Which region in the world buys the most ships and aircraft?

25 October 2017, Global – It’s no surprise that the Asia Pacific region is now the world’s largest buyer of ships and aircraft. However the scale is staggering with the Asia Pacific region accounting for 50% and 34% of the total shipping and aircraft capacity on order. By the time these orders are delivered, the Asia Pacific region will become the world’s second largest aircraft owner with 29% market share and only 1ppt shy of overtaking Europe to become the world’s largest aircraft owner. The Asia Pacific region will retain its second largest ship owner position with 41% market share and is only 2ppts shy of overtaking Europe to become the world’s largest ship owner.

 

THE ASIA PACIFIC REGION HAS ORDERED HALF AND ONE-THIRD OF THE WORLD’S NEWBUILD SHIPS AND AIRCRAFT RESPECTIVELY

50% of the global newbuild vessel orders (in terms of million GT) were placed by owners in the Asia Pacific region. The Asia Pacific region also accounts for 34% of the global aircraft orders (in terms of seat capacity).

Chart: Asia Pacific aircraft and ship owners’ global market share (2017)

Chart: Asia Pacific aircraft and ship owners’ global market share (2017)

 

ASIA PACIFIC WILL BECOME THE WORLD’S SECOND LARGEST AIRCRAFT OWNER

Including the existing aircraft orders, the Asia Pacific region will own 29% of the global aircraft fleet capacity, rising from its 26% global market share of the aircraft in service currently.

This will elevate the Asia Pacific region’s ranking to the second largest aircraft owner in the world after Europe (which retains its top position but whose market share will drop 2ppts to 30%), overtaking North America whose market share will drop 3ppts to 27%). The Asia Pacific region is only 1ppt shy of overtaking Europe to become the world’s largest aircraft owner.

The Asia Pacific region will retain its second largest ship owner position with 41% market share but its market share gap versus Europe has narrowed and is only 2ppts shy of overtaking Europe to become the world’s largest shipowner.

 

Chart: Global aircraft in service and on order based on ownership region (2017)

Chart: Global aircraft in service and on order based on ownership region (2017)

 

Chart: Global vessels on water and on order by ownership region (2017)

Chart: Global vessels on water and on order by ownership region (2017)

 

EUROPE IS THE SECOND LARGEST BUYER OF SHIPS AND AIRCRAFT, ENABLING THEM TO RETAIN THEIR POLE POSITION AS THE WORLD’S LARGEST SHIP AND AIRCRAFT OWNER BUT ASIA IS CATCHING UP QUICKLY

The European buyers account for 31% of the global newbuild vessel orders. Like Asia, Europe accounts for a larger share of the global vessel orders than the global aircraft orderbook. 25% of the global aircraft orders were placed by owners in Europe.

 

THE REST OF THE WORLD ARE GENERALLY BIGGER BUYERS OF PLANES THAN SHIPS

In contrast, North America, Middle East and Latin America are bigger buyers of planes than ships. North American buyers drive 22% of the global aircraft orderbook but only 10% of the newbuild vessel orderbook. North America will slip from second to third place in terms of its global aircraft ownership market share given the Asia Pacific aircraft owners’ more aggressive orders.

Similarly, Middle East owners account for 13% of the global aircraft orders but only 3% of the global newbuild vessel orderbook. The Middle East currently owns 6% of the global aircraft and vessels in service. However, due to its substantial aircraft orders, its global market share will rise to 9% when these aircraft are delivered.

Latin America accounts for 5% of the global aircraft orderbook but only 2% of the global newbuild vessel orderbook. 

Chart: Global aircraft order backlog by ownership region (2017)

Chart: Global aircraft order backlog by ownership region (2017)

 

Chart: Global newbuild vessel orderbook by ownership region (2017)

Chart: Global newbuild vessel orderbook by ownership region (2017)

 

Chart: Global distribution of aircraft in service based on ownership region (2017)

Chart: Global distribution of aircraft in service based on ownership region (2017)

 

Chart: Global existing vessel fleet by ownership region (2017)

Chart: Global existing vessel fleet by ownership region (2017)

 

Related Articles:

Is Airbus next after Singapore Airlines’ US$13.8 Billion Boeing order?

Air France AF66 engine explosion to drive checks on A380s powered by GP7200 engines

Shipping Equities gain from structurally improving sector outlook

 

Disclaimer: The contents of this website are strictly for information purposes only.  This website does not contain any investment, financial, tax, legal or insurance advice; you should always seek such advice only from professionals who are qualified, licensed and regulated in the respective relevant field.  Please read our Terms of Service before accessing or using this website.