Boeing Company, the World’s largest manufacturer of airliners, released its 2010 Current Market Outlook estimating a $3.6 trillion market for new commercial airplanes in the next 20 years. Boeing’s projection of growth is based on the recovery witnessed in world economies and strong demand for fleet addition and replacement.
Boeing expects global new commercial and freighter plane orders to reach roughly 30,900 by 2029. This is slightly above last year's projected demand of 29,000 aircraft worth $3.2 trillion for 2009-2028.
Boeing expects the single-aisle airplanes to be the major driver behind the demand growth, accounting for about 69% of the estimated airplane deliveries in 2029 and 47% of total value of the deliveries. This depicts a worldwide demand for 21,160 single-aisle jets worth $1.7 trillion in 2029.
This growth in the single-aisle airplane segment is mainly due to the popularity of the low-cost carriers business model throughout the world; expansion of air service in emerging markets such as India, China and Southeast Asia; and continuing instability of fuel prices, which is compelling airlines to accelerate replacement of older airplanes.
The twin-aisle market, which is the fastest growing segment of the market, is expected to deliver roughly 23% of projected units and 45% of delivery in dollars. As per the report, 7,100 twin-aisle planes such as the 777, 787 and Airbus' A330-340 family, worth $1.6 trillion will be needed worldwide in 2029.
Further, the company predicts a demand for 720 large aircraft such as Boeing's 747 and Airbus' superjumbo A380, worth $220 billion, and just 1,920 regional jets worth $60 billion, through 2029.
Boeing states that airlines have been able to manage their way through the economic downturn fairly well by keeping costs down. Given the robust demand outlook for the next 20 years, the airlines are all set to boost profits by expanding their operations. This paves the way for the rise in demand for aircraft from manufacturers like, Boeing and Airbus.
As a result, Boeing has increased its aircraft production rate for 2012 - boosting the production of its 737 jets to 35 planes and also increasing the production of its 777 and 747 wide-body aircraft earlier than planned.
The company is also building a temporary surge production line at its Everett, Washington, assembly plant for its new and long-delayed 787 jetliner. That's in addition to its existing 787 line at Everett and a 787 plant being built in Charleston, South Carolina.