The global general aviation market made new highs and reached its pinnacle in 2008, crashed drastically since then and breached in 2015. However, the future looks promising because of the emerging markets across the globe, which will drive the general aviation market.
In 2016, the market was valued at USD 24.8 billion and is expected to register a CAGR of XX%, during 2017-2022 (the forecast period).
Long Range Business Jet Remains the Cash Cow
The Bombardier focuses on shipping 135 business aircraft in 2017, an increase from 163 business jets delivered in 2016. The company is in the process of launching potentially game-changing aircraft, Global 7000, in 2018, which will have a maximum range of 13,705 km. Furthermore, this launch is a year away and in 2016, Gulfstream G650 ER controlled the market by delivering 88 units. This category holds high potential in the general aviation market, as it saves time without compromising luxury and comfort.
Global Passenger Air Traffic in Billions
Regional Market Overview
North American region is witnessing the majority of sales, among other markets. The United States accounted for about 50% of the aviation aircraft that was sold, worldwide in 2016. Countries like India and China have potential to be the future leaders in the global general aviation market.
The major roadblocks for the Indian general aviation market growth are the stringent regulatory norms, expensive services, and lack of infrastructures to support such aircraft. However, this situation is changing, for instance, building the first heliport in Delhi, India, will boost the Indian helicopter market and thus, accelerate the general aviation sector. The penetration of rotary wing in civil aviation, though is quite substantial in North America, Europe, and some countries of Latin America, is negligible in countries like India where the lack of connectivity and airports make helicopters more useful. This is expected to be a major propellant for the helicopter industry in developing economies.
Business jet contributes to the highest revenue in the market and accounted for about 3/4th of the share in 2016 and expected to continue in future. Large cabin jets are preferred due to their fuel efficiency. Despite lower economic status in poor countries, the affluent classes have high purchasing power; thus, most of the sales are of high-value, long-range large-cabin jets.
The New Aircraft Forecasted to be the Leader of General Aviation?
Cobalt’s Valkyrie, piston engine aircraft is expected to bring revolutions, as it is the fastest single piston engine aircraft at a price slightly under USD 1 million. The aircraft, in terms of design, woes the customers and further offers comfort, safety, and robustness. Looks of the aircraft are futuristic with military fighter jet like exterior, which are expected to grab a lot of attention from customers. As the aircraft makes it way towards its final FAA airworthiness certification, the global business jet and small aircraft manufacturer will be focusing to get close to the Cobalt competition. Interestingly, Cobalt features an airframe parachute available on order at an extra cost of USD 40,000. This configuration seems to be inspired from Cirrus aircraft that features a similar airframe parachute as standard equipment for light aircraft. Cobalt is all set to manufacturer the Valkyrie aircraft for, both, North American and European markets, where the demand is growing since the launch of Valkyrie aircraft.
The Cobalt Valkyrie
Source: Cobalt Aircraft
Major Aircraft Manufacturers Include:
While Honda Jet, Piper, Cobalt are the few emerging contenders in the global market.
Questions Answered in the Report