(PRWEB) July 03, 2014
The commercial helicopter industry provides several services. Some of these services include flying passengers during sightseeing trips, patrolling oil pipelines, assisting during search-and-rescue missions, aerial survey, feral animal control, aerial spraying of liquid fertilizer on farms, etc. Previously, commercial helicopters were created with the purpose of flying passengers from downtown areas to the major airports. The helicopter manufacturing companies anticipated that primarily their customers would be businessmen who were on a busy schedule and could pay for expensive helicopter services. This market never developed and it almost disappeared forty years back. But, currently the commercial helicopter market offers various services. However, this industry still faces many challenges that restrain its potential.
Factors Driving and Restricting the Commercial Helicopter Market
Offshore Oil and Gas
The offshore oil and gas exploration market worldwide has experienced a prominent growth during the past decade. This has helped companies to move farther away from the coast to seek new reserves, due to the depletion of existing onshore reserves. Commercial helicopters are an integral part of the production chain of such organizations. The helicopters are involved for transporting individuals by sea. As the base of these oil and gas rigs move deeper into the ocean the demand for medium commercial helicopter is expected to rise.
Rapid Growth of the Light Helicopter Segment
Currently, the light helicopter sector accounts for the smallest spending in the commercial helicopter market worldwide. However, this segment is predicted to grow rapidly. There is an increasing number of business VIPs, EMS firms, and corporate transport which will boost the growth of the market. During the present economic scenario, the light helicopters have become a favorable choice by various organizations because of their affordable costs and latest technological advancement in navigation and avionics system.
Saturation of Market
The most prominent and important markets in this industry are North America and Europe since past few years. However, due to the changing scenario in the recent years there is a saturation of the commercial helicopter industry in these geographic zones. This saturation has almost made the market growth in these areas stagnant. Hence, it is expected that Asia-Pacific and Middle East will be the new growth centers for the market during the forecast period of 2013 – 2023.
Need for Reforms
Lack of reforms is another factor which constrains the growth of the commercial helicopter market. Changes in the existing policies are required; particularly in the low-altitude airspace. This has become a major challenge for emerging markets such as India and China, which is restraining the market growth. Civil aviation authority in China is currently streamlining the plan and process to expand the airspace for civil helicopters till 2015. The reason behind the delay in the process is the threat of foreign air-carriers monopolizing the market with their established products.
A market intelligence company has estimated that the global commercial helicopter market will grow at a CAGR rate of 3.08 percent during the period of 2013 to 2023 period. However, reforms should be introduced by the government of different countries to contribute towards the growth of this market.