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Airline Market Report


Airline Market, by Type (Commercial Airlines, Military Airlines, General Airlines), Regional Analysis (North America, Europe, Asia Pacific, LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2027


Pages: 180

Oct 2020

The global airline market forecast is anticipated to reach $1,048.24 billion by 2027, increasing from $821.96 billion in 2019 at a healthy rate of 16.0%. The North America airline market is estimated to increase at a CAGR of 15.1% by registering a revenue of $263.09 billion in 2019; this growth shall majorly be due to the presence of biggest airlines fleet present in U.S.

Airline Market Analysis:

The airline industry encompasses a comprehensive range of businesses that provide air transport services for paying customers as well as business partners. These airline services primarily serve both, human travelers and cargo. Airline industry mainly use aircrafts to supply services and may form collaborations with other airlines in order to enhance the operational efficiency of flights.

Impact Analysis of COVID-19 on the Airline Market

The ongoing and evolving chaos of the COVID-19 pandemic has negatively affected the airline industry as aircraft manufacturers across the globe are facing issues such as cash-flow shortages, obstruction in supply chain, and continued downward pressure on demand. Moreover, the dramatic drop in demand for passenger air transport due to the COVID-19 pandemic is one of the major factors threatening the viability of multiple firms in the airline industry. Hence, the global air traffic has been brought to an inclusive standstill by the COVID-19 pandemic situation. This will eventually lead to a decline in the revenue of airline industry throughout the pandemic.

On the other hand, several market leaders operating in the airline industry are following various effective strategies including technological breakthroughs, product launching, and strategic collaborations. For instance, in November 2020, Delta Air Lines, Inc., a leader in domestic and international travel, has made an announcement to launch a new interactive map tool that can offer travelers with information regarding COVID-19 restrictions, booking, and updated travel requirement. Furthermore, government bodies across developed nations are coming forward with financial support to uplift the aviation industry. For example, the US government has made an announcement that they have passed a bill (CARES act) of $61.0 billion as a grant for the airline industry.

 High speed and quick services will help the airline market to generate remarkable revenue over the forecast period

The airline industry has experienced massive growth in recent years which can be majorly attributed to the increasing usage of airways for travelling, e-commerce and logistic transportation. The various other factors that are driving the airlines market are the easy access to destinations and no physical barriers. Airlines can operate and reach to remote places inaccessible by other modes of transport. Airlines can follow any possible shortest route to reach the destination as it does not require additional infrastructure such as wail tracks for railways. Additionally, airlines play a vital role in the defense of the country as the modern war fare are majorly dependent upon the aircrafts, as they have a benefit of reaching destinations in the shortest period of time possible.  

To know more about airline market drivers, get in touch with our analysts here.

Requirement of huge infrastructure investments may restrain the growth of the global airline industry

Huge investments are required to construct airports, airbases, aircrafts, among other requirements. Additionally, highly skilled, trained, and experienced labor are required for the maintenance of aircrafts which is anticipated to hamper the market growth in the near future. Additionally, aircrafts carrying capacity is very low and the cost required to transit is very high, which may hinder the market growth.

Growing adoption of software and hardware technologies for health monitoring purposes may create huge opportunities for the global airline market in the future

Digital solutions such as Internet of Things and big data analytics will play a vital role in the upcoming years in airlines industry. The higher level of collaborations between the hardware, software, and integration providers in order to meet business requirements and provide uninterrupted services across the world may lead to newer opportunities in the market. Additionally, installing AI based check in counters at airports and proper health screening technologies will create better growth opportunities for the airlines industry in the upcoming years.

Moreover, with the help of big data analytics and internet of thigs, the airline organizations and the airports will be able to reduce the fixed costs that are present in the respective areas, which will help the authorities to reduce the variable costs along with fluent operations. These factors are anticipated to create better growth opportunities for the airlines market over the forecast period.

To know more about airline market opportunities, get in touch with our analysts here.

Airline Market, by Type:

Commercial aircrafts will generate a revenue of $536.70 billion by 2027, mainly because of growing demand for air travel

Airline Market, by Type

Source: Research Dive Analysis

The global commercial aircraft segment shall have the fastest market growth and it is anticipated to generate a revenue of $536.70 billion by 2027, growing from $410.98 billion in 2019 at a CAGR of 16.4%. The growth of this segment for the global airline market is mainly attributed to the growing number of air travelers across the globe. This is majorly due to the drop in the prices of the air tickets and the short time required to reach the required destinations. Additionally, various steps taken up by the key players in order to sustain the market presence is one of the key reasons for the commercial subsegment growth. For example, in December 2020, AELF flight services, a privately held leading commercial aircraft leasing company, joined hands with AVIANOR, a leading company in MRO cabin integration, to convert AELF passenger aircraft A330-200s to auxiliary cargo configuration.

Moreover, the military sub-segment type will be the second fastest growing subsegment in the airlines market and is anticipated to account for $475.90 billion by 2027 growing at a CAGR of 16.2%. This growth is majorly attributed to the growing demand from the defense forces of various countries to strengthen the forces.

Regional Insights:

Asia-Pacific region has a significant market share and it will reach up to $329.15 billion by the end of 2027 mainly owing to the growing demand from the developing nations in this region.

Regional Insights

Source: Research Dive Analysis

The Asia-Pacific airlines market accounted for $246.59 billion in 2019 and is projected to register a revenue of $329.15 billion by 2027 growing at a CAGR of 16.7% during the forecast period. The extensive growth of the Asia-Pacific airline market is mainly driven by the key factors including supportive government initiatives, extensive rise in air traffic, and growing tourism industry in the Asian countries particularly in India, Thailand, Singapore, and Japan. Moreover, some of the key investments and developments in Asian aviation industry are also positively affecting the Asia-Pacific airline market. For instance, in October 2020, the Airports Authority of India (AAI) has made an announcement to plan to upgrade runways at 7 airports nationwide by the end of March 2022. Moreover, in September 2020, the Indian Government has announced to sanction US$ 14.73 million for Bilaspur, Jagdalpur, and Ambikapur airports under the UDAN scheme for upgradation and development.

North America airline market share is projected to grow at a CAGR of 15.1% by registering a revenue of $314.47 billion by 2027. The surge in the number of high-net-worth individuals (HNWIs), combined with the ongoing research & innovation activities aimed at developing light aircrafts in the region are anticipated to bolster the North America airline market in the forecast period. In addition to this, technological innovation in avionics systems, novel product launches, and long-term service agreements and procurement are some of the key factors boosting the market growth. Furthermore, the stronghold presence of Delta Air Lines, American Airlines, Air Canada, United Airlines, and Southwest Airlines coupled with their effective business strategies may also create significant impact on the market. For instance, Delta has announced to invest $12 billion in U.S airports.

Competitive Scenario in the Global Airline Market:

Advanced product development coupled with mergers & acquisitions are the frequent strategies followed by significant market players

Competitive Scenario in the Global Airline Market

Source: Research Dive Analysis

Some of the leading airline market players include Bombardier Inc., Embraer SA, The Boeing Company, Airbus SE, Textron Inc., Lockheed Martin Corporation, PILATUS AIRCRAFT LTD, Leonardo SpA, Honda Aircraft Company, Piper Aircraft Inc., General Dynamics Corporation. The airline market players are focusing on Merger & acquisition and advanced product developments. These are the effective strategies followed by the startup as well as established organizations.

Porter’s Five Forces Analysis for Airline Market:

  • Bargaining Power of Suppliers: Airline manufacturers are limited in number, and established service providers of the airline are much larger and globalized. So, there will be less threat from the supplier. Thus, the bargaining power of the supplier is Moderate
  • Bargaining Power of Buyer: Buyers will have less bargaining power, significantly because of the limited players operating in the airline services.  Thus, the bargaining power of the buyer is Low
  • Threat of New Entrants: The initial cost of setting up the plant and following the regulation while manufacturing of aircrafts is very difficult, and thus the threat of new entrant is Low
  • Threat of Substitutes: There are no major alternatives available for airlines and thus the threat of substitutes is Low
  • Competitive Rivalry in the Market: The competitive rivalry among the industry leaders is rather intense, especially between the global players. Therefore, competitive rivalry in the market is High




Historical Market Estimations


Base Year for Market Estimation


Forecast timeline for Market Projection


Geographical Scope

  North America, Europe, Asia-Pacific, LAMEA

Segmentation by Type

  • Commercial
  • Military
  • General

Key Countries Covered

U.S., Canada, Mexico, Germany, France, UK, Italy, Spain, Russia, Rest of Europe, China, Japan, India, Australia, South Korea, Rest of Asia-Pacific, Brazil, Saudi Arabia, United Arab Emirates, Rest of LAMEA

Key Companies Profiled

  • Bombardier Inc.

  • Embraer SA

  • The Boeing Company

  • Airbus SE

  • Textron Inc.

  • Lockheed Martin Corporation


  • Leonardo SpA

  • Honda Aircraft Company

  • Piper Aircraft Inc.

  • General Dynamics Corporation


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