Asia-Pacific General Aviation Market

Description

The demand for aviation in the Asia Pacific region is on the rise and it continues to increase due to the increasing population. At the moment the region has 359 airlines operating in 1207 commercial airports, executes about 6247000 flights and transports about 779 565 798 passengers a year. At the current rate Asia Pacific is expected to become the second largest region for air traffic, accounting for more than one third of the total global passenger traffic.

Market Dynamics

The main factor for the growth of the General Aviation market is the tremendous growth in interest of the general public. Another factor is the growing number of millionaires and High Net Worth Individuals (HNWIs). However, factors like stringent regulatory norms, expensive services, and lack of infrastructures to support such aircraft are expected to hinder the growth of the industry. However, this situation is changing, for instance, India, will boost the Indian helicopter market by building the first heliport in Delhi and thus, accelerate the growth of general aviation sector.

Another important component of the general aviation aircraft is the Turboprops. There is expected to be a rise in the number of annual shipments of turboprop aircraft by 2020, and the Asia-Pacific region will contribute close to 1/3rd of the market share

The Cessna 208 is the most popular turboprop aircraft and is expected to sell a good number this year. Asia Pacific will be the fastest growing market for Turboprops, whereas they would register a sharp fall in the North American and European market as the markets reach the saturation point there.

Market Segmentation

On the basis of type, the global general aviation market has been segmented into single engine piston, two-engine piston, turboprop, business jets and gliders. Business jets hold the major shares in the market and dominate the General Aviation Market. Business jets segment was worth $21 billion globally in 2014. Large Cabin, Medium and Small Cabin Jets are the three broad categories of business jets. It is estimated that there will be a decline in the market share of Business Jet Market of North America, which holds more than half of the Business Jet Market. That share will be mostly captured by Asia Pacific who will be the fastest growing regions in the world.

Regional Analysis

Geographically the Asia-Pacific market is segmented into regions of China, India, Malaysia, Vietnam, Indonesia, Philippines and Sri Lanka. China and India hold the major shares in the market. India is expected to become the third largest aviation market in the coming years.