Passenger Aircrafts Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Passenger Aircrafts Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • May 2021 •
  • 175 pages •
  • Report ID: 6071821 •
  • Format: PDF
Major players in the passenger aircraft market are The Boeing Company; Airbus SE; Embraer SA; Bombardier; Textron; Dassault Aviation; Piaggio Aero Industries; Pilatus Aircraft Ltd., Avions de transport regional; and ATR.

The global passenger aircrafts market is expected to grow from $110.78 billion in 2020 to $122.97 billion in 2021 at a compound annual growth rate (CAGR) of 11%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $157.53 billion in 2025 at a CAGR of 6.4%.

The passenger aircraft market consists of sales of passenger aircraft, aircraft parts and, related services by entities (organizations, sole traders, and partnerships) that produce passenger aircraft for commercial purposes. The market includes MRO (Maintenance Repair and Overhaul) services provided by manufacturers during the aircraft’s warranty period.

The integration of blockchain technology in the aerospace sector is a key trend gaining popularity in the passenger aircraft market.Aerospace companies of all sizes and types understand that blockchain networks can enhance their activities and exchange information securely across multiple realms and touchpoints, from the airline ticket counter to the flight line.

For instance, in February 2020, SITA, a Switzerland-based company that provides IT and telecommunication services to the air transport industry launched a blockchain consortium to support the aviation industry track aircraft components.The new consortium will be responsible for the Servicing, Repair, and Overhaul (MRO) of aircraft components.

PricewaterhouseCoopers (PWC), a USA based professional services firm, reports that the use of blockchain could raise revenue in the aviation industry by as much as 4% or US$ 40 billion, thus reducing MRO costs by about 5% or US$ 3.5 billion globally.

The passenger aircrafts market is segmented by type into Single-Aisle Aircraft; Twin-Aisle Aircraft; Regional Jets; Business Jets, by aircraft type into Fixed-Wing Aircraft; Rotorcraft, by engine type into Turbofan; Turboprop; Turboshaft and by carrier type into Full Service Carrier; Low-Cost Carrier.

In August 2019, Dassault Aviation, a French aircraft manufacturer of military and business jets acquired business aviation activities of RUAG in Geneva and Lugano for an undisclosed amount.Through this acquisition Dassault Aviation develops a worldwide MRO network of excellence and also enhances its footprint in Switzerland.

RUAG, a Swiss company specializing in aerospace engineering and the defense industry.

The increase in global tourism is expected to fuel the growth of the passenger aircrafts market in the coming years.Global tourism is probably the largest movement of goods, services, and people and it is a major force for economic growth and socio-political transition.

According to the United Nations World Tourism Organization (UNWTO) global investment in tourism reached US$1.7 billion, an increase of 4%, outpacing the national economy in 2018 and is expected to cross US$ 23 million by 2023. Therefore, the increase in global tourism drives the growth of the passenger aircrafts market.

The impact of COVID 19 is expected to limit the growth of the passenger aircraft market in the coming years.The aerospace industry faces major challenges due to coronavirus, such as the reduction of new aircraft orders or the preservation of existing orders on hold.

Reduced demand not only affected original equipment manufacturers (OEMs) but also impacted the entire supply chain.According to the International Air Transport Organization, $200 billion in cash will have to be invested on the aerospace industry to cope with the economic downturn.

In June 2020, Airbus, a European aircraft manufacturer, announced that the global monthly production of its A320 aircraft will decrease from 60 to 40 per month, equivalent to approximately US$ 2billion (£ 1.5 billion) per month. Therefore, the impact of COVID 19 restraints the growth of the passenger aircraft market.