INDUSTRY REPORT
“ This substantial growth in commercial aviation also mandates sustained progress in air traffic management systems . These advances are essential to ensure the safe and efficient operation of increasingly crowded skies . Furthermore , it ' s imperative to acknowledge that the burgeoning commercial aviation sector doesn ' t solely fuel the production of new aircraft ; it also spurs significant demand for maintenance , repair and overhaul ( MRO ) services which constitute a pivotal and enduring facet of the aerospace industry ,” it added .
Substantial market growth is also due to heightened global defence and security requirements . In an increasingly complex and volatile geopolitical landscape , governments worldwide prioritize enhancing their military capabilities . As defence budgets expand , this segment generates substantial demand for aerospace companies , fostering innovation in military aviation and technology while bolstering the industry ' s overall economic health . Defence and security needs are therefore instrumental in propelling aerospace market growth and supporting the industry ' s long-term sustainability .
“ The global aerospace market grew from US $ 261.12 billion in 2022 to US $ 278.43 billion in 2023 at a compound annual growth rate ( CAGR ) of 6.6 %. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic , at least in the short term . The war between these two countries has led to economic sanctions on multiple countries , a surge in commodity prices and supply chain disruptions , causing inflation across goods and services and affecting many markets across the globe . The aerospace market is expected to grow to US $ 358.44 billion in 2027 at a CAGR of 6.5 %,” added analyst , Research and Markets .
A regional review
“ The U . S . aerospace market size was valued at US $ 103.52 billion in 2022 and is projected to hit around US $ 218.37- billion by 2032 , registering a CAGR of 7.80 % between 2023 and 2032 ,” continued Precedence Market Research .
According to the analyst , North America held the largest revenue share of 46 % in 2022 and remains a global aerospace powerhouse , home to industry giants such as Boeing and Lockheed Martin . The region boasts a mature aerospace market with a strong focus on innovation and advanced technology .
“ Notable trends in North America include a push towards sustainable aviation , the rise of space exploration endeavours driven by companies like SpaceX and increasing defence spending . Additionally , a competitive commercial aviation sector continuously strives to improve efficiency and passenger experience , making North America a critical hub for aerospace advances ,” explained the analyst .
The analyst estimates that the Asia-Pacific region will see the fastest expansion .
“ The Asia-Pacific region is rapidly emerging as a key player in the aerospace market . It ' s witnessing substantial growth in commercial aviation due to rising passenger numbers , particularly in countries such as China and India . Governments are also investing in defence aerospace capabilities . The region is becoming a significant contributor to space activities , with countries like China making strides in lunar exploration and satellite technology . Trends include increased aircraft production , aerospace innovation and international collaborations in space initiatives ,” outlined the analyst .
Europe ' s aerospace market is well known for its modern technology and product innovations . It hosts major industry players such as Airbus and Rolls-Royce .
“ Europe exhibits strong demand for commercial and military aircraft , alongside a keen focus on sustainable aviation practices and stringent safety regulations . European space agencies , such as ESA , contribute to space exploration . Europe ' s aerospace sector is marked by a commitment to excellence and environmental sustainability ,” added Precedence Market Research .
North America held the largest revenue share of 46 % in 2022 and remains a global aerospace powerhouse , home to industry giants such as Boeing and Lockheed Martin
Growth drivers
Various drivers are propelling the global aerospace market , confirmed the analyst , as highlighted below :
Engineers repairing the turbine engine of a passenger jet at a hangar ( image : Shutterstock . com ).
Commercial aviation : The aerospace market continues to experience robust growth due to escalating demand for commercial aircraft . This demand surge , particularly prominent in emerging markets , is driven
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