[ 英語タイトル ] Southeast Asia Aviation Market - Growth, Trends, and Forecasts (2020 - 2025)

Product Code : MDAD0086259

Survey : Mordor Intelligence

Publish On : November, 2020

Category : Aerospace and Defence

Study Area : South Korea

Report format : PDF

Sales price option (consumption tax not included)

[Report Description]

The Southeast Asia Aviation Market is projected to grow with a CAGR of more than 4.5% during the forecast period.

- The gradual growth in air passenger traffic (more than 4% growth y-o-y) in the region is propelling the procurement and expansion plans of the airlines in the region.
- The increasing military spending of the countries in this region is driving the procurement of new combat aircraft, trainer aircraft, and other aircraft to strengthen their aerial combat and transport capabilities.
- With support from the government, the southeast Asian countries are also enhancing their aviation infrastructure to support future growth.
- Amid the COVID-19 pandemic, the air passenger traffic in countries like Vietnam, Cambodia, the Philippines, and Thailand have witnessed 34%, 34%, 36%, and 40% decline respectively. This decrease in passenger traffic, as well as load factor, will affect the revenues of the airlines which will have a subsequent effect on the future expansion and procurement plans in the coming years.

Key Market Trends

Commercial Aircraft Segment Accounted for a Major Market Share in 2019

The commercial aircraft segment held the highest market share in 2019. This is majorly due to the procurement of new aircraft by the airlines to cater to the growing air passenger traffic. The growth in passenger traffic is primarily due to the increase in the disposable income of the people in the region as well as the growth in the tourism sector of various countries like Indonesia, Thailand, the Philippines, and Singapore, among others. Airlines like Vietnam Airlines, Garuda Indonesia, and Singapore Airlines have aircraft on order planned for deliveries during the forecast period as part of their expansion and fleet modernization plans. As part of the fleet modernization plan, Thai Airways plans to phaseout some of the Boeing 747-400s and Boeing 777s in the coming years and order for 15 newer generation aircraft. Such fleet expansion and modernization plans are anticipated to propel the growth of the segment during the forecast period.

Singapore is Anticipated to Experience Significant Growth During the Forecast Period

Singapore is one of the major aviation hubs in the Southeast Asia region. Singapore's Changi Airport, one of the busiest airports in the world, witnessed an increase of 16.35% in the passenger traffic during the 2016 - 2019 period. The airport handled 62.22 million, 65.63 million, and 68.3 million passengers in 2017, 2018, and 2019, respectively. Singapore Airlines, the national flag carrier of Singapore, has plans to retire ten Airbus A330-300s, seven Boeing 777-200s, and four Boeing 777-200ERs and introduce sixteen Airbus A350-900s and six Boeing 787-10s. As of February 2020, about 150 aircraft were on order, scheduled to be delivered during the forecast period. Similar to its commercial aviation industry, military aviation has been growing gradually due to the increase in military spending. Singapore’s military spending in 2019 was USD 11,211 million, which is a 3.47% increase compared to the previous year. Recently in February 2020, the US government approved the sales of 12 F-35 aircraft to the Singapore Air Force. These fighter aircraft are expected to replace Lockheed Martin F-16C/D in the coming years. Earlier in 2016, the Republic of Singapore Air Force (RSAF) selected the Airbus Helicopters H225M and Boeing CH-47F Chinook to recapitalize its medium- and heavy-lift military helicopter fleet. Such procurements and deliveries are expected to accelerate the growth of the market during the forecast period.

Competitive Landscape

The aviation market in Southeast Asia has huge potential as several countries are looking to enhance their commercial and military aviation fleet. The aviation market in this region is dominated by foreign players. Some of the prominent players in the market are The Boeing Company, Airbus SE, Lockheed Martin Corporation, Textron Inc., and Rostec. Foreign companies are also considering these countries to set up new manufacturing facilities for parts and components. This will help the local aerospace companies to collaborate with foreign players to extend their market presence and to gain new contracts. In August 2019, Airbus Helicopters opened its new regional completion and delivery center (CDC) in Subang, Malaysia. According to Airbus, the new facility can simultaneously accommodate up to four medium-size helicopters and is capable of completing and delivering up to 20 helicopters annually. Likewise, in August 2019, PPG announced its plan to invest USD 15 million in a new 38,750-square-foot (3,600-square-meter) application support center (ASC) near the Seletar Airport in Singapore. The new center will accommodate the increased demand for aerospace sealants and coatings.

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- The market estimate (ME) sheet in Excel format
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