Dallas, TX (PRWEB) May 17, 2013
The global commercial aircraft sector is expected to experience a slow and stable growth during the forecast period. Airline companies around the world are expected to procure approximately 34000 airplanes during the 2011-2031 periods according to Boeing’s estimates. The commercial aircraft market grows parallel to the civil aviation markets across all major countries. With the civil aviation market improving steadily following the recent economic recession, the airline companies are spending significantly to replace their aging aircraft fleets. Additionally, the expansion plans of airlines from major emerging markets of the Asia Pacific region, the Middle East, and Europe has initiated a series of contracts for aircrafts of various types during the last few years. The global air traffic has also grown substantially with the surge in the number of passengers preferring air travel. These factors are therefore expected to cumulatively drive the commercial aircraft market during the forecast period.
According to report "The Commercial Aircraft Market 2013-2023” the global airlines industry has witnessed significant structural and strategic changes during the past decade due to the constantly changing economic environment. North America, being one of the major regions for the commercial aircraft market, was one of the hardest hit during the recent economic recession. The soaring financial difficulties have caused some of the airlines to resort to mergers and acquisitions in order to survive in the industry. For example, Frontier and Midwest Airlines were merged, and Delta Airlines sold its subsidiaries, Compass and Mesaba to Trans States Holdings. A similar scenario can also be seen in European and Asia-Pacific countries, as they were also significantly affected by the recession. This consolidation in the airlines industry has opened doors for newly formed companies to expand significantly both domestically and internationally. Consequently, carriers are placing huge orders to expand their fleet size to be prepared to serve the rapidly growing consumer base.
Large manufacturers, including Boeing and Airbus, are continuously making efforts in the field of research and development in order to compete in the rigorous commercial aircraft market. Fuel is one of the biggest costs for airline companies in the present situation, where the fuel prices are volatile, and have risen explosively during the last two years. Therefore, manufacturers are currently focusing on the development of increasingly fuel efficient planes to be offered to their customers. For example, the Boeing 787 Dreamliner is supposed to save up to 20% of fuel compared to other planes of the same size or class. This has spurred interest among various major carriers to order some of these planes to strengthen their long-haul operations and achieve profits from the fuel economy.
- The US and European countries have traditionally been viewed as the prominent centers of the global commercial aircraft market. This has however, started to change in recent years with the saturation of these markets and the resultant negligible growth. Countries of the Asia Pacific and the Middle East regions that are experiencing robust economic growth are now emerging as the markets with the maximum growth potential, while the US and Europe are expected to procure aircraft primarily for fleet modernization. Indonesia, China, Malaysia, Australia, Saudi Arabia, the UAE, and Israel are examples of countries that are expected to exhibit double digit growth over the forecast period. According to a report published by Airbus, Asia-Pacific will account for approximately 34% of the demand for commercial aircraft over the next 20 years, with India (9.8%) and China (7.2%) having the fastest growth rates in terms of passenger traffic on domestic markets.
- Research and development in the commercial aircraft industry is currently focused primarily on developing technologies that aid in fuel efficiency. With fuel prices having increased substantially over the last few years, developing aircrafts that consume less fuel has become mandatory for reducing the cost of ownership and ensuring sustenance and profitability for airline companies. This need is further compounded by the residual effects of the September 11 attacks on the US that have most adversely impacted the global commercial aviation industry. Globally, various airlines are now considering retiring some of their current fleet earlier than originally planned in order to replace them with a newer generation of models, with a view of achieving considerably lower operating costs. This drive for more efficient aircraft will also increase demand for modularization of design given that it will enable efficiency upgrades.
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