The 25th annual Global Business Aviation Outlook released by Honeywell has forecasted that up to 8,600 new business jets worth $255bn will be delivered from this year to 2026.
The projection reflects a reduction between 6% and 7% in the values noted in last year's forecast.
According to Honeywell, slow economic growth across many global markets coupled with several political uncertainties has contributed to the slow near-term pace of orders witnessed by the business aviation industry.
Honeywell Aerospace aviation commercial president Brian Sill said: "We continue to see relatively slow economic growth projections in many mature business jet markets. While developed economies are generally faring better, commodities demand, foreign exchange and political uncertainties remain as concerns.
"These factors continue to affect near- term purchases, but the survey responses this year indicate there is improved interest in new aircraft acquisition in the medium term, particularly in the 2018-2019 period.
“In the meantime, operators we surveyed this year indicated plans to increase usage of current aircraft modestly in the next 12 months, providing some welcome momentum to after-market activity, which has been flat recently."
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By GlobalDataThe newly released Global Business Aviation Outlook noted that Brazil, Russia, India and China (BRIC) would witness improved results than the previous year in terms of business jets purchase.
China and Russia will continue to experience a positive trend in the sector, with slight gains expected in the larger Brazilian region.
Asia-Pacific will also witness improvements in the sector despite ongoing regional tensions and government austerity initiatives.
Furthermore, Middle East and Africa reported better purchase plans amid another year of political upheaval and ongoing conflict in the region.
According to the Honeywell report, 65% of the forecasted demand would come from North American operators, representing a four-point increase from the last year’s survey.
Europe’s purchase expectation is also estimated to improve this year by 30%.
Image: Honeywell's business aviation 25-year comparison infographic. Photo: courtesy of Honeywell.
