|By PR Newswire||
|February 27, 2014 09:47 PM EST||
-- Fueled by national economic growth and the increasing accessibility of air transport services, the total traffic for the region will grow 6.3 percent annually
SINGAPORE, Feb. 28, 2014 /PRNewswire/ -- The Asia Pacific region is set to be the largest market for new commercial aircraft with orders expected to top 12,820 by 2032. This figure is significantly more than those of from Europe and North America respectively, markets which traditionally do well but have become saturated.
Subhranshu Sekhar Das, Director, Aerospace & Defense Practice, Frost & Sullivan Asia Pacific said, "The popularity of cheap, short-range travel within the region is a major reason for this strong growth. Results from the recent Singapore Airshow further demonstrated this – with US$32 billion in deals, largely from emerging Asian low-cost carriers looking to meet this demand."
The aerospace manufacturing industry is also expected to receive a boost from this. It is expected that the narrow and wide body market will generate close to US$5 trillion over 20 years, with new programs and players entering the market. The key challenge in this area will be the entry of the supply chain due to certifications.
Key players in this market include major companies such as Bombadier, Embraer and Sukhoi and emerging companies such as Regio Aviasi Industri (Indonesia), United Aircraft Corporation and Hindustan Aeronautics (HAL).
Maintenance, Repair and Operations (MRO)
Asia's booming aviation market has also created valuable opportunities for the MRO market, with more aircraft requiring maintenance services. However, this has also led to greater challenges, especially in the area of supply chain and inventory management. To resolve this, SAP companies will need to develop specific modules for MRO operations. This follows the development of the major trends in the MRO market, according to Das.
He said, "The two key trends we see is the adoption of new business models by legacy MROs and OEMs taking on an integrator's role to provide the after-sales services. These changes can be attributed to increasing OEM involvement and changing technologies."
The Asia Pacific region is set to become the epicenter of Aviation. As early as 2009, Asia had overtaken North America to become the largest air travel market with 647 million passengers.
With this positive showing, airport development has also progressed rapidly. However, most airports in the APAC region are facing capacity constraints, a situation which is being rectified by airport expansion and construction at several major Asian cities such as Singapore and Bangkok. This move is also beneficial to consumers, as airports seek to balance the objectives of meeting capacity needs with that of an enhanced customer experience.
Chris de Lavigne, Global Vice President, Consulting Practice for Frost & Sullivan Asia Pacific, is optimistic about the development.
He says, "Airports are moving towards a more customer-centric focus with investments in non-aeronautical revenue generating sources such as carpark rentals, F&B outlets, retail stores and other sources of passenger entertainment."
Airports are also looking to invest in a wide variety of areas to help them overcome various challenges that they face. These will include infrastructure development, information technology and non-aero revenue.
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