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The Southeast Asia Business Jet Market is expected to register a CAGR of more than 10% during the forecast period (2022-2027).
Due to the COVID-19 pandemic, the commercial aviation industry in the region was severely impacted leading to increased demand for charter and private travel in the region. Despite the increase in demand for charter and private travel in the region, overall business jet activity in 2020 remained lower than pre-pandemic levels. The business jet activity gradually began to recover in 2020 and is expected to increase further in the coming months due to the opening of borders for international tourism. This is expected to boost the business jet activity, thereby generating demand for new business jets in the coming years.
The Southeast Asian countries have become some of the major tourist hotspots in the world, prior to the pandemic. With the market recovering from the pandemic impact, new charter and private travel operators are entering the market and many charter operators are introducing new charter routes in the region. This factor is generating demand for fuel-efficient business jets during the forecast period.
Over the past few years, total number of high-net-worth individuals (HNWI) and ultra-high-net-worth individuals (UHNWI) has witnessed a robust growth in the region. This is expected to propel the demand for business and private travel, thereby driving the procurement of private jets with enhanced cabin interiors.
Scope of the Report
A business jet or a private jet is an aircraft that is turbofan-powered and is designed to transport small groups of people. The scope includes the procurement of business jets purchased by individuals (such as VIPs, athletes, and government officials), corporates, governments, and charter service providers. The report excludes helicopters used for business travels.
By aircraft type, the market is segmented into light jets, mid-size jets, and large jets. The report also covers the market sizes and forecast for the business jet market in major countries of the Southeast Asia region. The market sizing and forecast have been provided in value (USD million).
|Rest of Southeast Asia|
Key Market Trends
Large Jets Segment held the Largest Share in 2021
The large jets segment currently dominates the market and is expected to continue its dominance over the market during the forecast period. The demand for large jets in the region is higher primarily due to the focus of the private and charter companies to acquire ultralong-range jets for business and leisure travel applications. During the period of 2018 – 2021, large jets accounted for over 75% of the total deliveries with Gulfstream G650ER and Bombardier’s Global 7500 and Global 5000 being some of the prominent models that were delivered to customers. Furthermore, it can be noted that as of June 2022, more than 50% of the fleet of large jets in the region is used for private travel of individuals (HNWIs, UHWIs, and others), companies, and other end-users. On the other hand, the majority of the business jets in operation (over 90%) are wholly owned by aircraft operators. However, it is expected that the fractional ownership of jets may rise in the coming years as owners will try to avoid overhead costs and choose shared aircraft because of the market's economic downturn and uncertainties. Such factors are anticipated to boost the market's growth during the forecast period.
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Singapore is Expected to Witness Significant Growth During Forecast Period
Singapore is a significant hub for business and leisure travel in the Southeast Asia region. The decrease in tourism due to the COVID-19 pandemic impact has led to a significant decrease in business jet activity in the country. However, the tourism sector recovered significantly in 2021, thereby increasing the business jet activity from charter and end-user segments. This is expected to further increase in 2022 as the country announced to reopen its borders for foreign visitors as well as organize several exhibitions, events, conferences, and other activities in the coming months. Furthermore, in 2021, the HNWIs and UHNWIs population in the country increased by 6% and 9%, respectively compared to the previous year. This increase in tourism and HNWI is expected to generate demand for leisure and business travel in the country. Yugo Global Industries Pte. Ltd, a Singapore-based private aviation platform, has robustly expanded its customer reach and fleet from 2020 to 2021 amid the pandemic. The company’s fleet comprises 47 ultra-long-range jets, 16 large jets, 17 mid-size jets, eight light jets, and two business liners. To further increase its presence in the charter services market, in June 2021, the company introduced new charter routes in Cambodia, Malaysia, the Philippines, and Thailand. The investments into the development of infrastructure for business aviation, as well as the gradual recovery in flight activity of business jet, are expected to propel the market growth in the country.
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The prominent players in the Southeast Asia market are Bombardier Inc., Dassault Aviation SA, Embraer SA, General Dynamics Corporation (Gulfstream Aerospace Corporation), and Textron Inc. Gulfstream delivered the highest number of business jets in 2021 followed by Bombardier and Dassault Aviation. The companies are developing new and advanced business jet models with enhanced cabin interiors and better fuel efficiencies. For instance, Dassault Aviation unveiled Falcon 10X in May 2021 which features a large cabin with a long-range of 7,500 nautical miles. The aircraft is integrated with the new generation Rolls-Royce Pearl 10X (that can deliver more than 18,000 pounds of thrust) and the cockpit includes the next-generation Digital Flight Control System and FalconEye combined vision system. Such innovations are expected to attract new potential customers, which may help the aircraft OEMs increase their presence in the region in the coming years. The aircraft OEMs are developing new strategies to capture the growing market opportunities in the region.
In June 2022, Bombardier announced that the company delivered the first Global 7500 business jet to an undisclosed customer based in Jakarta, Indonesia.
In March 2022, Sun Group, Vietnam-based leisure, and infrastructure investment company, announced the launch of Sun Air, a new business aviation company that provides private jet charter and aircraft management services. The company will initially deploy two Gulfstream G650ER jets in the third quarter of 2022 and later introduce Gulfstream G700 and other aircraft by 2025.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD million, 2018 - 2027)
5.1 Aircraft Type
5.1.1 Light Jets
5.1.2 Mid-size Jets
5.1.3 Large Jets
5.2.6 Rest of Southeast Asia
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Airbus SE
6.1.2 The Boeing Company
6.1.3 Bombardier Inc.
6.1.4 Dassault Aviation SA
6.1.5 Embraer SA
6.1.6 General Dynamics Corporation
6.1.7 Textron Inc.
6.1.8 Honda Aircraft Company
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Southeast Asia Business Jet Market market is studied from 2018 - 2027.
What is the growth rate of Southeast Asia Business Jet Market ?
The Southeast Asia Business Jet Market is growing at a CAGR of 0% over the next 5 years.
Who are the key players in Southeast Asia Business Jet Market ?
Bombardier Inc., Dassault Aviation SA, Embraer SA, General Dynamics Corporation , Textron Inc. are the major companies operating in Southeast Asia Business Jet Market .