21 Mar 5 growth opportunities in Aviation for 2023
Here are 5 growth opportunities in Aviation for the year ahead.
Asian Aviation, a leading independent civil aviation magazine, reported that the International Air Transport Association (IATA) forecasts a return to profitability for airlines in 2023. This is a first since 2019, with an expected net profit margin of 0.6% worth $4.7 billion for airlines. Fitch Ratings shares a similar optimism, expecting a 20% increase in large aircraft deliveries compared to 2022.
Experts shared 5 growth opportunities for the aviation sector to capitalise on, to maximise profitability across multiple touch points.
First, supply chain near-shoring and Additive Manufacturing (AM) will boost value for airline operators. AM or 3D-printed parts reduce lead times and cost by 60-90% compared to other manufacturing processes, and about one-third of aerospace organisations will diversify their supplier base to include local sourcing.
Second, increased space travel and satellite infrastructure could drive commercial space market growth of over 30% in 2023. Given the interest in space tourism and growing number of satellites supporting critical on-earth infrastructure, in-orbit servicing will be a growing market potentially worth $14.3 billion in revenue through 2030.
Third, nearly 25% of top Advanced Air Mobility (AAM) start-ups will go from prototype to Entry into Service (EIS) by 2024. The AAM sector is maturing with regulatory breakthroughs and start-ups beginning to produce these air assets, which could present an opportunity for the supporting infrastructure to flourish in future.
Fourth, traditional airframe maintenance software support is past its sell-by date, thus requiring major upgrades or entirely replacing them. “Evergreen” maintenance solutions allow deployment of continuous improvements over time, and are proving to be an attractive alternative for carriers with large fleets as the market share is shifting away from legacy systems.
Lastly, Sustainable Aviation Fuel (SAF) production will reach 1 billion litres in 2023, as more airlines make progress on sustainability pledges and use SAF in their traditional airframes.
Our Senior Consultants based across Asia and Europe support our clients in hiring top senior talents who can lead and capitalise on such market opportunities. Reach out to us at NAOS International for more advice.