Global Business Jet Market Shows Recovery
Since the economic slowdown in 2008, the global sales of business aircraft have been less than 50% of the annual sales in 2007; however, as aircraft fleets get older, and the economy improves, pent-up demand will stimulate purchases.
New analysis from Frost & Sullivan’s Global Business Aircraft Market finds the market earned revenue of $19.28 billion in 2013 and estimates this to reach $25.74 billion in 2020.
Asia-Pacific, China, India and the Middle East will witness significant growth, although North America and Europe will remain the largest markets, according to the report.
“The operating efficiency of novel designs is driving the global business aircraft market,” said Frost & Sullivan Aerospace and Defense Research director Wayne Plucker. “The procurement of large airframes, in particular, is at record levels and will continue to rise.”
In addition, innovation in the global industry has taken a hit as consolidation activities gather momentum and competition weakens. Acquisitions and business failures have reduced the number of market participants, and the larger companies that remain are reluctant to take risks with new designs. In fact, aircraft manufacturers are focusing on improving production rates, as their traditional metrics do not work well in the low end of the production spectrum.
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