Market Trends of Air Data Systems Industry
The Commercial Segment is Expected to Dominate Market Share During the Forecast Period
In recent years, air traffic has surged, fueling a heightened demand for new aircraft and bolstering expenditures in the aviation sector. The International Air Transport Association (IATA) projects global air travelers to hit 4 billion by 2024. Boeing's Commercial Market Outlook 2023-2042 forecasts a need for over 42,000 new commercial aircraft, encompassing both passenger and cargo planes, over the next two decades.
The commercial aviation sector, buoyed by a sharp uptick in air passenger traffic, saw robust growth. This surge translated into major order upticks for Airbus and Boeing, the industry's leading OEMs. In 2023, Airbus notched 735 global commercial aircraft deliveries and secured 2,094 new orders. Meanwhile, Boeing delivered 528 commercial airplanes. Notably, the recertification of the B737 MAX models reignited demand for this aircraft family. The market is poised for further growth with a rising number of new orders and increasing deliveries.
Asia-Pacific is Expected to Experience the Highest Growth During the Forecast Period
During the forecast period, Asia-Pacific is poised for significant growth, driven primarily by heightened procurement of commercial aircraft in nations such as China, India, Indonesia, Vietnam, and Thailand. Rising air traffic has compelled regional airlines to bolster their fleets with next-gen aircraft. For instance, in November 2022, seven leasing companies collectively inked a deal with the Commercial Aircraft Corporation of China (COMAC) for 300 new C919 planes and 30 ARJ21 aircraft.
Further underlining this trend, in December 2023, Tata group-owned Air India signed a contract with Airbus to purchase 140 A321neo, 70 A320neo, 20 A350-900, and 20 A350-1000 aircraft. For instance, China is investing heavily in advanced fighter aircraft, bolstering its AEW&C and bomber capabilities. Meanwhile, Japan is phasing out its aging F-4 fleet with substantial purchases of F-35A fighters. South Korea is diversifying its fleet with indigenous (KF-X) and foreign-made (F-35A) aircraft. This surge in aircraft procurement is fueling the demand for air data systems, further propelling the market's growth.
