Commercial helicopter market is set to grow by a $1 billion over the next decade

Tuesday 5 November 2013, Amsterdam

The global commercial helicopter market is set to grow by a $1 billion over the next decade, according to the new report: The Global Commercial Helicopter Market 2013-2023. This growth will be driven by the rapid expansion of major helicopter operators and leasing corporations, which will procure significant numbers of new and advanced helicopters to invigorate their fleets; this will be compounded by procurements from governmental organizations.

The new report provides in depth analysis of the global Commercial Helicopter market, with the identification of market drivers augmenting its provision of historic and forecast data for the next decade. Together with its investigation of developments and challenges in the industry, analysis of key markets, major programs, and the competitive landscape, along with SWOT analysis of the industry as a whole, The Global Commercial Helicopter Market 2013–2023 should be considered the definitive guide to the global Commercial Helicopter market, and required reading for those serious about capitalizing on the significant opportunities it holds.


KEY MARKET DRIVERS
For those organizations seeking to take advantage of the forecast growth in the global commercial helicopter market over the next decade, it is crucial to gain a proper understanding of those forces that will drive this growth.


Offshore Oil & Gas
The global offshore oil and gas exploration industry has witnessed robust growth over the past ten years, with companies moving farther and deeper into oceans to find new reserves as existing onshore resources become depleted. Geopolitical concerns are also a factor in this regard, with oil companies keen to secure resources in areas unaffected by social, political, and military strife.
Helicopters have formed an integral part of the production chain of these companies, as transporting individuals by sea (ie: on boats, transferring them on to the rigs from the water) is risky. With the rigs moving deeper into the ocean, the demand for medium helicopters is expected to increase due to the need for longer ranges and increased passenger capacity.


Rapid Growth of the Light Helicopter Segment
Light helicopters are one of the most sought after types in the commercial helicopter arena by the operators who serve the VIP/corporate transport, police, Electronic News Gathering (ENG) and Helicopter Emergency Medical Service (HEMS) markets.  Commercial helicopter operators and government departments across the globe are therefore procuring significant numbers of Light helicopters; these helicopters can be purchased at substantially lower prices than their Medium or Heavy counterparts, and this has been identified as the primary driving factor for their selection.
Amidst this surge of Light helicopter acquisition, it will be the US, China, Russia, Brazil, Mexico and India where the greatest market potential lies.


Burgeoning Demand from Asia & Latin America
Asia and Latin America are regarded as the major growth markets for commercial helicopters generally for the next decade. The need for helicopters in the region is driven by a number of factors, such as high economic growth, increasing buying capabilities for private companies, and the rising importance of HEMS. Asia is expected to post a strong CAGR of 5.72% over the next ten years, owing to its high growth markets such as China and India.

Whilst the Chinese market has not witnessed major helicopter procurements over the last decade – which is reflected in its current inventory of only 200 helicopters – the country is expected to ramp up its procurements of various types of helicopter in the coming years. This is in part being driven by the recent natural disasters that have befallen the country, which have highlighted the utility of helicopters in emergency situations; for example: 70% of the helicopters employed for rescue and relief operations in the wake of the Sichuan earthquake were supplied by the military.

Additionally, China is taking steps towards opening its low-altitude airspace for aviation, in order to facilitate helicopter flights for HEMS. This is expected to be a considerable driver of commercial helicopter procurement in the coming years, with an official from Eurocopter China suggesting the number of commercial helicopters in China will increase to 500 by 2015, and 1000 by 2020, thus marking the country as a hotspot for the commercial helicopter market for the next decade.