Aviation market worth an estimated $730 billion
Hub aggregation, diverse business strategies, infrastructure investment drive regional traffic growth
Boeing forecasts airlines in the Middle East will require 3,180 new airplanes over the next 20 years, valued at an estimated $730 billion. 70 percent of the demand is expected to be driven by rapid fleet expansion in the region.
According to the Boeing Current Market Outlook (CMO), single-aisle airplanes such as the 737 MAX will command the largest share of new deliveries, with airlines in the region needing approximately 1,410 airplanes. These new airplanes will continue to stimulate growth for low-cost carriers and replace older, less-efficient airplanes.
"Traffic growth in the Middle East continues to grow at a healthy rate and is expected to grow 6.2 percent annually during the next 20 years," said Randy Tinseth, Vice President, Marketing, Boeing Commercial Airplanes. "About 80 percent of the world's population lives within an eight-hour flight of the Arabian Gulf. This geographic position, coupled with diverse business strategies and investment in infrastructure is allowing carriers in the Middle East to aggregate traffic at their hubs and offer one-stop service between many city pairs that would not otherwise enjoy such direct itineraries."
Twin-aisle aircraft will account for a little under half of the region's new airplane deliveries over the 20-year period, compared to 23 percent globally. This is demonstrated by the strong order book and deliveries for the 787 and 777, underlining how Boeing is meeting customer demand in the region by focusing on enhancing passenger experience and improving operating economics and capability.
Boeing's presence and support for the Middle East also includes a growing aftermarket services business that continues to expand offerings to better support regional airlines.
Boeing's Commercial Aviation Services is a leading provider of aftermarket services in the Middle East, supporting airlines throughout the lifecycle of their fleets from airplane introduction to retirement. Boeing's Component Support Programs, a segment of Boeing's GoldCare Services suite, are particularly successful with three new 787 operators in the region contracting Boeing to ensure reliable, timely, and cost effective component management.
"Over the course of our 70 year presence in the Middle East, Boeing has been working with customers to ensure we provide airplanes and services that support their aerospace ambitions," said Tinseth. "Boeing is well-positioned to continue to address demand in theMiddle East and provide airlines in the region with the capability to serve their expanding global networks."
Boeing has forecasted long-term global demand for 38,050 new airplanes, valued at $5.6 trillion. These new airplanes will replace older, less efficient airplanes, benefiting airlines and passengers and stimulating growth in emerging markets and innovation in airline business models.
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