North America Turboprop Aircraft Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North American turboprop aircraft market is expected to register a CAGR of 1% during the forecast period (2020-2025).

Key Highlights

• The demand for turboprop aircraft from regional airlines to cater to the growing passenger traffic, as well as the demand from the military sector, is anticipated to propel the growth of the market during the forecast period.
• Airlines and charter operators prefer turboprop aircraft as an effective solution, especially on shorter routes, as they are more fuel-efficient aircraft compared to turbofan aircraft for shorter distances.
• However, as major airlines in the region are replacing the fleet of turboprop aircraft with turbofan aircraft, the market is anticipated to witness a slower growth during the forecast period.

Key Market Trends

The Military Segment is Expected to Record the Highest CAGR During the Forecast Period

The military segment of the market held the highest share in 2019, and it is anticipated to record the highest CAGR during the forecast period. This is mainly due to the planned deliveries of military aircraft during the forecast period and their high cost over general and commercial aviation aircraft despite their low deliveries. The region has more than 145 aircraft on order, which includes C295, King Air 350, and C-130J (and its variants) for the Air Force of Canada and various armed forces of the US. These orders include 16 C295 aircraft ordered by the Canadian Air Force in 2016 for search and rescue missions. The deliveries of the aircraft began in October 2019, and they are expected to run through the forecast period. Also, the aging fleet of transport aircraft (more than 20 years) and special mission aircraft (about 15 years) of the US Air Force is generating the need for modernization of the aircraft fleet with newer-generation aircraft during the forecast period, which is anticipated drive the growth of the market during the forecast period.

The United States Recorded the Highest Market Share in 2019

The United States is the major market of turboprop aircraft in North America followed by Canada. The United States is set to witness gradual growth during the forecast period,the owing to the increase in orders and deliveries of turboprop aircraft in commercial, military, and general aviation sectors. In January 2018, ATR was awarded a contract by NAC for the delivery of 15 ATR aircraft (12 ATR 42-600s and three ATR 72-600s). The deliveries were scheduled in March 2018 and run through 2020. Also, as of January 2020, there were more than 100 turboprop aircraft on order for the armed forces of the US. These aircraft will be deployed for transport, tanker, and special missions. Similarly, due to fluctuations in the fuel prices, companies are opting for turboprop aircraft for their short-distance traveling. For instance, in August 2019, National Oceanic and Atmospheric Administration (NOAA) awarded a contract to Textron Aviation Inc., worth USD 11.8 million, for the purchase of a new twin-engine Beechcraft King Air 350 CER turboprop aircraft. The aircraft is expected to be delivered by 2021. Such developments are anticipated to generate demand for turboprop aircraft in the US during the forecast period.

Competitive Landscape

The prominent players in the North American turboprop aircraft market are Textron Inc., Pilatus Aircraft Limited, Airbus SE, Lockheed Martin Corporation, ATR. ATR is the major manufacturer that supports commercial aviation with ATR 42-600 and ATR 72-600s models whereas Lockheed Martin Corporation is a major manufacturer that supports military aviation with various models of C-130J. The introduction of a new aircraft model will enhance the penetration of aircraft manufacturers in the region. For instance, in March 2020, Textron Aviation completed the successful test runs of Cessna 408 “SkyCourier”, a twin-engine turboprop aircraft expecting certification in 2021. Also, in 2019, Daher completed the acquisition of Quest Aircraft Company to strengthen its position in the North American market and widen its product portfolio in the turboprop aircraft segment. Such mergers and acquisitions, along with partnerships of aircraft manufacturers, are anticipated to help companies increase their product lines and the cash flow.

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