The Global Civil Helicopter Market Outlook: 2016-2020

The Global Civil Helicopter market continues to face & brace significant headwinds while witnessing anemic demand growth amid continued major downturn in the global energy sector which traditionally drives & accounts for over 40% of annual, global market demand for civil helicopters.

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Civil Helicopter
Civil Helicopter

Civil helicopter deliveries & billings globally have plummeted by 16% & 32.5% respectively for H1 2016 as against H1 2015 with crude oil prices continuing to stay low impacting the fleet renewal as well as expansion plans and fleet utilization levels across operators globally.

The civil helicopter market continues to be impacted significantly by the prevailing inertia in the civil segment as industry OEMs face significant competitive intensity & pricing pressures in an oversupply driven market scenario accompanied by competitive pressures from used helicopter inventory with most key industry OEMs reporting a drop in revenues as well as profitability for the first half of 2016.

Additionally, the general industry sentiment, too, is somewhat downbeat with the recent fatal crashes of prototypes over a couple of under development programs, which include, the Bell 525 Relentless and Finmeccanica helicopter’s AW609, in addition, to the grounding of H225 Super Puma fleet post the fatal crash of another H225 in April 2016 with Airbus now frantically looking for a solution to fix persistent technical issues with the platform.

Further, most key industry OEMs are realigning their overall, near term strategy focus towards military business with the global military helicopter market stabilizing as defense spending across most parts of the world regains traction & is poised to witness growth over near to medium term.

Civil helicopter deliveries & billings globally have plummeted by 16% & 32.5% respectively for H1 2016 as against H1 2015 with crude oil prices continuing to stay low impacting the fleet renewal as well as expansion plans and fleet utilization levels across operators globally.

Additionally, the OEMs are focusing on other segments in the civil market, led by, Corporate/VIP transport, General Utility and EMS/SAR to partially offset the ongoing demand slump in the oil & gas sector. The OEMs are also working towards expanding local roots across key growth markets globally to capitalize on potential growth opportunities more effectively and to drive growth from a long term perspective.

The near-term outlook for civil helicopters, thus, is difficult with the sector impacted significantly by the ongoing downturn and consolidation in the offshore oil and gas exploration sector besides a general weakness and uncertainty in the global macroeconomic environment with political instability & conflict across some parts of the world along with growing threat from terrorism & extremism to most parts of the world while some other regions face difficult economic challenges with BREXIT vote outcome adding further fuel the prevailing environmental uncertainty.

The long term view of the market, however, remains positive with expansion of the degree as well as scope of utilization of civil helicopters across a range of user segments; the imminent, radical generational leap in technology; with the development & commercialization of next generation technologies as well as tilt-rotorcrafts & compound helicopter designs for the civil segment, which is poised to transform the market landscape significantly over medium term and rapid projected growth in civil helicopter fleets as well as their overall spectrum of application across emerging markets; led by China, with the opening of its low altitude airspace; is likely to provide significant traction to demand over medium term.

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