If you are invested in commercial aviation, then you can’t do without in-depth aerospace market research. The knowledge provided by such materials can help you, and your company predict and weather possible downturns and recover quickly. It can also allow you to position your interests prudently and identify new opportunities.
The commercial aerospace market has been reliably stable in the last few years, with an average long-term growth rate of 5% percent annually. Despite uncertainties, passenger traffic is rising. Experts believe that this trend will continue over the next two decades as more and more people fly. World passenger traffic is predicted to grow by 5% percent every year, thanks to the expansion of emerging economies. The aerospace, transport and cargo industry are also expected to grow by the same percentage yearly through 2031 as more goods across international borders.
Aerospace giant Boeing is optimistic, projecting a long-term demand for over 30,000 new airplanes (valued at around $4 trillion) in the next 20 years. These new aircrafts’ will replace less efficient and older models, ultimately benefiting airline companies and their passengers while helping innovate aerospace business models and stimulating growth in emerging markets. Boeing expects that over 23,000 of these new airplanes—or almost 70% of new deliveries—will smaller single-aisle aircrafts’ low-cost carriers. The demand for twin-aisle airplanes is also expected to increase by as much as 4% by 2031 as international markets expand. Airbus forecasts are equally optimistic, indicating that airline traffic in the Latin American region is likely to grow by over 6% per year in the next two decades. This will be the second highest growth rate inthe Middle East, higher than Asia Pacific.
The defense sector is looking good for growing economies, including India, China, Turkey, and Brazil. Defense budget cuts and austerity measures dampen the mood across the West. Changes in technology, as well as the changing nature of war, are expected to affect the defense in unexpected ways. Opportunities are available in the unmanned system's space as well as the C4ISR space.