New market forecast by Boeing shows Middle East airlines are set to purchase new aircraft worth an estimated USD 550 billion over the next 20 years.
Boeing’s annual Current Market Outlook (CMO) projects Middle East airlines will place orders for up to 2,610 aircraft by 2032.
The U.S. plane maker further estimates that more than 35,000 new airplanes valued at about USD 4.8 trillion, will be sold in the global market over the next 20 years. As both passenger traffic and cargo traffic are expected to grow at five percent annually, the demand for air travel will be met by doubling the existing world fleet over the next two decades.
According to Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes, “this forecast gives us confidence as we increase our production rates and invest in new products like the 777X and 787 10X. Airlines are demanding more efficiency and that is exactly what we’ll be giving them.” The company is banking on its Next-Generation 737 and the future 737 MAX to lead growth in the coming years.
The aviation industry in Middle East has outpaced competition as a result of greater connectivity, global partnerships and aggressive strategies of healthy regional carriers. At an average annual growth rate of 7.6 percent, the total aircraft movements in the Gulf region are expected to jump to 2.3 million. By 2020, the Gulf airports are estimated to handle 250 million passengers. The airports in Dubai, Abu Dhabi and Doha are believed to dominate growth as the region’s aviation hubs.
Boeing is optimistic that they will sell about 24,670 new airplanes in this segment because of strong performance by carriers in emerging markets and the dominance of low-cost carriers. The plane maker expects to sell about 8590 units of widebody aircraft, such as 747-8, 777 and 787 Dreamliner. The demand would be created as airlines look to replace their fleets with new, more fuel-efficient airplanes.