Report : LATAM Fixed-Base Operator Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Service Offered (Hangaring, Fueling, Flight Training, Aircraft Maintenance, and Aircraft Rental) and Application (Business Aviation and Leisure Aviation)
Business Aviation Segment to Dominate LATAM Fixed-Base Operator Market during 2019–2028
According to a new market research study on “LATAM Fixed-Base Operator Market Forecast to 2028 – COVID-19 Impact and Analysis – by Services Offered and Application,” the LATAM fixed-base operation market is expected to reach US$ 1,385.21 million by 2028 from US$ 1,067.72 million in 2021. The market is estimated to grow at a CAGR of 3.8% from 2021 to 2028.
Despite many environmental and social challenges, favorable government initiatives are facilitating economic growth in the LATAM countries at a reasonable pace. The rate of urbanization is high in the region, especially in large developing economies. The growing urbanization in the region, coupled with a stable economic structure, is triggering the adoption of air travel as a mode of transportation. Countries such as Brazil, Colombia, Peru, and Chile have the busiest airports in the region due to the massive inflow of air travelers. Brazil and Argentina are experiencing the proliferation of their respective business and leisure aviation industries, thereby boosting the demand for FBO (Fixed-base operator) services for ensuring an enhanced traveling experience.
The LATAM fixed-base operator market is segmented into Brazil, Argentina, Mexico, and the Rest of LATAM. Brazil has the second-largest fleet of business aircraft across the globe. The country has 2,000 executive turboprops and jets that are used to connect 1,225 municipalities across the country. Brazil has the presence of FBOs such as Universal Aviation and Jetex that provide different services like hangaring, fueling, VIP lounges, and maintenance services to the traveler and aircraft owner. Additionally, the rising investment by multinational companies to set up their regional office across the country is also influencing the high demand for business aviation, thereby boosting the fixed-base operator market growth. Companies that have opened their offices in Brazil to expand their reach in Latin America include Appnovation, TSC, TCS, and Swiss Private Bank. These new office locations are leading to several job opportunities, thereby encouraging more and more people to travel to and from the country.
The rising demand for business and private jets, including small and large aircraft, is one of the significant factors driving the business of hangaring service providers in the LATAM fixed-base operator market. The steady rise in air traffic has created a need for new aircraft. The OEMs are also focusing on developing new-generation aircraft with reduced fuel consumption, large size, and low noise and carbon emissions. As a result, the demand for hangars has increased in recent times. The design of aircraft hangars has also undergone significant changes to suit the changing aircraft sizes and technologies, with modern aircraft hangars being fitted with temperature control and security devices. Thus, constructing large hangars to cater to the growing number of small and large aircraft is a key trend that would support the LATAM fixed-base operator market growth in the forthcoming years.
The LATAM fixed-base operator market size is divided into services offered, application, and geography. Based on services offered, the LATAM fixed-base operator market is segmented into hangaring, fueling, flight instruction, aircraft maintenance, and aircraft rental. In terms of application, the LATAM fixed-base operator market is segmented into business aviation and leisure aviation. Geographically, the LATAM fixed-base operator market is segmented into Brazil, Argentina, Mexico, and the Rest of LATAM.
ICCS; World-Way Aviation; Signature Flight Support; Líder Aviação; South American Jets, LLC; Universal Weather and Aviation, Inc.; Loreto Aviation Services; Jetex; LOBOS HANDLING; and TALMA are among the leading companies operating in the LATAM fixed-base operator market. The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic fixed-base operator market.
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