South America General Aviation Market - Opportunities, trends and Challenges (2018-2023)
General Aviation includes all aviation activities except those of scheduled commercial airlines and the military.
This 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 the 17 million mark. This statistic holds true for the South America region where the disposable incomes are rising rapidly.
United States accounted for more than 65% of the Aviation Aircraft sold across the world in 2014, with 1,529 units as compared to 823 units sold across the rest of the world. But that market is getting saturated, and South America will be a major contributor to the general aviation market going into the future.
The Global Business Jet Market Currently is a $21 Billion Market and it contributes the highest revenue in the General Aviation Market Business Jets sector; moreover, Business Jet Market is poised to show one of the fastest growth rates in the future as well. The three broad categories of business jets are Large Cabin, Medium and Small Cabin Jets. Embraer is one of the dominant players of the South America Market, with its range of Business jets selling in high numbers, especially in Brazil.
The Large cabin jets are currently performing the best in the market, with an increase in their penetration into newer markets and in margins and sales. However, 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. Moreover, another reason for this trend is that the Customers from developing or poor countries, who seek to buy a business jet fall into the affluent category, prefer to buy a large cabin jet instead of cheaper small ones. Hence, the large cabin jets continue to enjoy strong demand.
The Range of the Business Jet market is huge and goes from a relatively affordable $4.5 million (HA-420 Honda Jet) to upwards of 400 million dollars (Boeing Business Jets). 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.
The penetration of rotary wing is quite substantial in certain countries of Latin America like Brazil, Currently, Sao Paulo is considered as the helicopter capital of the world due to the presence of one of the highest number of helicopters per capita in the world. But in other countries apart from Brazil, the penetration of Rotary wing aircraft is quite low, hence presents a good opportunity for global aircraft manufacturers and OEMS to set up base to service this region.
The South American Aviation Market was affected adversely by the financial crisis which had originated in the United States and the sales were impacted adversely by the same, but since then the market has recovered, and rising income levels in the continent will ensure good growth of the aviation sector in the years to come.
What the report offers
Market analysis for the South America General 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 South America General 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