As per the current market research conducted by the CMI Team, the Europe Commercial Aircraft Market size is expected to record a CAGR of 5.8% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 556.6 Million. By 2032, the valuation is anticipated to reach USD 924.5 Million.

Europe Commercial Aircraft Market: Growth Factors and Dynamics

  • Sustainable Aviation Prioritization: The European commercial aircraft market is witnessing a substantial focus on sustainable aviation practices and carbon emission reduction. Airlines and manufacturers are actively investing in research and development, particularly in electric, hybrid, and fuel-efficient aircraft. This commitment aligns with Europe’s dedication to environmental sustainability in the aviation sector, shaping the industry’s future trajectory.
  • Expansion of Low-Cost Carriers: The burgeoning growth of low-cost carriers (LCCs) stands out as a significant driver in the European commercial aircraft market. LCCs are progressively expanding their market share, fostering a demand surge for economical and fuel-efficient narrow-body aircraft. This transformative trend shapes purchasing dynamics, giving preference to manufacturers catering to the specific requirements of budget-conscious carriers.
  • Air Travel Demand: The growth of the commercial aircraft market in Europe is significantly influenced by the increasing demand for air travel. Factors such as economic growth, rising disposable income, and ease of travel contribute to a continuous demand for new aircraft to accommodate passenger needs.
  • Renewal of Fleet: European airlines are focused on fleet renewal to enhance fuel efficiency, reduce operating costs, and meet environmental regulations. This drive to modernize fleets creates a demand for new, more technologically advanced commercial aircraft.
  • Environmental Regulations: Stringent environmental regulations in Europe, particularly regarding emissions and noise levels, drive the adoption of fuel-efficient and quieter aircraft. Manufacturers are investing in research and development to produce eco-friendly models, meeting regulatory standards and appealing to environmentally conscious airlines.
  • Regional Connectivity: The emphasis on enhancing regional connectivity within Europe fuels demand for both narrow-body and regional aircraft. Airlines seek aircraft capable of serving various routes efficiently, contributing to the growth of the commercial aircraft market.
  • Government and Industry Collaboration: Collaboration between European governments and the aerospace industry stimulates growth. Investments in research, development, and infrastructure projects, along with supportive policies, create an environment conducive to innovation and competitiveness in the global market.

Europe Commercial Aircraft Market: Partnership and Acquisitions

  • In 2022, Qantas and Airbus have committed to investing up to USD 200 million to foster the development of a sustainable aviation fuel (SAF) industry. This joint initiative underscores their dedication to advancing environmentally responsible practices within the aviation sector.
  • In 2022, Airbus unveiled its intention to test hydrogen-powered jet engines, aligning with its ambitious goal to create a zero-emission aircraft by 2035. This initiative positions Airbus as a frontrunner in sustainable aviation, showcasing a commitment to advancing eco-friendly technologies in the aerospace industry.

Report Scope

Feature of the Report Details
Market Size in 2023 USD 556.6 Million
Projected Market Size in 2032 USD 924.5 Million
Market Size in 2022 USD 526.1 Million
CAGR Growth Rate 5.8% CAGR
Base Year 2022
Forecast Period 2023-2032
Key Segment By Aircraft Type, Technology, Engine Type, Application and Region
Report Coverage Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope Europe
Buying Options Request tailored purchasing options to fulfil your requirements for research.

Europe Commercial Aircraft Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the Europe Commercial Aircraft Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

  • Drastic Reduction in Air Travel Demand: The pandemic led to a severe decline in air travel demand due to travel restrictions, lockdowns, and passenger safety concerns, significantly impacting the European commercial aircraft market.
  • Operational Disruptions and Financial Strain: Airlines faced operational disruptions and financial strain, leading to fleet grounding, deferred aircraft orders, and losses. Manufacturers experienced delays and cancellations, contributing to an overall downturn in the market.
  • Vaccination Rollout and Health Protocols: The successful rollout of vaccination programs and the implementation of robust health and safety protocols have been pivotal in restoring passenger confidence and facilitating the gradual recovery of air travel in Europe.
  • Government Support and Financial Aid: Governments provided financial aid and support packages to airlines and manufacturers, helping them navigate the economic challenges. Stimulus packages and financial assistance played a crucial role in stabilizing the industry.
  • Pent-up Travel Demand and Tourism Recovery: The easing of travel restrictions and pent-up demand for air travel contributed to a gradual recovery. As tourism rebounded and restrictions were lifted, airlines experienced an uptick in bookings and operational activity.
  • Flexible Fleet Planning and Cost Optimization: Airlines adopted flexible fleet planning strategies, adjusting capacity to match demand. Cost optimization measures, including renegotiating contracts and exploring fuel-efficient options, enabled carriers to navigate the financial challenges posed by the pandemic.
  • Innovation in Air Travel Experience: To stimulate demand, airlines in Europe have embraced innovation in the air travel experience. This includes the introduction of digital health passports, touchless check-in procedures, and enhanced in-flight entertainment, providing a safer and more appealing experience for passengers.
  • Emphasis on Sustainable and Fuel-Efficient Aircraft: As part of the recovery, there’s an increased emphasis on sustainability. Airlines are prioritizing the adoption of newer, more fuel-efficient aircraft to align with environmental goals. This dual focus on recovery and environmental responsibility is shaping the strategic decisions of both airlines and aircraft manufacturers in Europe.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Europe Commercial Aircraft Market, with some challenges and opportunities arising from the pandemic.

Europe Commercial Aircraft Market 2023–2032 (By Million)

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List of the prominent players in the Europe Commercial Aircraft Market:

  • Airbus SE
  • The Boeing Company
  • Bombardier Inc.
  • Embraer S.A.
  • Lockheed Martin Corporation
  • Dassault Aviation S.A.
  • Aerospace Industrial Development Corporation (AIDC)
  • Leonardo S.p.A.
  • Safran S.A.
  • Rolls-Royce Holdings plc
  • Turkish Aerospace Industries Inc. (TAI)
  • RUAG Group
  • B/E Aerospace Inc. (now part of Collins Aerospace)
  • Gulfstream Aerospace Corporation
  • ATR Aircraft
  • Others

The Europe Commercial Aircraft Market is segmented as follows:

By Aircraft Type

  • Narrow-body Aircraft
  • Wide-body Aircraft
  • Regional Aircraft

By Technology

  • Conventional Aircraft
  • Advanced Aircraft

By Engine Type

  • Turbofan
  • Turboprop

By Application

  • Passenger Aircraft
  • Freighter

Regional Coverage:

Europe

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