The Connected Aircraft Market is forecast to reach $8.8 billion by 2026, growing at a CAGR of 12.9% from 2021 to 2026. The Aircraft Market is estimated to witness sustainable growth over the forecast period rapidly due to growing demand of transportation, military utilities and to avail paramedic facilities and other private usages. Replacement of aging commercial aircrafts and procurement of new generation commercial aircrafts with new technologies to acquire leading position in the market are some of the main factors which are driving the growth of aircraft market. The key trends are likely to impact the aircraft market is the Corona virus pandemic which has caused unprecedented levels of devastation to the workers as well as business around the world. The decrease in the number of passengers on-board has significantly decreased the market revenue especially in commercial basis. Fuel price remains to be the biggest concern faced by the aircraft market in the modern world. The high costs have led to many aircrafts imposing fuel surcharges on customers. This is leading to the adoption of various technologies including flight management, fuel monitoring, data management systems and aircraft condition monitoring systems to enable better fuel consumption. Apart from this, the improved aircraft communication offers especially with air traffic management which is another benefit driving the market growth.
Connected Aircraft Market Segment Analysis – By Aircraft Type
Heavy aircrafts dominated the connected Aircraft Market with a share of 73% in 2020, as it mainly comprises the majority of commercial aircrafts and military aircrafts for transporting goods as well as passengers in huge amount. Sensors, of many different types, which gather data of relevance to military operations is one of the recent upgrades in Military Aircrafts. Heavy aircrafts are in huge demand for commercial transportation because of their high MTOW (Maximum take-off weight) which boosts the market worldwide. The fast-growing countries such as India, China is generating more demand for heavy aircraft which in over time will shift the distribution of the global fleet in Asia-Pacific.
Connected Aircraft Market Segment Analysis – By Application
Commercial aircrafts hold the largest market in connected aircraft applications at 45.2% in 2020. The transportation facilities for all goods, services, passengers, governmental utilities are carried out mostly by aircraft globally. Global expenditure on commercial aircraft is expected to show steady growth over the forecast period due to growing investments in infrastructure, initiatives to connect secondary cities with prime aviation hubs across a number of countries. The increasing affluence of air travel, especially by rising middle-class populations of emerging countries such as China and India is a key trend of the market globally.
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Connected Aircraft Market Segment Analysis – By Geography
North America accounted for being the highest market among all the regions by geography in the world at 37.5% in 2020. The market growth in this region is predominantly rising due to United States, which has the highest aircraft fleet in the world comprising majorly on commercial and military aircrafts. North America followed closely by Asia-Pacific, in terms of revenue share, in 2020. Revenues from Asia-Pacific are expected to grow with a high growth rate, during the forecast period by 2026 as the emerging economies in the region, like India and China, are experiencing a huge surge in their respective aircraft markets, due to an increased demand for air travel among the countries for commercial purposes as well as military purposes.
Connected Aircraft Market Drivers
Rise in number of air traffic and economic standards drives market growth
Emerging economies in Asia-Pacific countries in particular are contributing considerably in aircraft market especially in commercial aircraft market, thus boosts the development of the global aircraft market. The launch of new air routes for improving the global connectivity which further helps in expansion of aircraft fleet size of aircraft companies increased the demand of aircraft market globally for commercial and military purposes. In recent years, there has been a considerable economic growth of the middle-class population that avail these facilities. The key players in the market have anticipated significant growth in the number of air passengers by the end of 2026; by then, they aim to enhance their overall air transport services.
Initiatives taken by Government
The significant increase in the defense expenditure from the major developing countries mainly in Asia-Pacific region has driven the procurement of military aircrafts, thereby propelling the growth of aircraft market. India’s aircarft industry is expected to witness Rs 35,000 crore (US$ 4.99 billion) investment in the next four years. The Indian Government is planning to invest US$ 1.83 billion for development of airport infrastructure along with aircraft navigation services by 2026. In January 2020, IndiGo became first Indian carrier to have an aircraft fleet size of 250 planes and became the first airline to operate 1,500 flights per day. The development of more advanced and stealthier fixed-wing aircraft may attract a lot of countries to procure the aircraft to increase their aerial capabilities. Thus, to have a high performance aerial squad the Government took many initiatives in Defense aircraft market.
Connected Aircraft Market Challenges
Impact of Covid-19
One of the major challenges faced by global Aircraft Market is the recent outbreak of pandemic Covid-19. Due to this pandemic, there is a vast decrease in the number of on-board passengers which has affected adversely the commercial aircraft market. The global trade which mainly relied on aircraft transportation is at its lowest stakes which has further affected the Economic GDP of some of the developing countries such as India and China in Asia-Pacific. The United States being the leading power of aircraft market in North America and China being leading developing countries of Asia-Pacific, their disputes has led to major loss in revenues as compared to previous years.
Connected Aircraft Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Aircraft Market. The Aircraft Market is dominated by major companies such The Boeing Company, Airbus Group SE, Lockhead Martin Corporation, United Technologies Corporation, GE Aviation, Safran SA, Raytheon Company, Bombardier Inc., Embraer, Saab AB, Textron, Comac, Alekseyev Central Hydrofoil Design Bureau.
In October 2019, Avidyne Corporation, leading provider of integrated avionics systems, displays, ADS –B and safety systems for general aviation aircraft announced new dzus – mounted avidyne atlas multifunction flight management system for turbine – class aircraft and helicopters.
The connected Aircraft Market is estimated to witness a sustainable growth over the forecast period rapidly due to growing demand of transportation, military utilities and to avail paramedic facilities and other private usages.
The significant increase in the defence expenditure from the major developing countries such as China and India, has driven the procurement of military aircrafts thereby propelling the growth of Connected aircraft market.
Lower air fares, growing living standards are the major contributors to increased air travel. This has made the airlines operating in these regions to establish new routes and serve more passengers, by procuring new aircraft, thereby adding more seats and increasing the demands in market.
Replacement of aging commercial aircrafts and procurement of new generation commercial connected aircrafts with new technologies to acquire leading position in the market are some of the main factors driving the growth of connected aircraft market.
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