Good News on Listing | Frost & Sullivan Assists Xirui Aircraft Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (2507.HK)

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Overview of the Global General Aviation and Private Aviation Markets

General aviation refers to all aviation except military and scheduled commercial routes. In terms of delivered aircraft, general aviation is the largest aviation market in the world. In 2023, the global general aviation market delivered a total of 3,050 new aircraft, with a total value of delivery of about $23.4 billion.

General aviation includes private aviation and commercial aviation. Private aviation refers to non-commercial flight activities using fixed-wing general aviation aircraft, including self-driving flights and flight training. The private aviation aircraft market includes aircraft for individual customers such as private owners, instructors, and individual flight enthusiasts; while the commercial aviation market includes aircraft used for companies, charter services, and other professional purposes (such as agricultural operations, firefighting, disaster relief, and environmental protection).

The global general aviation market is divided by region, with North America (the United States and Canada) always being the largest regional market for general aviation. Its mature infrastructure enables general aircraft to serve the needs of flexible travel more widely. For example, the United States has more than 5,100 public airports, and the number of general aviation fleets and airports far exceeds that of other countries, promoting the widespread use of general aircraft. In the future, the North American market is expected to continue benefiting from low fuel prices, increased market demand after the pandemic, and government policy support. Its general aviation market will maintain strong growth, with North American general aircraft deliveries expected to reach 2,341 by 2027.

Latin America and Europe are also regional markets with significant growth potential. Despite challenges in infrastructure and regulation, these regions are still considered important markets outside North America. As important transportation hubs, private jets have become an efficient mode of travel in Latin America and Europe. In the post-pandemic era, demand for business and leisure travel in these regions has increased, with general aviation deliveries in Latin America reaching 368 and 559 aircraft by 2027, respectively. In addition, the market size in Asia-Pacific and other regions is smaller, but due to policy easing, rising consumer levels, and infrastructure development, these regions are expected to experience potential market growth.

Global Private Aviation Market Overview

The main types of aircraft used for private aviation include piston-engine aircraft and turbojet aircraft. Piston-engine aircraft refer to those powered by piston engines, which drive the pistons within the cylinders through the mixing of fuel and air, converting reciprocating motion into rotational motion to power the propellers. Turbojet aircraft refer to those powered by turbo engines. Among them, turbojet aircraft include turbo-propeller aircraft and jet aircraft. These engines use a continuous combustion process to generate thrust, providing a high level of power and speed.

Compared to the overall general aviation aircraft market, the delivery volume of the private aviation aircraft market is accelerating. The private aviation market benefits from several factors, including the global economic recovery post-pandemic era, the restoration of business confidence, and an increase in the number of high-net-worth individuals globally. The key reason for the increasing interest of high-net-worth individuals in private aviation lies in its mobility, privacy, safety, time flexibility, and year-round availability. In 2023, the private aviation market accounted for 72.6% of the general aviation market, with 2,215 aircraft delivered, valued at approximately $3.7 billion in total.

Due to the frequent domestic and international travels of high-net-worth individuals, they are an important consumer group in the global private jet market. From 2018 to 2023, the global high-net-worth population increased from 5.22 million to 7.39 million, with a compound annual growth rate of 7.2%, and it is expected to reach 1.189 billion by 2028. Private jets are becoming a popular choice for high-net-worth individuals for short commutes, sightseeing, and other entertainment activities. The increase in the downstream consumer group of private aviation will bring market opportunities for private aviation service providers to offer customized solutions to customers. In the next few years, due to global economic growth, the continuous increase in high-net-worth individuals, and the rising market demand for personalized and customized aviation transportation solutions, it is expected that the private aviation market will experience strong growth momentum in the future.

Source: General Aviation Manufacturers Association (GAMA), Frost & Sullivan report

Competitive landscape of the global general aviation market

In 2023, the global aircraft delivery scale of general aviation was 3,050 aircraft. Among them, Cirrus Aircraft is the world's largest general aviation aircraft manufacturer, with a market share of 23.2% based on deliveries in 2023.

Source: General Aviation Manufacturers Association (GAMA), Frost & Sullivan report

The competitive landscape of the global private aviation market

The development of the private aviation market is mainly driven by the capabilities of market participants in new product research and development and upgrades. In 2023, the global delivery of private aircraft reached 2,215 units. Among them, Cirrus Aircraft is the largest private aircraft manufacturer in the global private aviation market. In terms of delivered aircraft, its market share in 2023 was 32.0%, and in terms of sales revenue, it was 24.9%.

Source: General Aviation Manufacturers Association (GAMA), Frost & Sullivan report

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