Boeing Forecasts Growth In Aerospace Services Market
…Projects Expansive Services For Next 10 Years To Worth $2.6T
…Seals Deal With UPS To Convert Three 767 Passenger Aircraft To Freighters
Boeing has released a forecast for aerospace services demand, projecting the need for expansive services over the next 10 years, valued at $2.6 trillion.
The company released its Services Market Outlook today at the Paris Air Show.
The outlook shows the tremendous potential for growth in the aerospace services markets Boeing serves, including: maintenance, engineering and upgrades, information services and analytics,training and professional services
According to Boeing ,the trends in commercial and government aircraft and services show customers are relying on technology and data to drive smarter business decisions and improve the commercial passenger experience, as well as war fighter safety and effectiveness.
It added that advances in connectivity are also making it easier to predict and respond to the forces that impact the success of aircraft and those they serve.
According to the President and CEO of Boeing Global Services,Stan Deal, “It is clear that our customers, in both commercial and government sectors, are searching for more efficient ways to keep their fleets operating and ready for use in an age of rapid technological advancement.”
Boeing Global Services is the entity’s new dedicated services business focused on the needs of global defense, space and commercial customers.
The forecast shows that while North America and Europe will remain the largest commercial services markets, the fastest growth over the next 10 years will occur in Asia, adding that overall, Boeing expects the total commercial aviation support and services 20-year market to be worth almost $8.5 trillion between 2017 and 2036.
“As commercial airline fleets continue to grow worldwide, demand for aftermarket services designed to increase efficiency and extend the economic lives of airplanes will follow,” Deal said.
In government services, growth of the United States market—currently the largest individual market—will remain flat. But international markets adding rotorcraft and commercial derivative aircraft, led by Middle East and Asia-Pacific customers, are expected to grow.
Continuing Deal said,”Government aviation services are expected to significantly outpace overall fleet growth, driven in large part by sustainment and modernization requirements around the globe,” Deal said. “Using our distinct advantage of drawing upon expertise in both areas allows Boeing Global Services to provide the very best value to our customers while continuing to invest and grow in the services marketplace.”
Boeing’s Services Market Outlook is a long-term forecast, serving to guide long-term business planning, as well as share Boeing’s view of industry trends.
In another development,Boeing and UPS have announced an order at the 2017 Paris Air Show(PAS) to convert three 767 passenger airplanes into Boeing Converted Freighters.
Speaking on the deal, UPS Airlines President Brendan Canavan, said, “The purchase and conversion of these 767s is a perfect example of how UPS is making smart investments to fuel profitable growth. This extension of our relationship with Boeing will help expand the safe, reliable and on-time services we provide for our customers all over the world.”
UPS and Boeing have collaborated on airlift since 1981, when UPS purchased its first 727s to begin its Next Day Air operation, and the transportation giant was Boeing’s launch customer for the 767 freighter in 1995.
Through its freighter conversion programme, Boeing transitions passenger airplanes into freighters, extending the economic life of the airplane.
On his part, President and CEO, Boeing Global Services, Stan Deal, said, “It’s a privilege for us to supply and support UPS with Boeing Converted Freighters . With more than 40 years of experience in passenger-to-freighter conversions, Boeing has a deep understanding of the needs of the air cargo industry. This order is an endorsement of the value of that knowledge and the customer service experience we provide.”
Boeing’s current market outlook forecasts a need for 400 wide-body conversions over the next two decades, with strong demand for 767 freighter conversions due to a rise in e-commerce and the express market.
UPS is a global leader in logistics, offering a broad range of solutions including transporting packages and freight, facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide.
UPS operates 184 Boeing aircraft.
In October, 2016 UPS announced the purchase of 14 747-8 Freighters, with options to purchase 14 additional aircraft.
Boeing is a leader in providing 24/7 support and service to the global aviation industry.
In addition to designing freighter conversions, Boeing offers the industry’s largest portfolio of services including interior modifications, aftermarket parts, subscription-based maintenance programs, engineering support, crew training, route planning, digital crew scheduling, advanced data analytics and software to enhance airlines and leasing company operations.