According to a ReportBuyer post, the global business jet market continues to be weak amid an unusual, sustained cyclical trend which has affected demand levels for new business jets globally with the industry delivery volumes staying far below the pre-crisis levels on a routine basis with this becoming the new normal for industry.
The significant competitive pressures from used jet inventory, fastidious buying behavior from businesses and downturn in the global energy sector have been impacting demand for new jets as reflected in the order intake and book to bill ratios across most key industry OEMs over the recent years.
The market, however, has shown signs of a slow movement towards stabilizing and recovery in 2017 with a spurt in activity level for the first half of the year despite continued pressure from the used jets market. The aircraft utilization levels across most operators and users, however, remain at a pretty good level, thereby, driving the requirements and revenues from aircraft service and aftermarket activity for the industry. Further, regulatory mandates, like the FAA’s upcoming ADS-B requirement and aircraft upgrades are likely to drive the aircraft modernization & upgrade activity over near term translating into a fillip for the industry value chain.
The industry OEMs, however, are taking a long-term view of the market with continued pursuit of R&D activity focused on technological evolution and new aircraft development programs aimed at the long anticipated demand upturn. For instance, supersonic business jets, powered by the under development supersonic flight technologies meeting regulatory requirements, are likely to become a reality towards the early-to-mid-2020s and are likely to alter the dynamics of business travel fundamentally while transforming the market landscape subsequently.
Additionally, there has been a significant focus among industry OEMs on trimming and ultra-efficient cost base management as mandated by the prevailing difficult market environment. The long-term demand drivers and market fundamentals for business travel, however, remain intact, robust and firmly in place indicating towards sustained, steady demand growth for business jets over medium-to-long term.
Against this backdrop, the report analyzes the Global Business Jet market with focus on a blend of quantitative and qualitative analysis. Part 1 of the report analyzes the current market size, drivers and competitive landscape for business jets. Part 2 provides detailed analysis on key industry OEMs, including, product portfolio, financial analysis, SWOT framework analysis and key insights into the strategies and plans being chalked out by these OEMs. Part 3 projects the likely market evolution over medium-term with analysis of key market and technological trends, issues and challenges, market developments and potential growth opportunities which could be leveraged by the industry value chain. The report concludes by analyzing market evolution and projecting demand outlook for business jets over the next decade while also mapping out as to how are the industry OEMs likely to be placed in the emerging market dynamics and demand scenario over the next decade.
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