Civil Aviation Market Size, Share, Trends, Growth and Forecast 2034

Civil Aviation Market:  Industry Perspective

The global civil aviation market size was worth around USD 824 billion in 2024 and is predicted to grow to around USD 1,986 billion by 2034 with a compound annual growth rate (CAGR) of roughly 9.2% between 2025 and 2034.

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Civil Aviation Market: Overview

Civil aviation is an umbrella term for all flying that isn't done by the military or the government. This covers both private and commercial planes. It covers employing planes for many things, such as personal and corporate travel, moving people and things, and offering particular services like search and rescue or aerial photography. There are a lot of elements that are making the civil aviation industry grow. For instance, more people are flying, airports are getting bigger, new technology is coming out, trade is increasing around the world, and there is a greater need for air freight. However, the high cost of doing business and environmental laws may be slowing down the global civil aviation industry over the next few years.

Key Insights

• As per the analysis shared by our research analyst, the global Civil Aviation market is estimated to grow annually at a CAGR of around 9.2% over the forecast period (2025-2034).
• In terms of revenue, the global Civil Aviation market size was valued at around USD 824 billion in 2024 and is projected to reach USD 1,986 billion by 2034.
• The increasing demand for air travel is expected to drive the civil aviation market over the forecast period.
• Based on the aircraft type, the narrow-body aircraft segment is expected to hold the largest market share over the forecast period.
• Based on the operation type, the commercial segment is expected to dominate the market expansion over the projected period.
• Based on the flight range, the short-haul segment is expected to dominate the market expansion over the projected period.
• Based on the engine type, the turbofan engines segment is expected to dominate the market expansion over the projected period.
• Based on the application, the passenger transport segment is expected to dominate the market expansion over the projected period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

Civil Aviation Market: Growth Drivers

Increasing air passenger traffic drives market growth

One of the key reasons that is driving the civil aviation industry is the increased need for air travel. More people migrating to cities, more tourists, more trade, and more money to spend are all aspects that are helping this expansion happen. The demand for air travel is growing very quickly in developing countries, where a burgeoning middle class is traveling more for work and fun. There are now more low-cost airlines and tickets that aren't too expensive, so more people can fly. Since more and more people want to fly, the Civil Aviation Market Industry is likely to keep growing in the next few years.

For instance, according to the figure given by IATA, after China and the United States, India is currently the world's third-largest air transport market in terms of outgoing O-D passenger traffic. In 2024, about 174 million people flew from and within India, making up about 4.2% of all passengers worldwide.

Civil Aviation Market: Restraints

High operating cost hinders market growth

The civil aviation market's expansion and profitability are severely hampered by high operational expenses. These expenses have a direct effect on airline profits, ticket prices, and the long-term viability of airline operations. The biggest operating cost, fuel often makes up about 20–40% of an airline's overall expenses. Geopolitical concerns, supply chain interruptions, and worldwide crude oil changes all contribute to extremely unpredictable prices.

Additionally, modern aircraft (such as the Boeing 787 and Airbus A350) are costly despite being fuel-efficient. Although leasing is a popular option for airlines, long-term costs are increased by lease rates and maintenance return requirements. Thus, the aforementioned facts are hampering the industry expansion over the projected period.

Civil Aviation Market: Opportunities

Rising government support offers a lucrative opportunity for market growth

Government backing is one of the primary things that keeps the civil aviation business going. Governments have a big role in the expansion of the aviation industry by giving airlines and aircraft manufacturers funds and spending money on things like airports and air traffic control systems. As governments learn more about how important the aviation sector is for tourism and economic growth, they are also trying to make the rules easier for businesses in that sector to follow. This government support is expected to keep the civil aviation market industry growing by enabling airlines and aircraft manufacturers a safe and supportive place to do business and expand.

Civil Aviation Market: Challenges

Skilled labor shortage poses a major challenge to market expansion

Lack of skilled workers is a major barrier to the civil aviation industry's expansion, impacting both operational effectiveness and safety. Pilots, air traffic controllers, cabin staff, and aircraft maintenance engineers are among the many positions in the aviation ecosystem that are affected by this problem. The demand for flights is growing worldwide faster than new pilots can be trained and licensed. Furthermore, the disparity is widened by the retirement of seasoned pilots, especially in North America and Europe. Additionally, the available pool was diminished by COVID-19-related layoffs and job changes, and many have not returned.

Furthermore, there is a lack of qualified workers to do the highly specialized maintenance needed for modern aircraft. Lacks put aircraft availability at risk and compromise safety if technicians are overworked. For instance, the Bureau of Labor Statistics projects that the United States will require 3,800 additional aerospace engineers annually between 2021 and 2031.

Civil Aviation Market: Report Scope

Civil Aviation Market: Segmentation

The global civil aviation industry is segmented based on aircraft type, operation type, flight range, engine type, application and region.

Based on the aircraft type, the global civil aviation market is bifurcated into narrow-body aircraft, wide-body aircraft and regional aircraft. The narrow-body aircraft segment is expected to hold the largest market share over the forecast period. The segment growth is due to the increasing energy efficiency of modern narrow-body aircraft.

Based on the operation type, the global civil aviation industry is bifurcated into the commercial, cargo, private and military. The commercial segment is expected to dominate the market over the projected period. Growing middle-class populations and urbanization, notably in Asia-Pacific and Africa, are driving up demand for air travel. The resumption of foreign tourist and business travel after COVID-19 has greatly increased airline revenues. For instance, the International Air Transport Association predicts that air traffic will quadruple by 2040, owing primarily to rising markets.

Based on the flight range, the global civil aviation market is bifurcated into short-haul, medium-haul, long-haul and ultra-long-haul. The short-haul segment captures the prominent market share over the projected period. The expansion in the revenue of the segment is owing to the rising demand for domestic and regional travel. Passengers are increasingly selecting short-haul flights for work, family visits, and weekend getaways. Domestic air travel recovered faster than international travel in nations such as India, China, and the United States following COVID-19, driving the short-haul segment growth.

Based on the engine type, the global civil aviation industry is bifurcated into turbofan engines, turboprop engines, turboshaft engines and piston engines. The turbofan engines segment is expected to capture the largest market share over the forecast period. As airlines resume operations following the epidemic, turbofan-powered aircraft fly more often, accelerating wear and servicing demands and generating revenue for engine manufacturers.

Based on the application, the global civil aviation market is bifurcated into passenger transport, cargo transport, medical evacuation and search and rescue. The passenger transport segment is expected to dominate the market over the projected period. This segment's expansion is primarily driven by rising demand for air travel as disposable incomes rise, the population grows, and tourism expands.

Regional Analysis

The Asia Pacific dominates the market over the projected period

The Asia Pacific is expected to dominate the market. The regional expansion of the market is growing due to the increasing air travel and increasing disposable income of the population. For instance, as per the data shared by the Civil Aviation Administration of China, during the 2025 Spring Festival travel season (January 14–February 22), China's civil aircraft industry transported over 90.2 million passengers, with a daily average of 2.255 million, a 7.4% increase over the Spring Festival travel season in 2024. Furthermore, the increasing government initiatives in countries like India and China florish the industry expansion over the forecast period.

Civil Aviation Market: Competitive Analysis

The global civil aviation market is dominated by players like:

• COMAC
• ATR
• Dassault Falcon
• Embraer
• Textron Aviation
• Pilatus Aircraft
• Boeing
• Sukhoi
• Airbus
• Gulfstream Aerospace
• Bombardier
• Irkut Corporation
• Honda Aircraft Company
• Daher

The global civil aviation market is segmented as follows:

By Aircraft Type

• Narrow-Body Aircraft
• Wide-Body Aircraft
• Regional Aircraft

By Operation Type

• Commercial
• Cargo
• Private
• Military

By Flight Range

• Short-Haul
• Medium-Haul
• Long-Haul
• Ultra-Long-Haul

By Engine Type

• Turbofan Engines
• Turboprop Engines
• Turboshaft Engines
• Piston Engines

By Application

• Passenger Transport
• Cargo Transport
• Medical Evacuation
• Search and Rescue

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa