A weaker global economic outlook in 2016 is likely to impact on the world market for business jets. However, a slight improvement in 2017 is forecast followed by significant growth from 2018. Services for business jets, such as maintenance and upgrades, are forecast to grow.
That’s according to the “Annual Strategy Guide – 2016 – World’s Top 5 Business Jet Manufacturers – Gulfstream, Bombardier, Dassault, Embraer, Textron Aviation – Strategic Focus & Priorities, Key Strategies & Plans, SWOT Analysis, Key Trends, Market Outlook” produced by analysts Research and Markets.
The global market for business jets was worth $21.5 billion in 2014 with aircraft delivery numbers in 2014 registering a 6.5% year on year growth.
Delivery numbers for the first three quarters of 2015 have been decent with a 4.3% year on year growth in business jet deliveries spurred by new jet certifications.
The reports says demand projections for 2016 are looking tough with a weaker global macroeconomic outlook and complex as well as challenging global geo-political environment. Continued economic contraction in Brazil for the consecutive three quarters in 2015 and slowdown in China are adding further to the woes.
However, long term demand drivers & market fundamentals for business jets remain robust and firmly in place indicating towards sustained, steady demand growth for business jets over medium to long term, says the report’s authors.
Additionally, the market dynamics for business jets are likely to witness major transformation with the era of supersonic business jets likely to become a reality towards the early 2020s with a number of industry OEMs, led by Gulfstream and Aerion.
- Global business jet fleet to grow at mid single-digit growth rate through 2025
- Heavy jet segment to lead demand growth over next decade
- Introduction of new aircraft programs by OEMs, accelerated aircraft retirements & technologies development to be key demand growth drivers for new business jets over medium term
- North America to lead aircraft deliveries over next decade followed by Europe amongst traditional markets while China and Latin America to lead demand growth amongst emerging markets
- Analysis of Bombardier’s strategy of deepening local roots across emerging markets and scaling up of services portfolio while it revives its regional aircraft business
- Analysis of Gulfstream’s strategy of steady product portfolio broadening, expansion of geographic footprint & rapid expansion of technological capabilities
- Likely emergence of supersonic business jets by early next decade to transform market dynamics & landscape significantly.
Key topics covered:
- Business structure & snapshot
- Financial performance snapshot: charts & analysis for each company
- Strategic positioning & SWOT analysis for each OEM
- Strategic focus & priorities for all 5 OEMs
- Key strategies & plans for each OEM
- Strategic business outlook for 2016 for each OEM
- Global business aircraft market: force field analysis, analysis of driving & restraining forces and overall dynamics as well as impact
- Key industry, market & technology trends and potential impact
- Key issues, challenges & risk factors
- Strategic market outlook – business jets – 2016-2025.