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As the global economy is getting more and more connected, aviation industry is becoming one of the most important and fastest growing transportation sectors. 

The aviation industry stands for $2.7 trillion (3.6%) of the world's gross domestic product (GDP) and is anticipated to register a CAGR of more than 3% between 2019 and 2025.

It consists of three segments: Commercial Aircrafts (Passengers, Freight), Military Aircrafts (Combat and Non-combat aircrafts) and General Aviation (Business jets, Turboprop and helicopters).

The commercial aircraft segment accounted for more than half of the market revenues on 2019. Over the course of the next 20 years, the global commercial aircraft fleet is expected to double to approximately 45.000 aircraft, a growth particularly driven by increased air travel due to an expanding middle class in emerging economies. However, this tendency might have been affected by the recent Covid-19 pandemic. The military aircraft segment is anticipated to grow, however, slower than the commercial aircraft segment. The growing concern over aviation emission has shifted the focus of manufacturers toward the development of all-electric aircraft. New electric aircraft models are being developed to be used as a flying taxi. The growth of flying taxis is expected to increase the demand for the general aviation market in the future.*

Commercial aviation is expected to see new innovations getting implemented in aircraft design, which are expected to change the meaning of safety, comfort, and efficiency for both, passengers and commercial aircraft manufacturers.

Challenges within the Aviation sector

Due to the high growth in the market the aviation industry is facing a high competition, a key challenge will be to support production growth while maintaining quality and keeping cost under control, this can only be done by focusing on optimizing the supply chain.

A second challenge is to reduce CO2 emissions. Aviation contributes to two percent of human-made carbon dioxide emissions. The industry has challenged itself to reduce net CO2 emissions even while demand for air travel and transport grows significantly. The demand for Electric Aircrafts and lighter airplanes with less fuel consumption will surely increase in the coming years to help the Industry reach its goal of halving net CO2 emissions by 2050 compared to what they were in 2005

How can DS Smith support?

In the last 25 years, partnering with key players in the Aviation market, has given us a deep understanding of the needs and challenges faced day by day. Supported by our Circular design principles we can go far beyond the standard packaging solution. Combining the knowledge of your supply chain and linking with multi material design capability enables us to provide you your dedicated packaging which will reduce your total cost of ownership and environmental impact all over the globe.  


*Source: https://www.mordorintelligence.com/industry-reports/aviation-market