African aviation industry to hit $400 bn valuation by 2040
Africa’s commercial aviation market is projected to hit a valuation of $400 billion by 2040, requiring about 63,000 new professionals over the next 20 years, according to new market outlook by aviation vessel manufacturer, Boeing.
.Boeing stated in its outlook that the growth would be driven by key economic growth indices including increased trade, more travel agreements and a considerable increase in the region’s middle class.
With the growing economically empowered population, it said, consumption of air travel services would be on the rise, requiring proportionate demand for some 63,000 new operating and technical staff like including pilots, technicians and cabin crew members.
This is one of the key growth projections that were made about the continent’s commercial aviation industry by American aircraft manufacturer Boeing, as contained in its recently released Commercial Market Outlook.
According to the forecast which was obtained by Business Insider Africa, Africa’s commercial aviation market will be valued at a whopping $400 billion by 2040. And in line with this projected growth, airlines on the continent will acquire about 1, 030 new airplanes that will be valued at $160 billion.
“Africa has healthy opportunities to expand travel and tourism, coinciding with increasing urbanization and rising incomes. African carriers are well-positioned to support inter-regional traffic growth and capture market share by offering services that efficiently connect passengers and enable commerce within the continent,” said Boeing’s Managing Director of Commercial Marketing for Middle East and Africa, Randy Heisey.
Some of other factors that are expected to help drive Africa’s commercial aviation growth are the continent’s projected 3% economic growth over the next two decades, the African Continental Free Trade Area (AcfTA) and Single African Air Transport Market which are all expected to encourage cross-border trade and travels.
Also note that Africa’s middle class is expected to increase significantly during the forecast period, thereby driving up the need for air travel. As a matter of fact, annual passenger traffic is projected to grow by 5.4%, the third highest growth rate in the world according to Boeing.
In line with the foregoing therefore, African airlines will need to recruit 19,000 new pilots, 20,000 technicians and 24,000 cabin crew members between now and 2040. In the same vein, they will systematically increase their fleet size by 3.6% in order to accommodate the expected increase in air travelers.
