Impact of COVID-19 on The Global Enhanced Flight Vision Systems Market
The COVID-19 pandemic has forced the governments of several countries worldwide to declare either complete or partial lockdowns. The operations in many industries have been affected by these lockdowns, particularly those categorized as non-essential, including the aviation & defense industry.
The aviation industry has witnessed an unprecedented decline in the last two months due to the COVID-19 pandemic. The outbreak of the virus has significantly impacted the airline companies. The spread of COVID-19 and the response by the aviation industry has resulted in an unparalleled decline in global air traffic. The average number of flights per day in March 2020 was 145,000, which is 17.61% lower than that of 176,000 in March 2019. Moreover, after several governments around the world announced restrictions on air travel, commercial air traffic registered a 41% decrease as compared to the 2019 levels in the last two weeks of March.
Moreover, according to the International Civil Aviation Organization (ICAO) number of departures on 11th March 2020 was 22,568, which decreased by 8.45%, to 2,387 by 26th May 2020. Thus, due to this drastic decrease in air passenger traffic globally, the revenues of airline companies are expected to decrease in 2020. According to the International Air Transport Association (IATA), the COVID-19 crisis will reduce airline passenger revenues by USD 314 billion in 2020, a 55% decline compared to the revenue recorded in 2019. This is also expected to decrease the demand for new enhanced flight vision systems by the airline companies during this year.
Pre-COVID-19 Enhanced flight vision systems Market
Before the COVID-19 pandemic, International Air Transport Association (IATA) estimated that global air travel is likely to double by 2036. The enhanced flight vision systems market was set to witness significant growth due to factors such as increasing air passenger traffic and subsequent demand for new aircraft, improved safety and situational awareness by flight vision systems, and increase use at smaller airports with inadequate infrastructure.
The US is expected to be the leading country in terms of air passenger traffic, growing at a rate of 6.34%, while in China, the air passenger traffic is expected to grow at a rate of 5.69% during the forecast period, 2019 to 2026. Moreover, air passenger traffic in countries such as India, China, Brazil, and Indonesia are expected to increase with the introduction of low-cost airlines and increasing per capita incomes. The increasing air passenger traffic is also expected to increase the demand for new aircraft globally, which further increasing the need for enhanced flight vision systems.
Therefore, before the COVID-19 pandemic, the global enhanced flight vision systems market was expected to reach USD 301.8 million by 2026 growing at a CAGR of 4.26% from 2019 to 2026.
Post-COVID-19 Impact on the Enhanced Flight Vision Systems Market
Post COVID-19, Market Research Future estimated that the global enhanced flight vision systems market is likely to reach USD 277.6 million by 2026 at a CAGR of 3.02%. The current projections for 2026 are expected to be lower than pre-COVID-19 estimates. The pandemic has had a devastating negative impact on the aviation industry across the world. Post the impact of the pandemic, very few countries have allowed transportation by air. Most of the airline companies have grounded their fleets due to a significant reduction in air travel. Global organizations, including the International Air Transport Association (IATA), has estimated a decrease in international air passenger revenues by approximately 50%.
Moreover, due to a decrease in revenues of airline companies, it is also expected that upgradation of their fleet with new and advanced systems, including enhanced flight vision systems, will be kept on halt till mid-2021. Therefore, the demand for enhanced flight vision systems is also expected to decrease in the next few years. However, the growing demand for air cargo is resulting in airline operators converting their passenger aircraft into cargo aircraft to find new revenue sources and ensure company sustainability. This is expected to help airline companies to generate revenue from air cargo activity.
COVID-19 Impact on the Enhanced flight vision systems Market in Key Regions
North America: North America covers the US and Canada. The region is likely to be the largest market for enhanced flight vision systems during the forecast period post-COVID-19. Large-scale investments by airlines for upgrading their fleets with new and advanced systems, including enhanced flight vision systems, are expected to be halted during the pandemic.
Europe: Europe includes the UK, Germany, France, and Italy. The region hosts many major companies, such as Thales Group and Blighter MBDA, that offer enhanced flight vision systems that are expected to be affected by the cancellation of orders or delays in payments.
Asia-Pacific: Asia-Pacific covers China, India, Japan, Australia, Singapore, and Australia. The region is gaining prominence in the global aviation industry and is projected to become the world’s leading market for air travel. It is expected that due to the COVID-19 pandemic, the decreasing revenues of airline companies will result in decreasing investments in enhanced flight vision systems.
Middle East & Africa: In the Middle East & Africa, the enhanced flight vision systems market for enhanced flight vision systems is primarily affected by the decreasing passenger traffic in countries such as Saudi Arabia and the UAE due to the COVID-19 pandemic. This will also be expected to decrease investments by the airline companies in advanced aircraft systems, including enhanced flight vision systems in the next few years.
Latin America: In South America, the market growth is significantly affected by major countries, such as Brazil and Mexico, due to the decrease in air passengers. This will also lower the investments for the aircraft modernization in these countries in the next few years.
The Road Ahead
Airline companies that have contracts with MRO service providers for aircraft modernization have either been postponed or canceled due to the pandemic. Moreover, the development of the new aircraft will be resumed after the pandemic but with a lower rate for some period. Thus, the enhanced flight vision systems market is expected to recover after the pandemic ends and will be struggling with a lower growth rate.
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.