The world’s third largest aircraft maker, Embraer has forecast demand for over 10,950 airplanes worth over $650 billion in the next 20 years.
The forecast is contained in its 20-year Market Outlook for the commercial aircraft segment up to 150 seats.
The report highlights the importance of fleet flexibility and rising demand for smaller aircraft by global carriers as a major drive to achieve sustainability.
Embraer believes that over the next two decades, there will be continuous growth in the worldwide demand for air travel.
The prediction is measured by revenue passenger kilometers (RPK), which Embraer believes will grow 3.2 per cent yearly over the next 20 years.
The latest report is a slight decrease from the aircraft manufacturer’s forecast last year, which projected a growth rate of 3.3 per cent. The reason for the prediction of weaker growth, the sircraft maker said is a near-term deceleration of the global economy; the effects of the COVID-19 pandemic, and the impact of the Russia-Ukraine conflict.
Embraer also believes that RPKs will return to 2019 levels by 2024.
The Brazilian plane manufacturer also believes that digitalisation and regionalisation will play a significant role in the demand for smaller aircraft. The COVD-19 pandemic led many companies to allow employees to work from home.
Although there are many companies requiring employees to return to the office, there is a large number of people who continue to work from home. In addition to digitalisation, Embraer believes regionalisation – localising production- will lead to an increase in demand for smaller-capacity aircraft.
The market report reads: “Sustainability is a word that is constantly mentioned in the aviation industry as airlines and manufacturers are making commitments to being more sustainable.
“New green technologies tend to focus on smaller-capacity aircraft where innovations are refined before introduction on larger platforms.
“In this context, smaller airplanes are a key element for more sustainable air travel while also enhancing connectivity.”