Market Trends of middle east commercial aircraft cabin interior Industry
Consistent growth in air travel is the driving factor for air passenger traffic in the Middle East
- The Middle East, a popular connection point for international travelers and trade, is also growing as a starting point and destination for business and leisure passengers. In 2020, air passenger traffic in the Middle East dropped by 64% due to travel restrictions caused by the COVID-19 pandemic. However, in 2022, due to the rising vaccination rates and strong demand over the holiday season, air passenger traffic in the region reached 349.5 million, a growth of 16% compared to 2021, while the growth was at 45% compared to 2019. Major countries, such as the United Arab Emirates and Saudi Arabia, accounted for 42% of the total air passenger traffic, generating higher demand for new aircraft compared to other Middle Eastern countries.
- In 2022, passenger capacity increased by 73.8%, and passenger load factor grew by 24.6% to 75.8% compared to 2021. Air travel recovery in the region continues to gather momentum, and air passenger traffic is expected to double within the next 20 years. Many major Middle Eastern international route areas in Bahrain, Kuwait, Oman, Saudi Arabia, the United Arab Emirates, Iraq, Iran, Jordan, Yemen, and Qatar are already exceeding pre-COVID-19 levels. Such factors indicate that air travel has recovered and continues to gather momentum. Many major international routes, even within the Middle East, are already exceeding pre-COVID-19 levels. Tourism and the high willingness to travel continue to foster the industry’s recovery in the Middle East & Africa. The air passenger traffic levels are expected to grow by 34% in 2030 compared to 2022.
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Saudi Arabia records the highest GDP per capita in the region
- The Middle East registered a GDP of USD 8,320 billion in 2022, a growth of 21% compared to 2021 and 42% compared to 2020. Of the total region's GDP, Saudi Arabia recorded the highest GDP at USD 833 billion in 2022, followed by the United Arab Emirates at USD 409 billion and Qatar at USD 179 billion. In particular, the air transport industry in Saudi Arabia contributed USD 20.2 billion, whereas the United Arab Emirates contributed USD 19.3 billion to the GDP.
- Saudi Arabia ranks first in terms of GDP and GDP per capita. As of October 2022, the country recorded USD 1.01 trillion in GDP and USD 27.94 thousand in GDP per capita. The improved performance was due to a stronger expansion in the oil sector, which grew by 23.1% in Q2 2022. The growth in the non-oil private sector was 5.4% in Q2 2022, from 4.5% in the previous quarter of the same year.
- The United Arab Emirates recorded a GDP of USD 503.91 billion in 2022 and USD 47.79 thousand per capita. Hydrocarbons continue to play a critical role in the UAE economy, with 30% of the country's GDP directly based on the oil and gas industry and 13% of its exports.
- Qatar recorded USD 221.37 billion in 2022 and USD 68.62 thousand in GDP per capita. The rise in GDP and GDP per capita was primarily due to Qatar's oil and natural gas resources, which recorded a revenue of USD 322.98 billion compared to USD 19.34 billion in the first half of 2021. The rise in profit in most sectors may eventually boost the region's GDP per capita, thereby driving the air transportation industry and creating demand for its associated sectors.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The main reasons for market growth are the expansion of the fleet and the increased demand for passenger air travel in Middle Eastern countries
- Major original equipment manufacturers (OEMs) in the sector, Boeing and Airbus, are expected to increase their production between 2023 and 2030, resulting in a balanced aircraft supply chain
- Saudi Arabia and UAE emphasized airport development and expansion projects in the region
- The primary source of revenue for aircraft manufacturers is derived from commercial aircraft orders placed with major airlines
- The aviation industry's growth is driven by the rising air travel and the high volume of aircraft orders placed by various airlines
- Airlines planning to reduce aircraft fuel consumption by opting for innovative lightweight cabin interior products is a driving factor
