The South America aviation market is expected to register a CAGR of 7% during the forecast period, 2018 to 2023, with general aviation market segment in South America expected to reach USD 1.46 billion by 2023. General aviation covers a broad range of activities, both commercial and non-commercial, including sports aircraft, flying clubs, flight training, agricultural aviation, and light aircraft manufacturing amongst others. General aviation forms a considerable component of any national airspace and airport system. As a result, insight into general aviation industry is relevant to issues in air traffic management, air transportation infrastructure, and aviation safety, among others.
Beyond the operational aspect, general aviation is of significance to society as a whole and other stakeholders, including pilot groups, aircraft manufacturers, and the workforce. The performance of general aviation industry is measured using various parameters such as active pilots, new airplane deliveries, number of airports, etc. The market is influenced by several factors such as the health of global economy, technology disruption, the price of avgas, and jet fuels, regulatory standards, etc. Increasing number of passengers using chartered jet, travel and tourism are some of the drivers identified in the current market. Embraer is one of the dominant players in the South America Market, with its range of Business jets selling in high numbers, especially in Brazil. The large cabin jets are performing the best in the market, with an increase in their penetration into newer markets, such as Venezuela, Peru, and Colombia. The penetration of rotary wing is quite substantial in some South American countries like Brazil. Sao Paulo is considered as the helicopter capital of the world owing to the presence of one of the highest number of helicopters per capita in the world. However, in countries apart from Brazil, the penetration of Rotary wing aircrafts is quite low, hence presents an opportunity for global aircraft manufacturers to provide services in this region.
Source: Mordor Intelligence Analysis
Commercial aircraft sector
Economic reforms, notably in Argentina and Brazil, are expected to stimulate domestic economies and improve the outlook for the region with a GDP growth rate of 3 percent. The Pacific countries of Chile, Colombia and Peru are expected to grow at a higher-than-average GDP rate due to pro-business environments. Due to the steady growth in traffic, the Argentine government in March 2018 announced its plan to invest USD 750 million for airport expansion. Single-aisle jets are expected to make up the majority of new aircraft growth in the next twenty years in Latin America. Branded carriers expanding beyond national borders are forecast to figure prominently in this growth benefitting from movement towards an open-skies policy in the Latin America aviation market. Widebody demand is also expected to increase, with at least 200 new jets.
Key Developments in the Market
- December 2017: Belavia Belarusian Airlines has placed an order for an additional E195 aircraft that is expected to be delivered by the mid of 2018. This firm order follows a previous aircraft order of two jets- the E195 and E175 by the Belarusian Airlines. The E195 aircraft is expected to replace the ageing Boeing 737-500 aircraft in Belavia’s fleet.
- December 2017: Aerolíneas Argentina received its first Boeing 737MAX and flew the aircraft from Buenos Aires' Ezeiza International Airport (EZE) to Mendoza in western Argentina. Aerolíneas became the first airline in Latin America to operate a MAX aircraft.
Key players: ATR Aircraft, Textron Aviation Inc., Airbus, Boeing, Embraer S.A, Bombardier Inc., Pilatus Aircraft, and Gulfstream amongst others.
Reasons to Purchase this Report
- The report analyses how the changing oil prices and increasing climate change concerns will impact South America general aviation market.
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- Detailed analysis of the aircraft type that is expected to dominate the market.
- Detailed analysis of the regions that are expected to witness fastest growth during the forecast period.
- Identify the latest developments, market shares and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet in excel.
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1.1 Scope of the Study
1.2 Market Definition
1.3 Executive Summary
2. Research Methodology
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Research Phases
3. Market Insights
3.1 Current Market Scenario
3.2 Industry Attractiveness - Porter's Five Forces Analysis
3.2.1 Bargaining Power of the Suppliers
3.2.2 Bargaining Power of the Consumers
3.2.3 Threat Of New Entrants
3.2.4 Threat Of Substitute Products and Services
3.2.5 Competitive Rivalry Within the Industry
4. Market Dynamics
4.1.1 Replacement Of Aging Aircraft
4.1.2 Increase in the Global air Passenger Traffic
4.2.1 Rising Safety Concerns
4.2.2 Fluctuating Aviation Fuel Prices
4.3.1 Increased Technological Integration
5. South America Aviation Market, Segmented By Type
5.1 Commercial Aircraft
5.1.1 Passenger Aircraft
5.2 Military Aircraft
5.2.1 Combat Aircraft
5.2.2 Non-Combat Aircraft
5.3 General Aviation
5.3.2 Piston Fixed Wing
5.3.4 Business Jet
6. South America Aviation Market, Segmented By Country
6.5 Rest of South America
7. Competitive Landscape
7.2 Market Share Analysis
8. Company Profiles
8.1 ATR Aircraft
8.2 Textron Aviation Inc.
8.3 Airbus S.A.S.
8.5 Embraer S.A
8.6 Bombardier Inc.
8.7 Pilatus Aircraft
8.8 General Dynamics Corporation
8.9 Dassault Aviation
8.10 Lockheed Martin Corporation
8.12 Northrop Grumman Corporation
9. Future Market Outlook