Market Research Report
Asia-Pacific General Aviation Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||938000|
|Published||Content info||85 Pages
Delivery time: 2-3 business days
|Asia-Pacific General Aviation Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: May 1, 2020||Content info: 85 Pages||
The Asia-Pacific general aviation market is estimated to register a CAGR of over 4.5% during the forecast period, 2020 - 2025.
Business Jet Segment Dominates the Market
Currently, the business jet segment has the highest share out of all the segments. The increasing number of ultra-high net worth individuals in Asia-Pacific is leading to a growth in this segment. Asia-Pacific with its large population and wealth is in a good position to quickly tackle flexibility issues to empower efficient business travel throughout this rapid-growth region. Organizations including ASEAN and APEC working with the International Civil Aviation Organization (ICAO), the International Business Aviation Council (IBAC) and the Asian Business Aviation Association (AsBAA) continuously raise the importance of improving transportation regulations to implement efficient solutions. The total Asia-Pacific business jet fleet was 1,155 aircraft in 2016, as reported by the Asian Sky Group. Overall in 2018, the region added 112 aircraft (57 new and 55 preowned) and as of June 2018, there were 311 business jets in the Asia-Pacific region used for the charter, which was a 5% increase from the 296 business jets used for charter in 2016. The 311 business jets represented 26% of the total regional fleet. Business jet deliveries in China witnessed a decline, owing to poor domestic growth and poor business confidence, in terms of business jets. Although there was a decline in the number of business jets, various business jet companies in China are confident of having new aircraft deliveries in 2019, since the country is one of the main markets for the business jet in the Asia-Pacific region. The market is expected to grow in the Asia-Pacific region as falling prices of pre-owned corporate aircraft are making operating leases more attractive for buyers. Likewise, factors, such as the growing interest in business jets and increasing business jet utilization, may lead to focus on this segment, and this may be the reason for its expected high CAGR.
China is Expected to Witness the Highest Growth
Currently, China is generating the highest revenue in the Asia-Pacific general aviation market. China is witnessing an increase in the number of developments related to general aviation. Additionally, there is strong growth of part 91 aircraft owners in China, who are offering charter services. On the other hand, healthy economic growth, and the growing number of high-net-worth individuals in China have significantly led to the growth in the number of business jet operating in the country. Moreover, according to data published by Asian Sky Group, companies, such as Gulfstream and Bombardier, operate the majority of the charter fleet in China. Besides, China is also one of the fastest-growing countries for general aviation helicopters, and in 2018, the country witnessed growth in general aviation helicopters, owing to government support and increased interest from leading foreign OEMs. Moreover, according to the Civil Administration of China (CAAC), the country licensed 93 new general aviation airports in 2018, thus making the total number of general aviation airports in China amounting to 173. The number of general aviation airports had increased ever since, at the end of July 2019, the total number of general aviation airports was 239. Additionally, according to the Aviation Industry Corporation of China (AVIC), general aviation aircraft population is expected to reach 20,000 by 2035 and the various significant changes, such as growth in short-distance transportation, low-altitude airspace tourism, and business trips, may lead to a growth in the Chinese general aviation market.
Various players, such as Bombardier Inc., Dassault Aviation SA, Textron Inc., Gulfstream Aerospace Corp., Leonardo SpA, and Boeing, occupied significant share in the Asia-Pacific General Aviation Market. Various initiatives, as well as product innovations undertaken by companies, have strengthened their presence in the market. Bombardier business jets are best suited for the Asia-Pacific region, offering an impressive range and incomparable luxury, as it offers access to a world-class service center in Singapore. Bombardier in February 2019 announced a major investment in enhancing its Singapore service facility. According to the company after renovation Singapore Service Centre will quadruple its existing footprint, adding a paint facility and parts depot, and expand the full-service interior finishing shop. The expanded Singapore Service Centre will support more than 2,000 visits annually. The service center is expected to be fully operational in the second half of 2020. Bell Helicopters, a subsidiary of Textron Inc. reported that it has plans to strengthen its presence in South Asia and may introduce the Bell 525 helicopter in Malaysia.