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
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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
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 15th 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 Report Coverage
Report Coverage | Details | ||
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Base Year: | 2024 | Market Size in 2025: | USD 169.33 Bn |
Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
Forecast Period 2025 to 2032 CAGR: | 6.6% | 2032 Value Projection: | USD 265.04 Bn |
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Companies covered: |
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, and Raytheon Technology |
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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
Analyst Opinion (Expert Opinion)
Market Segmentation
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*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.
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About Author
Gautam Mahajan is a Research Consultant with 5+ years of experience in market research and consulting. He excels in analyzing market engineering, market trends, competitive landscapes, and technological developments. He specializes in both primary and secondary research, as well as strategic consulting across diverse sectors.
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