Aerospace & Defense
Commercial aviation has weathered many downturns in the past, but the turnaround has followed rapidly and the industry has been consistently restored to its long-term growth rate of about 5 percent per year. Passenger traffic in 2021 increased to around
6 percent above 2020 levels, facing uncertainties. This pattern is projected to continue over the next 20 years, with world passenger traffic rising by around 5 percent annually.
The growth of emerging-market economies would also promote a growing need to transport goods efficiently. By 2031, it can be projected that aircargo will rise by about 5 percent annually.Over the next 20 years, Boeing has forecast a long-term market for 34,000 new aircraft, estimated at about $4 trillion.These new aircraft will replace older, less productive aircraft, support airlines and passengers, and drive emerging-market growth and airline business model innovation. Approximately 23,240 aircraft (68 per cent of new deliveries) will be single-aisle aircraft, reflecting growth in emerging markets, such as China, and continued expansion of low-cost carriers worldwide.The twin-aisle segment, from a 19 percent share of today’s fleet to a 23 percent share in 2031, will also increase. The 7,950 new twin-aisle aircraft will allow airlines to continue to expand to more international markets. According to Airbus, Latin American airline traffic will grow by more than 6% per year in the next 20 years, the second-highest growth rate in the world after the Middle East and ahead of Asia Pacific. Overall, traffic in the region is expected to triple over the next 20 years.In India, 2020 marked a decade of full-fledged private-sector entryinto defense production with 100% equity and 26% foreign direct investment.