G2 Solutions Expects Rebound To Occur Around 2012
A new research note now available from G2 Solutions, entitled
"Personal and Business Jets: Market Analysis and Outlook," presents
business jets and avionics market analysis, including a detailed
avionics market and systems forecast from 2008 to 2020.
In the 48-page research report, G2 forecasts the market for
business jets may fall as much as 30 percent over the next two
years, at least, though the company does expect a rebound sometime
around 2012.
"Business jets are essential, efficient and productive tools of
the modern global economy... but the current economic and financial
crisis places increasing cost pressures on owners and users alike,"
the company notes. "Major losses in the US and European economies
will impact the immediate market outlook which could take five
years to recover. Additionally, recent media mischaracterization
about business jets has further affected the immediate
outlook."
With the market for business aircraft decreasing, that will
result in difficult times for companies supplying parts for those
planes... though G2 sees continued strength for a handful of
companies in the avionics sector.
"While we have seen Garmin emerging as a strong player in the
general aviation segment and personal jets markets, Rockwell
Collins and Honeywell will maintain their control over the larger
business jets categories," said Michel Merluzeau, G2 Solutions'
Managing Partner. "The only potential threat to these two companies
may come from an established avionics player such as Thales."
G2 expects Honeywell and Rockwell
Collins to hold onto their combined market share of over 80
percent, though Thales might capture 5-10% of this segment by 2020.
Conversely, Universal Avionics, Esterline CMC Electronics, L-3 and
Chelton Flight Systems -- while each have respective technological
and market strengths -- may find it difficult to migrate upmarket,
G2 states, as technology evolution and OEM cost pressures will
continue to increase.
"Universal Avionics will thrive in the aftermarket, but
long-term viability is questionable based on its current structure
and product offering," said Merluzeau, who added G2 also expects
acquisitions could accelerate... especially among those companies
hurt by the Eclipse program collapse, such as Avidyne and
Innovative Solutions & Support.