The North America Aviation Market is expected to register a CAGR of over 2.5% during the forecast period. The aviation industry in North America is matured and is the house to several aircraft OEMs.
- The commercial aviation sector in North America is experiencing growth primarily due to the increasing domestic and international air passenger traffic. Airlines, in order to cater to the growing demand for air travel, are placing orders for newer generation aircraft that will either operate on new routes or will replace the aging aircraft in the fleet.
- The defense sector is experiencing growth due to the growing investment in R&D and the procurement of advanced fighter jets, UAVs, and trainer aircraft.
- The general aviation market in North America will experience growth with the increasing procurement of business jets, turboprop, and piston aircraft. Also, growing focus towards enhancing the infrastructure of private airports along with favorable changes in regulations will support the growth of the general aviation market in North America.
Key Market Trends
Growing Procurement of Newer Generation Aircraft
The total number of air passengers carried in the US increased from 849 million in 2017 to 889 million in 2018. Likewise, the total number of air passengers carried in Canada increased from 80 million in 2015 to 89.3 million in 2018. American Airlines, Delta Air Lines, United Airlines, Air Canada, and Southwest Airlines are some of the prominent airlines based in North America. In order to cater to the growing demand for air travel, airlines in this region are ordering new aircraft along with the introduction of new routes every year. In June 2019, Delta Air Lines placed an order for five additional A220-100 aircraft. Including the new contract, the airlines have a total of 95 A220 aircraft on order. The total order is a mix of A220-100s and A220-300s. The A220-100s are manufactured in Mirabel, QuŽbec while the A220-300s are produced in the new assembly plant in Mobile, Alabama adjacent to the existing Airbus A320 assembly facility. Likewise, United Airlines has plans to replace some of its aging Boeing 757s and 767s with newer generation aircraft like Boeing 787 or long-range A321LR. The grounding of Boeing 737MAX since March 2019, has significantly impacted the deliveries of narrow-body aircraft in this region.
In the defense sector, North America is expected to deliver steady growth over the next decade as both the US and Canada are planning to replace its aging fighter jets with advanced jets. The Canada government is yet to finalize the aircraft model that will replace its aging CF-18 fighter aircraft fleet. Canada's government plans to purchase about 88 new jets. The aircraft programs in consideration are the Lockheed Martin F-35, Eurofighter Typhoon, Boeing Super Hornet, and the Saab Gripen. The US defense forces have plans to procure over 2,500 F-35 jets over the next two decades. The US Marine Corps has plans to procure about 340 F-35B and 80 F-35C models that can replace the AV-8B Harrier II and the aging F/A-18 Hornet jets. New aircraft orders by airlines and defense forces will continue to drive the growth of the aviation market in North America.
Commercial Aircraft Segment is anticipated to register the highest CAGR during the forecast period
Airlines based in the US and Canada have several hundred aircraft on the order that is scheduled to be delivered between 2020 and 2025. As of September 2019, Delta Air Lines has placed an order for a total of 95 A220 aircraft, of which, 12 A220 aircraft were delivered by May 2019 and the remaining are scheduled to be delivered before 2022. Frontier Airline has over 175 A320 family aircraft on orders and recently in June 2019, the airline announced its intent to convert 18 Airbus A320neo family aircraft on order to 18 Airbus A321XLR aircraft. Likewise, in June 2019, JetBlue announced that the airline converted its 13 Airbus A321neo aircraft on order to the XLR version with deliveries scheduled to begin by 2023. The airline is also considering adding 10 additional A220-300 aircraft to its order with deliveries expected to start in 2025. Based on the growth of air passenger traffic, aircraft order backlog, and the demand from airlines to replace their aging fleet, it is anticipated that more than 8,500 aircraft will be delivered to the US and Canada together between 2020-2039.
The aviation market in North America is highly competitive due to the presence of several aircraft manufacturing giants. Also, since the majority of aircraft manufacturing is concentrated in this region, several global aerospace suppliers have manufacturing, sales, and support facilities based in this region. The Boeing Company, Lockheed Martin Corporation, Northrop Grumman, Bombardier, Textron Inc. are some of the major aircraft OEMs based in North America. Adoption of innovative methods, increasing products and service offerings, efficient workforce, strategic acquisitions and mergers, tapping into new markets, and competitive pricing are some of the growth strategies adopted by the established players to increase their dominance in the aviation market. Several North America based aerospace manufacturers are collaborating with companies based in other parts of the world to share their expertise and technical know-how in developing new technologies and products.
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1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1.1 Commercial Aircraft
220.127.116.11 Passenger Aircraft
5.1.2 Military Aircraft
18.104.22.168 Combat Aircraft
22.214.171.124 Non-combat Aircraft
5.1.3 General Aviation
126.96.36.199 Piston Fixed-wing
188.8.131.52 Business Jet
5.2.1 North America
184.108.40.206 United States
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 The Boeing Company
6.2.2 Airbus SE
6.2.3 Lockheed Martin Corporation
6.2.4 Textron Inc.
6.2.5 General Dynamics Corporation
6.2.6 Embraer S.A.
6.2.7 Bombardier Inc.
6.2.8 Pilatus Aircraft Ltd.
6.2.9 Honda Aircraft Company
6.2.10 Piper Aircraft, Inc.
6.2.11 Viking Air Ltd.
6.2.12 Air Tractor Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.