Business Jet Market by Point of Sale (Pre-owned, OEM, Aftermarket), Aircraft Type (Light, Mid-Sized, Large, Airliner), End-Use (Private Jet User, Operator), Systems (Aerostructures, Avionics, Aircraft Systems), Range - Global Forecast to 2032
Updated on : Sep 16, 2024
Business Jet Market Size & Growth
[271 Pages Report] The business jet market is projected to grow from USD 95.80 billion in 2024 to USD 156.99 billion by 2032, registering a CAGR of 6.4%. Business jet manufacturers are increasingly focusing on developing aircraft with reduced carbon footprints. This involves the adoption of sustainable aviation fuels (SAFs) and the integration of cutting-edge technologies aimed at improving fuel efficiency. This shift toward sustainability and the surge in demand for greener aviation solutions are anticipated to drive market growth. The unique appeal of business jets, providing point-to-point travel, flexible scheduling, and quicker journey times, propels the demand for private aviation further. Advancements in technology related to aircraft design, passenger comfort, and fuel efficiency are also spurring the expansion of both new and pre-owned business jet industry.
Business Jet Market Forecast to 2029
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Business Jet Market Trends
Driver: Advancements in hybrid and electric technologies
The rise in fuel costs, stringent government regulations, and increased awareness of environmental issues have driven the sales of fuel-efficient aircraft. Hybrid electric propulsion is an appealing technology for decarbonization in the aviation sector. These aircraft use traditional engines (reciprocating or gas generators) to achieve longer ranges and higher payloads than fully electric aircraft while reducing emissions and fuel consumption. Additionally, they operate with no hydrocarbon-fueled engines during critical phases of operation, such as take-off/climb-out or approach/landing, providing a significant drop in noise emissions at low altitudes, where disruptions can be bothersome.
A 2022 white paper from the International Council on Clean Transportation suggests that by 2030, the operation of electric aircraft will decrease carbon intensity by 49–82% compared to traditional fossil fuel-powered alternatives, with further reductions of 57–88% by 2050. This highlights the low energy consumption of electric aircraft and their use of other options for petroleum-derived energy. The paper also includes a figure comparing the intensity of carbon emissions from Jet A aircraft to those of electric aircraft powered by renewable energy sources. Jet A fuel aircraft will have approximately 1.5x more emissions intensity at a median stage length than electric aircraft in renewable energy.
Carbon Emissions Intensity Of Jet Fuel Aircraft And Electric Aircraft
Restraint: High maintenance costs
New and existing operators in the business jet market are often hindered by high aircraft maintenance costs. Aircraft maintenance involves inspections, repairs, and parts replacement, which can occur regularly or unexpectedly, resulting in financial challenges. Proper maintenance is crucial for safety, passenger comfort, and airworthiness. Failure to comply with maintenance regulations can render jets unairworthy and legally inoperable. However, these limitations can be addressed through new technology, improved maintenance schedules, and cost management, leading to sustainable market growth and performance improvements. The operating cost of commercial aircraft varies based on the annual flight hours, as shown in the table below.
Annual Budget For Business Jets Based On Hours Flown
|
Aircraft |
Cost |
Flying 200 Hours/Year (USD) |
Flying 400 Hours/Year (USD) |
Insights |
|
Boeing Business Jet |
Total Direct Operating Costs (Maintenance, Engine Overhaul, and Others) |
1,605,630 |
3,211,260 |
|
|
Total Fixed Costs |
839,970 |
839,970 |
||
|
Eclipse 500 |
Total Direct Operating Costs (Maintenance, Engine Overhaul, and Others) |
214,322 |
428,644 |
|
|
Total Fixed Costs (Crew Training, Hangar, Insurance, Jet Management, and Miscellaneous) |
213,510 |
213,510 |
||
|
Gulfstream G700 |
Total Direct Operating Costs (Maintenance, Engine Overhaul, and Others) |
1,185,572 |
2,371,144 |
|
|
Total Fixed Costs |
988,000 |
988,000 |
Opportunity: Emphasis on use of sustainable aviation fuel
The introduction of sustainable aviation fuel (SAF) offers a lucrative opportunity for the business jet market, promoting environmentally friendly air travel. SAF is produced from materials emitting 80% lower CO2 than traditional jet fuels and requires minimal modifications to existing aircraft engines and fuel supply systems. The combustion of jet fuel, currently prevalent in commercial aircraft, has an adverse impact on the environment, contributing to the carbon footprint. In response, the aviation sector has committed to achieving net-zero emissions by 2050 during the International Air Transport Association (IATA)’s Annual General Meeting in 2021. This opportunity to incorporate SAF into operations could position the business jet market at the forefront of greener air travel, shifting focus from conventional jets to sustainable aviation solutions.
A survey of senior executives of large Fortune 500 US companies who use business aviation reveals significant trends to prioritize the reduction of carbon emissions through their flight travel. The chart below provides the portfolios of senior executives that were influenced by the increase in responses to the interview measurement results.
Increase In Business Aviation Budget For Sustainable Aviation Fuel
Challenge: Shortage of pilots and aircraft maintenance engineers
The business jet market is experiencing a shortage of pilots and aircraft maintenance engineers. The major contributing factors are demographic shifts, new retirement policies, and early retirement trends. With a significant part of the aviation workforce nearing retirement age, the demand for skilled pilots and technicians to operate and maintain both new and older aircraft is surging. According to the Federal Aviation Administration (FAA), the retirement of a large number of pilots from commercial airlines is imminent, placing higher strain on the business aviation sector to recruit and train approximately 99,000 new pilots globally over the next decade. This measure is necessary to replenish the workforce and offset the number of retiring pilots. The looming pilot shortage will pose a critical challenge to the business jet market, demonstrating the need for strategic planning and investment to mitigate the impact on operations and future state planning. The CAE Aviation Talent Forecast report, published in July 2023, indicates that the demand for pilots will increase by 39% from 2023 to 2031. Meanwhile, the demand for aircraft maintenance technicians is expected to be 78%, further highlighting the need for trained professionals in the aviation sector.
Pilot And Aircraft Maintenance Technician Requirement, 2023–2032
Ecosystem Analysis for Business Jet Market
In the business jet market ecosystem, prominent companies providing business jet, private and small enterprises, distributors/suppliers/retailers, and end users are the key stakeholders. Investors, funders, distributors, and service providers are the major influencers in this market.
Business Jet Market Segmentation
By system, aftermarket systems segment to account for largest share in 2024
The aftermarket systems segment is estimated to hold the largest share of the business jet market in 2024. The growing demand for premium onboard facilities is a key driver of the need for aftermarket systems. This segment encompasses a wide range of MRO activities, including the replacement, repair, and maintenance of essential business jet systems and components. It covers critical areas such as aerostructures, avionics, aircraft systems, cabin interiors, doors, windows, and windshields, which are vital for maintaining the operational efficiency and luxury standards of the business aviation sector.
By point of sale, pre-owned segment to account for largest share in 2024
The pre-owned segment is estimated to hold the largest share of the business jet market in 2024. The lower acquisition cost of pre-owned jets than new ones significantly drives this segment. Pre-owned jets have a slower depreciation rate and are a more stable investment. They are commonly preferred by charter services, first-time buyers, and corporates. Additionally, due to the availability of a wide range of models, buyers are attracted to these jets, fueling the growth of the pre-owned business jet market.
Business Jet Market Regional Analysis
By region, North America to account for the largest share in 2024
North America is expected to hold the largest share of the business jet market in 2024. This can be primarily attributed to major business jet providers in the region. North America is a well-developed market with a strong growth potential for pre-owned, new, and aftermarket services. High demand for fractional ownership and charter services further contributes to market growth. North America has a robust ecosystem that supports business jet operations. This includes maintenance repair and overhaul facilities as well as a network of airports and FBOs that cater to business aviation needs, ensuring reliable and high-quality services for operators and owners.
Business Jet Market by Region
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Top Business Jet Companies - Key Market Players
Major players operating in the business jet market are Bombardier Inc. (Canada), Boeing (US), Dassault Aviation (France), Honda Aircraft Company (US), Airbus (Netherlands), and Piper Aircraft (US). The report covers various industry trends and technological innovations in the business jet companies.
Business Jet Market Report Scope
|
Report Metric |
Details |
|
Estimated Market Size |
USD 95.80 billion in 2024 |
|
Projected Market Size |
USD 156.99 billion by 2032 |
|
Business Jet Market Growth Rate (CAGR) |
6.4% |
|
Market size available for years |
2020–2032 |
|
Base year considered |
2023 |
|
Forecast period |
2024–2032 |
|
Forecast units |
Value (USD billion) |
|
Segments covered |
Aircraft Type, End Use, Point of Sale, System, Range, and Region |
|
Geographies covered |
North America, Asia Pacific, Europe, Latin America, Middle East, and Africa |
|
Companies covered |
Textron Inc. (US), Embraer SA (Brazil), General Dynamics (US), Bombardier Inc. (Canada), Airbus SE (Netherlands), The Boeing Company (US), Dassault Aviation (France), Pilatus Aircraft Ltd. (Switzerland), and Honda Aircraft Company (US) |
Business Jet Market Highlights
This research report categorizes the Business Jet Market based on aircraft type, end-use, point of sale, systems, range, and region.
|
Segment |
Subsegment |
|
By Aircraft Type |
|
|
By End Use |
|
|
By Point of Sale |
|
|
By Systems |
|
|
By Range |
|
|
By Region |
|
Recent Developments
- In May 2024, Embraer Brazil) announced an agreement with Avfuel (US) to enhance its adoption of Neste MY SAF at Melbourne Orlando International Airport (KMLB), with plans to increase usage to one load per week.
- In June 2024, Pilatus (Switzerland) and Synhelion (Switzerland) entered a partnership focused on advancing solar fuel technology for the aviation sector to expedite the adoption of solar-derived fuels. Pilatus plans to integrate Synhelion’s innovative solar fuels into its operations and make them available to its customers.
- In July 2024, Boeing (US) announced a definitive agreement to acquire Spirit AeroSystems (US). This acquisition will include Boeing’s commercial operations and expand its footprint in other commercial, defense, and aftermarket operations.
- In May 2024, Lilium N.V. (Germany) partnered with UrbanLink (US), an advanced air mobility operator. UrbanLink will purchase 20 Lilium Jets for deployment in South Florida, becoming the first US airline to fully commit to integrating eVTOL aircraft into its fleet. Scheduled pre-delivery payments are included in the arrangement.
- In December 2023, Falcon 6X from Dassault Aviation (France) commenced service on November 30, 2023, following its type certification awarded in August 2023 by both EASA and FAA. The aircraft also underwent post-certification upgrades that necessitated approval from EASA.
Frequently Asked Questions (FAQs):
What is the current size of the business jet market?
The business jet market is estimated at USD 95.80 billion in 2024. It is projected to reach USD 156.99 billion by 2032, with a CAGR of 6.4%.
Who are the leading players in the business jet market?
Gulfstream Aerospace (US), Bombardier Inc. (Canada), Textron Inc. (US), Embraer SA (Brazil), and Dassault Aviation (France) are the leading players in the market.
What are the opportunities available in the business jet market?
Increased charter services & fractional ownership and an emphasis on the use of SAF are a few lucrative opportunities in the business jet market.
What are the latest technological advancements in the business jet market?
Technological advancements in the business jet market include electric propulsion, autonomous aircraft, and urban air mobility, among others.
What are the key factors driving the growth of the business jet market?
The rise of high-net-worth individuals, high demand for digitalization, increased advancements in hybrid & electric technologies, and the need for enhanced productivity and efficiency by businesses are the key factors driving the growth of the business jet 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 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, Honeywell’s Global Business Aviation Outlook and Embraer Market Outlook 2023, 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 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.
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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 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 business jet 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
Market size estimation methodology: Top-down Approach
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.
Market Definition
A business jet is an aircraft used by business people, politicians and other government officials, and high-net-worth individuals. Business jet provide an efficient and productive means of air travel to cater to schedules of various individuals or groups and to reach destinations that are not covered by commercial airlines. These aircraft are also used during emergencies such as floods, evacuations, etc. Business jet are generally owned by high-net-worth individuals, governments, businesses, and operators such as charter companies.
Pre-owned business jet refers to used business jet, and resale of business jet refer to the sale of pre-owned business jet.
Stakeholders
Various stakeholders of the market are listed below:
- Business Jet Manufacturers
- Business Jet Systems and Component Manufacturers
- Aircraft System Integrators
- Pre-owned aircraft providers
- Charter Operators
- Maintenance, Repair, and Overhaul (MRO) Companies
- Research Bodies
- Government Bodies and Agencies
- Regulators
- Investors
Report Objectives
- To define, describe, segment, and forecast the size of the business jet 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 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 contributions 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 competencies
- 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)
Generating Response ...
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?