Airbus expects strong growth in Middle East aviation services market
(MENAFN) In its latest "Global Markets Outlook" report, Airbus has projected a significant expansion in the Aviation services market within the Middle East, with expectations for the market value to double by 2042, soaring from its current USD12 billion to USD28 billion. This growth trajectory reflects an average annual growth rate of 4.4 percent, surpassing the global average of 3.6 percent. The Middle East region, renowned for hosting five of the world's largest aviation hubs, including Dubai and Abu Dhabi, serves as a focal point for Airbus's projections, catering to over 10,000 long-distance passengers daily.
Airbus anticipates delivering a total of 3,120 new commercial and cargo aircraft over the next two decades, aligning with the region's burgeoning air traffic, expected to surge by 4.6 percent annually. The increasing demand for more connected and digitized aircraft is anticipated to drive growth across various sectors, including fleet maintenance, training, operation, and enhancements.
Emphasizing its focus on the maintenance market, Airbus anticipates a substantial growth trajectory, with expectations for the market value to surge from USD10 billion to USD23 billion. Furthermore, the improvements and renovations market is poised to witness the highest average annual growth rate of 5.5 percent between 2023 and 2042, ascending from USD1.3 billion to USD3.6 billion. This growth is primarily attributed to the heightened demand for cabin and system upgrades, integral to the fleet renewal process, particularly until 2030.
The report also highlights projections for the training and employment market, with expectations for its value to double, reaching USD1.6 billion by 2042. Recognizing the significant strides made by the aviation sector and the robust economic outlook, with a projected annual Gross Domestic Product (GDP) growth rate of 2.3 percent, governments across the Middle East region are poised to invest in localizing maintenance, repair, and renewal services. This commitment is underscored by initiatives aimed at infrastructure development, as well as enhancing education, job opportunities, and training within the aviation sector.
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