Aviation - Industry - Europe Market, Share and Trends 2023-2028

Summary of Aviation

Europe represents one of the largest and most developed aviation markets globally. In 2023– the total market size for Europe was valued at $173.46 billion. Over the forecast period from 2023 to 2029, Europe’s aviation industry is projected to grow at a CAGR of 4.2%. Some key factors of growth in the European aviation sector include increasing passenger traffic across major airlines as travel restrictions ease after COVID-19 and consumer confidence in air travel is on the rise. Cargo transportation volumes are also expected to rise steadily with the increase in manufacturing and trade activity.

The European aviation industry supports a vast network of over 500 commercial airports and hundreds of airlines. Major carriers like Lufthansa, Ryanair, EasyJet and Air France dominate domestic and international routes. Regional airports facilitate connectivity between smaller cities and towns. Air freight is a major economic contributor– with Europe serving as a hub for the transport of high-value and time-sensitive cargo globally. The sector employs nearly 4 million workers in roles across airlines, airports, aircraft manufacturing, aerospace parts production, air traffic control and other aviation services. It contributes significantly to European GDP and facilitates trade and tourism across the region.

Key aviation markets like Germany, France, the UK and Italy have massive and developed aerospace manufacturing bases that supply aircraft and components globally. Airbus is a European industrial powerhouse and global leader in commercial aircraft manufacturing alongside rival Boeing. Maintenance, repair and overhaul facilities across Europe also service aircraft fleets and engines. The long-term outlook for European aviation remains positive as emerging technologies like sustainable aviation fuels and electric aircraft gain popularity over the coming decade.

Recent Trends and Insights

Major investments by aircraft manufacturers like Airbus and Boeing in developing new fuel-efficient aircraft models such as the Airbus A320neo and A350 families are enabling money flow. These new models aim to help airlines reduce carbon emissions and fuel costs by 20-30% compared to previous-generation aircraft.

Many European airlines are also actively upgrading existing narrowbody and widebody fleets with more efficient engines and winglets to further minimize their environmental impact. On the regulatory front, many European countries and the European Union have ambitious sustainability targets and initiatives driving innovation in alternative fuels and electric and hydrogen aircraft technologies to help decarbonize the aviation sector. Some of the key recent trends in the European aviation industry include major investments by leading aircraft manufacturers in developing new, more fuel-efficient aircraft models. Airbus and Boeing have invested heavily in new aircraft like the Airbus A320neo and A350 families, which aim to reduce fuel costs and carbon emissions by 20-30% compared to earlier generations.

The European Commission’s ‘Fit for 55’ package proposes a revision of the Emissions Trading System to include all flights departing from Europe from 2023. It also mandates a gradual increase in the share of sustainable aviation fuels to at least 63% by 2050. At the same time, European manufacturers, airlines and research organizations are collaborating on demonstration programs for electric and hydrogen-powered aircraft. While these technologies are still in early development stages– the European Union is supporting such initiatives through funding under Horizon Europe and the Sustainable Aviation Fuels Initiative. If technical and economic challenges can be overcome, they may start playing a role in short-routed regional flights within Europe over the next 10-15 years.

Product Insights

Leading aircraft manufacturers Airbus and Boeing continue to enhance their popular narrowbody and widebody aircraft families with incremental improvements while being focused on fuel efficiency, cabin design and connectivity features. These include upgrades to the Airbus A320neo and A350 families, which remain very popular choices for European carriers seeking new aircraft. Engine makers like Safran and Rolls-Royce are also developing new engine models aimed at delivering significant gains in fuel burn reduction through advances in materials, aerodynamics and engine architecture.

On the airline side, major European carriers are focused on offering new services and facilities centered around easy digital experiences for passengers. This includes expanding inflight entertainment systems with on-demand streaming content and live TV, as well as fleet-wide installation of high-speed satellite WiFi. Low-cost carriers are also enhancing cabins with features like larger overhead bins and power outlets as demand grows for connectivity in the air.

European startups are actively working on developing electric and hybrid-electric aircraft prototypes aimed at transforming regional air mobility within Europe. While primarily focused on commuter and cargo applications initially due to range limitations of current battery technologies, these novel aircraft concepts may help connect cities more sustainably in the coming years– if technical and economic challenges can be overcome.

Key Companies

Some major players within this vast domain of industry are

• Airbus
• Boeing
• Leonardo
• Safran
• Rolls-Royce
• MTU Aero Engines
• Thales
• Diehl
• Latecoere
• Lufthansa Technik
• Air France Industries
• Sabena Technics
• TAP M&E

Regional Analysis

Germany accounted for 19.5% or $33.8 billion of the total European aviation market in 2023, making it the largest aviation market in the region. Key players in the German aviation industry include –Lufthansa, Airbus, MTU Aero Engines and Fraport. Germany is a major base for aircraft manufacturing and MRO services. Several Airbus assembly plants are located in Germany driving significant export revenues.

France’s aviation market valued at $17.2 billion in 2023 accounted for a 10% share of the European market. Airbus calls France home and has a large industrial presence across design, manufacturing and services. Other French players include– Dassault, Safran and Thales.

The UK aviation market valued at $21.8 billion in 2023 accounted for a 12.6% share. British Airways, EasyJet, Rolls-Royce and BAE Systems are some leading UK-based companies. London is a premier global aviation hub and Heathrow airport is one of the busiest in the world.

Italy and Russia had market sizes of $15.4 billion and $22.1 billion respectively in 2023, accounting for shares of 8.9% and 12.7%. Alitalia, Leonardo and Avio Aero are key Italian players while Aeroflot and UAC lead Russia’s aviation sector.
Other major European aviation markets include Spain with an $11.3 billion market led by Iberia and Indra; Turkey with a $7.2 billion market and Turkish Airlines as a national carrier; the Netherlands with a $6.8 billion market and KLM at the forefront and Switzerland with a $5.4 billion market and global aviation services hub.

Overall, Germany, France, the UK, Italy and Russia form the core aviation markets in Europe, collectively accounting for over 65% of the region’s $173.46 billion aviation industry in 2023.

Market Segmentation

By Type:

• Commercial aviation
• General aviation
• Military aviation
• Civil aviation

By End user:

• Airports
• Aircraft manufacturers
• Aviation service providers
• Aviation authorities

By Sub-Sector:

• Domestic aviation
• International aviation
• Regional aviation
• Low-cost aviation
• Business aviation

By Country:

• Germany
• United Kingdom
• France
• Italy
• Russia
• Netherlands
• Switzerland

Our Methodology

We have offered a well-founded review of the Europe’s regional aviation market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.