Honeywell has released its 27th annual Global Business Aviation Outlook, which predicts that up to 7,700 news business jets will be delivered between 2019 and 2028 at a value of US$251bn, up 1-2% from the 2017 10-year forecast.
According to the report, operators plan to make new jet purchases equivalent to about 20% of their fleets over the next five years as replacements or additions to their current fleet, an increase of 1% compared with the 2017 survey results.
Of the total purchase plans for new business jets, 14% are expected to occur by the end of 2019, while 16% and 24% are scheduled for 2020 and 2021, respectively.
“A better used-aircraft market environment coupled with the entry into service of many new business jet platforms will lead to higher deliveries in 2019 after a virtually flat year in 2018,” said Bill Kircos, vice president, global marketing, Honeywell Aerospace.
“We are excited about the used market and about new and innovative aircraft models that will not only drive solid growth in 2019 and 2020, but also have a significant impact on new business jet purchases in the midterm and long term.”
The report revealed that operators will continue to focus on larger-cabin aircraft classes, ranging from the super mid-size through ultra-long range, which are expected to account for more than 87% of all expenditures of new business jets in the next five years.
The longer-range forecast through 2028 projects a 3-4% average annual growth rate as new models, improved economic performance and anticipated favorable exchange rates for international customers will contribute to industry growth.
Purchase plans are higher in North America this year than last, and increased significantly in Europe, with slow economic growth and geopolitics affecting plans in Latin America, Middle East and Asia-Pacific.
For more information on Honeywell’s predictions for the next 10 years, click here.