Satellite Bus Market Share

Satellite Bus Market Share Analysis

The air passenger traffic has witnessed a substantial surge in recent years, propelled by various factors such as declining airfares, an increase in per capita disposable income, particularly in developing nations, and elevated living standards. These elements collectively contribute to the growth of the aviation industry. According to the International Air Transport Association (IATA), there is a projection that global air travel will double by 2035. Notably, China is anticipated to outpace the United States and emerge as the world's largest aviation market in terms of passenger traffic by 2024. A visual representation below illustrates the number of passengers carried by airlines, encompassing both domestic and international routes.

The escalating demand for air travel has resulted in a pressing need for new aircraft to accommodate the ever-growing passenger numbers. An exemplar of this demand is the monumental contract signed in 2017 between Airbus and Indigo Partners (U.S.) valued at USD 50 billion, signifying one of the most significant deals in the history of commercial aviation. This agreement underscores the urgency for airlines to bolster their fleets to meet the burgeoning demand. Moreover, the industry has witnessed the establishment of numerous new airlines across various regions to tap into the vast passenger demand. In 2017 alone, more than 70 new airlines were established globally. A visual representation below outlines the gross orders for aircraft from both Airbus and Boeing during the year 2017.

The growth trajectory in air passenger traffic is a testament to the dynamic nature of the aviation sector, driven by a confluence of economic factors and increasing consumer preferences for air travel. The decline in airfares has democratized air travel, making it more accessible to a broader segment of the population. This, coupled with rising per capita disposable income, especially in developing economies, has fueled the aspirations of individuals to explore air travel as a convenient and efficient mode of transportation.

The forecasts from IATA, indicating a doubling of global air travel by 2035, underscore the sustained momentum in the aviation industry. The shifting dynamics, with China poised to surpass the United States as the leading aviation market, indicate the evolving landscape of air transportation on a global scale. Such projections necessitate the readiness of the industry to meet the escalating demand with the procurement of new aircraft, as evident in landmark deals like the one between Airbus and Indigo Partners.

The establishment of over 70 new airlines worldwide in 2017 further amplifies the industry's response to the increasing passenger demand. This trend not only reflects the opportunities perceived by entrepreneurs in the aviation sector but also the recognition of the industry's growth potential. The establishment of new airlines contributes to the diversification of services, fostering competition, and enhancing the overall connectivity of air travel.