According to data presented by Stocklytics.com, the global aircraft industry revenue is expected to grow by a modest 1.6% to $120 billion in 2025, still 15% less compared to the figure reported before the pandemic.
Deliveries Grow, but the Average Price per Aircraft Drops
Global aircraft revenues have been falling in the commercial and defense aviation sectors even before the pandemic, but COVID-19 brought the market down on its knees. However, there are several other reasons why the road to recovery has been long for airplane manufacturing companies.
Geopolitical instability, supply chain disruptions, component and labor shortages, and rising fuel costs, which hit airline profitability and led to fewer orders for new aircraft, have all had a major impact on the market, causing revenue growth to slow down after the initial jump in the post-pandemic years.
Source: Statista Market Insights
According to Statista Market Insights survey, after rising by 7.5%, 11%, and 13.8% in the past three years, global aircraft revenue is forecasted to grow by 5.8% and hit $118.2 billion in 2024. The market slowdown will become even more apparent next year. Statista expects the growth rate in the aircraft industry to drop four times to only 1.5%, causing a modest revenue growth to $120 billion in 2025. Moreover, this figure is $1.5 billion short compared to the $121.5 billion reported in 2019.
However, there is another worrying trend. The increased availability of used airplanes and the surging competition between the giants Airbus and Boeing and newer players COMAC, Bombardier, and Embraer in the regional jet market have forced manufacturers to lower prices to win orders. As a result, the number of deliveries will grow while the average cost per aircraft will drop in 2025.
According to Statista, airline manufacturers will deliver over 5,500 new airplanes by the end of the year. This figure is expected to jump over 6,000 in 2025. On the other hand, the average price per unit will drop from $21.4 million to $19.7 million year-over-year.
Source: Statista Market Insights
Rotorcraft Revenue to Grow by 10%, Commercial Aircraft to Remain Flat in 2025
The Statista survey also showed quite different trends in the three segments of the aircraft industry. Although far below commercial and general aviation, rotorcraft revenues are expected to grow by more than 10% and hit $6.1 billion in 2025. The commercial aircraft segment will remain flat, with the market revenues at around $87.7 billion. In contrast, general aircraft revenues from manufacturing civilian, non-commercial airlines will grow by 5.2% and hit $26.1 billion next year.
Tags: Statista survey, Stocklytics.com
