Market Research Report
North America General Aviation Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence Pvt Ltd||Product code||357676|
|Published||Content info||80 Pages
Delivery time: 2-3 business days
|North America General Aviation Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: August 1, 2020||Content info: 80 Pages||
The North America general aviation market is anticipated to register a CAGR of over 2% during the forecast period.
Business Jet Segment Dominates the Market
In 2019, the Business Jet segment was evaluated to have the largest share in the general aviation market, and it is expected to continue its domination during the forecast period, due to an increase in the number of HNWIs who are the main buyers for the aircraft. North America is the largest contributor to HNWI growth in the past decade. The growth of the business jet market is also due to the development of ultra-long-range jets that can travel almost halfway around the world, presenting fresh possibilities in personal and business travel. The rapid introduction of new aircraft programs and the emergence of innovative business models that new operators and user-friendly technologies are helping transform business aviation and enhance its accessibility and affordability. Business jets offer passengers with certain distinctive advantages over commercial aviation, including convenience, schedule flexibility, and safety. Several new variants and models of business jets are anticipated to be released by aircraft manufacturers trying to deliver premium luxury to their buyers. On this note, in 2019, Bombardier launched the Global 7500, featuring four true living spaces, a full-size kitchen, and a dedicated crew suite. Similarly, in 2018, Embraer launched the Praetor line of business jets, the Praetor 500, and Praetor 600. The company successfully delivered three Praetor 500s and 13 Praetor 600s in 2019. Such developments are envisioned to drive the growth prospects of the business jets segment of the market in focus during the forecast period.
United States is Anticipated to Continue its Dominance During the Forecast Period
The United States is anticipated to have a major share during the forecast period, due to the presence of many HNWIs, increasing demand for newer generation aircraft, and the evolution of new aircraft ownership models have propelled the business prospects of the market players in the United States. Also, the growth of tourism in this region is mainly driving the market. Charter services are expanding their routes and presence, which is attributing the growth of the market. Additionally, to fulfill the demand of consumers in this region, air-charter operations have undertaken a fleet-modernization initiative, which has resulted in the dispersal of several contracts for procuring new business jets. For instance, in October 2019, Embraer SA signed USD 1.4 billion deal with Flexjet, a leading charter operator in the US, for delivering the Praetor Jets, and Phenom 300. The aircraft modernization plans are enhancing market growth as well. For instance, in December 2019, United Airlines planned to replace some of its aging Boeing 757s and 767s with newer generation aircraft like Boeing 787 or long-range A321LR. This can be attributed to the growth in air passenger traffic, and airline companies are mainly focusing on the passenger travel experience. Additionally, purchasing new business jet models that can offer more comfort, range, and space at lower costs drives market growth. Such developments are expected to help the growth of the market in the region in the years to come.
The prominent players in the North America General Aviation are Embraer SA, Airbus SE, Textron Inc., Bombardier Inc., and The Boeing Company. As the market competition is high, aircraft OEMs are working toward developing new aircraft models that can offer more comfort, range, and space, at lower costs. However, with technological advancement and product innovation, mid-size to smaller companies increase their market presence by securing new contracts and tapping new markets. For instance, in February 2020, Bombardier Inc. signed an agreement to sell its rail division to Alstom SA in a deal worth approximately USD 4.5 billion. Before the deal, Bombardier had a debt of about USD 9 billion. In February, the company announced its plans to focus on its business aviation and aftermarket business, despite the recent reports that the company was in talks with Textron to sell its business jet unit.
As the market competition is high, aircraft OEMs are working toward developing new aircraft models that can offer more comfort, range, and space, at lower costs. In January 2020, Embraer SA announced that its Phenom 300E had become the first single-pilot jet to reach Mach 0.80 and receives performance, comfort, and technology enhancements, including predictive wind shear and a runway overrun awareness and alerting system, and the noise-reduction improvements lower overall in-flight. The emergence of charter flights is also bolstering the demand for general aviation aircraft in North America. Such developments are envisioned to render a favorable growth environment for the market in focus during the forecast period.