Market Trends of Southeast Asia Business Jet Industry
This section covers the major market trends shaping the Southeast Asia Business Jet Market according to our research experts:
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 on acquiring ultralong-range jets for business and leisure travel applications. During 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 delivered to customers.
Furthermore, as of June 2022, more than 50% of the fleet of large jets in the region was used for private travel of individuals (HNWIs, UHWIs, and others), companies, and other end-users. On the other hand, most 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 as owners 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.
Singapore is Expected to Witness Significant Growth During Forecast Period
Singapore is a significant hub for business and leisure travel in Southeast Asia. The decrease in tourism due to the COVID-19 pandemic 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 the charter and end-user segments. This is expected to increase further in 2022 as the country announces reopening its borders for foreign visitors and organizing 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, 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 jets, are expected to propel the market growth in the country.
