Reading time ( words)
The global business aircraft market fell after the economic downturn in 2008, sustained only by sales in the heavy aircraft segment. The market is now showing substantial signs of recovery, maintained by the medium jet market. North America and Europe will remain the largest markets, even as Asia-Pacific, China, India and the Middle East become significant growth centers.
Analysis from Frost & Sullivan, Analysis of the Global Business Aircraft Market, finds the marketearned revenues of $24.55 billion in 2014 and estimates this to reach $27.94 billion in 2020. The study covers heavy, medium, light and turboprop aircrafts.
"Business aircraft manufacturers can finally profit from the demand that has intensified as businesses waited for an improvement in the economy," said Frost & Sullivan Aerospace and Defense Director Wayne Plucker. "While the heavy aircraft segment will maintain production levels, the light aircraft market will experience a rapid growth in the near future."
Global economic conditions continue to be the most notable challenge to the industry. While North American sales have improved, revenues in Europe are still restrained. European purchases, especially for heavy and medium aircrafts, will pick up as the economy improves and the need for replacements rekindles consumer confidence.
In Asia, unsuitable business models and government restrictions affect sale volumes, although booming economies should suggest strong growth. Social and governmental restrictions inhibit revenues in the Chinese market.
"Chartered, leased and fractional business models will be impacted as companies look to reduce costs," remarked Plucker. "As the economy stabilizes, the operating efficiency of innovative designs will push sales and pilot the global business aircraft market to new heights."
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.