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The Global Commercial Aircraft Market

2013–2023

The Global Commercial Aircraft Market 2013–2023

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TABLE OF CONTENTS

1 Introduction ......................................................................................................................... 10

1.1 What is this Report About? ..............................................................................................................10

1.2 Definitions .......................................................................................................................................10

1.3 Summary Methodology ...................................................................................................................11

1.4 About Strategic Defence Intelligence ...............................................................................................12

2 Executive Summary ............................................................................................................ 13

3 Global Commercial Aircraft market Size and Drivers ...................................................... 14

3.1 Commercial aircraft market Size and Forecast ................................................................................14

3.1.1 Demand for commercial aircraft to remain stable across the forecast period .......................................... 14

3.2 Global Commercial Aircraft Market – Regional Analysis ..................................................................15

3.2.1 Asia-Pacific dominates the global commercial aircraft market ................................................................. 15

3.2.2 Asia-Pacific commercial aircraft market to be the largest market globally ............................................... 17

3.2.3 Commercial aircraft expenditure in North America set to experience modest growth ............................. 19

3.2.4 European commercial aircraft sector to be third largest market globally ................................................. 21

3.2.5 Commercial Aircraft market in the Middle East expected to grow at a CAGR of 11.89% ........................ 23

3.2.6 Mexico and Brazil expected to dominate Commercial Aircraft sector in Latin America ........................... 24

3.2.7 Markets in Africa expected to increase over the forecast period ............................................................. 26

3.3 Commercial Aircraft Sub–Sector Market Size Composition .............................................................27

3.3.1 Single-aisle aircraft are expected to have the largest share of the total commercial aircraft market during

the forecast period ................................................................................................................................................ 27

3.3.2 Market for twin-aisle aircraft to record a CAGR of 3.42% during the forecast period .............................. 29

3.3.3 Regional Jets market to grow at a CAGR of 3.56% ................................................................................. 30

3.3.4 Market for Cargo Aircraft to grow at a CAGR of 0.22% ............................................................................ 32

3.3.5 Market for business jets to record a CAGR of 3.65% ............................................................................... 33

3.4 Demand Drivers and Growth Stimulators ........................................................................................34

3.4.1 The rise of the low cost carrier model ....................................................................................................... 34

3.4.2 Growth in air cargo traffic.......................................................................................................................... 34

3.4.3 Strong continued growth in North America and Europe ........................................................................... 35

3.4.4 Older and less fuel efficient aircraft to be replaced with eco-efficient models .......................................... 35

4 Industry Trends, Recent Developments and Challenges ................................................ 36

4.1 Technological Developments ..........................................................................................................36

4.1.1 Renewed focus on developing technologies to maximize fuel efficiency ................................................. 36

4.1.2 Research and development efforts oriented towards reduction in noise pollution ................................... 36

4.1.3 Improved turbulence detection systems to prevent crashes .................................................................... 37


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4.2 Market Trends .................................................................................................................................38

4.2.1 Fast growth in emerging markets ............................................................................................................. 38

4.2.2 Growing demand for fuel efficient aircraft ................................................................................................. 38

4.2.3 Regional jets to experience greater demand compared to larger commercial airliners ........................... 39

4.3 Industry Consolidation .....................................................................................................................39

4.3.1 The industry to witness joint ventures and alliances ................................................................................ 39

4.4 Key Challenges ...............................................................................................................................40

4.4.1 Large development costs and delays pose a major obstacle................................................................... 40

5 SWOT Analysis of the Commercial Aircraft Market ......................................................... 41

5.1 Strengths.........................................................................................................................................42

5.1.1 Large population, operating framework, and liberal laws in Asia-Pacific to ensure steady rise in air

traffic .................................................................................................................................................................. 42

5.1.2 Commercial aviation drives the modern economy ................................................................................... 42

5.1.3 Acquisition of commercial aircrafts gives countries a strategic advantage .............................................. 42

5.2 Weaknesses ...................................................................................................................................44

5.2.1 Lack of skilled labor impacts the growth of the industry ........................................................................... 44

5.2.2 High barriers to entry resulting in fewer new entrants in the market ........................................................ 44

5.3 Oil price volatility .............................................................................................................................45

5.4 Opportunities ...................................................................................................................................46

5.4.1 Digitization of the commercial aircraft industry ......................................................................................... 46

5.4.2 Focusing on niche markets which are shunned by major carriers ........................................................... 46

5.4.3 Business aviation to present many growth opportunities over the forecast period .................................. 47

5.5 Threats ............................................................................................................................................48

5.5.1 US and European economic crisis ........................................................................................................... 48

5.5.2 Rising fuel prices could adversely affect industry growth ......................................................................... 48

6 Country Analysis – Commercial Aircraft Market .............................................................. 49

6.1 United States Market Size and Forecast 2013–2023 .......................................................................50

6.1.1 Single-aisle aircraft expected to account for the largest share of the US commercial aircraft

expenditure ........................................................................................................................................................... 53

6.1.2 Twin-aisle segment expected to decline at a CAGR of -1.09% over the forecast period ........................ 54

6.2 Russia Market Size and Forecast 2013–2023 .................................................................................55

6.2.1 Russian single-aisle aircraft market to witness highest spending during the forecast period .................. 58

6.2.2 Twin-aisle expected to account for the second largest segment in the Russian commercial aircraft

market .................................................................................................................................................................. 59

6.2.3 Regional jets to account for a share of 7% of total Russian expenditure on commercial planes ............. 60

6.3 United Kingdom Market Size and Forecast 2013–2023 ...................................................................61


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6.3.1 Twin-aisle segment expected to drive the UK commercial aircraft market .............................................. 64

6.4 Ireland Market Size and Forecast 2013–2023 .................................................................................65

6.4.1 Spending on single aisle aircraft to lead the Irish commercial aircraft market ......................................... 67

6.5 Turkey Market Size and Forecast 2013–2023 .................................................................................68

6.5.1 Single-aisle segment to drive the Turkish commercial aircraft market ..................................................... 71

6.6 Chinese Market Size and Forecast 2013–2023 ...............................................................................72

6.6.1 Single-aisle segment is expected to constitute for 53.6% share in Chinese commercial aircraft market 76

6.6.2 Twin-aisle segment is expected to account for the second largest share during the forecast period ...... 77

6.6.3 Economic restructuring to bolster demand for cargo aircraft in China ..................................................... 78

6.7 Indian Market Size and Forecast 2013–2023 ..................................................................................80

6.7.1 Expenditure on the single-aisle segment driving the Indian commercial aircraft market ......................... 83

6.7.2 Twin-aisle expected to constitute the second largest market share ......................................................... 84

6.8 Indonesia Market Size and Forecast 2013–2023 .............................................................................85

6.8.1 Lion Air’s procurement plans to bolster single aisle aircraft market in Indonesia..................................... 87

6.8.2 Business jets segment is expected to account for the second largest share during the forecast period . 88

6.9 Singapore Market Size and Forecast 2013–2023 ............................................................................89

6.9.1 Expenditure on the twin-aisle segment driving the Singaporean commercial aircraft market .................. 92

6.9.2 Single-aisle aircraft expected to constitute the second largest market share .......................................... 93

6.10 Mexico Market Size and Forecast 2013–2023 .................................................................................94

6.10.1 Single-aisle aircraft expected to be the most important segment of commercial aircraft in Mexico ......... 97

6.10.2 Business jets expected to be the second most important segment of Commercial Aircraft in Mexico .... 98

6.11 Brazil Market Size and Forecast 2013–2023 ...................................................................................99

6.11.1 Single Aisle Aircraft expected to be the most important segment of Commercial Aircraft in Brazil ....... 102

6.11.2 Business jets expected to be the second most important segment of commercial aircraft in Brazil ...... 103

6.12 UAE Market Size and Forecast 2013–2023 ................................................................................... 104

6.12.1 Spending on Twin Aisle Aircraft to account for the largest segment in the UAE.................................... 106

6.13 Kuwait Market Size and Forecast 2013–2023 ............................................................................... 107

6.13.1 Spending on Single Aisle Aircraft to account for the largest segment in Kuwait .................................... 109

6.14 Ethiopia Market Size and Forecast 2013–2023 ............................................................................. 110

6.14.1 Spending on Cargo Aircraft to account for the largest segment in the Ethiopia ..................................... 112

6.14.2 Spending on Twin Aisle Aircraft to account for the second largest segment in Ethiopia ....................... 113

6.15 Libya Market Size and Forecast 2013–2023 ................................................................................. 114

6.15.1 Spending on Single Aisle Aircraft to account for the largest segment in Libya ...................................... 116

7 Major Commercial Aircraft Programs .............................................................................. 117

7.1 Single aisle .................................................................................................................................... 117

7.1.1 737 MAX ................................................................................................................................................. 117


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7.1.2 A320........................................................................................................................................................ 118

7.1.3 737-800 ................................................................................................................................................... 119

7.2 Twin aisle ...................................................................................................................................... 120

7.2.1 787–9 ...................................................................................................................................................... 120

7.2.2 A350-900 ................................................................................................................................................ 121

7.2.3 A350-1000 .............................................................................................................................................. 122

7.3 Cargo ............................................................................................................................................ 123

7.3.1 767-300F ................................................................................................................................................ 123

7.3.2 777 Freighter .......................................................................................................................................... 124

7.3.3 A330-200F .............................................................................................................................................. 125

7.4 Business Jets ................................................................................................................................ 126

7.4.1 Global Jets .............................................................................................................................................. 126

7.4.2 Challenger Series Jets ............................................................................................................................ 127

7.4.3 Cessna Citation Latitude business aircraft ............................................................................................. 128

7.5 Regional Jets ................................................................................................................................ 129

7.5.1 E175 Jets ................................................................................................................................................ 129

7.5.2 CRJ900 NextGen Jetliners ..................................................................................................................... 130

7.5.3 Q400 NextGen airliners .......................................................................................................................... 131

8 Competitive Landscape and Strategic Insights .............................................................. 132

8.1 Competitive Landscape Overview ................................................................................................. 132

8.1.1 Airbus S.A.S: overview ........................................................................................................................... 133

8.1.2 Airbus S.A.S: products and services ...................................................................................................... 133

8.1.3 Airbus S.A.S: recent announcements and strategic initiatives ............................................................... 133

8.1.4 Airbus S.A.S: alliances ........................................................................................................................... 134

8.1.5 Airbus S.A.S: recent contract awards ..................................................................................................... 134

8.1.6 Airbus S.A.S: financial analysis .............................................................................................................. 135

8.1.7 Boeing: Overview .................................................................................................................................... 136

8.1.8 Boeing: Products and Services .............................................................................................................. 136

8.1.9 Boeing: Alliances .................................................................................................................................... 136

8.1.10 Boeing: Recent Contract Wins ............................................................................................................... 137

8.1.11 Boeing: Financial Analysis ...................................................................................................................... 137

8.1.12 Commercial Aircraft of China, Ltd.: overview ......................................................................................... 139

8.1.13 Commercial Aircraft Corporation of China, Ltd.: products and services ................................................ 139

8.1.14 Commercial Aircraft Corporation of China, Ltd.: recent announcements and strategic initiatives ......... 139

8.1.15 Commercial Aircraft Corporation of China, Ltd.: alliances ...................................................................... 140

8.1.16 Commercial Aircraft Corporation of China, Ltd.: recent contract awards ............................................... 141


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8.1.17 United Aircraft Corporation: overview ..................................................................................................... 141

8.1.18 United Aircraft Corporation: products and services ................................................................................ 141

8.1.19 United Aircraft Corporation: recent announcements and strategic initiatives ......................................... 142

8.1.20 United Aircraft Corporation: alliances ..................................................................................................... 142

8.1.21 United Aircraft Corporation: recent contract awards .............................................................................. 142

8.1.22 United Aircraft Corporation – financial analysis ...................................................................................... 142

8.1.23 Bombardier Inc: overview ....................................................................................................................... 144

8.1.24 Bombardier Inc: products and services .................................................................................................. 144

8.1.25 Bombardier Inc: recent announcements and strategic initiatives ........................................................... 145

8.1.26 Bombardier Inc: alliances ....................................................................................................................... 145

8.1.27 Bombardier Inc: recent contract awards ................................................................................................. 146

8.1.28 Bombardier Inc: Financial Analysis ........................................................................................................ 146

8.1.29 Embraer - EmpresaBrasileira de Aeronautica SA: overview .................................................................. 148

8.1.30 Embraer - EmpresaBrasileira de Aeronautica SA: products and services ............................................. 148

8.1.31 Embraer - EmpresaBrasileira de Aeronautica SA: recent announcements and strategic initiatives...... 149

8.1.32 Embraer - EmpresaBrasileira de Aeronautica SA: alliances .................................................................. 149

8.1.33 Embraer - EmpresaBrasileira de Aeronautica SA: recent contract awards ........................................... 150

8.1.34 Embraer - EmpresaBrasileira de Aeronautica SA: Financial Analysis ................................................... 151

9 Appendix ............................................................................................................................ 153

9.1 Methodology ................................................................................................................................. 153

9.2 About SDI...................................................................................................................................... 153

9.3 Disclaimer ..................................................................................................................................... 153


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LIST OF FIGURES

Figure 1: Global Commercial Aircraft Market (US$ Billion), 2013–2023 .............................................................................................................. 14 Figure 2: Commercial Aircraft Market Breakdown by Region (%), 2013–2023 .................................................................................................... 16 Figure 3: Asia-Pacific Commercial Aircraft Market (US$ Billion), 2013–2023 ...................................................................................................... 18 Figure 4: North American Commercial Aircraft Market (US$ Billion), 2013–2023 ................................................................................................ 20 Figure 5: European Commercial Aircraft Market (US$ Billion), 2013–2023 ......................................................................................................... 22 Figure 6: Middle East Commercial Aircraft Market (US$ Billion), 2013–2023 ...................................................................................................... 23 Figure 7: Latin American Commercial Aircraft Market (US$ Billion), 2013–2023 ................................................................................................. 25 Figure 8: African Commercial Aircraft Market (US$ Billion), 2013–2023.............................................................................................................. 26 Figure 9: Commercial Aircraft Market Breakdown by Segment (%), 2013–2023 ................................................................................................. 28 Figure 10: Single-aisle Aircraft Market Size (US$ Billion), 2013–2023 ................................................................................................................ 28 Figure 11: Twin aisle Aircraft Market Size (US$ Billion), 2013–2023 ................................................................................................................... 29 Figure 12: Regional Jets Market Size (US$ Billion), 2013–2023 ......................................................................................................................... 31 Figure 13: Cargo Aircraft Market Size (US$ Billion), 2013–2023 ......................................................................................................................... 32 Figure 14: Business jets Aircraft Market Size (US$ Billion), 2013–2023 .............................................................................................................. 33 Figure 15: Commercial Aircraft Market in the US (US$ Billion), 2013–2023 ........................................................................................................ 51 Figure 16: Commercial Aircraft Market Split By Category in the US (%), 2013–2023 .......................................................................................... 52 Figure 17: Single aisle Market Size in the US (US$ Billion), 2013–2023 ............................................................................................................. 53 Figure 18: Twin aisle Market Size in the US (US$ Billion), 2013–2023 ............................................................................................................... 54 Figure 19: Commercial Aircraft Market in Russia (US$ Billion), 2013–2023 ........................................................................................................ 56 Figure 20: Commercial Aircraft Market Split By Category in Russia (%), 2013–2023 .......................................................................................... 57 Figure 21: Single-Aisle Market Size in Russia (US$ Billion), 2013–2023 ............................................................................................................. 58 Figure 22: Twin-Aisle Market Size in Russia (US$ Billion), 2013–2023 ............................................................................................................... 59 Figure 23: Regional Jets Market Size in Russia (US$ Million), 2013–2023 ......................................................................................................... 60 Figure 24: Commercial Aircraft Market in the UK (US$ Billion), 2013–2023 ........................................................................................................ 62 Figure 25: Commercial Aircraft Market Split By Category in the UK (%), 2013–2023 .......................................................................................... 63 Figure 26: Twin-Aisle Market Size in the UK (US$ Billion), 2013–2023 ............................................................................................................... 64 Figure 27: Commercial Aircraft Market in Ireland (US$ Billion), 2013–2023 ........................................................................................................ 66 Figure 28: Commercial Aircraft Market Split By Category in Ireland (%), 2013–2023 .......................................................................................... 66 Figure 29: Single Aisle Market Size in Ireland (US$ Billion), 2013–2023 ............................................................................................................. 67 Figure 30: Commercial Aircraft Market in Turkey (US$ billion), 2013–2023 ........................................................................................................ 69 Figure 31: Commercial Aircraft Market Split By Category in Turkey (%), 2013–2023 .......................................................................................... 70 Figure 32: Single Aisle Market Size in Turkey (US$ Billion), 2013–2023 ............................................................................................................. 71 Figure 33: Commercial Aircraft Market in China (US$ Billion), 2013–2023 .......................................................................................................... 73 Figure 34: Commercial Aircraft Market Split by Sector in China (%), 2013–2023 ................................................................................................ 75 Figure 35: Single-Aisle Market Size in China (US$ Billion), 2013–2023 .............................................................................................................. 76 Figure 36: Twin-Aisle Aircraft Market Size in China (US$ Billion), 2013–2023 ................................................................................................... 77 Figure 37: Cargo Aircraft Market Size in China (US$ Billion), 2013–2023 ........................................................................................................... 79 Figure 38: Commercial Aircraft Market in India (US$ Billion), 2013–2023 ........................................................................................................... 81 Figure 39: Commercial Aircraft Market Split by Sector in India (%), 2013–2023 .................................................................................................. 82 Figure 40: Single-Aisle Aircraft Market Size in India (US$ Billion), 2013–2023.................................................................................................... 83 Figure 41: Twin-Aisle Market Size in India (US$ Billion), 2013–2023 .................................................................................................................. 84 Figure 42: Commercial Aircraft Market in Indonesia (US$ Billion), 2013–2023 .................................................................................................... 86 Figure 43: Single Aisle Market Size in Indonesia (US$ Billion), 2013–2023 ........................................................................................................ 87 Figure 44: Business Jets Market Size in Indonesia (US$ Million), 2013–2023 .................................................................................................... 88 Figure 45: Commercial Aircraft Market in Mexico (US$ Billion), 2013–2023 ........................................................................................................ 95 Figure 46: Single Aisle Market in Mexico (US$ Billion), 2013–2023 .................................................................................................................... 97 Figure 47: Business Jets Market in Mexico (US$ Million), 2013–2023 ................................................................................................................ 98 Figure 48: Commercial Aircraft Market in Brazil (US$ Billion), 2013–2023 .........................................................................................................100 Figure 49: Commercial Aircraft Market Split by Sector in Brazil (%), 2013–2023 ...............................................................................................101 Figure 50: Single Aisle Market in Brazil (US$ Billion), 2013–2023 .....................................................................................................................102 Figure 51: Business Jets Market in Brazil (US$ Billion), 2013–2023 ..................................................................................................................103 Figure 52: Commercial Aircraft Market in UAE (US$ Billion), 2013–2023 ...........................................................................................................105 Figure 53: Twin Aisle Market Size in UAE (US$ Billion), 2013–2023 ..................................................................................................................106 Figure 54: Commercial Aircraft Market in Kuwait (US$ Billion), 2013–2023 .......................................................................................................108


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Figure 55: Single-Aisle Market Size in Kuwait (US$ Billion), 2013–2023 ............................................................................................................109 Figure 56: Commercial Aircraft Market in Ethiopia (US$ Billion), 2013–2023 .....................................................................................................111 Figure 57: Cargo Aircraft Market Size in Ethiopia (US$ Million), 2013–2023 ......................................................................................................112 Figure 58: Twin Aisle Aircraft Market Size in Ethiopia (US$ Million), 2013–2023 ...............................................................................................113 Figure 59: Commercial Aircraft Market in Libya (US$ Million), 2013–2023 .........................................................................................................115 Figure 60: Single-Aisle Aircraft Market Size in Libya (US$ Million), 2013–2023 .................................................................................................116 Figure 61: Airbus S.A.S – *Revenue Trend Analysis (EUR Million), FY2008–2012 ............................................................................................135 Figure 62: Boeing – Revenue Trend Analysis (US$ Billion), 2007–2011 ............................................................................................................138 Figure 63: Boeing – Operating Profit (US$ Million), 2007–2011 .........................................................................................................................138 Figure 64: Boeing – Net Profit Trend Analysis (US$ Million), 2007–2011 ..........................................................................................................139 Figure 65: United Aircraft Corporation – Revenue Trend Analysis (RUB Million), 2008–2012 ............................................................................143 Figure 66: United Aircraft Corporation – Operating Profit Trend Analysis (RUB Million), 2008–2012 ..................................................................143 Figure 67: United Aircraft Corporation – Net Profit Trend Analysis (RUB Million), 2008–2012 ............................................................................144 Figure 68: Bombardier Inc – Revenue Trend Analysis (US$ Billion), 2008–2012 ...............................................................................................147 Figure 69: Bombardier Inc – Operating Profit Trend Analysis (US$ Million), 2008–2012 ....................................................................................147 Figure 70: Embraer - EmpresaBrasileira de Aeronautica SA – Revenue Trend Analysis (BRL Million), 2008–2012 ...........................................151 Figure 71: Embraer - EmpresaBrasileira de Aeronautica SA – Operating Profit Trend Analysis (BRL Million), 2008–2012 ................................151 Figure 72: Embraer - EmpresaBrasileira de Aeronautica SA – Net Profit Trend Analysis (BRL Million), 2008–2012 ..........................................152


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LIST OF TABLES

Table 1: Global Commercial Aircraft Market Overview ........................................................................................................................................ 15 Table 2: Global Commercial Aircraft Market Overview ........................................................................................................................................ 27 Table 3: SWOT Analysis of the Commercial Aircraft market ............................................................................................................................... 41 Table 4: Leading Commercial Aircraft Markets and Top Segments ..................................................................................................................... 49 Table 5: US Commercial Aircraft Market Overview ............................................................................................................................................. 50 Table 6: Key Commercial Aircraft Procurement .................................................................................................................................................. 51 Table 7: Russian Commercial Aircraft Market Overview ..................................................................................................................................... 56 Table 8: Key Russian Commercial Aircraft Procurement Programs .................................................................................................................... 57 Table 9: The UK commercial Aircraft Market Overview ....................................................................................................................................... 61 Table 10: Key UK Commercial Aircraft Procurement Programs .......................................................................................................................... 62 Table 11: Irish Commercial Aircraft Market Overview ......................................................................................................................................... 65 Table 12: Turkish Commercial Aircraft Market Overview..................................................................................................................................... 68 Table 13: Major Turkish Commercial Aircraft Procurement Programs ................................................................................................................. 69 Table 14: Chinese Commercial Aircraft Market Overview ................................................................................................................................... 73 Table 15: Key Chinese Commercial Aircraft Procurement Programs .................................................................................................................. 74 Table 16: Indian Commercial Aircraft Market Overview ...................................................................................................................................... 80 Table 17: Key Indian Commercial Aircraft Procurement Programs...................................................................................................................... 81 Table 18: Indonesian Commercial Aircraft Market Overview ............................................................................................................................... 85 Table 19: Key Indonesian Commercial Aircraft Procurement Programs .............................................................................................................. 86 Table 20: Mexican Commercial Aircraft Market Overview ................................................................................................................................... 94 Table 21: Key Mexican Commercial Aircraft Programs ....................................................................................................................................... 95 Table 22: Brazilian Commercial Aircraft Market Overview .................................................................................................................................. 99 Table 23: Key Brazilian Commercial Aircraft Programs ......................................................................................................................................100 Table 24: UAE Commercial Aircraft Market Overview ........................................................................................................................................104 Table 25: Key UAE Commercial Aircraft Programs ............................................................................................................................................105 Table 26: Kuwait Commercial Aircraft Market Overview.....................................................................................................................................107 Table 27: Key Kuwaiti Commercial Aircraft Programs ........................................................................................................................................108 Table 28: Ethiopia Commercial Aircraft Market Overview ..................................................................................................................................110 Table 29: Key Ethiopian Commercial Aircraft Programs.....................................................................................................................................111 Table 30: Ethiopia Commercial Aircraft Market Overview ..................................................................................................................................114 Table 31: Key Libyan Commercial Aircraft Programs .........................................................................................................................................115 Table 32: Procurement Details – 737 MAX ........................................................................................................................................................117 Table 33: Procurement Details – 787-9 .............................................................................................................................................................120 Table 34: Procurement Details – E175 ..............................................................................................................................................................129 Table 35: Procurement Details – CRJ900 NextGen Jetliners .............................................................................................................................130 Table 36: Procurement Details – Q400 NextGen ...............................................................................................................................................131 Table 37: Key Commercial Aircraft Manufacturers and Capabilities ...................................................................................................................132 Table 38: Airbus S.A.S – Alliances ....................................................................................................................................................................134 Table 39: Airbus S.A.S: Recent Contract Awards ..............................................................................................................................................134 Table 40: Boeing – Alliances .............................................................................................................................................................................136 Table 41: Boeing – Recent Contract Wins .........................................................................................................................................................137 Table 42: Commercial Aircraft Corporation of China, Ltd. – Alliances ................................................................................................................140 Table 43: Commercial Aircraft Corporation of China, Ltd.: Recent Contract Awards ..........................................................................................141 Table 44: United Aircraft Corporation – Alliances ...............................................................................................................................................142 Table 45: United Aircraft Corporation: Recent Contract Awards .........................................................................................................................142 Table 46: Bombardier Inc: Alliances ..................................................................................................................................................................145 Table 47: Bombardier Inc: Recent Contract Awards ..........................................................................................................................................146 Table 48: Embraer - EmpresaBrasileira de Aeronautica SA Alliances ................................................................................................................149 Table 49: Embraer - EmpresaBrasileira de Aeronautica SA Recent Contract Awards ........................................................................................150


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1 Executive Summary

The global commercial aircraft market is expected to increase by a CAGR of XX% during the forecast

period

In 2013 the global commercial aircraft market values US$XX billion and is expected to grow to US$XX billion

by 2023, representing a CAGR of XX% during the forecast period. The market consists of five categories of

aircraft; single aisle, twin aisle, cargo, regional jets, and business jets. The global expenditure on single aisle

aircraft is expected to account for the largest share, approximately XX%, during the forecast period. The twin

aisle segment accounts for a share of XX% and the remaining market is constituted by, business jets, cargo

and regional jets with small shares of XX%, XX%, and XX% respectively. The demand for commercial aircraft

is anticipated to be driven by the rapid expansion strategies of numerous airline companies around the world,

with the low cost carrier model serving as the major driver for the huge procurement of single aisle planes in

various countries. These low cost airlines are significantly increasing their number of short-haul routes within

their own countries to boost connectivity and serve the rapidly increasing number of passengers with time. The

market is expected to be dominated by Asia-Pacific accounting for approximately one-third of the global

market. North America is the second largest market, accounting for a global share of XX%, followed by the

Europe and Middle East with similar shares of XX% and XX% respectively. The remaining market comprises

Latin America and Africa with XX% and XX% shares respectively.


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2 Global Commercial Aircraft Market Size and Drivers

2.1 Commercial aircraft market size and forecast

2.1.1 Demand for commercial aircraft to remain stable across the forecast period

The global commercial aircraft sector is expected to experience slow and stable growth during the forecast

period. According to Boeing’s estimates, airline companies around the world are expected to procure

approximately XX airplanes during 2011-2031. The commercial aircraft market grows parallel to the civil

aviation markets across all the major countries and, with civil aviation improving steadily after the recent

economic recession, airline companies are spending significantly to replace their aging aircraft fleets.

Additionally, the expansion plans of airlines from major emerging markets in Asia-Pacific, the Middle East, and

Europe has initiated a series of contracts for aircrafts of various types during the last few years. Global air

traffic has also grown substantially with a 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.

The chart below shows the expected commercial aircraft market value during 2013–2023:

Figure 1: Global Commercial Aircraft Market (US$ Billion), 2013–2023

Source: SDI analysis © SDI

XX

XX

XX

XX

XX

XX

XX

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

US

$ B

illi

on

2023


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2.2 Global Commercial Aircraft Market – Regional Analysis

2.2.1 Asia-Pacific dominates the global commercial aircraft market

The total global commercial aircraft market is expected to be cumulatively worth US$XX trillion across the

forecast period. The market, which stands at US$XX billion in 2013, is set to rise by a CAGR of XX% to reach

US$XX billion by 2023. North America is expected to constitute XX% of the market during the forecast period,

a total of US$XX billion. Asia-Pacific, the largest contributor to the overall commercial aircraft market, is

expected to cumulatively be worth US$XX billion, XX% of the total market. The US, as the largest spender in

North America, accounts for almost the entire amount. Middle Eastern countries are expected to cumulatively

spend US$XX billion and constitute XX% of the total commercial aircraft market. Russia and Turkey are the

main spenders in the commercial aircraft sector in Europe, and the countries are expected to cumulatively

spend US$XX billion, XX% of the total market. The remaining XX% of the overall spending on commercial

aircraft is expected to be on aircraft procurement by countries in Latin America and Africa.

The table below gives a brief overview of the global commercial aircraft market:

Table 1: Global Commercial Aircraft Market Overview

Region Market in 2013 Market in 2023 Total Market (2013–2023)

Annualized growth/decline

(2013–2023)

Asia-Pacific US$XX million US$XX billion US$XX billion XX%

North America US$XX million US$XX billion US$XX billion XX%

Europe US$XX million US$XX billion US$XX billion XX%

Middle East US$XX million US$XX billion US$XX billion XX%

Latin America US$XX million US$XX million US$XX billion XX%

Africa US$XX million US$XX million US$XX billion XX%

Total Commercial Aircraft Market US$XX billion US$XX billion US$XX billion XX%



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2.3 Commercial Aircraft Sub–Sector Market Size Composition

2.3.1 Single-aisle aircraft are expected to have the largest share of the total commercial aircraft market

during the forecast period

Single-aisle aircraft are expected have the largest share of the global commercial aircraft market during the

forecast period, with a market share of XX%. Twin-aisle aircraft, the second largest segment, will account for

XX% of the total market. While business jets are likely to constitute XX% of the overall commercial aircraft

market, cargo aircraft will account for XX%. The remaining XX% market share consists of regional jets.

The table below gives a brief overview of the global commercial aircraft market:

Table 2: Global Commercial Aircraft Market Overview

Category Market in 2013 Market in 2023 Total Market (2013–2023)

Annualized growth/decline

(2013–2023)

Single-aisle US$XX billion US$XX billion US$XX billion XX%

Twin-aisle US$XX billion US$XX billion US$XX billion XX%

Business Jets US$XX billion US$XX billion US$XX billion XX%

Cargo US$XX billion US$XX billion US$XX billion XX%

Regional Jets US$XX billion US$XX million US$XX billion XX%

Total Commercial Aircraft Market US$XX billion US$XX billion US$XX billion XX%


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