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Boeing projects 11% lower demand for commercial airplanes

Christian Fernsby ▼ | October 10, 2020
Boeing released its annual forecast for the commercial and defense aerospace market.
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The BMO forecasts a total market value of $8.5 trillion over the next decade including demand for aerospace products and services.

Topics: Boeing

The forecast is down from $8.7 trillion a year ago due to the impact of the coronairus pandemic.

Airlines globally have begun to recover from a greater than 90% decline in passenger traffic and revenue early this year, but a full recovery will take years, according to the outlook.

The 2020 Boeing Market Outlook includes projected demand for 18,350 commercial airplanes in the next decade 11% lower than the comparable 2019 forecast valued at about $2.9 trillion.

In the longer term, with key industry drivers expected to remain stable, the commercial fleet is forecasted to return to its growth trend, generating demand for more than 43,000 new airplanes in the 20-year forecast time period.

The BMO also projects a $2.6 trillion market opportunity for defense and space during the next decade.

This spending projection reflects the ongoing importance of military aircraft, autonomous systems, satellites, spacecraft and other products to national and international defense.

This demand continues to be global in nature with 40 percent of expenditures expected to originate outside of the United States.

While near-term commercial services demand is lower, the BMO forecasts a $3 trillion market opportunity for commercial and government services through 2029, with digital solutions emerging as a critical enabler as customers focus on leaner operations to adjust to future market demand.

Life cycle services and support will help customers scale their operations to meet efficiency and cost objectives aligned to market recovery trends.