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Embraer Market Analysis

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IntroductionEvery technical development requires a market analysis. This analysis is essential to establish a basis forpro tability. Some questions to be answered are: Who are the customers? Who are the competitors?What is the size of the market? How does the market change over time?Global developmentAccording to the World Bank, a United Nations (UN) international nancial institution, the globalGross Domestic Product (GDP) is expected to rise 3.2% annually over the next 20 years. For emergingeconomies a projected growth rate of 5.4% per year is expected, while advanced economies will experience2.2% in the same period. The fastest-growing regions are identi ed as South Asia with a GDP increaseof 6.8%; Africa, 5.1%; the Middle …show more content…

Consequently, when considering ights above 2300 km, the probability of choosinga regional aircraft over a narrow-body one is very small.The Embraer market outlook for 2014-2033, one of biggest players in the regional aircraft market,identi es the potential of regional jets in each region of the globe. The rst observation is that Embraerdoes not consider jets with a capacity below 70 passengers. Embraer identi ed a large need for regionaljets in North-America, Europe and China.In recent years air transport growth has been directly linked to low cost carrier (LCC) expansion. Closeto 30% of current worldwide capacity generated …show more content…

Additionally, the Chinesegovernment plans to increase the number of airports in the country from 175 in 2010 to 230 in the next10 years, which will further support the growth of regional air transportation in the country. [?]Europe is a main market for regional aircraft, with an expected number of more than 1000 regionalaircraft to be delivered by 2033. However, more than 50% of those deliveries are expected to replaceexisting aircraft. Economic growth in Northern Europe is expected to remains stronger than that ofSouthern Europe. However, there is potential of increase in air transportation for the Eastern-Europeancountries.Large growth is expected in Latin America, with 700 estimated deliveries in the next 20 years. Approx-imately 65% percent of these deliveries account for trac growth. Mexico is expected to be the largestmarket because of a more relaxed scal policy and increasing trac demand with the United States. [?]In the Asia-Paci c region, there is potential for new regional aircraft both in the advanced economies ofJapan and Australia, but also in the emerging countries such as Indonesia, Vietnam and the Philippines.Embraer estimates that around 500 regional aircraft (mostly 70 to 130-seats) will be delivered by 2033.In the Commonwealth of Independent States

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