The Asia-Pacific General Aviation market is set to reach USD 3,384 million by 2026, growing at a CAGR of 6.84% over the forecast period 2021-2026. The COVID-19 pandemic has led the governments of several countries to impose travel restrictions and lockdown measures, affecting the business travel and tourism sectors in the region.
New York, Nov. 22, 2021 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Asia-Pacific General Aviation Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” – https : //www.reportlinker.com/p06184940/?utm_source=GNW
While the situation improved at the end of 2020, the short-term pandemic has impacted the end-user demand for aircraft in the region. Orders and deliveries decreased in 2020. This, coupled with a decline in demand from the Chinese market, has resulted in a short-term decline in revenues from the general aviation market.
Asia Pacific, which has some of the fastest growing economies in the world, has witnessed a sharp increase in the HNWI population over the past decade. At the same time, demand for general aviation aircraft, especially business jets and helicopters, has grown over the years in the region.
Charter companies in the region are constantly expanding their routes and adding new aircraft to their fleet, driven by the growing need for non-scheduled business trips. This has contributed to the demand for business jets and turboprops in the region. On the other hand, demand for light sport and trainer aircraft remained high in the region, contributing to the overall growth of the general aviation fleet.
Key Market Trends
Business Jet segment dominates the market
The business jet segment currently has the largest share of all segments and is also expected to experience significant growth in the region over the next decade, with growth primarily driven by new models entering service. The high demand for business jets in Asia-Pacific comes from China, Australia and India, which together account for about 2/3 of the region’s demand per year. In addition, the demand for business jets in Southeast Asia is growing, especially for the large and medium-sized jets category. The growth in travel and tourism has contributed to the growth of business jet purchases in ASEAN countries in recent years. Gulfstream, Bombardier and Textron are currently some of the top business jet sellers in the Asia-Pacific region. Despite a decline in sales volumes over the past two years, business jet manufacturers view countries such as China and India as lucrative markets for business jets. While charter flight activity experienced significant growth in the first half of 2020, as the pandemic played a critical role in popularizing corporate jets, private buyers were reluctant to purchase new jets in 2020, negatively impacting orders in 2020 Demand is expected to increase in the coming years as increasing charter activity and business travel in the region is expected to lead to new orders and deliveries. In the first quarter of 2021, Embraer announced the delivery of a new Phenom 100EV to an undisclosed Australian customer. With the increasing demand from end users, OEMs are also expanding their customer support and service capabilities in the region, which is also expected to fuel the growth of the business jet market in the region during the forecast period.
China had the largest market share in 2020
Currently, China generates the highest revenues in the Asia-Pacific general aviation market. China is witnessing an increase in the number of developments in the field of general aviation. The growth of the general aviation sector can be attributed to the implementation of the Chinese government’s 13th Five-Year Plan (2016-2020) which set out its commitment to encourage and attract private investment in airports, flight schools, FBOs and MROs. As a result of government initiatives, the number of general aviation airports in China has grown to 339 in 2020 from the previous statistics of 170 certified airports in 2010. Healthy economic growth and the growing number of high net worth individuals in China have significantly increased over the years. led to an increase in the number of corporate jets operating in the country. Companies such as Gulfstream and Bombardier operate most of the charter fleet in China. However, the recent downturn in the economy has caused the demand for business jets in the country to decline in the near term. On the other hand, the increasing demand for pilot training is driving new aircraft orders from pilot training institutes. In this regard, Textron Aviation received a contract from Sichuan Longhao Flight Training in October 2021 to provide 20 Cessna Skyhawk piston aircraft by the end of 2022. In addition, the demand for helicopters has also risen in the country, encouraging OEMs to gain new models and market share. For example, in December 2020, the Aviation Industry Corporation of China (AVIC) unveiled the AC332, a multi-purpose helicopter for civilian use. Such developments are expected to fuel the growth of the general aviation market in the country in the coming years.
Bombardier Inc., Embraer SA, Textron Inc., Gulfstream Aerospace Corporation and The Boeing Company are some of the prominent players in the general aviation market in Asia-Pacific. Players will focus on expanding their fleet service support capabilities in the region, which will help provide better after-sales support, enabling them to attract new buyers. For example, in October 2020, Bombardier Aviation announced the development of a new service center in Melbourne, Australia, which will bolster its customer support network in the region. The new facility will provide MRO services, a parts depot and an internal fixed-based operation (FBO) for Bombardier’s fleet in Australia and also in the Asia-Pacific region. Companies are also improving their product offerings by unveiling new models. In October 2021, Gulfstream unveiled two new business jets, the long-haul G800 and the smaller G400. Gulfstream plans to start customer deliveries for the G800 in 2023 and for the G400 in 2025. Such developments are expected to aid the growth of the market players during the forecast period.
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