The Asia-Pacific General Aviation Market is poised to reach USD 3384 million by 2026, registering a CAGR of 6. 84% during the forecast period 2021-2026. The COVID-19 pandemic has resulted in the governments of several countries imposing travel restrictions and lockdown measures, which has affected the business travel and the 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
Although the situation improved by the end of 2020, the pandemic has affected the aircraft demand from the region’s end-users in the short term. The orders and deliveries have witnessed a decline in 2020. This, coupled with a reduction in demand from the Chinese market has resulted in a short-term decline in the general aviation market revenues.
Asia-Pacific, which has some of the fastest-growing economies in the world, has witnessed a sharp increase in the HNWI population in the last decade. Simultaneously, the demand for general aviation aircraft, especially business jets and helicopters, increased in the region over the years.
Charter operators in the region are constantly expanding their routes and are adding new aircraft to their fleet, driven by the growing need for non-scheduled business travel. This has helped the demand for business jets as well as turboprops in the region. On the other hand, the demand for light sport and trainer aircraft remained high from the region, thereby contributing to the overall general aviation fleet growth.
Key Market Trends
Business Jet Segment Dominates the Market
The business jet segment currently has the highest share out of all the segments and also is expected to experience significant growth in the region over the next decade, with the growth, primarily due to new models entering the service. Major demand for business jets in Asia-Pacific is from China, Australia, and India, which together account for about 2/3rd of the region’s demand each year. In addition, the demand for business jets in Southeast Asia is growing, particularly for the large and medium-size category jets. Growth in travel and tourism has helped the growth in the procurements of business jets in the ASEAN countries over the years. Gulfstream, Bombardier, and Textron, currently, are some of the major sellers of business jets in the Asia-Pacific region. Despite a dip in the sales volumes in the last two years, business jet manufacturers are considering the countries, like China and India, as lucrative markets for business jets. Although the charter flight activity experienced significant growth in the first half of 2020, as the pandemic played a pivotal role in popularizing business jet travel, private buyers were reluctant to buy new jets in 2020 which had a negative impact on the number of orders in 2020. The demand is expected to increase in the coming years, as the increasing charter activity and business travel in the region is expected to propel new orders and deliveries. In the first quarter of 2021, Embraer announced the delivery of another Phenom 100EV to an undisclosed Australian customer. With increasing demand from end users, OEMs are also expanding their customer support and service capabilities in the region, which is also expected to propel the growth of the business jet market in the region during the forecast period.
China Held the Largest Market Share in 2020
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. The growth of the general aviation sector can be attributed to the implementation of the Thirteenth Five-Year Plan (2016-2020) of the Chinese Government that outlined its commitment to encourage and attract private investment towards airports, flight schools, FBOs, and MROs. As a result of the 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 led to the growth in the number of business jets operating in the country over the years. Companies such as Gulfstream and Bombardier operate most of the charter fleet in China. However, the recent downturn in the economy has resulted in a short-term reduction of business jet demand in the country. On the other hand, the increasing demand for pilot training is encouraging new aircraft orders from pilot training institutes. On this note, in October 2021, Textron Aviation received a contract from Sichuan Longhao Flight Training to deliver 20 Cessna Skyhawk piston aircraft by the end of 2022. Besides, the helicopter demand has also witnessed a rise in the country, encouraging OEMs to release new models and gain market share. For instance, in December 2020, the Aviation Industry Corporation of China (AVIC) unveiled the AC332, a multi-purpose, civilian use helicopter. Such developments are expected to propel the growth of the general aviation market in the country in the years to come.
Bombardier Inc., Embraer S.A., Textron Inc., Gulfstream Aerospace Corporation, and The Boeing Company are some of the prominent players in the Asia-Pacific general aviation market. Players are focusing on expanding their fleet service support capabilities in the region, which will help offer better aftersales support, thereby helping them attract new buyers. For instance, in October 2020, Bombardier Aviation announced the development of a new service center in Melbourne, Australia, which will enhance its customer support network in the region. The new facility will provide MRO services, a parts depot, and an in-house fixed-based operation (FBO) for the Bombardier fleet in Australia and well the Asia-Pacific region. Companies are also enhancing their product offering by unveiling new models. In October 2021, Gulfstream unveiled two new business jets, the long-range G800, and the smaller G400. Gulfstream plans to start the customer deliveries for the G800 in 2023 and for the G400 in 2025. Such developments are expected to help the growth of the players in the market during the forecast period.
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