As we look at potential growth in the private aviation world, it’s helpful to understand where the money is that will drive it. This week we revisited the 2018 Global Wealth Report to see what we could learn. This exclusive report by Knight Frank uncovers data about the global population of ultra-rich individuals, where they live, how they make their money and what they spend it on. In an earlier blog you may remember that we discussed its observations about private aviation’s growth opportunities in Europe.
So, where’s the money? Here are some statistics from the report on individuals with a net worth of over US $50 Million.
- The study projects that this elite group will grow by 40% from 2017 to 2022. Today there are 129.730 people on the planet walking around with that kind of buying power and we’ll see it grow above 180,000 by then!
- Most of these people will come from three regions, North America with a projected ultra-rich population of 59,920 by 2022, Asia with 55,740 and Europe with 47,110.
- There are other populations that are competing for impressive wealth statistics as well. For example, Russia showed an increase in over-all individual super wealth of 26% between 2016 and 2017, with Latin America having similar results at 20% growth. It certainly adds fuel to the old axiom “The rich get richer”.
- Interestingly, while North American’s keep the bulk of their bank accounts inside their region, Europeans, Asians and Latin Americans are more likely to hold bank deposits outside their countries.
- However, there will still be hurdles for the rich to overcome as they try to manage and keep their wealth. The report advises that almost half of the world’s wealth advisors lose sleep over the impact that various uncontrollable issues might have on their Clients’ wealth. Topping the list are Terrorism, Populism and Cybercrime. Further down the list we weren’t surprised to see that 31% are concerned about potential negative impacts the Trump presidency might have.
So what’s it all mean you might ask? In terms of private aviation, we think it speaks to continued opportunity for growth – especially for those who are ready to lead with innovation and ideas for better customer service and convenience.