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.

FMI: www.g2globalsolutions.com/