and modernize its airport infrastructure, the United Kingdom is making significant investments. The future of the UK's commercial aviation market is being significantly influenced by the development of Heathrow's third runway and initiatives to reduce carbon emissions.

Japan (2024 Market Size: USD 48 billion)

In 2023, Japan's commercial aviation market demonstrated resilience, and a gradual recovery will persist into 2024. In 2023, the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) reported that passenger numbers had reached 150 million, with an increase to 160 million in 2024. Business travel, tourism, and cargo transport are among the most significant sectors, particularly in the automotive and electronics industries. Japan holds a 5% of the global commercial aviation market, with a market size USD 45 billion in 2023 and USD 48 billion in 2024. Key competitors in the market include Japan Airlines (JAL) and All Nippon Airways (ANA). Advancements in aviation technology and investments in airport infrastructure, particularly in Tokyo and Osaka, are propelling growth. Japan is also emphasizing sustainable aviation through initiatives that aim to reduce carbon emissions and develop more fuel-efficient aircraft.

Germany (2024 Market Size: USD 75 billion)

In 2023, the commercial aviation market in Germany maintained its growth momentum and to do so in 2024. The German Aviation Association (BDL) reported 250 million passengers in 2023, with a increase to 260 million in 2024. Business travel, tourism, and a robust cargo segment, particularly in automotive and industrial products, are the primary drivers of the market. The global market share of commercial aviation is 8% held by Germany, with a market size USD 70 billion in 2023 and USD 75 billion in 2024. Lufthansa, Eurowings, and Condor are among the most significant airlines. Key trends include investments in airport infrastructure, such as the expansion of Frankfurt Airport, and sustainability initiatives, such as the use of biofuels and electric ground services. Additionally, Germany is emphasizing digitalization to improve the passenger experience and operational efficiency.

India (2024 Market size: USD 28 billion)

As per cognitive market research, Significant growth was observed in the commercial aviation market of India in 2023, and this trend will continue in 2024. In 2023, the Directorate General of Civil Aviation (DGCA) reported that passenger numbers had reached 180 million, with an increase to 200 million in 2024. Tourism, business travel, and cargo transport, particularly for pharmaceuticals and e-commerce, are among the most significant sectors. India holds the global market share of commercial aviation at 7%, with a market size USD 25 billion in 2023 and USD 28 billion in 2024. SpiceJet, Air India, and IndiGo are among the top participants. The government's initiatives to promote regional connectivity under the UDAN scheme and its emphasis on expanding airport infrastructure, notably in tier-2 and tier-3 cities, are driving growth. India is also investing in sustainable aviation practices, such as the modernization of air traffic management systems and the development of biofuels.

France (2024 Market Size: USD 48 billion)

Moderate growth was observed in the commercial aviation market of France in 2023, and will continue to recover in 2024. The French Civil Aviation Authority (DGAC) reported 190 million passengers in 2023, with a increase to 195 million in 2024. Business travel, tourism, and cargo transport, particularly in the transportation of industrial products and luxury goods, are among the primary sectors that employ commercial aviation. France accounts for 7% of the global commercial aviation market, with a market size of USD 45 billion in 2023 and USD 48 billion in 2024. The following airlines are considered major: Air France, Transavia France, and Air Corsica. Significant trends include investments in airport infrastructure, such as the expansion of Charles de Gaulle Airport, and sustainability initiatives, such as the use of electric aircraft and alternative fuels. Additionally, France is emphasizing the enhancement of the passenger experience by implementing digitalization and enhancing air traffic management systems.

United Arab Emirates (2024 Market size: USD 44 billion)

In 2023 and 2024, the United Arab Emirates (UAE) maintained its status as a significant international aviation center. In 2023, the General Civil Aviation Authority (GCAA) reported that the number of passengers had reached 120 million, with increase to 130 million by 2024. Business travel, tourism, and cargo transport, particularly in the fields of logistics and e-commerce, are among the primary sectors that employ commercial aviation. The United Arab Emirates holds 4% of the global commercial aviation market, with a market size USD 40 billion in 2023 and USD 44 billion in 2024. Emirates, Etihad Airways, and Flydubai are among the most significant airlines. Investments in airport infrastructure, such as the expansion of Abu Dhabi International Airport and Dubai International Airport, and sustainability initiatives, such as the development of electrified ground services and solar-powered airports, are driving growth. Additionally, the UAE is emphasizing the importance of digitalization in order to improve operational efficiency and the passenger experience.

Brazil (2024 Market Size: USD 22 billion)

In 2023, there were indications of recovery in Brazil's commercial aviation sector, and additional expansion is in 2024. Around 110 million passengers were reported by the National Civil Aviation Agency (ANAC) in 2023, with an increase to 115 million in 2024. Tourism, business travel, and cargo transport, particularly in the agricultural and manufacturing sectors, are among the most significant sectors that employ commercial aviation. Brazil holds three percent of the global commercial aviation market. Primary airlines consist of Azul Brazilian Airlines, Gol Linhas Aéreas, and LATAM Brasil. In 2023, the market generated an USD 20 billion in revenue, and USD 22 billion in 2024. Significant trends include investments in airport infrastructure, such as the expansion of São Paulo-Guarulhos International Airport, and initiatives to enhance air traffic management and sustainability practices. Brazil is also emphasizing the development of sustainable aviation fuels and regional connectivity in order to mitigate carbon emissions.

Canada (2024 Market Size: USD 32 billion)

In the year 2023, the commercial aviation market in Canada underwent moderate growth, and it will continue to expand in 2024. The Canadian Transportation Agency (CTA) reported 100 million passengers in 2023, with a increase to 105 million in 2024. Business travel, tourism, and cargo transport, particularly in the natural resources and manufacturing sectors, are among the primary sectors that employ commercial aviation. The global market share of commercial aviation is 3% owned by Canada, with a market size of USD 30 billion in 2023 and USD 32 billion in 2024. The following airlines are considered major: Air Canada, WestJet, and Air Transat. Investments in airport infrastructure, such as the expansion of Toronto Pearson International Airport, and sustainability initiatives, such as the use of electric aircraft and biodiesel, are stimulating growth. Additionally, Canada is emphasizing the enhancement of the passenger experience by implementing digitalization and enhancing air traffic management systems.

PESTEL Analysis of Commercial Aviation Market

Political

Political factors have a substantial impact on the commercial aviation market, which can either facilitate or impede its expansion. Government policies and regulations significantly influence the industry. The Federal Aviation Administration (FAA) in the United States, the European Union Aviation Safety Agency (EASA), and the International Civil Aviation Organization (ICAO) establish rigorous safety and operational standards that airlines are required to comply with. These regulations guarantee passenger safety; however, they can also impose substantial compliance expenses on airlines. The political stability of regions influences the demand for air travel. Economic growth is stimulated by stable political environments, which in turn results in an increase in leisure and business travel. In contrast, operations can be disrupted, and travel demand can be reduced as a result of political unrest or instability. International relations and trade policies also influence the market. For instance, the cost of operations and the availability of aircraft parts can be influenced by trade conflicts or sanctions, as evidenced by the current trade tensions between the United States and China. During crises such as the COVID-19 pandemic, government subsidies and support programs are essential. Several governments provided financial assistance to airlines in order to prevent bankruptcies and support recovery efforts. 

Economical

Economic factors significantly influence the commercial aviation market. Global and regional economic conditions are inextricably linked to the industry's performance. The demand for aviation travel is stimulated by economic growth, as increased disposable income results in increased spending on both business and leisure travel. In contrast, economic downturns, such as recessions, result in a decrease in demand for air travel as businesses reduce their travel expenses and consumers prioritize essential expenditures. Fuel prices significantly influence the industry. A substantial portion of airline operating expenses is attributed to jet fuel costs. Profitability can be substantially affected by fluctuations in energy prices. For example, airlines may experience decreased petroleum expenses during periods of low oil prices, which may result in decreased ticket prices and an increase in passenger demand. In contrast, the potential for demand to decrease is present when profit margins are squeezed, and tariffs are raised as a result of increasing fuel prices. Additionally, currency exchange rates are a factor, particularly for airlines that operate in multiple countries. Fluctuations may influence revenue and costs in exchange rates. 

Social

The commercial aviation market is substantially influenced by social factors, which shape operational practices and demand. Demographic changes, including population growth, urbanization, and variations in age distribution, influence travel patterns and demand for air travel. For example, the demand for domestic and international aviation travel is on the rise as a result of the expanding middle-class populations in emerging markets such as China and India. Consumer preferences and lifestyle changes also influence the market. Increasing disposable incomes result in increased expenditure on travel and tourism, which in turn contributes to an increase in passenger numbers. In addition, the emergence of digital nomads and remote work trends has modified travel behaviors, as an increasing number of individuals are combining leisure travel with work. This has resulted in the formation of a new segment of frequent travelers. Consumer behavior in aviation is significantly influenced by health and safety concerns. The COVID-19 pandemic underscored the significance of health protocols and safety measures in regaining passenger confidence. In order to satisfy regulatory mandates and reassure passengers, airlines have implemented rigorous health protocols, such as mandatory masks, enhanced sanitation, and contactless services.

Technological

In the commercial aviation market, technological advancements are a propelling force, influencing the design of aircraft and the passenger experience. The development of more fuel-efficient engines and lightweight materials, as well as other advancements in aircraft technology, have substantially enhanced fuel efficiency and reduced operating costs. For instance, the Boeing 787 Dreamliner and Airbus A350, which introduced advanced aerodynamics and composite materials, have established new standards for operational performance and fuel efficiency. Airline operations and consumer interactions are being transformed by digital transformation. Airlines are progressively employing artificial intelligence (AI), machine learning, and big data analytics to optimize operational efficiency, anticipate maintenance requirements, and enhance customer service. Predictive maintenance technologies assist in the identification of potential issues before they develop into critical issues, thereby minimizing maintenance costs and disruptions. Chatbots and virtual assistants that AI propels are improving customer service by offering personalized travel information and real-time assistance. The proliferation of the Internet of Things (IoT) is facilitating the development of more intelligent terminals and connected aircraft. Real-time baggage tracking, aircraft performance monitoring, and airport facility management are all facilitated by IoT devices. 

Environmental

The commercial aviation market is being increasingly influenced by environmental factors, with a growing emphasis on sustainability and the reduction of the environmental impact of air travel. Around 2-3% of global CO2 emissions are attributed to the aviation industry, which is a substantial contributor to greenhouse gas emissions. This has resulted in heightened public scrutiny and regulatory pressure to implement more sustainable practices. The carbon footprint of aircraft operations is one of the primary environmental challenges. Airlines and manufacturers are making substantial investments in the development of aircraft that are more fuel-efficient in order to resolve this issue. Advanced aerodynamics and materials are implemented in contemporary aircraft, including the Boeing 787 Dreamliner and Airbus A350, to mitigate emissions and fuel consumption. Furthermore, the industry is investigating alternative fuels, including sustainable aviation fuels (SAFs) derived from renewable sources, which have the potential to reduce lifecycle carbon emissions by up to 80% in comparison to conventional jet fuel. Electric and hybrid-electric aircraft are also in the process of development, and they have the potential to revolutionize short-haul flights by reducing noise pollution and eliminating carbon emissions. 

Legal

The commercial aviation market is significantly impacted by legal factors, which have an impact on business practices, safety standards, and operations. In order to guarantee safety, security, and adherence to a variety of laws and standards, the industry is subject to stringent regulation by national and international organizations. Organizations such as the Federal Aviation Administration (FAA) in the United States, the European Union Aviation Safety Agency (EASA), and the International Civil Aviation Organization (ICAO) establish rigorous safety standards, emphasizing the importance of aviation safety regulations. These regulations encompass operational procedures, aviator training, aircraft design, and maintenance. It is imperative to adhere to these regulations in order to guarantee a high level of safety within the industry. Noncompliance may lead to substantial penalties, aircraft grounding, and the forfeiture of operating licenses. Security regulations are equally rigorous, particularly in the aftermath of 9/11. Airports and airlines are required to comply with stringent security protocols, which encompass baggage inspections, passenger screening, and security personnel training. These regulations are enforced by the Transportation Security Administration (TSA) in the United States and similar organizations worldwide to safeguard against terrorism and other security threats.

Key Players of Commercial Aviation Market

Boeing

Boeing's commercial aviation market generated USD 70 billion in revenue in 2023, a substantial increase from the previous year, which was impacted by the COVID-19 pandemic and the grounding of the 737 MAX. Strong demand for new aircraft and a recovery in global aviation travel drive a revenue increase to USD 75 billion in 2024. Boeing's research and development (R&D) initiatives in 2023 were concentrated on the advancement of autonomous flight technology and the development of more fuel-efficient aircraft, with an R&D budget of circa USD 3.5 billion. This budget is rise to USD 3.8 billion in 2024 as the company continues to push the boundaries of sustainable aviation and new materials. Commercial aircraft, defense, space & security, and global services comprise Boeing's principal business segments. The commercial airplanes segment is the company's greatest, accounting for 60% of its total revenue. This segment is accountable for the production and distribution of aircraft, including the 737, 787, and 777 models, which are extensively employed by airlines worldwide. Boeing's production capacity and overall scale account for 20% of the global commercial aviation market share.

Airbus

Airbus's commercial aviation market generated €78 billion ($82 billion) in revenue in 2023, and €83 billion ($87 billion) in 2024. Airbus's research and development expenditures in 2023 were €3.6 billion ($3.8 billion). The company's primary objectives were the development of the A320neo and A350 XWB families, as well as the exploration of hydrogen-powered aircraft. Airbus increase its investment in sustainable aviation technologies and digitalization, resulting in an €3.9 billion ($4.1 billion) R&D budget for 2024. There are numerous significant business segments within Airbus, including commercial aircraft, defense and space, and helicopters. The commercial aircraft segment is the most significant, accounting for 70% of Airbus's total revenue. This segment encompasses the development, production, and marketing of passenger aircraft, including the A320, A330, and A350, which are highly sought after by airlines worldwide. Airbus is one of the largest participants in the industry, with an 25% of the global commercial aviation market share.

Delta Air Lines

Delta Air Lines' commercial aviation operations generated USD 50 billion in revenue in 2023, and USD 53 billion in 2024. Delta's research and development initiatives are primarily focused on improving operational efficiency and the customer experience. This is achieved through investments in new aircraft, in-flight services, and digital transformation initiatives. Delta allocated USDN 1 billion to these initiatives in 2023, and USD 1.2 billion in 2024. The primary business segments of Delta are cargo services, passenger services, and ancillary services. Around 80% of Delta's total revenue is generated by the passenger services segment, which is the largest. Delta is a prominent carrier in the United States and a significant participant in international markets, and this segment encompasses both domestic and international passenger flights. Delta Air Lines holds 5% of the global commercial aviation market. Its robust market position is a result of its strategic alliances, extensive network, and emphasis on operational efficiency and customer service.

American Airlines

In 2023, American Airlines generated an USD 49 billion in revenue from its commercial aviation operations. In 2024 this figure will rise to USD 52 billion. The primary objectives of the airline's research and development initiatives are to enhance the customer experience, enhance operational efficiency, and invest in fleet renewal. In 2023, American Airlines allocated USD 900 million to these initiatives, with an incremental increase to USD 1 billion in 2024. Passenger services, cargo services, and ancillary services comprise American Airlines' principal business segments. The airline's total revenue is 85% of which is generated by the passenger services segment, which is the largest. American Airlines is a prominent carrier in North America and has a significant presence in international markets. This segment encompasses both domestic and international operations. The global commercial aviation market share is 4%, held by American Airlines. Its market position is further strengthened by its strategic partnerships, extensive network, and emphasis on operational efficiency.

United Airlines

United Airlines generated USD 48 billion in revenue from its commercial aviation operations in 2023, and USD 51 billion in 2024. United's research and development initiatives are designed to enhance customer service, enhance operational efficiency, and invest in fleet renewal. The airline allocated USD 850 million to these initiatives in 2023, with an increase to USD 950 million in 2024. Passenger services, cargo services, and ancillary services comprise United's principal business segments. Around 80% of the airline's total revenue is generated by the passenger services segment, which is the largest. United is a prominent carrier in the United States and has a substantial presence in international markets. This segment encompasses both domestic and international flights. The global commercial aviation market share is 4%, held by United Airlines. Its robust market position is a result of its strategic alliances, extensive route network, and emphasis on operational efficiency. The strategy of United Airlines entails the expansion of its route network, the utilization of technology to enhance the passenger experience, and the investment in fleet modernization to improve fuel efficiency.

Recent developments in Commercial Aviation Market

• In December 2023, Air India revised its 250-aircraft order with Airbus to include 140 A321neo and 70 A320neo aircraft. Six A350-900 and 34 A350-1000s comprised the remaining 40 widebody A1350s. (Source- https://www.airbus.com/en/newsroom/press-releases/2023-06-air-india-firms-up-order-for-250-airbus-aircraft-selects-new)

Conclusion

Global passenger numbers rebounded dramatically post-pandemic in 2023, demonstrating extraordinary resilience and development in the commercial aviation market. The considerable increase in passengers signaled a healthy recovery carried in 2023, with almost 4.5 billion people traveling throughout the world. In 2024 the commercial aviation market size is USD 1.5 trillion and will be USD 2.37 trillion by 2031, with a compound annual growth rate (CAGR) of 5.90%. Sales of new, more fuel-efficient aircraft types by industry heavyweights like Airbus and Boeing drove much of the market's revenue.

Sustainable aviation technology attracted a lot of investment from the industry. To create more efficient and environmentally friendly planes, companies like Airbus and Boeing invested about USD 3.8 billion and USD 3.5 billion, respectively, in research and development. Rising regulatory demands and consumer demand for environmentally friendly aircraft solutions prompted the shift in emphasis to sustainability. Both China and the United States maintained their positions as market leaders, with the former holding roughly 20% of the worldwide market share and the latter about 25%. Business travel, tourism, and cargo transit were the main drivers of demand, especially in areas that were seeing fast economic growth and urbanization. An yearly growth rate of 4-5% bodes well for the commercial aviation business in the years to come. Forecasts indicate that yearly passenger volume will exceed 6 billion by 2030.