KUALA LUMPUR: Airbus SE, European-based international aerospace company, predicts a US$4.6 trillion (RM18.66 trillion) worldwide market for commercial aircraft services from 2018 to 2037.
Airbus’ new Global Services Forecast analysis finds this demand is based on a three-way market segmentation, focusing on the aircraft, airline operation and passenger experience.
Airbus viewed aircraft-focused lifecycle services represent the largest segment of growth, which include maintenance, spares pool access, tooling, technical training and system upgrades, which are needed to keep the airlines aircraft flying.
"This market represents a cumulative value of US$2.2 trillion (RM8.92 trillion) over the 20-year period – from Us$76 billion (RM308.3 billion) in 2018 to more than US$160 billion (RM649.04 billion) per annum by 2037."
The services, according to Airbus, are provided throughout the lifecycle from design to dismantling, citing that aircraft manufacturers provide customers with core services which come with the aircraft, including assigned field reps and call centres for aircraft-on-grounds (AOGs).
"The largest market by value is maintenance, increasingly characterised by outsourcing and 'paid-by-the-hour' (PBH) contracts," it added.
As technology and new materials develop, such as composite repairs, Airbus sees a strong trend for further outsourcing.
"PBH contracts allow airlines to secure and predict their maintenance costs, allowing airlines to focus on their core business of flying."
The company also sees airlines increase their outsourcing of inventory management – towards pooling, instead of investing in their own stocks.
The next largest category encompasses flight operations services – such as pilot training and flight-planning solutions – and will account for a US$1.5 trillion (RM6.08 trillion) cumulative spend over 20 years.
"Fleets are expected to more than double to 48,000 aircraft over this period. We estimate a need for 540,000 new pilots in the next 20 years. This trend will require ‘smarter’ ways of training using new digital technologies," a statement from Airbus said.
The third component of the global services market centres on the passenger experience which will account for an estimated US$0.9 trillion (RM3.65 trillion) cumulative value over the 20 year period.
This encompasses the services needed to optimise the flight experience, including cabin upgrades, cabin crew training, in-flight-entertainment, connectivity and booking.
Airbus said this segment is expected to more than double in the next 20 years and grow from US$27 billion (RM109.53 billion) to almost US$70 billion (RM283.95 billion).
"This seamless connectivity will undergo exponential growth, as more and more passengers manage their travel using a smart device, providing them all the information in real-time about the airport, connecting flights and bag collection details."
Airbus also aims to triple its services revenues from more than US$3.2 billion (RM 12.98 billion) in 2017 to reach US$10 billion (RM40.56 billion) of services revenues in commercial in the next decade.
"We will continue to develop full lifecycle integrated services for all Airbus’ aircraft operators such as Flight Hour Services (FHS), which will be even more efficient through the Skywise open data platform."
Airbus will also expand its current service portfolio to non-Airbus platforms, given that 62 percent of Airbus’ total fleet is operated by ‘multi-fleet’ operators.
Further, Airbus will increasingly cultivate ‘digitalisation’, with many solutions being interconnected and integrated.
These solutions will create additional value for airlines, lessors and maintenance, repair and overhaul (MRO) companies, by allowing real-time decision-making, or by optimising flight and maintenance operations through analytics, Airbus noted.