Business Jet Market by Business Jet Aircraft Type (Light Business Jet, Mid-Sized Business Jet, Large Business Jet, Airliner), End-Use (Private Jets User, Operator), Systems, Point of Sale, Services, Range and Region - Global Forecast to 2030
The Business Jet Market Size is expected to reach a value worth USD 41.8 billion by 2030, a rise from USD 31.1 billion in 2022, with a CAGR of 4.2% from 2022 to 2030. An increasing number of high net worth personnel and the replacement of aging aircraft fleets are expected to drive the growth of the Business Jet Industry. Several key factors are driving this growth in the Private Jets and Corporate Jet aircraft industry.
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Business jets are designed to accommodate small groups of travelers. In recent times, there has been remarkable growth in the number of high-net-worth individuals, leading to increased demand for private Jets and the purchase of upgraded business aircraft on a global scale. Furthermore, with corporate clients and high-net-worth individuals driving demand, the fundamental aspects of the business aviation industry remain strong. Moreover, fleet modernization initiatives by both developed and emerging economies are expected to enhance the capabilities of aircraft fleets and create a surge in demand for new charter services with upgraded cabin interiors and advanced avionics.
Business Jet Market Dynamics:
Driver: Replacement of old aircraft fleets
The Business Jets Market has become a dynamic and ever-evolving sector with diverse offerings that cater to the unique needs of private jet users and corporate jet operators. New business jets are majorly procured by existing owners and operators to either replace their old jets or to expand their fleets. Bombardier, Inc. (Canada) expects that 2,000 business aircraft will retire between 2016 and 2025, with the average age of a business jet being 17 years. However, environmental regulations and airspace modernization have reduced the retirement age of business jets, leading to an increase in their replacement. Due to environmental regulations and steps of various governing bodies toward a greener environment, it is expected that many business jets across the globe will face restrictions in terms of operating limitations. The older a business jet is, the lower is its fuel efficiency and the higher its carbon footprint. This acts as an important driving factor for the business jets market.
Restraint: Uncertainty of orders
The business jets market has witnessed uncertainty in terms of orders since 2019. This market is dependent on multiple variables such as the global economy, the number of HNWI, fuel prices, and demand, resulting in uncertainties. Factors impacting orders include economic growth, HNWIs, fuel prices, infrastructure availability, and funds to procure business jets, among others. Unlike the commercial aircraft market, where buyers are few and orders are provided in advance, in the business jets market, due to a larger share of individual buyers and high level of customization, the forecast of orders is unpredictable, which constrains market growth.
The acquisition of private jets is marked by its substantial cost and time-intensive nature, rendering it an unattainable luxury for the general public. The privilege of private jet ownership is reserved for individuals with significant purchasing power and substantial net worth, typically encompassing prominent business owners and celebrities. The customization of pre-owned aircraft further escalates the overall expenditure, involving not only routine maintenance and repairs but also additional expenses related to refurbishing interiors.
Opportunity: Emergence of e-VTOL aircraft
With intracity travel becoming increasingly congested, travel time within a city has increased. In such cases, traditional business jets cannot be used, as they take off from and land at airports, the availability of which is mostly restricted within cities. For intracity travel, VTOL aircraft can be beneficial as they can take off and land at multiple vertiports within a city. With eVTOL aircraft, part of the urban air mobility concept, the ease of travel within the city increases as they are cheaper and less noisy. For the concept to commercialize, there is a need for technological advancements in terms of battery capacity; building infrastructure such as vertiports and charging pods; and a robust regulatory framework. With the advent of eVTOL technology, the business aircraft market is expected to witness growth, as demand is already present.
Challenge: High jet fuel prices
The business jets market faces the challenge of rising fuel prices, which leads to lower purchases. Customers tend to withhold their purchase as they may not wish to spend excessively on operating a business jet after investing hugely in acquiring the jet. In addition, not every nation has the budget to purchase business jets and the expensive fuel they require. The business jets services market also gets impacted largely, as the higher fuel price is, the higher is the cost of charter services, subsequently impacting all operators in the market. The rise in fuel prices results in budget issues, which adversely impact the market growth globally. High fuel prices have made the growth of the business jets market sluggish in some countries, posing a challenge for the market.
“Based on system, the aftermarket systems segment is projected to grow at the highest CAGR in the business jet market during the forecast period”
Increasing demand for enabling premium facilities onboard aircraft is responsible for the growth of aftermarket systems. The aftermarket systems segment of the business jets market covers MRO activities, which include replacement, repairs, and maintenance of critical business jet systems and their components. The components and systems under the aftermarket segment include aerostructures, avionics, aircraft systems, cabin interiors, doors, windows, and windshields. During the projected period, the propulsion system segment will lead the lead in the market. This dominance is a result of the increasing demand for new business aircraft in countries like China, the UAE, and the United States. Furthermore, the growth is supported by the surge in private jet service providers in both developed and emerging economies.
North America is expected to account for the largest share in 2022
Based on region, the business jets market has been segmented into 6 regions, namely, North America, Europe, Asia Pacific (APAC), Latin America, Middle East and Africa. North America is estimated to account for the largest share of the global business jets market in 2022. This can be attributed to the presence of a large number of high-net-worth individuals coupled with the existence of major business jets manufacturers such as Textron Inc. (US), Bombardier Inc. (Canada), Gulfstream Aerospace (US), and Piper Aircraft (US), among others. Additionally, the availability of airports across North America enables ease in business travel across the region. Geographically, North America is the biggest region, by area, hence it is critical for business travelers to opt for the fastest mode of transport to save time, resulting in increasing demand for business jets.
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Business Jet Aircraft Key Market Players
The Business Jets Aircraft Companies are dominated by a few globally established players such as Textron Inc. (US), Embraer SA (Brazil), Gulfstream Aerospace (US), Bombardier Inc. (Canada), Dassault Aviation (France), Boeing (US), Airbus (Netherlands), Honda Aircraft Company (US), Syberjet Aircraft (US) and Piper Aircraft (US) among others. These companies play a pivotal role in shaping the Private Jets and Corporate Jet aircraft industry.
Business Jet Aircraft Market Scope
Report Metric |
Details |
Estimated Market Size | USD 30.1 billion |
Projected Market Size | USD 41.8 billion |
Growth Rate | 4.2% |
Market size available for years |
2018-2030 |
Base year considered |
2021 |
Forecast period |
2022-2030 |
Forecast units |
Value (USD) |
Segments covered |
By Aircraft Type, End Use, Point of Sale, System, Range and Region |
Geographies covered |
North America, Asia Pacific, Europe, Latin America, Middle East, Africa |
Companies covered |
Textron Inc. (US), Embraer SA (Brazil), Gulfstream Aerospace (US) , Bombardier (Canada), Airbus (Netherlands), Boeing (US), Dassault Aviation (France), Pilatus Aircraft (Switzerland), Honda Aircraft Company (US) and Syberjet Aircraft (US) are some of the leading players |
This research report categorizes the Business Jets Market based on aircraft type, end use, point of sale, systems, range and region.
By Aircraft Type
- Light
- Mid-sized
- Large
- Airliner
By End Use
- Private Jets User
- Operator
By Point of Sale
-
OEM
- Conventional
- Hybrid & Electric
-
Aftermarket
- MRO
- Parts Replacement
By Systems
-
OEM Systems
- Aerostructures
- Avionics
- Aircraft Systems
- Cabin Interiors
- Doors, Windows, and Windshields
-
Aftermarket Systems
- Aerostructures
- Avionics
- Aircraft Systems
- Cabin Interiors
- Doors, Windows, and Windshields
By Range
- Less than 3,000 nm
- 3,000 nm -5000 nm
- More than 5,000 nm
Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East
- Africa
Recent Developments
- In April 2022, Textron Aviation announced a purchase agreement with Exclusive Jets, LLC, which, operating as FlyExclusive, is a leading provider of premium private jets charter experiences for up to 30 Cessna Citation CJ3+ jets. FlyExclusive expects to take delivery of five aircraft by 2023, with the purchase of additional aircraft for delivery by 2025.
- In November 2021, Airbus Corporate Jets, a business unit of Airbus, signed an agreement with Alpha Star Aviation for the installation of new and unique In-flight Entertainment (IFE) technology in business jets.
- In October 2021, Gulfstream Aerospace introduced the Gulfstream G800, the longest-range aircraft in Gulfstream history. It can travel at a speed of Mach 0.85, that is, nearly the speed of a supersonic jet.
- In October 2021, Embraer SA and NetJets Inc. (US), an executive jet airway, signed a deal to procure 100 Phenom 300E of Embraer SA by the second quarter of 2023.
Frequently Asked Questions (FAQ):
What is the current size of the business jets market?
The business jets market is projected to grow from an estimated USD 30.1 billion in 2022 to USD 41.4 billion by 2030, at a CAGR of 4.2% from 2022 to 2030.
Are there any new developments or innovations in the private jet segment that we should be aware of?
The private jet industry is constantly evolving, with innovations in fuel efficiency, avionics technology, and sustainability. Electric Vertical Take-Off and Landing (e-VTOL) aircraft, designed for short urban flights, are emerging as a potential future disruptor in the private jet market.
What are the trends in the private jet segment that are driving growth?
One key trend is the increasing demand for personalized and luxurious interiors in private jets. Enhanced technology, safety features, and advanced cabin amenities are also influencing the growth of this segment.
Are there any challenges or constraints affecting the private jet segment's growth
The cost of procuring and maintaining private jets can be a limiting factor. It is a significant investment and is often not accessible to the general public. Additionally, government regulations and procedures associated with private jet ownership can be time-consuming.
How is the private jet segment performing in different regions globally?
The performance of the private jet segment varies by region. North America, for example, has a strong market due to the presence of a large number of high-net-worth individuals and corporate demand. Other regions like Asia, the Middle East, and Europe also show growth potential in this segment.
What factors are contributing to the growth of the private jet segment in the business jet market?
The growth of the private jet segment can be attributed to the increasing demand from high-net-worth individuals, corporate clients, and private charter services. Additionally, advancements in technology and comfort features are making private jet travel more attractive.
Who are the winners in the business jets market?
Textron Inc. (US), Embraer SA (Brazil), Gulfstream Aerospace (US), Bombardier Inc. (Canada), and Dassault Aviation (France) are some of the winners in the market.
What are some of the opportunities of the business jets market?
Advent of hybrid-electric aircraft propulsion technology and entry of new business jet OEMs are few of the opportunities of the business jets market.
What are some of the technological advancements in the market?
Sophistication of cabin interiors, autonomous aircraft, electric propulsion, urban air mobility, among others.
What are the factors driving the growth of the market?
Demand for improved passenger experience, replacement of old aircraft fleets and increase in number of high-net-worth individuals are some of the key factors driving the growth in the market. .
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The research study conducted on the business jet market involved extensive use of secondary sources, directories, and databases such as Hoovers, Bloomberg Businessweek, and Factiva to identify and collect information relevant to the business jet aircraft market. The primary sources considered included industry experts from the business jet market as well as suppliers, manufacturers, solution providers, technology developers, alliances, and organizations related to all segments of the value chain of this industry. In-depth interviews with various primary respondents, including key industry participants, Subject Matter Experts (SMEs), industry consultants, and C-level executives have been conducted to obtain and verify critical qualitative and quantitative information pertaining to the business jet market as well as to assess the growth prospects of the market.
Secondary Research
The secondary sources referred for this research study included government sources, such as the Federal Aviation Industry (FAA), the European Aviation Safety Agency (EASA), the General Civil Aviation Authority (GCAA), the International Air Transport Association (IATA), and corporate filings, such as annual reports, investor presentations, and financial statements of trade, business, and professional associations, among others. The secondary data was collected and analyzed to arrive at the overall market size, which primary respondents further validated. Other secondary sources referred for this research study included Airfleets, Bombardier, and Embraer Market Outlook 2021, General Aviation Manufacturers Association (GAMA); corporate filings (such as annual reports, investor presentations, and financial statements); and trade, business, and professional associations. Secondary data was collected and analyzed to arrive at the overall market size, which was further validated by primary respondents.
Primary Research
Extensive primary research was conducted to obtain qualitative and quantitative information such as market statistics, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped understand industry trends, type, range, aftermarket systems, services, and region. Stakeholders from the demand side included government telecommunication organizations, system integrators, technology providers, and solution providers.
After obtaining information regarding the business jet aircraft market scenario, extensive primary research was conducted with market experts from the demand and supply sides across six regions, namely, North America, Europe, Asia Pacific, Middle East, Africa, and Latin America. This primary data is obtained through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the business jet market. The following figure offers a representation of the overall market size estimation process employed for the purpose of this study on the business jet aircraft market.
The research methodology used to estimate the market size includes the following details:
- Key players in this market were identified through secondary research, and their market share was determined through primary and secondary research. This included a study of the annual and financial reports of top market players and extensive interviews of leaders such as Chief Executive Officers (CEOs), directors, and marketing executives of leading companies operating in the armored vehicles market.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
Market size estimation methodology: Bottom-up approach
To know about the assumptions considered for the study, Request for Free Sample Report
Market size estimation methodology: Top down approac
Data triangulation
After arriving at the overall size of the business jet market from the market size estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures explained below were implemented, wherever applicable, to complete the overall market engineering process and arrive at the estimated sizes of different market segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Report objectives
- To define, describe, segment, and forecast the size of the business jet aircraft market based on aircraft type, end use, point of sale, system, range and region
- To forecast the market size of various segments of the business jet market with respect to 6 major regions: North America, Europe, Asia Pacific, Latin America, Middle East and Africa, along with major countries in each region
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of business jet market
- To identify and analyze various regional contracts in the business jet aircraft market
- To identify industry trends, market trends, and technology trends currently prevailing in the business jet market
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contribution to the overall market
- To analyze the degree of competition in the business jet market by identifying key market players
- To analyze competitive developments such as contracts, agreements, mergers & acquisitions, and new product launches & developments of key players in the business jet market
- To identify detailed financial positions, key products, unique selling points, and key developments of leading companies in the business jet market
- To strategically profile key market players and comprehensively analyze their market ranking and core competencies2
- To identify detailed financial positions, key products, unique selling points, and key developments of leading companies in the business jet market
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Business Jet Market
more info about middle east ?
I want to know an approximate market size of business jets, and which aircraft (model/pax) this is assessed against. Private vs operator split.
Our company is based in Sri Lanka and Maldives and it deals with servicing private aircraft. I am looking out for the global trends to understand the market size of my surrounding regions.
I am looking for more information about Africa and possible growth on this continent?