Asia pacific Aviation Market - Opportunities, Trends and Challenges (2018-2023)
Asia Pacific Aviation Market Aviation is the art of aeronautics which includes building, operating machines which can take flight. There are basically two broad categories of aviation Civil Aviation which includes both General Aviation and Scheduled air transport and military aviation.
The General Aviation sector is showing tremendous growth due to growing interest of the general public. Another factor is the growing number of millionaires. The numbers of millionaires in the world are rising at a tremendous pace. The number of millionaires in the world increased by more than 13% in 2015, as compared to 2014, taking the total number past 17 million mark. In China alone, the number rose by 25% in 2015, only second to the United States. It is projected that the millionaire population would contribute half of the world’s income by 2019. This statistic presents a tremendous opportunity for the players of General Aviation Market, with Asia Pacific Region witnessing huge growth over the forecast period on account of rising number of millionaires and high growth economies of India and China.
United States accounted for more than 65% of the General Aviation Aircraft sold across the world with 1,529 unites while 823 units were sold across the rest of the world, which is extremely low. India and China have huge potential to be future market leaders and that would drive the demand for general aviation aircraft’s over the coming years.
The Business Jet Market Currently is a $21 Billion Market and in the General Aviation Market Business Jets contributes the most revenue and it is this sector which is poised to show one of the fastest growth rates in the future also. The three broad categories of business jets are Large Cabin, Medium and Small Cabin Jets.
The Large cabin jets are currently performing the best with increase in the penetration into newer markets, increase in margins and sales, whereas the small cabin jets or the light jets continue to face an uphill battle on all the fronts. The Launch of the HA-420 Honda Ultra Light Jet priced at just $4.5 Million has further intensified the battle in this category.
Another Reason for this trend is that the Customers from Asia Pacific region who seek to buy a business jet fall into the Ultra Rich Category and prefer to buy a large cabin jet instead of cheaper small one hence the large cabin jets continue to enjoy strong demand.
In 2014 there were a total of 722 Business Jets manufactured worldwide and considering their average costs are the most valuable component of the General Aviation Market with annual billing of $22,015 million.
There has been a global boom in demand for commercial jets, starting from 2011, which happened because of introduction of new technology which enabled jets to record superior levels of efficiency. 3 years back, the price of ATF was at its peak, so efficiency considerations played a huge part in buying decisions. The demand is so much that there have been huge levels of backlog. Airbus and Boeing have an order book in excess of 10,000 aircraft which represents 10 years worth of production. So at least for the next 10 years, irrespective of the actual scenario, commercial jets will see impressive levels of growth. Indigo of India recently made a mammoth purchase of 250 Airbus A320 neo jets, which has further boosted the market.
The Military Turbine Fixed Wing Market is also showing tremendous growth due to massive spending by Emerging Economies like India, China, and Russia. India recently placed an order for 6 Lockheed Martin Super Hercules Aircraft and the Boeing P8i Orion Maritime Surveillance aircraft thus reaffirming the potential of the growth story of military aviation. Australia was only the 2nd country in the world after India to be able to purchase the state of the art P8 Orion Maritime Patrol Aircraft.
The penetration of rotary wing in civil aviation though quite substantial in North America, Europe and in certain countries of Latin America but is negligible in countries such as India where the lack of connectivity and airports make helicopters very useful. One of the reasons for that are strict and unrealistic regulations and laws. But once they are relaxed India offers a huge opportunity for the Rotary Wing Sector.
The global aviation market was affected adversely by the financial crisis and in some places like India still hasn’t recovered but with the worst behind it is expected to boom and offers massive opportunities to all the players involved.
What the report offers
Market analysis for the Asia Pacific Aviation Market, with region specific assessments and competition analysis on global and regional scales Market definition along with the identification of key drivers and restraints Identification of factors instrumental in changing the market scenarios, rising prospective opportunities, and identification of key companies that can influence this market on a global and regional scale Extensively researched competitive landscape section with profiles of major companies along with their market shares Identification and analysis of the macro and micro factors that affect the Asia Pacific Aviation Market on both global and regional scales A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information A wide-ranging knowledge and insights about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market Insights on the major countries/regions in which this industry is blooming and to also identify the regions that are still untapped