Airbus Predicts Middle East's Aircraft Services Market Value Doubling By 2042

The Middle East's commercial aircraft services sector is poised for significant growth, with projections indicating a value surge to US$28 billion by 2042 from the current US$12 billion. This forecast, as per Airbus' latest Global Services Forecast (GSF), highlights an average annual growth rate of 4.4 percent for the region, outpacing the global average of 3.6 percent. This expansion is underpinned by the strategic importance of the Middle East in the aviation industry, home to five of the world's largest aviation cities including Dubai and Abu Dhabi, each facilitating over 10,000 long-haul passengers daily.

Over the next two decades, Airbus anticipates the delivery of 3,120 new passenger and freight aircraft to meet the rising demand fueled by an annual air traffic increase of 4.6 percent in the Middle East. This demand extends beyond aircraft to include digitally-enabled and connected services across all phases of the aircraft lifecycle such as training, modernisation, and fleet maintenance. Sustainable solutions are at the forefront of this growth trajectory.

The maintenance sector within commercial aircraft services is expected to witness substantial growth, with its market value projected to rise from US$10 billion to US$23 billion. Enhancements and modernisation follow closely, predicted to experience the highest average annual growth rate at 5.5 percent, escalating from US$1.3 billion to US$3.6 billion between 2023 and 2042. This surge is largely attributed to cabin and system upgrades, which are anticipated to be in high demand until 2030 as part of broader fleet modernisation efforts.

Furthermore, the market for training and operations is set to double by 2042, reaching a valuation of US$1.6 billion. This growth reflects not only the sector's advancements but also underscores the robustness of the Middle East's economy, which is expected to grow by 2.3 percent annually. In response to this economic and sectoral expansion, regional governments are investing in localising maintenance, repair and overhaul (MRO) services through infrastructure development and by fostering job opportunities, education, and training.

In alignment with these developments, Airbus forecasts an influx of 208,000 highly skilled professionals in the Middle East's aviation sector over the next 20 years. This includes 56,000 new pilots, 52,000 new technicians, and 100,000 new cabin crew members. Such projections underscore the region's strategic positioning and its pivotal role in shaping the future landscape of global aviation services.

With inputs from WAM