The Asia-Pacific turboprop aircraft market is expected to exhibit a CAGR of more than 2% during the forecast period (2020 - 2025).
- The Asia-Pacific countries such as India, Japan, China, etc. are increasing their defense spending to strengthen the cargo and troop transportation capability of their respective air forces. This factor is driving the market growth for turboprop aircraft such as C-130J Super Hercules and A400M Atlas in the region.
- The rise in air passenger traffic in the region is pushing the development of new small and medium-sized airports in countries such as India and China. Due to the new short-distance routes between provinces, states, and cities, many low-cost carriers are opting for turboprop aircraft owing to their cost-effectiveness.
- The general aviation industry in Asia-Pacific is on the rise owing to the growth and development of the business ecosystem and the rise in the disposable income of people. Asia-Pacific region accounted for 14.6% of global general aviation turboprop aircraft deliveries in 2019 and this share is expected to go up during the forecast period.
Key Market Trends
Commercial Aviation Segment to Exhibit the Highest Growth Rate
The rise in the disposable income of people and subsequent growth of the aviation sector in the region is driving the growth of turboprop aircraft. In the future, nearly 40 percent of global airliner production will come from Asia-Pacific. Markets such as Vietnam, Indonesia, the Philippines, etc. have performed significantly well in the aviation sector during the past few years. Many airlines have emerged to serve the regional aviation needs in countries such as India. The Revenue Passenger Kilometers (RPK) grew by 4.5% in May 2019 compared to a growth of 2.4% in April of the same year. India exhibited an RPK growth rate of 6% in 2019 compared to 2018 whereas Japan’s RPK exhibited a year-on-year growth rate of nearly 7% in 2019. India’s low-cost career IndiGo inducted 8 new ATR aircraft since June 2019 and currently operates a fleet of 25 ATR aircraft while expecting a delivery of 25 more ATRs. Another regional low-cost airline Trujet is also planning to acquire 5 more ATR 72 aircraft to its existing fleet of 5 aircraft. While the South Korean aviation industry is affected by the COVID-19 pandemic outbreak, new budget carrier Hi Air Co. announced its plan to acquire 2 new ATR aircraft by the end of 2020. In 2019, Nepal’s Buddha Air also added 2 new ATR-72 aircraft in its existing turboprop fleet of 12 aircraft. While the commercial aviation segment in Australia exhibited an RPK growth of just 1.1% in 2019, the general aviation segment in the country is rising. In 2019, Textron Aviation sold 5 domestically built King Air 350 aircraft to Pel-Air for air ambulance service. The aforementioned factors are driving growth of turboprop aircraft market in the region.
China to Exhibit Significant Growth During the Forecast Period
China is exhibiting the largest growth rates in air passenger traffic and aviation infrastructure development in the Asia Pacific region. Nearly 20% of the future airliners will be produced in China and this is significantly propelling the domestic market growth of turboprop aircraft in the country. In 2020, China will be using more domestically developed aircraft mainly for domestic aviation and short distance international flights. MA700 twin-engine turboprop aircraft developed by AVIC XAC Commercial Aircraft Company Limited is expected to take its maiden flight in 2020. China has already received nearly 285 domestic and international orders for MA700 aircraft. The business environment is starting to normalize after the COVID-19 outbreak in China and work has also resumed on the development of China’s short-haul turboprop aircraft. The aforementioned factors are significantly driving the market growth for turboprop aircraft in China.
The turboprop aircraft market in Asia-Pacific is consolidated with players such as ATR, Textron Aviation, Lockheed Martin Corporation, AVIC, etc. dominating the market. The market in Asia-Pacific is witnessing growth and many global players are planning to set up manufacturing facilities and sales and distribution centers in the region owing to the availability of low-cost labor. Main revenue-generating strategy of key players is winning contracts for aircraft from airlines, governments, businesses, etc.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support