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Middle East’s commercial aircraft services market to more than double: Report

Airbus forecasts the delivery of 3,120 new passenger and freight aircraft in the Middle East over the next 20 years
Middle East’s commercial aircraft services market to more than double: Report
Airbus expects the Middle East market for maintenance to grow from $10 billion to $23 billion (Photo: Airbus)

Airbus’ latest Global Services Forecast (GSF) predicts a significant expansion of the Middle East’s commercial aircraft services market by 2042. Airbus expects the market to more than double in value, growing from $12 billion today to $28 billion. It expects the average annual growth rate for the Middle East to be 4.4 percent, surpassing the global average growth rate of 3.6 percent.

Rise of aviation cities

The Middle East boasts five of the world’s largest aviation cities, including Dubai and Abu Dhabi. They collectively serve over 10,000 long-haul passengers per day. This concentration of aviation activity underscores the region’s prominence in the global aviation landscape. Moreover, Airbus forecasts the delivery of 3,120 new passenger and freight aircraft in the Middle East over the next 20 years. The region’s 4.6 percent annual increase in air traffic supports this projection. Moreover, it highlights the sustained demand for air travel in the Middle East.

Drivers of growth

The growth in demand for commercial aircraft services is fueled by the rise in annual air traffic and the need for digitally-enabled and connected aircraft. This demand will be reflected in sustainable solutions implemented across all phases of the aircraft lifecycle, including training, aircraft modernization, and fleet maintenance.

Airbus expects the Middle East market for maintenance to grow from $10 billion to $23 billion. Meanwhile, Airbus expects the market for enhancements and modernization to register the largest average annual growth of 5.5 percent across the categories between 2023 and 2042, from $1.3 billion to $3.6 billion in the Middle East. This growth will be mainly due to cabin and system upgrades, which will be in particularly high demand until 2030 as part of fleet modernization.

Read: GCC infrastructure firms to hold up against 2024 refinancing needs: Report

Investments in workforce development

Recognizing the sector’s significant progress and the strength of the Middle East’s economy, regional governments are investing in localizing maintenance, repair, and overhaul (MRO) services. This investment includes developing infrastructure and enhancing job opportunities, education, and training. Therefore, Airbus expects that the market for training and operations will double in 2042, reaching $1.6 billion.

As a result, Airbus anticipates the creation of 208,000 highly skilled professionals in the Middle East over the next 20 years. This forecast comprises 56,000 new pilots, 52,000 new technicians, and 100,000 new cabin crew members.

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