A report by Research and Markets has stated: “the global commercial aircraft market, valued at just over US$191 billion in 2018, is expected to grow at a CAGR of about 2.9% to be valued at around US$255 billion by 2028.
The cumulative market for global expenditure on commercial aircraft is valued at US$2.3 trillion over the forecast period.
Global expenditure on commercial aircraft is expected to show steady growth over the forecast period due to growing investments in infrastructure, initiatives to connect secondary cities with prime aviation hubs across a number of countries, and the increasing affluence of air travel, especially by rising middle class populations in emerging countries.
Additionally, fueled by increasing air traffic, the emergence of low cost carriers (LCC) serves as a key factor for the growth of the sector globally.
Concerns to enhance operational efficiency by reducing fuel consumption has prompted LCCs to opt for newer aircraft models, which also acts a major factor for increasing investments in the sector worldwide.
Following LCCs, several legacy airlines are adopting similar business models with a target to increase operational efficiency and prepare for future sustenance in an ever-increasing competitive scenario.
The single aisle aircraft segment will account for a share of over 56% of the global commercial aircraft market over 2018-2028.
The segment attracts investments from all regions primarily owing to the increasing operations of short-haul flight routes by LCCs.
The single aisle aircraft segment in Asia-Pacific will account for a share of about 43% over the forecast period, whereas in the European and North American markets, it is anticipated to hold about 20.3% and 18.4% shares respectively.
Similarly, in Middle East the segment will account for 8% of the market, while in Latin America and Africa, it is expected to hold 7.9% and 1.8%, respectively.