Honeywell’s 24th annual report, Global Business Aviation Outlook, has predicted that between 2015 and 2025, up to 9,200 new business jets worth $270bn will be delivered.
This prediction is 3%-5% less compared to last year’s report.
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Honeywell refers to the rate of growth in the aviation industry because of slow economic growth currently experienced by various markets worldwide.
Honeywell Aerospace business and general aviation president Brian Sill said: "While emerging markets like Brazil continue to be a bright spot for business aviation over the medium term, we have seen weaker demand across other key growth markets, which may affect near-term order and delivery levels.
"And while the sluggish economic growth and political tensions are driving a more reserved approach to purchasing, we are seeing operators invest in retrofits and upgrades for their existing aircraft, especially around connectivity, boosting aftermarket opportunities."
Brazil, Russia, India and China (BRIC) hold a pending demand of purchasing 48% of new jets in the next two years.
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By GlobalDataHoneywell marketing analysis and planning director Charles Park was quoted by Bloomberg saying that China’s economic slowdown had an unexpected effect on the demands for jets throughout Asia.
The report revealed that Middle East and Africa will see a slight reduction in purchasing plans.
Political disturbance, ongoing conflict in the region and low oil prices are major reasons behind the dip.
North American operators, known to be the largest aviation market, will have an estimated demand of 61%, where the plan for purchasing new jet stands under the world average of 22%.
Because of slow growth, increased political tensions, a refugee and migrant surge and depreciated currencies, European operators purchasing expectations stand at 24% this year.
The report mentions in this year there will be deliveries of 675-725 new jets, which is minimal in terms of growth. Delivery expansion was estimated on the introduction of new model and increased deliveries of fractional-usage type of aircraft.
Weak demands from emerging markets will slow down deliveries in the next year.
According to the Honeywell report, 19% of the total new business jet purchase plans is expected to happen by next year, while 17% and 20% are scheduled for 2017 and 2018 respectively.
