Fortune Business Insights™ delivers well-researched industry-wide information on the Business Jet Market. It provides information on the market essential aspects such as top participants, factors driving Business Jet market growth, precise estimation of the Business Jet market size, upcoming trends, changes in consumer behavioral pattern, market’s competitive landscape, key market players, and other Industry features to gain an in-depth analysis of the market. The report also focuses on the latest developments that can enhance the performance of various market segments. The Business Jet industry is rapidly growing and is one of the active and attractive industries for investors worldwide. This market is witnessing significant changes in its growth and investment plan in the past few years and more specifically underwent rapid changes during a pandemic and is continuing to face rapid changes in the post-pandemic world.
The global business jet market size is projected to reach USD 35.56 billion by 2027, exhibiting a CAGR of 5.37% during the forecast period. Increasing business aircraft deliveries worldwide will be a key growth determinant for this market, finds Fortune Business Insights™ in its report, titled “Business Jet Market Size, Share & Industry Analysis, By Business Jet Type ( Very Light Jet, Light, Super-Light, Mid-size, Super-Mid-Size, Large, Super Large, Ultra Long Range, and Converted Airliners), By Platform (On-Demand Service, Aircraft Management Services, and Leasing), By System (Propulsion System, Aerostructures, Avionics, and Others), By End Use (Private and Operators), By Point of Sale (OEM and Aftermarket), and Regional Forecast, 2020-2027”. According to the General Aviation Manufacturers Association (GAMA), global shipments of private jets in 2017 rose to 2,324 units, reflecting an increase of 2.5% from 2016 levels. The gains, the GAMA notes, were led by increased deliveries from HondaJet, Cirrus Aircraft, and Textron. Honeywell International also forecasts promising increases in business jet deliveries in the forthcoming decade. According to the company’s Global Business Aviation Outlook, between 2020 and 2029, worldwide business jet shipments could reach 7,600 at an estimated value of USD 248 billion, signaling good news for the market.
Stringent Travel Restrictions to Contain COVID-19 to Impede Market Growth
The business jet market growth has hit a roadblock in the form of the COVID-19 pandemic. Governments around the world have imposed strict travel restrictions for non-essential journeys to contain the spread of the coronavirus. For example, in March 2020, the European Union (EU) issued extensive travel bans to and from Europe, especially for countries where COVID cases were rising rapidly. However, the demand for executive aircraft is picking up again, though at a sluggish pace. Embraer, for instance, reported decent earnings of USD 130 million in the Second Quarter of 2020, stating that business jet demand is stabilizing worldwide. However, reaching demand and revenue levels of the pre-COVID period is expected to be a prolonged process for this market.
List of Companies Profiled in the Business Jet Market Report:
- Zunum Aero (Washington, the U.S)
- Eviation Aircraft (Israel)
- Cennas Aircraft Company (Kansas, the U.S.)
- Gulfstream (Georgia, the U.S.)
- Embraer SA (State of São Paulo, Brazil)
- The Boeing Company (Illinois, the U.S.)
- Joby Aviation (California, the U.S.)
- Hondajet (North Carolina, the U.S.)
- Dassault Aviation (Paris, France)
- Textron Inc. (Rhode Island, the U.S.)
- Bombardier, Inc. (Montreal, Canada)
- Airbus SE (Leiden, the Netherlands)
North America to Occupy Prominent Market Position; Europe to Register Substantial Growth
North America, with market size of USD 9.75 billion in 2019, is anticipated to lead the business jet market share during the forecast period. This is mainly attributable to the robust aviation infrastructure in the region along with the steadily climbing demand for hybrid jets in the region.
In Europe, the emergence of leasing facilities and rapid adoption of advanced aircraft propulsion systems will be the two chief growth drivers for the regional market. The Asia Pacific is expected to offer lucrative business opportunities for market players owing to promising economic growth, the establishment of foreign businesses in India and China, and the speedy rise in business air travel in the region.
Contractual Partnerships to Create New Growth Avenues for Market Players
The competition in the business jet market is being increasingly characterized by contractual agreements between companies and government bodies and among players themselves. These partnerships and ventures are opening new vistas of growth for the market and its participants and enhancing market potential.
- June 2020: Bombardier signed a CAD 105 million contract with the Federal Government to supply two of its signature Challenger jets to upgrade half of the executive aircraft fleet of the Canadian Armed Forces. The replacement decision was taken by the government citing outdated technology in two of the four business jets in the fleet.
- April 2019: Airbus’s ACJ319neo, a member of the A320neo family, completed its maiden flight, which also saw the testing of its private jet features. The aircraft has been engineered for the K5 aviation of Germany and will also feature a premium VVIP cabin designed by Fokker Techniek.
With Growing Economies, ‘Leasing’ is No Longer the Only Option to Fly Private
It is quite obvious that the aviation industry is one of the costliest industries in the world. The downfall of it, evidently, is that economies are churned through only the wealthiest; ‘billionaires’ and ‘multi-millionaires’, to be more specific. As billionaires account for a very small percentage of the global population, companies are taking in more efforts now, to involve the common man. Increasing economies have certainly made a case for the poor; justifying the fact that middle income and low-income salaries can play an integral role in the business jets industry. Not only that, more start-ups mean that people have more opportunities to present their ideas. Newer opportunities would then open up newer brand deals as companies are focused on promotions and brand deals. With ‘customer-satisfaction’ emerging as the primary aspect of any start-up/businesses almost in all parts of the world, it has become a trend to ‘fly them in’ in private jets.
What About the Air Traffic?
The story of business jets has naturally created certain doubts and raised unanswered questions. The most common question is however, regarding air traffic. Most private jets fly at a higher altitude than commercial airplanes and this is the only reason why we haven’t heard much about what seemed to be a cause for concern. Rather, air traffic is a factor that private-goers are not really worried about. The money is where the problem still exists, but as discussed earlier, may just have found the solution for overcoming the financial barriers too. The demand for business jets is rising faster than you would have guessed. Technological advances, higher fuel economies, increased on-board passenger capacity, and increasing global economies have all contributed to growth of the business jets industry in recent years. As per data provided by Fortune Business Insights, the global business jets market will reach an astonishing $ 36 billion by the end of 2026.