KUALA LUMPUR (Sept 24): The Asia-Pacific aircraft services market is set to double in value in the next two decades, to stage the largest volume of growth and activity in terms of aftermarket services globally, said aircraft manufacturer Airbus in its latest Global Services Forecast (GSF) report.
The industry's market value is set to rise to US$129 billion (RM538.33 billion) by 2043 or 44% of global market size, from US$52 billion currently, said Airbus, which forecast demand for 19,500 new aircraft in the 20-year period in 2024-2043 covering passenger aircraft with 100 seats or more, and freighters with over 10 tonnes of payload.
Those deliveries make up 46% of over 42,000 new aircraft deliveries seen globally, according to the report, of which 18,460 or 43% are to replace older aircraft.
Supporting this surge in services, Airbus anticipates that the region will need 999,000 new skilled aviation professionals.
This includes 268,000 pilots, 298,000 technicians, and 433,000 cabin crew members — accounting for nearly 45% of global demand for aviation personnel, the report said.
This expansion is mainly driven by a steady rise in passenger air traffic, which the GSF expects to stage a compounded annual growth rate (CAGR) of 4.81% across the Asia-Pacific region, the report showed.
This is further supported by "the requirement for more digitally enabled and connected aircraft", Airbus said.
"The growth in demand for services will be reflected in solutions implemented across all phases of the aircraft from delivery to end-of-life, including fleet maintenance, aircraft modernisation and training," it said.
The maintenance market will lead the charge, expected to grow from US$43 billion to US$109 billion in the 20-year period, and the modernisation sector will also see significant growth, surging from US$5.1 billion to US$13 billion, the report said.
Besides, the training and operations segment is projected to rise from US$4.1 billion to US$7.6 billion.
The analysis shows there are many opportunities for additional efficiency, simplification and responsible operations in the Asia-Pacific aircraft services market ahead, according to Airbus senior vice president of customer services Cristina Aguilar Grieder.
“Airbus will continue to play an important role in supporting airlines and the aviation industry at large in responding to those opportunities,” Grieder said in the statement.
According to the GSF, China is set to become the largest services market by 2043, although fast-growing demand is also expected in South Asia, Asia-Pacific and the Middle East.
Globally, the commercial aircraft services market is expected to grow to US$290 billion by 2043, from US$150 billion today, with a total of 2.3 million cumulative new workforce required, GSF data showed.