Record-setting domestic passenger traffic and robust domestic economy to drive the need for 2,300 new airplanes, valued at $320 billion

New Dehli, India | December 19, 2018–

Boeing [NYSE: BA] raised its long-term forecast for commercial airplanes in India as unprecedented domestic passenger traffic and rapidly expanding low-cost carriers (LCCs) drive the need for 2,300 new jets – valued at $320 billion – over the next 20 years.

This year alone, more than 10 million passengers, on average, traveled within India each month.

“To meet this increased domestic air traffic growth, we see the vast majority of available airplane seats coming from LCCs,” said Dinesh Keskar, senior vice president of Sales for Asia Pacific and India, Boeing Commericial Airplanes. “The success of this market segment will mean more than 80 percent of all new airplane deliveries in India will be single-aisles. And the superior economics and fuel efficiency of the new 737 MAX airplane will be the perfect choice for Indian carriers.”

According to Boeing’s Commercial Market Outlook (CMO), India’s commercial aviation industry has achieved 51 consecutive months of double-digit growth. This growth is matched in other sectors of the country’s economy.

“The Indian economy is projected to grow by nearly 350 percent over the next two decades to become the third largest economy in the world,” said Keskar. “This will continue to drive the growth of India’s middle class and its propensity to travel both domestically and internationally, resulting in the need for more new fuel-efficient short- and long-haul airplanes.”

New Airplane Deliveries to India through 2037 by size

Airplane type

Seats

Total deliveries

Market value

Regional jets

90 and below

10

<$1 billion

Single-aisle

90 and above

1,940

$220 billion

Widebody

200 and above

350

$100 billion

Total

2,300

$320 billion

With more than five percent of the world’s fleet expected to operate in India by 2037, services will continue to be a major driver of growth in the region’s commercial aviation industry. Commercial services such as flight training, engineering and maintenance, digital analytics among others will provide airlines with optimal operational efficiencies as they continue to expand to meet growth in the marketplace. In the South Asian market, including India, Boeing forecasts a commercial services market valued at $430 billion over the next 20 years.

Formerly known as Boeing’s Current Market Outlook, the CMO is the longest running jet forecast and regarded as the most comprehensive analysis of the commercial aviation industry. The full report can be found at www.boeing.com/cmo.

  • London School of Economics and Political Science predicts airlines will generate an additional $30 billion in incremental revenue
  • Airlines to benefit from significant revenue growth in broadband enabled e-commerce, advertising and premium content

London School of Economics | September 26, 2017–

Inflight broadband has the potential to create a $130 billion global market within the next 20 years, resulting in $30 billion of additional revenue for airlines by 2035. This is the conclusion of a first-of-its-kind research study, ‘Sky High Economics: Quantifying the commercial opportunities of passenger connectivity for the global airline industry’, carried out by London School of Economics and Political Science (LSE) in association with Inmarsat (LSE: ISAT.L), the world’s leading provider of global, mobile satellite communications.

Market potential

Based on current IATA data and industry sources, Sky High Economics has developed an independent forecasting model. It predicts broadband enabled ancillary revenues for airlines will come from four main revenue streams:

  • Broadband access charges – providing connectivity to passengers inflight
  • E-commerce and destination shopping – making purchases on-board aircraft with expanded product ranges and real-time offers
  • Advertising – pay-per-click, impressions, sponsorship deals with advertisers
  • Premium content – providing live content, on demand video and bundled W-IFEC access

At present, only some 53 out of an estimated 5,000 airlines worldwide offer inflight broadband connectivity.[i] On the back of strong passenger demand, inflight internet will be ubiquitous on commercial aircraft by 2035. Currently, airlines receive an additional $17 per passenger from ‘traditional’ ancillary services such as duty free purchases and inflight retail, food and drink sales. Broadband enabled connected ancillary revenues will add an extra $4 by 2035.

Drivers for growth

Full service carriers look set to claim the lion’s share of airline revenues (63%), generating $19 billion by 2035. Capitalising on longer flight times, additional revenue will come from the ability to maximise e-commerce platforms and striking deals with content providers to offer premium packages. The Sky High Economics study predicts low cost carriers will generate $11 billion by 2035, the bulk of which will come from selling connectivity to passengers.

Regional differences

The research also identified that regionally, the greatest opportunity for broadband-enabled ancillary services is in Asia Pacific. Driven by passenger growth and availability of services, airlines in Asia Pacific will benefit from $10.3 billion of ancillary revenues by 2035, followed by Europe ($8.2 billion) and North America ($7.6 billion).

Dr Alexander Grous (B. Ec, MBA, M.Com, MA, PhD.), Department of Media and Communications, LSE and author of Sky High Economics said: “The opportunity available to airlines is enormous. The Sky High Economics study predicts the creation of a $130 billion market within the next two decades. Globally, if airlines can provide a reliable broadband connection, it will be the catalyst for rolling out more creative advertising, content and e-commerce packages. We will see innovative deals struck, partnerships formed and business models fundamentally changed for new players to lay claim to the $100 billion opportunity away from airlines. Broadband-enabled ancillary revenue has the potential to shape a whole new market and it’s something airlines need to be planning for right now.”

Frederik van Essen, Senior Vice President Strategy & Business Development, Inmarsat Aviation, commented: “As airlines start to act more like retailers, they will realize the benefits of closing the inflight connectivity gap. Doing so will lead to unlocking $15 billion per year in additional ancillary revenues within the next decade, one of the biggest sources of growth. The key to this potential and getting to the eventual $30 billion revenues, is fast, high quality inflight internet that can be relied upon without drop-outs.”

Inmarsat is transforming the global aviation industry by bringing complete connectivity to every aircraft and flight path in the world. It is the first and only provider with a complete next-generation High-Throughput Satellite (HTS) network spanning the world. Inmarsat is also the only aviation broadband provider capable of connecting the complete aircraft from cabin to cockpit. Inmarsat’s world-leading passenger solutions are complemented by its industry-standard certified safety and operations services. GX Aviation is the world’s first global, high-speed inflight broadband service from a single operator. It allows airline passengers to browse the internet, stream videos, check social media and more during flights, with an on-board connectivity experience on par with mobile broadband services available on the ground.

 

Amsterdam, Netherlands | May 31, 2016– Global civil aircraft industry is witnessing a geographic transition from relatively slowing matured markets like North America and Europe towards the Asia Pacific, dominated by China. Increasing traffic in the developing geographies is driving demand for commercial aircrafts. The number of airplanes in service is expected to more than double over 2014-2034, with single aisle aircrafts witnessing the maximum growth.

The growth in the commercial aircraft market will underpin the demand for components used in these airplanes. Major aircraft component systems like flight control systems (FCS), drive shafts, cockpit display system (CDS) and other airframe components are all expected to witness healthy growth over near to medium term.

According to a recent market research report published by Technavio, the global commercial aircraft FCS market is expected to grow at a CAGR of 5.7% during the period 2016-2020. The report titled “Global Commercial Aircraft Flight Control Systems Market 2016-2020”, identifies introduction of fly-by-wire systems, increased adaptation of advanced actuators and shift towards next-generation FCS to be the dominant trends in the commercial aircraft FCS market over the next five years.

The report states that the growth in the FCS market would primarily be driven by growing demand for aircraft, increased use of thrust management systems and rising developments in FCS technology. However, the analysts also caution that issues related to electromechanical actuators (EMAs), stringent regulatory norms and high technology cost to dampen the growth prospect to certain degree.

The report studies the global civil aircraft FCS market across three primary geographies: Americas, EMEA and Asia Pacific. The report also provides a detailed analysis of the market by types of FCS used: hydro-mechanical, fly-by-wire and mechanical.

While analysing the competitive landscape of the market, the report provides detailed insights into key vendors operating in the space such as BAE Systems, Honeywell International, MOOG, Rockwell Collins, Sagem, UTC Aerospace Systems, Liebherr-Aerospace, Nabtesco, Parker Aerospace, and West Star Aviation. The insights on the vendors include information such as company and financial overview, business strategies and recent developments.