Global Aviation Value Chain Market Size Likely to Expand at a CAGR of 4% By 2033

As per the current market research conducted by the CMI Team, the global Aviation Value Chain Market size is expected to record a CAGR of 4% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 920 Billion. By 2033, the valuation is anticipated to reach USD 1305 Billion.

Aviation Value Chain Market: Growth Factors and Dynamics

• Increasing Air Travel Demand: The growing global population, rising disposable incomes, and urbanization lead to higher demand for air travel, especially in emerging markets.

• Technological Advancements: Continuous innovation in aircraft design, propulsion systems, avionics, and aerospace materials improves safety, efficiency, and environmental performance, stimulating market growth.

• Expansion of Emerging Markets: Economic growth in regions like Asia-Pacific, Latin America, and the Middle East creates new opportunities for airlines, airports, and aircraft manufacturers, driving market expansion.

• Sustainable Aviation Initiatives: Rising environmental concerns drive the adoption of sustainable aviation fuels, carbon offset programs, and eco-friendly aircraft technologies, shaping the future of the aviation industry.

• Digital Transformation: Integration of digital technologies such as IoT, AI, and data analytics enhances operational efficiency, passenger experience, and safety across the aviation value chain.

• Infrastructure Development: Investment in airport infrastructure, air traffic management systems, and ground handling facilities supports the growth of air travel and cargo transportation.

• Defense and Security Spending: Military modernization programs, defense alliances, and geopolitical tensions drive demand for military aircraft, defense contracts, and aerospace technology.

• Emergence of New Business Models: Disruptive trends such as urban air mobility, e-commerce logistics, and air taxi services create opportunities for innovative business models and market expansion within the aviation industry.

Aviation Value Chain Market: Partnership and Acquisitions

• In December 2020, Lockheed Martin Corporation, a global aerospace and defense company, completed its acquisition of Aerojet Rocketdyne Holdings, Inc., a manufacturer of propulsion systems and aerospace components. This acquisition strengthened Lockheed Martin’s portfolio of space and missile systems.

• In October 2020, Spirit AeroSystems, a leading supplier of aircraft components and structures, acquired Bombardier’s aerospace manufacturing facilities in Belfast, Northern Ireland, and Casablanca, Morocco. This acquisition expanded Spirit AeroSystems’ global manufacturing footprint and capabilities in aerostructures.

• In July 2020, Hexcel Corporation, a leading producer of composite materials for aerospace applications, merged with Woodward, Inc., a manufacturer of control systems and components for aerospace and industrial markets. This merger created a combined entity with enhanced capabilities in aerospace propulsion, structures, and systems.

Report Scope

Aviation Value Chain Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Aviation Value Chain Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Sharp Decline in Air Travel: Travel restrictions, lockdowns, and health concerns led to a significant reduction in passenger air travel, resulting in plummeting airline revenues and decreased demand for aircraft.

• Financial Strain on Airlines: Airlines faced severe financial challenges due to reduced ticket sales, flight cancellations, and increased operating costs, leading to layoffs, furloughs, and financial restructuring.

• Aircraft Order Cancellations and Deferrals: Airlines deferred or cancelled aircraft orders, resulting in reduced production rates and revenue losses for aircraft manufacturers like Boeing and Airbus.

• Impact on Aircraft Leasing Companies: Aircraft leasing companies faced challenges with lease defaults, renegotiations, and declining asset values as airlines sought to reduce fleet sizes and conserve cash.

• Disruption in Supply Chains: Supply chain disruptions, including factory closures, logistics constraints, and component shortages, affected aircraft production and maintenance operations, delaying deliveries and maintenance activities.

• Reduced Air Cargo Demand: While passenger flights declined, air cargo demand surged initially due to disruptions in global supply chains. However, the overall impact on air cargo operations varied across regions and industries.

• Airport Revenue Losses: Airports experienced significant revenue losses from reduced passenger traffic, decreased retail sales, and lower aircraft landing and parking fees, leading to financial challenges and infrastructure investment delays.

• Impact on Aviation Workforce: The pandemic led to job losses, wage reductions, and changes in working conditions for aviation employees, including pilots, cabin crew, ground staff, and aerospace engineers.

• Government Bailouts and Support: Governments provided financial aid, loans, and regulatory relief to airlines, airports, and aerospace companies to mitigate the impact of the crisis and ensure industry survival.

• Accelerated Digital Transformation: The pandemic accelerated the adoption of digital technologies, including contactless check-in, biometric screening, and remote maintenance solutions, to enhance safety, efficiency, and passenger experience in the aviation industry.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Aviation Value Chain Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Aviation Value Chain Market:

• Boeing
• Airbus
• General Electric (GE) Aviation
• Rolls-Royce
• United Technologies Corporation (UTC) Aerospace Systems
• Lufthansa Technik
• Delta Air Lines
• American Airlines
• FedEx Corporation
• United Parcel Service (UPS)
• Dubai Airports
• Hartsfield-Jackson Atlanta International Airport
• Honeywell Aerospace
• Embraer
• Thales Group
• Others

The Aviation Value Chain Market is segmented as follows:

By End User

• Commercial Airlines
• General Aviation
• Military

By Services

• Aircraft Manufacturing
• Aircraft Components and Systems
• Aircraft Operations and Services
• Aviation Support Services

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America