Aviation - Industry - North America Market, Share and Trends 2023-2028

Summary of Aviation

The North American aviation sector forms a vital segment facilitating economic activity and connectivity across the region. Spreading across the United States, Canada and Mexico– the seamlessly integrated air transport network efficiently mobilizes millions of annual business and tourist trips, laying a solid foundation of significant transnational trade and travel revenues totaling over $160 billion for the leading US market in 2023 alone. As one of the largest domestic aviation spheres globally– the smooth flow of people and goods via air travel serves as a major driver of output and jobs across all sectors that rely on transportation services. The on-time performance of over 95% on domestic routes demonstrates the high level of efficiency within the regional market.

The aviation industry supports millions of employment opportunities across North America in areas such as commercial airlines, business aviation, manufacturing, aerospace parts production, airport facilities and services. Pre-pandemic levels saw over 10 million jobs being supported, growing steadily again– as travel rebounds. Additionally, the industry contributes hundreds of billions annually to GDP through direct, indirect and induced effects. Major manufacturing hubs also attract high-skilled talent and cultivate innovation ecosystems.

This unique nature of the North American market allows seamless travel for business executives and customers alike. This allows significant investment and trade flows that strengthen commercial relationships. Regional connectivity is also a major factor for tourism, with top destinations seeing tens of millions of annual international visitors arriving via air travel. Overall, the aviation industry serves as a pioneer enabling economic and social mobility across the continent.

Recent Trends and Insights

Industry analysts predict ongoing moderate expansion through 2029 for this still growing market. With a substantial one quarter share of the $826 billion global aviation economy in 2023– the regional market continues advancing at an estimated CAGR of 4.72% majorly impacted by resilient demand fundamentals. Major factors contributing to projected growth include steady increases in both business and leisure travel as economies recover.

Companies are aggressively testing electric and hybrid-electric aircraft prototypes to realise zero-emission regional mobility within the next half-decade. This includes Canadian startup Eviation currently conducting flight tests on its nine-passenger Alice commuter plane. Other players like Ampaire and Joby Aviation have also successfully flown electric aircraft, targeting commercial operations from 2025 on regional routes. Such innovations aim to reduce noise and emissions from short flights.

Coming to sustainability, airlines have promised carbon reductions through increased usage of sustainable aviation fuels and renewal of fleets with newer fuel-efficient aircraft models. However, limited commercial-scale SAF production remains a challenge for deeper decarbonization goals to be realized across the sector. Investments from venture capital and private equity funds reached record levels in 2022– with over $5 billion invested in startups developing alternative propulsion systems and electric air taxi solutions.

Product Insights

Major aircraft OEMs– Boeing and Airbus continue introducing new, more fuel efficient models to replace old fleets and comply with newer environmental norms. Their latest narrowbody families like the 737 MAX and A320neo provide around 15-20% better fuel efficiency compared to earlier generations such as the 737NG and A320ceo. This allows airlines to lower operating costs and carbon footprint per flight hour. Both manufacturers also have new widebody programs in development featuring composite materials and new engine options to lower trip costs on long haul routes.

Meanwhile– emerging technologies like hybrid-electric and hydrogen fuel cells are being tested on various aircraft prototypes targeting the 2030s for commercialization. For example, Airbus’ E-Fan X hybrid-electric demonstrator and ZeroAvia’s HyFlyer II hydrogen fuel cell plane aim to prove powerplant architectures and flight operations on medium range aircraft. Such solutions could enable massive reductions in noise and emissions on domestic routes up to 1,000 miles. Challenges around building suitable infrastructure remains but the industry is making progress.

Airports are also undergoing modernization through new terminals, expanded runways and advanced facilities to process higher passenger volumes predicted over the next decade. For instance – projects underway at major US hubs like New York JFK, Los Angeles and Chicago involve terminal redevelopments costing billions. This allows easy transfers and enhances the customer experience with facilities like biometric boarding and self-bag drop capabilities.

Key Companies

Some major players within this vast domain of industry are

• Boeing
• Bombardier
• Textron Aviation
• General Electric
• Pratt & Whitney
• GA Telesis
• Lufthansa Technik
• NASA

Regional Analysis

The US aviation sector generates over three-quarters of North American market value as the dominant global hub. Home to leading original equipment manufacturers like Boeing and Airbus, major airlines, thousands of regional carriers and airports– its size and scale reinforce its position as the prime player. The US market was valued at $160.88 billion in 2023 and is projected to grow at a 5% CAGR through 2029.

Canada contributes significantly with steady annual growth supported by strong economic and tourism ties with the US. With world-class airports in cities like Toronto, Montreal and Vancouver, it also plays a key role in trans-pacific travel. Mexico is also expanding its aviation presence utilising strategic geographical location and bilateral relationships. Both countries are expected to see their markets increase at a 4-4.5% rate respectively.

Regional connectivity across the US, Canada and Mexico continues expanding through the addition of new non-stop routes. This allows passengers more travel options and supports businesses through feasible transportation of goods and people. Major airports act as key intercontinental hubs, while secondary airports facilitate important domestic and regional routes. Overall integration will strengthen further as the North American aviation market continues evolving in the coming years.

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:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of the North America’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.