Graph and download economic data for Contributions to percent change in real exports of goods: Capital goods, except automotive: Civilian aircraft, engines, and parts (B688RZ2A224NBEA) from 1968 to 2024 about engines, aircraft, contributions, parts, capital, exports, civilian, vehicles, percent, goods, real, GDP, and USA.

According to Cognitive Market Research, Commercial Aviation Market Size will be USD XX Million in 2025 and is set to achieve a market size of USD XX Million by the end of 2033 growing at a CAGR of XX% from 2025 to 2033.

North America held largest share of xx% in the year 2024 
Europe held share of xx% in the year 2024 
Asia-Pacific held significant share of xx% in the year 2024 
South America held significant share of xx% in the year 2024
Middle East and Africa held significant share of xx% in the year 2024 

MARKET DYNAMICS: KEY DRIVERS

Rising demand for Air travel is leading to significant growth in the commercial aviation market.

Increasing demand for air travel is a major factor propelling the expansion of the commercial aviation market. With more individuals opting to fly, airlines are growing their fleets, expanding routes, and enhancing services to cater to this rising demand. This increase is particularly pronounced in emerging markets, where economic expansion and higher incomes are allowing more people to afford air travel. A primary factor contributing to this heightened demand is economic expansion, especially in nations experiencing a rise in GDP per capita. A strong connection exists between income levels and air travel, as individuals' earnings rise, particularly in countries with a GDP per capita under $20,000, even minor income gains can result in substantial increases in the number of travellers taking flights. Urban development is another significant factor. Currently, over 50% of the world's population resides in urban regions, an increase from roughly one-third in 1950. As urban areas grow, particularly in Asia and Africa, they generate new hubs of demand for air travel. The expansion of megacities and secondary urban centres is resulting in funding for regional airports and budget airline networks. These advancements are linking once-neglected areas, cutting travel durations, and enhancing economic activity in interconnected regions. Urbanisation increases not just the number of possible passengers but also alters travel behaviours, promoting the development of new travel routes. In summary, the commercial aviation market is expanding rapidly due to rising demand for air travel. This demand is fuelled by economic growth, especially in emerging markets, increasing urbanisation, and the declining cost of flying.

(Source:https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/key-drivers-in-air-passenger-demand-forecasting/#:~:text=Economic%20growth%20and%20rising%20living,travel%20accessible%20to%20broader%20populations.)

Restraints

Escalating operation expenses due to fuel and labour costs are a hindrance to commercial aviation market growth.

Rising operating expenses significantly hinder the expansion of the commercial airline sector. The primary factors driving these expenses are labour and fuel. Fuel generally represents 20% to 30% of the expenses for airline operations, and its cost is very unstable due to fluctuations in the global market. For instance, large planes such as the Boeing 747-400 may use approximately 10-11 tons of fuel each hour, which makes airlines very responsive to changes in fuel costs. A primary factor contributing to increasing fuel prices is geopolitical unrest. For example, recent U.S. sanctions aimed at Iranian oil exports and the networks providing oil to nations such as China have disturbed petroleum supply chains and increased upward pressure on global oil prices. Moreover, OPEC (Organisation of the Petroleum Exporting Countries) production reductions can further restrict supply and elevate prices, directly affecting airline operating expenses. Labour is the second-largest operational cost for airlines, usually representing around a third of overall expenses. This encompasses the costs associated with hiring, retaining, and training employees, and such expenses are quite stable in the short term, which complicates airlines' ability to adapt swiftly during times of financial strain. Aside from fuel and labour, airlines encounter considerable capital costs, including the purchase of new planes and the establishment of hub infrastructure and maintenance systems. These investments necessitate considerable initial funding and continuous expenses, thereby adding to the financial strain on airlines. Rising operational expenses restrict commercial airlines from investing in growth and innovati...

Graph and download economic data for Real National Defense Gross Investment: Equipment: Aircraft (B874RL1A225NBEA) from 1973 to 2024 about defense, aircraft, investment, gross, equipment, real, GDP, rate, and USA.

Graph and download economic data for Real Exports of Goods: Capital Goods, Except Automotive: Civilian Aircraft, Engines, and Parts (B688RL1A225NBEA) from 1968 to 2024 about engineering, aircraft, parts, capital, civilian, exports, vehicles, goods, real, GDP, rate, and USA.

Graph and download economic data for Contributions to Percent Change in National Defense Consumption Expenditures and Gross Investment: Consumption expenditures: Gross output of general government: Intermediate goods and services purchased: Durable goods: Aircraft (B999RN2A224NBEA) from 1973 to 2024 about defense, aircraft, contributions, intermediate, purchase, output, investment, gross, durable goods, consumption expenditures, consumption, percent, government, goods, services, GDP, and USA.

Graph and download economic data for Real National Defense Consumption Expenditures: Gross Output of General Government: Intermediate Goods and Services Purchased: Durable Goods: Aircraft (B999RL1A225NBEA) from 1973 to 2024 about defense, aircraft, intermediate, output, purchase, gross, durable goods, consumption expenditures, consumption, government, goods, services, real, GDP, rate, and USA.

As of 2024, Egypt had the most military aircraft amongst the Middle East and North African countries, with an estimated aircraft strength of *****. Israel, Saudi Arabia, and the United Arab Emirates operate the most modern fleet of military aircraft amongst MENA countries.
Regional military spending The Middle East and North Africa region boast a diverse array of military aircraft strength and are primarily reliant on contracts with foreign suppliers. The region's total military aircraft market is projected to reach **** billion U.S. dollars in 2024, with an expected annual growth rate of **** percent. Furthermore, countries like Israel and Turkey have advanced local aerospace industries, which are experienced in maintaining and upgrading military aircraft from countries like the United States.
Military expenditure varies widely across MENA countries, with some countries allocating substantial portions of their GDP to defense. Countries in the region have faced various internal and external security challenges and therefore military spending has consistently increased over the years. The arms trade plays a significant role in shaping the military landscape of the region. Gulf Cooperation Council countries are prioritizing defense and fostering partnerships with foreign manufacturers. This trend is reflected in the diverse aircraft fleets of countries like Qatar, which has placed orders for high-end equipment from multiple Western allies. Leading Military powers in the region Political rivals, Iran and Saudi Arabia also boast some of the largest levels of active military personnel in the region. Saudi Arabia has strong partnerships with major Western allies like the United States from where it procures the bulk of its military equipment. The country has imported arms worth billions in trend-indicator value (TIV), although their TIV has considerably fallen in recent years. On the other hand, Iran has alliances with China and Russia in addition to indigenously producing many of its own equipment. This distribution of human and material resources underscores the complex balance of power in the MENA region.

Graph and download economic data for Contributions to Percent Change in National Defense Consumption Expenditures and Gross Investment: Gross investment: Equipment: Aircraft (B874RN2A224NBEA) from 1973 to 2024 about defense, aircraft, contributions, investment, gross, equipment, consumption expenditures, consumption, percent, GDP, and USA.