Airbus Global Market Forecast
Introduction
Airbus is among the top global companies in the airline industry. The company has established a reputation for manufacturing the most innovative commercial planes and large helicopters. The company mainly produces defense planes, helicopters, and commercial airplanes and provides space solutions, including satellites (Kim, 2021). The company has been experiencing stiff competition from Boeing for over five decades. Currently, the company maintains a top position in the single-aisle market, considered the toughest in the aviation industry due to competition from companies such as Boeing, which have the resources to manufacture high-quality single-aisle planes. The company anticipates increasing its market share over the next ten years by taking advantage of the opportunities created by the Covid-19 pandemic.
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Future market forecast and demand
The 2022 global market forecast indicates that Airbus anticipates an increase in the demand for freighter and passenger aircraft by more than 39,000 over the next 20 years ((Doran, 2022). The company expects increased demand for fuel-efficient aircraft equipped with the latest technology for flight convenience and efficiency. The highest demand is likely to come from China and Asia-Pacific. The regional demand will include an 80/20 split in market share except for countries such as the Middle East, where large airplanes are in high demand, leading to a 51% market share. The company also expects annual growth in passenger traffic by 3.6% from now to 2040 (Doran, 2022). The largest market share for passenger aircraft is expected from China, followed by Western Europe, the United States, and Intra-Western European markets. The company anticipates the fastest growth from India’s domestic travel and Asia’s emerging countries. The demand for global freighter planes is expected to be 890 for medium-sized planes, 990 for single-aisle planes, and 560 for large planes between 2022 and 2041.
Future aircraft growth
According to Reals (2022), the demand for freighter planes increased during the COVID-19 pandemic because passenger jets were grounded. Many passenger planes were converted to cargo planes to meet the demand for cargo planes. Reals (2022) argues that there is still a high demand for cargo planes, leading to the conversion and modification of passenger planes on both narrow and wide body fronts. Over the last three decades, a maximum of 70 passenger flights have been converted to freighters, and the conversion is expected to rise to 180 planes annually by 2025. The growth in e-commerce has led to a rise in demand for same-day delivery, thus prompting aircraft companies to modify planes to smaller aircraft that can transport goods regionally without consuming a lot of fuel. Therefore, future growth will be characterized by converting passenger aircraft to air cargo aircraft and manufacturing smaller aircraft for cargo transportation. Consequently, large aircraft will be modified to carry passengers and cargo in one flight.
Conclusion
The airline industry is rapidly growing as aircraft manufacturers apply new technology to improve air transportation for passengers and cargo. Airbus has invested in research and development to continue manufacturing planes that meet customer demands and provide better services than competitors such as Boeing. Therefore, I agree with the forecast of Airbus’ demand growth and market expansion in China, Asian countries, Europe, and the United States due to the rise of passengers traveling to these countries, especially for business and movement of cargo into and out of the countries to facilitate global trade. I also agree with the forecast on converting passenger planes into cargo planes due to the rapid growth of international trade.
References
Doran, M. (2022, July 12). Airbus forecasts 39,490 new aircraft deliveries in the next 20 years. Simple Flying. Retrieved September 25, 2022, from https://simpleflying.com/airbus-forecasts-39490-aircraft-deliveries-next-20-years/
Kim, H. (2021). Creating a core innovation capability in Airbus. Business and Management Studies, 7(3), 25. https://doi.org/10.11114/bms.v7i3.5317
Reals, K. (2022, July 25). Why passenger-to-freighter conversion demand keeps soaring. Flight Global. Retrieved September 25, 2022, from https://www.flightglobal.com/flight-international/why-passenger-to-freighter-conversion-demand-keeps-soaring/149299.article
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Question 
Please select one of the following forecasts to analyze:
1. Airbus global market forecast (Airbus)
or
2. Current market outlook (Boeing)
Write and submit a two to three-page report of your analysis. Please number and state each question or statement, and give each answer its separate paragraph(s).
Airbus Global Market Forecast
1. Introduction
-Name and describe the forecast that you chose.
2. Future market forecast and demand
-Describe the future market forecast and demand based on air traffic volumes, country demand, and country locations.
3. Future aircraft growth
-Describe future aircraft growth and demand (large aircraft vs. smaller aircraft), passenger and air cargo aircraft growth, and passenger-to-cargo conversions.
4. Conclusion
-Do you agree or disagree with the forecast findings? Why or why not?
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