ID: MRFR/A&D/2593-CR | October 2021 | Region: Global | 99 pages
Impact of COVID-19 on Civil Helicopter Market
COVID-19 impact on the civil helicopter market is evolving every minute. The industry has witnessed the immediate and clear impact of the pandemic. The industry had witnessed a boom owing to the rising demand for helicopters in developing countries, including China and India, and the growing need for helicopter emergency medical services (HEMS). However, due to COVID-19, manufacturing activities have come to a halt, and airspace restrictions have increased. Such factors are likely to restrict the growth of the civil helicopter market.
Impact on the Global Civil Helicopter Market
According to Market Research Future, the global civil helicopter market is expected to reach USD 13,881.4 million by 2024 owing to various factors such as the increasing demand for helicopter emergency medical services and growing demand for civil helicopters in developing countries. However, the ongoing coronavirus pandemic has impacted the market. As the tourism industry is closed and oilfield facilities are shut down, many helicopters are grounded. The helicopter operators are expected to face heavy losses in the coming months. Helicopter companies that are currently operating during this crisis are offering HEMS. Moreover, due to the pandemic, the supply chain has also been impacted as helicopter manufacturing facilities are closed.
Moreover, in 2020, a lower GDP of major economies, such as the US, China, the UK, France, Germany, India, Italy, Japan, Brazil, and Canada, anticipate a potential decrease in investments in the aviation industry.
The US is also a hub to major civil helicopter manufacturers such as Textron Inc., Lockheed Martin Corporation, and Robinson Helicopter Company. These companies are actively involved in developing advanced civil helicopters. However, during the rising cases of COVID-19 in the country, the companies have had to face disruptions such as slow supply chain movement, unavailability of labor, and other factors causing a slowdown in production. Furthermore, due to the increasing demand for personal protective equipment (PPE) kits in the country, various civil helicopter manufacturers are producing safety products to fight against COVID-19. For example, in April 2020, Textron, Inc. started manufacturing plastic face shields and cloth face masks for the first responders and the medical community. Moreover, the falling stocks of companies such as Lockheed Martin Corporation are also impacting the civil helicopter market in the US.
In Italy, the rising cases of COVID-19 have impacted the economy of the country and the civil helicopter market. There are approximately 30,911 deaths in the country due to COVID-19 as of May 2020. The pandemic has impacted prominent civil helicopter manufacturers such as Leonardo SpA based in Italy as well. Due to labor unavailability, the slowdown in the supply chain, and slowed production, the company reported lower revenue in the first quarter of 2020. The company’s 2020 revenue in the 1st quarter was USD 2.8 billion. It decreased by 4.9% from the same period last year due to COVID-19 restrictions that delayed deliveries of civil helicopters. Hence, such factors are impacting the civil helicopters market in Italy.
Currently, there are approximately 1,000 operational civil helicopters (turbine and piston) in China. According to Airbus SAS, this fleet could exceed 1,500 by 2022. However, since the outbreak of COVID-19 in the country, various manufacturing activities have come to a standstill. This has negatively impacted to market in the country. In China, there are approximately 82,926 confirmed COVID-19 cases as of May 2020. The country has one of the major civil helicopter manufacturers—Aviation Industry Corporation of China. However, increasing travel restrictions, lockdown, and unavailability of labor, the company is also expected to witness a fall in the revenue. Thus, impacting the civil helicopters market in China.
According to Flight Global, more than 700 civil helicopters are operating in India. However, the ongoing COVID-19 pandemic has impacted the Indian market as well. India has approximately 74,281 confirmed COVID-19 as of May 2020, and with the lockdown in the country, the civil helicopter market is expected to witness restricted growth. Additionally, the absence of labor and closing manufacturing facilities is expected to restrict market growth in the country. However, initiatives undertaken by the Indian government to reduce the impact of COVID-19 on the Indian aerospace & defense industry is expected to impact the market growth positively. For example, in April 2020, the Indian Ministry of Home Affairs provided permission to Hindustan Aeronautics Ltd. (HAL), a civil and military helicopter manufacturer based in India, to resume manufacturing operations. Such initiatives are expected to improve the market growth in the country.
The Road Ahead
As the aviation industry is adversely affected at this point, losses such as non-execution of contracts are likely to take place. Moreover, falling stock prices of defense companies paint a worrying picture of the future. For instance, stocks of companies such as Lockheed Martin Corporation and Leonardo S.p.A. fell by 28% and 55%, respectively. The defense aviation industry does not portray a favorable scenario, either. As helicopters continue to be grounded, in the coming months, many helicopter operating companies are likely to file for bankruptcy.
Role of Market Research Future
As a market research and consulting company, Market Research Future has been continuously monitoring and tracking the COVID-19 pandemic and its impact on various markets within the aerospace & defense industry. All our research studies have been updated to accommodate the impact of COVID-19 in the respective market to provide our customers with comprehensive market data along with present and future trends with macro and micro-level impact factors.
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*Note: The above-mentioned datapoints will be provided on a best effort basis