Middle-East Aviation Market - Segmented by Aircraft Type, Application, and Country - Growth, Trends, and Forecast (2018 - 2023)
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 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.
The demand for commercial aircraft has been on a rise since 2011, mainly with the advancement in technology and the introduction of fuel-efficient aircraft. Also, the recent focus towards the reduction in emission has also forced several airline operators and private jet owners to procure newer generation aircraft. Airbus and Boeing have an order backlog in excess of 10,000 aircraft which represents almost 5 - 7 years worth of production. So during the forecast period, irrespective of the actual scenario, commercial jets will see impressive levels of growth.
The defence expenditure also is expected to rise significantly in the coming future in this region despite the significant fall in the oil prices, as the states look to better counter high levels of terrorism and levels of insurgency in the region.
The aviation market in this region was increasing at a very rapid pace until 2013 when the oil prices were going steady and at record highs. But the oil prices have crashed since then which has affected the finances of the states greatly. Most of the countries in the region can balance their budgets when the price of oil is near to $100 per barrel mark, but with the oil prices close to $50 per barrel, the level of disposable income has reduced which has greatly affected the aviation market. However, due to the geographic location, the demand for aircraft will be high in the coming years. Saudi Arabia is anticipated to lead the market both in civil aviation as well as military aviation expenditure.
Key Players: Airbus, Boeing, Gulfstream, Bombardier, Embraer, among others.
January 2018: Emirates placed an orderfor 36 additional A380 aircraft worth USD 16 billion. The order includes 20 firm orders and 16 aircraft as options.
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