North America's commercial aircraft services market will grow to $50 billion from $35 billion today (a 43% increase) by 2043 according to Airbus' latest Global Services Forecast (GSF), which covers the maintenance market, as well as the markets for training...
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North America's commercial aircraft services market will grow to $50 billion from $35 billion today (a 43% increase) by 2043 according to Airbus' latest Global Services Forecast (GSF), which covers the maintenance market, as well as the markets for training and operations, and enhancements and modernization.
North America continues to be a strong region for air travel demand. Passenger traffic growth will continue at a steady compound annual growth rate (CAGR) of 2.9% in the region according to Airbus' latest Global Market Forecast.
Driven by the rise in annual air traffic, fleet growth and the requirement for more digitally-enabled and connected aircraft, 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 modernization and training.
"North America has 25% of the global in-service fleet today and is expected to see 7,100 new aircraft in the next 20 years . Early in the next decade, we'll have more new-generation aircraft flying in North America than old-generation. A irbus Services is playing an important role in supporting airlines and the aviation industry to bridge the generation gap by providing solutions which bring older aircraft up to the latest standards; and introducing advanced technologies in new aircraft," said Dominik Wacht, Vice President-Customer Services, Airbus North America.
Airbus forecasts the maintenance market to grow from $30.5 billion to $42.3 billion (+1.7% CAGR over the next 20 years) in the region. Services are vital to handling the rise in demand and enhancing fleet efficiency. The implementation of new digital solutions and predictive maintenance will reduce downtime, optimize efficiency and help solve maintenance delays, therefore increasing aircraft availability and reducing costs.
Meanwhile the market for enhancements and modernization is set to register the largest average annual growth (+3.5%) across the categories between 2024 and 2043, from US$2.2 billion to US$4.2 billion. This is driven by cabin and system upgrades, which will be in particularly high demand until 2030 as part of fleet and air traffic infrastructure modernization.
Aircraft connectivity is another strong driver for enhancing communication with aircraft operations on the ground, in flight and for maintenance, as well as enhancing the passenger experience. Currently, North America has 163 million connected passengers, the highest among all regions: approximately 80% of the North American fleet is connected. By 2043, an increase of +300% to 730 million passengers are expected to be connected in real time.
The market for training and operations is expected to increase from $2.5 billion in 2024 to US$3 billion in 2043 (+1.1%). An evolution in training will require technicians to focus on new technologies, with an increasing focus on predictive maintenance and new skillsets for troubleshooting via machine learning and augmented reality.
Pilots will have more digital solutions for training and data driven continuous improvement, while cabin crews will learn new methods and tasks driven by increased onboard connectivity, automation and AI, which will help improve efficiency and the passenger experience. Airbus anticipates a need for 416,000 new skilled professionals in North America over the next 20 years, comprising 124,000 new pilots, 140,000 new technicians and 152,000 new cabin crew members.
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