Commercial Aircraft Market Analysis & Forecast: 2025-2032

The commercial aircraft market is estimated to be valued at USD 169.33 Bn in 2025 and is expected to reach USD 265.04 Bn by 2032, growing at a compound annual growth rate (CAGR) of 6.6% from 2025 to 2032.

Key Takeaways

• Based on Application, the Passenger Travel segment leads the market holding an estimated share of 60.8% in 2025, owing to its long-term growth in air transportation.
• Based on Size, Narrow Body Aircraft segment is projected to dominate with a share of 60.8% in 2025, supported by the cost-effective air operation.
• Based on Region, North America is estimated to lead the market with a share of 47.8% in 2025, due to the strong presence of major Original Equipment Manufacturers.

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Market Overview

The commercial aircraft market is witnessing positive trends with increasing passenger air traffic globally. Low-cost carriers are driving the demand for narrowbody aircraft while oils continue to see strong orders from established airlines. Commercial aviation in air transportation provides potential economic and social benefits. Ti facilitates tourism, trade, connectivity, generates economic growth, employment, improves living standards and alleviate poverty. Commercial aviation has a purpose to transport passengers and cargo for profit.

Current Events and their Impact on the Commercial Aircraft Market

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Role of Artificial Intelligence (AI) on the Commercial Aircraft Market

Integration of artificial intelligence in commercial aircraft is proven to be well beneficial to the industry, as it helps is optimizing flight paths, enhances customer experience and improves maintenance. AI-powered systems hold the potential to analyze data to determine the most efficient route, predict maintenance needs and even assist in passenger check-ins and baggage handling. Altogether, AI in commercial aircraft is transforming the industry by various benefits and paving its way to a more efficient, safer and customer-centric future of air travel.

In February 2025, GE Aerospace deploys AI-enabled inspection tool for commercial aircraft. AI-enabled tool is being received by more than a dozen GE Aerospace MRO facilities and customers who also service the CFM LEAP engine.

Pricing Analysis of Commercial Aircraft

Price Range by Aircraft Type

• Narrow-body aircraft generally fall within the range of USD 50 million to USD 130 million per unit, depending on the level of customization and configuration.
• Wide-body aircraft typically command prices between USD 200 million and USD 450 million, reflecting their larger size and extended range capabilities.
• Regional jets are priced lower, usually between USD 25 million and USD 60 million, depending on technology and capacity.

Segmental Analysis

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Commercial Aircraft Market Insights By, Application

Passenger Travel Dominates the Growing Demand for Air Transport

The passenger travel segment accounts for the vast majority owing 60.8% in 2025 of commercial aircraft utilization globally. This is due to the long-term growth in the demand for air transportation of people worldwide, especially on domestic and international routes connecting major cities and countries. In 2023, airlines worldwide transported 4.4 billion passengers, comprising 1.8 billion international travelers and 2.6 billion domestic passengers.

Rising standards of living in emerging markets have lifted hundreds of millions out of poverty, increasing their ability to afford air travel for the first time. Meanwhile, low-cost carriers have made flying accessible even to budget travelers in developed nations through unbundled fares and secondary airports. Liberalization policies have also spurred competition and new entrant airlines promoting heavily discounted tickets. This is further accelerating the commercial aircraft market growth.

Commercial Aircraft Market Insights By, Size

Narrow Body Dominates the Size Segment Due to Cost Effectiveness and Flexibility

The narrow body aircraft segment accounts for the largest share owing 60.8% in 2025 of the commercial aircraft market by size. This is primarily due to narrow bodies being the most cost-effective option for airlines operating short and medium haul routes. Narrow body aircraft like the Boeing 737 and Airbus A320 families can fly routes of up to 5,000 kilometers with higher passenger capacity than regional jets but at lower operating costs than wider aircraft.

This cost effectiveness comes from narrow bodies having a smaller fuselage size that requires less fuel and maintenance costs per flight. Their single aisle configuration also allows for faster turnaround times at airports. Moreover, spare parts and pilot training costs are lower due to the large fleets of narrow bodies in operation worldwide. Several airlines have entirely replaced older fleets with new fuel-efficient narrow bodies to reduce trip expenses. For instance, in March 2025, Airbus announced a new narrowbody aircraft. The design features advanced wings and engines that reduce fuel consumption by 20% compared to current models.

Regional Insights

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North America Commercial Aircraft Market Analysis and Trends

North America has dominated the commercial aircraft market for decades owing 47.8% in 2025 to a strong presence of major Original Equipment Manufacturers (OEMs) like Boeing and key industry participants across the value chain. The U.S. is home to the largest aircraft manufacturers, suppliers as well as airlines which has created a robust ecosystem driving the regional market growth. Majority of commercial aircraft orders are fulfilled by American companies which cater to both domestic as well as international carriers. This has established the region as manufacturing and technological hub for commercial aviation. The supply chain is highly integrated with components and engineering expertise available locally. Several aircraft assembly lines and manufacturing facilities are located across different states which ensures smooth production and delivery.

Asia Pacific Commercial Aircraft Market Analysis and Trends

Asia Pacific has emerged as the fastest growing regional market for commercial aircraft in recent years. China especially has witnessed exponential air passenger traffic on the back of expanding economy, rising incomes, and growing international trade. During the 2025 Spring Festival travel period (Jan 14–Feb 22), China’s civil aviation transported over 90.2 million passengers—an average of 2.255 million daily, up 7.4% from 2024. A record 739,000 flights were completed, averaging 18,500 daily, an 8.3% increase year-on-year. This has fueled the demand for new aircraft from Chinese as well as other Asian airlines. In order to capture this huge market opportunity, global OEMs have started setting up manufacturing plants and engineering centers to cater to the regional requirements. Original equipment manufacturers have also partnered with local component manufacturers to leverage low-cost manufacturing and integrate them in global supply chain. This is significantly boosting production rates and lowering overall costs. Meanwhile, other Southeast Asian countries with major aircraft lessors and carriers like Singapore, Malaysia, and Indonesia are also emerging markets driving the overall regional domestic aviation growth.

In May 2025, the Airport Authority of India (AAI) announced that civilian flight operations have resumed at 32 airports across the country with immediate effect. Thes airports were temporarily closed on 15^th May 2025. AAI clarified that all these airports are now fully operational for civilian flights offering much-needed relief to passengers.

Commercial Aircraft Market Outlook Country-wise

The United States Commercial Aircraft Market

The United States is the leading country in the commercial aircraft market. The commercial aviation drives 5% of the U.S. GDP which is equivalent of USD 1.45 trillion in 2024. Every day, U.S. airlines operate more than 27,000 flights carrying 2.7 million passengers to and from nearly 80 countries and 61,00 tons of cargo to and from more than 200 countries. Another factor that drive the commercial aircraft market growth in United States is the presence of giant industrial players such as Boeing and Lockheed Martin. With Strong demand for domestic travel and technological advancements, there is contestant expansion of the market in the country.

China States Commercial Aircraft Market

China is showing a rapid expansion in its aviation sector, with a significant demand for new aircraft. Boeing’s recent agreement, includes USD 96 billion deal with Qatar airways. Underscoring China’s pivotal role in the market. Along with that, China has a growing focus on modernizing its fleet and enhancing international connectivity fuels its market growth.

Market Report Scope

Commercial Aircraft Market Driver

Fleet replacement and modernization programs

As commercial aircraft fleets age, airlines are increasingly undertaking fleet replacement and modernization programs to reduce maintenance and fuel costs through the adoption of new-generation fuel-efficient planes. While some carriers extend the operational lives of older planes through refurbishment and component replacements, most full-service network carriers prefer replacing their oldest and least economical jets with new aircraft featuring state-of-the-art engines and aerodynamic designs. This allows substantial reductions in operating expenses through lower maintenance and fuel burn. Additionally, newer aircraft meet enhanced safety and emission regulations while providing enhanced passenger comfort and services. Low-cost carriers too are standardizing their operations around specific modern aircraft types to benefit from common pilot/crew training, inventories, and maintenance practices. Global aircraft fleet age profiles indicate a large number of aircraft built in the 1990s and early 2000s will need replacement in the coming decade. This is driving requirements for new narrowbody and widebody deliveries to support fleet revamp programs across Asia Pacific, North America, Europe, and other regions.

Commercial Aircraft Market Opportunities

Rising demand of air travel

Long-term prospects remain bright as passenger traffic is projected to double over the next 20 years. As more people begin to travel by air, especially in developing economies, the demand for new aircraft will continue. The demand for low-cost carriers is growing and requires new fuel-efficient planes. Technological advancements in automation, electric, and hybrid-electric aircraft may lower operating costs and emissions to boost opportunities.

Key Developments

• In April 2025, Airbus launched A220 Airspace cabin, with Air Canada. The new cabin is set to debut on Air Canada’s A220-300 aircraft, with deliveries commencing in early 2026. The A220 Airspace cabin is incorporated with several key features aimed at improving passenger comfort and operational efficiency.
• In March 2025, the European space industry introduced Ariane 6, its inaugural commercial flight launched from the Guiana Space Center in Kourou. The mission successfully deployed thehCSO-3 military observations satellite into orbit enhancing France’s defense capabilities.  ArianeGroup is a joint venture between Airbus and Safran.
• In February 2025, Sarla Aviation, Bengaluru-based electric aircraft startup, has taken a step forward towards transforming urban air mobility with the showcase of its electric vertical take-off and landing (EVTOL) aircraft at the Invest Karnatak Submit. This fully electric flying taxi are designed for short urban commutes. It is expected to cover 160 kilometers on a single charge.
• In February 2025, Civil Aviation Minister, K Rammohan Naidu launched Electronic Personnel License (EPL) for pilots, a significant step towards modernizing and enhancing the safety, security, and efficiency of civil aviation in India. This launch in India has become a second country in the world to implement EPL for flight crew.

Analyst Opinion (Expert Opinion)

• The commercial aircraft market is entering an exciting era defined by innovation, resilience, and opportunity. I firmly believe that manufacturers who are embracing advanced technologies and sustainability initiatives are well-positioned to lead the industry’s next phase of growth and transformation.
• Airbus exemplifies this trend with its A320neo family, which delivers an impressive 15-20% fuel efficiency improvement over previous models—a critical factor as airlines increasingly prioritize cost savings and environmental responsibility. This forward-thinking approach has enabled Airbus to capture significant market share and meet evolving airline demands effectively.
• Boeing’s 737 MAX series, after overcoming initial setbacks, has demonstrated robust recovery and strong customer confidence, underscoring the industry’s capacity for resilience and adaptation. The introduction of the 737 MAX 10 promises to expand Boeing’s competitive edge further by addressing the growing need for higher-capacity, fuel-efficient narrow-body jets.
• Moreover, digital innovation is revolutionizing aircraft operations. GE Aviation’s predictive maintenance solutions, which have reduced unscheduled maintenance by up to 20%, illustrate how integrating smart technologies enhances aircraft availability and reduces operating costs—benefits that operators are eager to leverage.
• The rising popularity of regional jets, such as Embraer’s E2 series and Mitsubishi’s SpaceJet, highlights the market’s responsiveness to changing travel patterns and the growing demand for versatile, efficient aircraft on shorter routes. This diversification signals a healthy, dynamic market adapting well to airline strategies focused on network optimization.
• Additionally, manufacturers’ efforts to build resilient and diversified supply chains—evident in Airbus’s global footprint—have strengthened the industry’s ability to navigate geopolitical challenges and delivery uncertainties, supporting steady growth and customer confidence.

Market Segmentation

• Application Insights (Revenue, US$ BN, 2020 - 2032)
• Passenger
• Cargo
•  Size Insights (Revenue, US$ BN, 2020 - 2032)
• Narrow Body
• Wide Body
• Regional & Business Jet
• Freighter
• Regional Insights (Revenue, US$ BN, 2020 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa
• GCC Countries
• South Africa
• Rest of Middle East & Africa
• Key Players
• • Boeing Company
  • Airbus SE
  • Embraer S.A.
  • Bombardier Inc.
  • Lockheed Martin Corporation
  • General Dynamics Corporation
  • United Technologies Corporation
  • Rolls-Royce Holdings plc
  • Honeywell International Inc.
  • Safran SA
  • Thales Group
  • Raytheon Technology

Source

Primary Research Interviews from the following stakeholders:

Stakeholders:

• Interviews with aircraft OEMs, tier-1 aerospace suppliers, airport operators, MRO (Maintenance, Repair, and Overhaul) firms, aviation leasing companies, and airline fleet planning teams.

Databases:

• ICAO (International Civil Aviation Organization) Data+
• U.S. Department of Transportation (Bureau of Transportation Statistics - BTS)
• EUROCONTROL Aviation Trends Database
• International Air Transport Association (IATA) Performance Reports
• Civil Aviation Administration of China (CAAC) Statistics
• Directorate General of Civil Aviation (DGCA), India
• European Union Aviation Safety Agency (EASA) Publications
• U.S. Federal Aviation Administration (FAA) Aviation Forecasts
• Japan Civil Aviation Bureau (JCAB) Traffic Reports

Magazines:

• Aviation Week & Space Technology
• Airliner World
• Flight International
• Aerospace Manufacturing Magazine
• Aviation Maintenance Magazine
• Aircraft Interiors International
• Runway Girl Network
• Air Transport World (ATW)

Journals:

• Journal of Air Transport Management (Elsevier)
• The Aeronautical Journal (Cambridge University Press)
• International Journal of Aviation Management
• Aerospace Science and Technology
• Journal of Aerospace Engineering
• Transportation Research Part E: Logistics and Transportation Review

Newspapers:

• The Wall Street Journal – Aerospace & Defense
• Financial Times – Aviation & Industry Section
• Nikkei Asia – Aviation Technology and Supply Chain
• The Economic Times – Airlines & Aviation Sector
• Business Standard – Aerospace & Defense Reports
• South China Morning Post – Aviation and Airports Coverage
• The Hindu Business Line – Civil Aviation Industry

Associations:

• International Air Transport Association (IATA)
• Aerospace Industries Association (AIA)
• General Aviation Manufacturers Association (GAMA)
• Airports Council International (ACI)
• European Regions Airline Association (ERA)
• Civil Air Navigation Services Organisation (CANSO)
• Society of Aerospace Engineers (SAE)
• Indian Aerospace and Defence Manufacturers Association (IADMA)

Public Domain Sources:

• International Civil Aviation Organization (ICAO) Publications
• U.S. Federal Aviation Administration (FAA) Data Portals
• European Commission – Mobility and Transport (Aviation Section)
• Ministry of Civil Aviation (Government of India)
• Japan Ministry of Land, Infrastructure, Transport and Tourism (MLIT) – Civil Aviation Bureau
• Australian Government – Department of Infrastructure, Transport, Regional Development and Communications
• Transport Canada – Civil Aviation Statistics
• EU Open Data Portal – Aviation Trends

Proprietary Elements:

• CMI Data Analytics Tool, and Proprietary CMI Existing Repository of information for last 8 years

*Definition: The commercial aircraft market consists of the designing, developing, manufacturing, selling, and leasing of large airplanes for transporting passengers and cargo by airlines and cargo carriers. Major manufacturers in this market produce a variety of commercial aircraft ranging from narrow-body jets used for short and medium-haul flights to wide-body jets used for long-haul international routes to turboprop airliners used for regional routes. Key players compete based on aircraft performance, passenger experience, operating costs, and environmental friendliness.