Asia Pacific to drive growth in aviation services

KUALA LUMPUR: The Asia-Pacific region is set to drive the next phase of global aviation services growth.

Total demand in the region is projected to expand at a compound annual growth rate (CAGR) of 5.2 per cent, up to a value of US$138.7 billion in 2044, according to Airbus' latest Global Services Forecast.

The forecast, which covers the Asia-Pacific region, including China and India, is underpinned by strong air traffic growth and fleet expansion.

Over the next 20 years, the region is expected to take delivery of 19,560 new passenger aircraft, accounting for 46 per cent of global demand.

Passenger traffic is projected to grow 4.4 per cent annually, outpacing the global average of 3.6 per cent.

Airbus identified five core services segments that will be driving the growth.

Off-wing maintenance remains the largest segment, which is expected to expand from US$37.1 billion last year to US$100 billion by 2044, although supply chain disruptions and labour shortages remain key constraints.

On-wing maintenance is expected to grow to US$14 billion, supported by heavy investment in maintenance, repair and overhaul (MRO) infrastructure in India, Indonesia, Malaysia and the Philippines.

Demand for modifications and upgrades is rising as airlines modernise ageing fleets, particularly to introduce premium cabins and in-flight connectivity.

Meanwhile, digital and connectivity services are forecast to nearly quadruple to US$11.2 billion, as airlines and MRO firms adopt AI and data analytics to boost efficiency and address manpower gaps.

The training segment is also set for strong growth, with more than 1.06 million new aviation professionals needed by 2044, including pilots, technicians and cabin crew.

Beyond these, Airbus also highlighted the growing demand for maintenance operations support, projected to reach US$46.4 billion, and ground operations, forecast at US$31 billion by 2044.