Asia-Pacific Aviation Market - Growth, Trends and Forecast (2018 - 2023)
Asia, in the present scenario, is one of the biggest aviation markets worldwide. China, India, and other emerging countries in the region contribute significantly to the growth of the Asian aviation market. The significant increase in the aviation industry in the Asia- pacific region has been largely due to regional economic growth, market liberalization, as well as new technologically enhanced airplanes leading to further market opportunities, and successful evolution of new business models.
General aviation is a significant component of any national airspace and airport system. As a result, insight into the general aviation industry is relevant to issues in air traffic management, air transportation infrastructure, and aviation safety, among others. Beyond the operational aspects, general aviation is of significance to the society as a whole and other stakeholders, including pilots groups, aircraft manufacturers, and the workforce. The performance of the general aviation industry is measured using various parameters, such as active pilots, new airplane deliveries, number of airports, etc. The market is influenced by several factors, such as the health of global economy, technology disruption, the price of avgas, and jet fuels, regulatory standards, etc. Increasing number of passengers using chartered jet for travel and tourism are some of the drivers identified in the current market.
Asia-Pacific: the Growth Engine of Global General Aviation
The Asia-Pacific business jet market contracted in 2017, owing to a decline in the production of turboprop aircrafts. However, Asia-Pacific remained as the second-largest market for turboprop shipments in 2016. Furthermore, poor connectivity between the metros and smaller cities is the main reason behind people opting for private jets as well as helicopters. China put special emphasis on general aviation in its 13th Five-Year Plan (2016-2020). The plan focused on six major points: safety, economic contribution, service level, an efficient airport network, the promotion of general aviation, and green development. HNA General Aviation Investment Group is targeting strategic investments across rural China in the building and management of airports, logistics infrastructure, and tourism activities. The helicopter market in China and India is equally promising, with growing requirement in tourism, mining, corporate travel, air ambulance, and homeland security.
Many developing countries are aspiring to keep pace with the demands of modern security challenges and technological advancements that have become widely accepted in developed markets. Additionally, Southeast Asian countries are upgrading their military capabilities, in order to protect their assets. Indonesia, for instance, has doubled its spending for military upgradation in the past five years, whereas Cambodia and Laos are expanding their budgets more slowly.
Modernization and the replacement of aging fleets is taking place at a rapid pace. Southeast Asia—Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam— is now among the top defense spenders globally. These countries have collectively doubled their military spend between 1992 and 2012. Countries have recognized the urgency, and significant investments were expected through 2017. Philippines, for instance, has awarded contracts to replace its aging UH-1 Huey helicopters with eight AgustaWestland-109 utility helicopters. Vietnam is purchasing 12 Sukhoi SU-30MK2V fighters and related equipment from Russia, to augment its existing fleet of 12 Sukhoi SU-27 and 12 Sukhoi SU-30MKs. Singapore recently announced its intention to invest USD 2.43 billion to modernize its F-16 fighter jets.
Key Developments in the Market
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