Aviation Services Market

Continuous increase in global air travel demand and Investments in airport infrastructure, and air traffic management systems are driving the market growth

Market CAGR for aviation services is being driven by the continuous increase in global air travel demand and Investments in airport infrastructure, and air traffic management systems. The sustained increase in global air travel demand, driven by factors such as population growth, urbanization, and the expanding middle class, is a significant catalyst for the growth of the aviation services market. This surge encompasses both domestic and international travel. The aviation industry is on a path of recovery in 2022, gradually returning to pre-COVID-19 levels.

As per the latest reports from authoritative organizations including IATA, ICAO, ACI, UNWTO, WTO, and IMF, international air passenger traffic in 2022 has shown improvement compared to 2021. In June 2022, international air passenger traffic increased by 229.5% compared to June 2021, and the revenue passenger kilometers (RPK) reached 65% of the June 2019 level.

Investments in airport infrastructure, air traffic management systems, and associated facilities play a pivotal role in propelling the growth of the aviation services market. Enhanced and expanded infrastructure contributes to the overall efficiency of air travel. The Civil Aviation Administration of China (CAAC) is strategically planning to augment its airport count by 215, aiming to reach a target of 450 airports by 2035. China's vision includes the construction of an average of 14 airports annually until 2035, aligning with its goal to position the aviation industry as a strategic asset for the national economy.

As a result, it is anticipated that throughout the projection period, demand for the Aviation Services Market will increase due to the continuous increase in global air travel demand and Investments in airport infrastructure, and air traffic management systems. Thus, driving the Aviation Services Market revenue.

The Global Aviation Services Market Industry is projected to experience robust growth over the next decade. With a market value of 235.94 USD Billion in 2024, the industry is expected to expand significantly, reaching 541.32 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate (CAGR) of 7.84% from 2025 to 2035. Such projections underscore the increasing importance of aviation services in the global economy, driven by factors such as rising air travel demand, technological advancements, and the expansion of services in emerging markets.

Sustainability has emerged as a critical driver within the Global Aviation Services Market Industry. Airlines and service providers are increasingly adopting eco-friendly practices to reduce their carbon footprint and meet regulatory requirements. Initiatives such as the use of sustainable aviation fuels and the implementation of carbon offset programs are gaining traction. This shift towards sustainability not only addresses environmental concerns but also appeals to environmentally conscious consumers. As the industry evolves, the emphasis on sustainable practices is likely to play a significant role in shaping market dynamics and attracting investment.

Technological innovations are playing a pivotal role in shaping the Global Aviation Services Market Industry. Advancements in aircraft design, fuel efficiency, and digital technologies are enhancing operational efficiency and passenger experience. For instance, the integration of artificial intelligence and data analytics is streamlining airline operations and improving customer service. These innovations not only reduce operational costs but also contribute to sustainability efforts, which are becoming increasingly important in the aviation sector. As the industry embraces these technologies, it is likely to see a significant boost in market growth, aligning with the projected CAGR of 7.84% from 2025 to 2035.

The Global Aviation Services Market Industry is experiencing a notable surge in air travel demand, driven by rising disposable incomes and a growing middle class in emerging economies. As more individuals opt for air travel, airlines are expanding their fleets and enhancing service offerings. This trend is expected to contribute to the market's growth, with projections indicating a market value of 235.94 USD Billion in 2024. The increasing frequency of business and leisure travel is likely to further stimulate demand for aviation services, thereby fostering a robust environment for industry players.

The Global Aviation Services Market Industry is witnessing substantial growth in emerging economies, where urbanization and economic development are driving air travel demand. Countries in Asia-Pacific and Africa are experiencing rapid infrastructure development, leading to the establishment of new airports and expansion of existing ones. This growth is expected to facilitate increased connectivity and accessibility, further stimulating the aviation services market. By 2035, the market is projected to reach 541.32 USD Billion, reflecting the potential of these regions to contribute significantly to the global aviation landscape.

The Global Aviation Services Market Industry benefits from stringent regulatory frameworks that prioritize safety and security in air travel. Governments worldwide are implementing policies that enhance safety standards and promote the adoption of best practices among airlines and service providers. This regulatory support fosters consumer confidence, encouraging more individuals to choose air travel. Furthermore, compliance with international safety regulations can lead to operational efficiencies, ultimately benefiting the bottom line for aviation service providers. As the industry continues to adapt to evolving regulations, it is poised for sustained growth in the coming years.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Aviation Services market in North America can be attributed to several key factors. North America commands a substantial share of the business aviation market, boasting a considerable fleet of private jets and corporate aircraft. According to the International Air Transport Association (IATA), by December 2021, the region had witnessed the delivery of 231 narrow-body and 41 wide-body aircraft, with an additional 361 narrow-body and 52 wide-body aircraft delivered in 2022.

Business jet utilization in the United States experienced a remarkable 42% increase in 2021 compared to the previous year. The escalating demand for services encompassing aircraft management, maintenance, and associated support within the realm of business aviation significantly contributes to the overall expansion of the aviation services market.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: AVIATION SERVICES MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Aviation Services Market accounts for the second-largest market share as the expansion of the aviation services market in Europe has been significantly influenced by the rise and progression of low-cost carriers (LCCs). According to Eurostat, the European Union experienced a substantial 25% growth in air passengers, freight, and mail between August 2021 and August 2022. Airbus, a prominent aircraft manufacturer, forecasts demand for 39,490 new passenger and freighter aircraft over the next two decades. In the 2022-2041 timeframe, Europe is anticipated to drive a demand for 8,140 aircraft out of the total projected.

The strategic presence of LCCs has been instrumental in stimulating air travel demand by offering cost-effective options, resulting in an upsurge in passenger numbers and subsequent service requirements. Further, the German Aviation Services Market held the largest market share, and the UK Aviation Services Market was the fastest-growing market in the European region

The Asia-Pacific Aviation Services Market is expected to grow at the fastest CAGR from 2023 to 2032. Numerous nations in the Asia-Pacific region are making substantial investments in aviation infrastructure, exemplified by initiatives such as airport construction and expansion. In June 2021, Varaha Infra Limited secured a contract from the Airports Authority of India for the development of a new greenfield airport in Gujarat, India. The Airports Council International's 2022 assessment underscores the Asia-Pacific region's considerable potential for aviation, revealing that 57% of the 300 planned airports globally are slated for development in this geographic area.

This strategic infrastructure development bolsters the growth of the aviation services market by enhancing connectivity and streamlining the efficient movement of passengers and cargo. Moreover, China’s Aviation Services Market held the largest market share, and the Indian Aviation Services Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Aviation Services market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Aviation Services industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Aviation Services industry to benefit clients and increase the market sector. In recent years, the Aviation Services industry has offered some of the most significant advantages to the global economy, facilitating seamless connectivity, efficient transportation of goods and people, and fostering international trade and tourism.

Major players in the Aviation Services Market, including Hallmark, Sigma Aviation, Hawthorne, Sheltair, Complete Aircraft Group (CAG), GE Aerospace, ASAS, Primeflight, Saker Aviation, and Falcon Aviation are attempting to increase market demand by investing in research and development operations.

Complete Aircraft Group (CAG) operates as a leading global independent specialist solution provider, delivering high-quality aircraft tooling, parts, and components. Committed to cost reduction and providing superior support, the company stands as a reliable global supplier of aircraft tooling across major platforms. With a comprehensive inventory, CAG offers tailored solutions supporting engineering maintenance operations for commercial airlines and MROs. Headquartered in the UK, the company's global representatives ensure widespread support to operators and MRO providers across diverse aircraft types. Complete Aircraft Tooling (CAT) strategizes, provides, and procures straightforward solutions for aviation tooling equipment within the aviation industry.

Meanwhile, Complete Aircraft Parts (CAP) serves as a global specialist dedicated to the procurement and delivery of high-quality recycled aircraft parts and components.

As a portfolio company under The Sterling Group and Capitol Meridian Partners, PrimeFlight Aviation Services leverages over two decades of expertise in the aviation services sector. Serving both commercial airlines and airports, the company provides a diverse range of services encompassing aircraft, passenger, and security domains. Based in Sugar Land, TX, PrimeFlight operates globally through subsidiaries like PrimeFlight Cargo, PrimeFlight GSE Maintenance, Prime Appearance, ProFlo Industries, Skytanking, and Aviation Cleaning Supply. Backed by a seasoned leadership team, PrimeFlight adopts a hands-on approach to strategic operations management.

Emphasizing planning and leadership development, the company aims to solidify its position as a leading supplier in both commercial and general aviation industries.