New York, Nov. 22, 2021 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication 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 at the end of 2020, the pandemic affected the region’s end-user demand for aircraft in the short term. Orders and deliveries have seen a decline in 2020. This, coupled with a reduction in demand from the Chinese market, has led to a short-term decline in general aviation market revenues.
Asia-Pacific, home to some of the fastest growing economies in the world, has seen a surge in the population of HNWIs over the past decade. Simultaneously, the demand for general aviation aircraft, especially business jets and helicopters, has increased in the region over the years.
Charter operators in the region are constantly expanding their routes and adding new aircraft to their fleet, driven by the growing need for non-scheduled business travel. This has contributed to 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 in the region, contributing to the overall growth of the general aviation fleet.
Main market trends
The business jet segment dominates the market
The business jet segment currently holds the highest share of all segments and is also expected to experience significant growth in the region over the next decade, with this growth mainly driven by the entry into service of new models. The main demand for business jets in Asia-Pacific comes from China, Australia and India, which together account for around 2/3 of the region’s demand each year. Additionally, demand for business jets in Southeast Asia is growing, especially for large and midsize jets. Growth in travel and tourism has contributed to the growth of business jet purchases in ASEAN countries over the years. Gulfstream, Bombardier and Textron are currently among the leading vendors of business jets in the Asia-Pacific region. Despite declining sales volumes over the past two years, business jet manufacturers view these countries, such as China and India, as lucrative markets for business jets. Although charter flight activity saw 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 purchase new jets in 2020, which had a negative impact on the number of orders in 2020. Demand is expected to increase in the coming years as increased charter activity and business travel to the region is expected to propel new orders and deliveries. In Q1 2021, Embraer announced the delivery of another Phenom 100EV to an undisclosed Australian customer. With the growing 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 generates the highest revenue from the general aviation market in Asia-Pacific. 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 Chinese government’s Thirteenth Five-Year Plan (2016-2020) which underlined its commitment to encourage and attract private investment to airports, flight schools , FBOs and MROs. As a result of government initiatives, the number of general aviation airports in China has increased to 339 in 2020 from the previous statistics of 170 certified airports in 2010. Healthy economic growth and the growing number of wealthy people 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 in domestic business jet demand. On the other hand, the growing demand for pilot training is encouraging new orders of aircraft from pilot training institutes. On that 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. In addition, the demand for helicopters has also seen an increase in the countries, encouraging OEMs to launch new models and gain 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 propel 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 major players in the general aviation market in Asia-Pacific. The players are focusing on expanding their fleet service support capabilities in the region, which will help offer better after-sales support, thereby helping them attract new buyers. For example, 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, parts depot and in-house Fixed Base Operation (FBO) for Bombardier’s fleet in Australia and the Asia-Pacific region. Companies are also enriching their product offerings 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 customer deliveries for the G800 in 2023 and for the G400 in 2025. Such developments are expected to help market players grow over the forecast period.
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