Middle East Aviation Market - Growth, Trends and Forecast (2019 - 2024)
The Middle East aviation market is estimated to grow at a CAGR of over 4% during the forecast period 2019 - 2024.
The aviation market in the Middle East is experiencing significant growth, primarily due to growing passenger traffic. According to IATA, the passenger traffic in this region will grow by 5% per year. In order to cater to the growing demand, airlines are procuring newer generation aircraft and starting its operations on new routes.
Countries in the Middle East region are in need of over 2,600 new aircraft in the next 20 years in order to cater to the increasing number of air travelers in the region.
On the other hand, shifting oil prices, currency fluctuations, as well as pilot shortages (more specifically in the UAE), shall be the main restraining factors which shall affect the growth of the market.
Additionally, military aviation in the Middle East is expected to witness impressive growth in the coming years owing to various fighter jet deals which have been acquired recently by Kuwait, Qatar and Bahrain.
Scope of the Report
The report covers the procurement plans, firm orders, and deliveries of fixed-wing aircraft and rotorcraft by the commercial, military, and general aviation sector of the Middle East.
Key Market Trends
Commercial Aviation Segment in Middle East will Experience Growth at a Steady Pace
Currently, the commercial segment has the highest share out of all the segments. The growing number of aircraft deliveries in the Middle East in the past few years has led to the Middle East gradually becoming one of the major hub for civil aviation operations. Over the next two decades, the Middle East region is expected to order about 2,900 aircraft. Out of the estimated number of aircraft deliveries, almost half of the deliveries will be for wide-body aircraft. The increasing number of air travelers in the Middle East region is one of the main factors for the increase in the number of commercial aircraft orders. Major carriers like Qatar, Emirates, and Ethiad are expanding their fleet size to cater to the growing demand for air travel in and out of the region. In the last few years, several contracts have been signed by these carriers with Airbus and Boeing for new aircraft. Few of the deliveries are expected during the forecast period.
Saudi Arabia is Expected to Register the Highest Growth During the Forecast Period
In the Middle East aviation market, Saudi Arabia currently accounts for a major market share. Saudi Arabia is undergoing a progressive change to become the land with widespread opportunities and is witnessing an increase in the number of developments related to its aviation industry. The Kingdom of Saudi Arabia has long recognized the aviation sector as a means to drive economic growth. Privatization of the airports has played a major role in increasing the growth of the aviation industry in Saudi Arabia. Moreover, since the last two decades, the aviation market in Saudi Arabia has witnessed significant growth with the airports in the Kingdom handling more than 84 million passengers in 2016. Likewise, airports in Jeddah, Riyadh, Dammam, and Madinah, presently, handle more than 80% of the passenger traffic in the country. The increasing number of air travelers in the Saudi Arabian Kingdom has led to an increase in the number of aircraft deliveries. Military aviation in Saudi Arabia is witnessing significant growth and changes. The Saudi Arabian kingdom is expanding its military aviation fleet for which they have already placed orders for military aircraft with Airbus SE and also with the aircraft OEMs in the United States. Additionally, the ongoing rivalry between Saudi Arabia and Iran shall be the main driver which shall lead to a growth in terms of military aircraft acquisitions in Saudi Arabia.
Lockheed Martin Corporation, Bombardier Inc., The Boeing Company, Airbus SE, and Textron Aviation Inc. are some of the prominent players in the Middle East aviation market. Various initiatives, as well as product innovations, have led the companies to strengthen their presence in the market. The Middle East still remains a lucrative market for Business Jets. Also, as the countries look to strengthen their aerial striking capabilities, several military aircraft orders are expected from this region over the next decade. So, the intensity of rivalry among existing players is expected to intensify further in the coming years.
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