Aviation services: Airbus & Boeing sniff a USD7 trillion market

Airbus forecasts that the worldwide market for commercial aircraft services will be worth USD4.6 trillion in revenue over the next 20 years. This compares with Boeing's much higher forecast of USD8.8 trillion for the services market in the next two decades. Perhaps USD7 trillion might be a good target.

However, the two forecasts are not based on the same definition of the services market. Boeing identifies a broader range of services, perhaps indicating greater ambition in this area. Nevertheless, both forecasts illustrate the growing significance of the market for aviation services relative to the market for aircraft.

Airbus expects the value of commercial aircraft deliveries to add up to USD5.8 trillion over the next 20 years, while Boeing's forecast is USD6.3 trillion. Using Boeing's wider definition of aviation services, revenues from aircraft delivery will be worth less than revenues generated from services.

Moreover, both manufacturers envisage greater growth in the aviation services market than in the total value of aircraft sales. In addition, each expects to grow its own share of the aviation services market.