The commercial aviation and services market will continue to face "significant challenges" due to the coronavirus pandemic, a report from aerospace giant Boeing (BA) - Get Report said Tuesday, while global defense and government services markets remain more stable.
The 2020 Boeing Market Outlook forecast a total market value of $8.5 trillion over the next decade including demand for aerospace products and services, down from $8.7 trillion a year ago due to the impact of the Covid-19 pandemic.
“We’re a long way from the bottom, which was mid-April, and it’s a long way back from here to full recovery,” Darren Hulst, Boeing’s vice president of commercial marketing, told reporters.
The report, Boeing's first market forecast since the outbreak ravaged the travel industry, said that airlines globally have begun to recover from a greater than 90% decline in passenger traffic and revenue early this year, but a full recovery will take years.
A spokesperson for Airbus, Boeing’s European rival, told Bloomberg that "in the current, unprecedented context, it is too early for Airbus to issue a new forecast."
Boeing's outlook said that planemakers will deliver 18,350 commercial airplanes in the next decade - 11% lower than the comparable 2019 forecast - valued at about $2.9 trillion.
Longer term, Boeing said, the commercial fleet is expected to return to its growth trend, generating demand for more than 43,000 new airplanes in the 20-year forecast time period.
The Boeing report also projected a $2.6 trillion market opportunity for defense and space during the next decade.
This spending projection reflects the ongoing importance of military aircraft, autonomous systems, satellites, spacecraft and other products to national and international defense.
The demand continues to be global, the report said, with 40% of expenditures expected to originate outside of the United States.
The report forecast a $3 trillion market opportunity for commercial and government services through 2029, "with digital solutions emerging as a critical enabler as customers focus on leaner operations to adjust to future market demand."
Shares of the Chicago-based Boeing were down 3.14% to $165.84.