Market Snapshot
| Study Period: | 2018-2027 |
| Base Year: | 2021 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | North America |
| CAGR: | 2.5 % |
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Market Overview
The market for the business jet was valued at USD 15.25 billion in 2020 and is anticipated to register a CAGR of 2.50% during the forecast period (2021-2026), to reach a market value of USD 17.86 billion by 2026.
The COVID-19 pandemic affected the business jet market in the short term as the orders and deliveries witnessed a decline in 2020. However, no long-term effect has been observed on the market as the charter service providers' (and other business jet providers’) fleet modernization plans have not been hampered. Furthermore, the business jet activity witnessed a gradual increase in the second half of 2020 compared to the first half of the year due to restricted access for commercial aviation. The increase in business jet operations is expected to strengthen the demand for business jets is expected to increase in the coming years.
Approximately 1/3rd of the business jet fleets currently in operation are more than 10 years old. This is driving the business jet operators and charter providers to invest in fleet modernization programs and enhance their fleet's capabilities. This is expected to propel the growth of the market during the forecast period.
With the growth of the tourism sector in Latin America and Southeast Asia, many charter operators are making plans to introduce new charter routes in the regions and further expand their presence. This is generating demand for lightweight and fuel-efficient business jets.
Over the past few years, there has been a significant increase in high-net-worth individuals and ultra-high-net-worth individuals globally. This is generating demand for private travel, subsequently driving the procurement of private jets with enhanced cabin interiors.
Scope of the Report
A business jet or a private jet is an aircraft that is turbofan-powered and is designed to transport small groups of people. The scope includes the procurement of business jets purchased by individuals (such as VIPs, athletes, and government officials), corporates, governments, and charter service providers. Based on the aircraft type, the market is segmented into light jet, mid-size jet, and large jet. The report also covers the market sizes and forecasts for the business jet markets in major countries across different regions. The market sizing and forecasts have been provided in value (USD billion). The report excludes helicopters used for business travels.
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Key Market Trends
Large Jets Accounted for the Highest Share in the Market in 2020
The large jet segment currently dominates the market in terms of market share. This can be attributed to relatively higher prices of the large jets than light jets, despite the former's lower deliveries compared to the latter. In 2020, demand for large jets was high, as they have a large cabin space that can accommodate approximately 19 passengers. However, the segment’s growth was affected due to restrictions on long-distance travels, globally. Nevertheless, in the coming years, the segment will witness positive growth as the travel restrictions are now lifted. For instance, in October 2020, Airbus announced that the company has received six orders for new ACJ TwoTwenty extra-large aircraft based on Airbus' A220-100 with a range of more than 10,000 kilometer. The order for six aircraft included two from Comlux, a Switzerland-based charter company, and four from other undisclosed companies. The interior of Comlux aircraft will include a business and guest lounge along with private entertainment space and a private suite, including a bathroom. The first pair of aircraft for Comlux are expected to enter service in early 2023. Furthermore, fractional ownership of jets may also rise as owners try to avoid overhead costs and choose shared aircraft because of the market's economic downturn and uncertainties. Such factors are anticipated to propel the growth of the market during the forecast period.
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North America Held the Largest Market Share in 2020
North America currently has the largest share in the market and is expected to continue its dominance during the forecast period. The region holds the most extensive operating business jet fleet (more than 14,700 aircraft) in the world, with the United States accounting for the majority of its share. Due to the presence of many high-net-worth individuals and corporate companies, the majority of the demand is for light jets and large jets. Furthermore, there has been an increase in the demand for charter services over the past few years in the region. Due to the impact of COVID-19 on commercial aviation, there has been an increase in demand for business aviation in 2020. Although the overall flight activity dropped in 2020, the business aviation flight activity began to gradually recover from May 2020. Furthermore, the business jet activity began to robustly increase in 2021 following the easing of COVID-19 pandemic restictions in the region. In addition to this, the charter companies have also decreased prices to take care of the business jet opportunities. The growth in charter operations in the region has propelled the fleet modernization programs by the charter operators to enhance their fleet efficiencies. According to Honeywell, approximately 15% of North America’s business jet fleet is expected to be replaced in the coming years. In June 2020, NetJets announced that the company had received its 25th Challenger 650 under an order placed during 2010-2012. The order included procurement of 75 Challenger 350s, 50 Phenom 300s, 30 Global 5000/6000s, 25 Challenger 650s, and 25 Citation Latitudes. Such fleet modernization programs are anticipated to accelerate the growth of the business jet market in North America during the forecast period.
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Competitive Landscape
The market of business jets is highly competitive with the presence of several major players. However, in terms of market share, few players, such as Bombardier Inc., Textron Inc., Gulfstream Aerospace Corporation, Embraer SA, and Dassault Aviation SA, among others, are currently dominating the market. Gulfstream and Bombardier, together accounted for 68% of the market share by revenue in 2020. To further increase their presence in the market, the companies are developing new advanced business jet models with enhanced cabin interiors and better fuel efficiencies. Such innovations are expected to attract new potential customers, which in turn will help the aircraft OEMs to increase their share in the market in the coming years. The aircraft OEMs are developing region-targeted strategies to enhance their sales. For instance, Airbus is currently in plans to further enhance its geographical footprint in the Middle East region as the company plans to take advantage of growing opportunities of the larger aircraft. Such targeted plans of the aircraft OEMs are expected to help the companies increase their sales and profits in the coming years.
Recent Developments
- In September 2021, Gulfstream Aerospace announced that it has handed over its 50th G600 business jet to an undisclosed customer based in North America. The aircraft is powered by two Pratt & Whitney PW815GA engines and comes equipped with Gulfstream’s Symmetry Flight Deck. The aircraft received its type and production certificates from the FAA in July 2019.
- In July 2021, Bombardier received an order for 10 aircraft from an existing customer. The aircraft order was worth USD 451.8 million. The order mix of aircraft was not disclosed.
- In May 2021, Dassault Aviation announced an all-new Falcon jet, the Falcon 10X. The new aircraft will have a range of 7,500 nautical miles with a top speed of Mach 0.925. The Falcon 10X will enter service at the end of 2025.
- In December 2020, Bombardier received an order for 10 Challenger 350 aircraft from an undisclosed customer. The order was worth USD 267 million.
- In October 2020, Airbus Corporate Jets launched the ACJ TwoTwenty business jet, an extra-large business jet that meets the requirement for a heavy and long-range business jet. The new business jet is based on A220 Family with about three times more cabin space with approximately one-third less operating costs. It is also equipped with two times better connectivity Wi-Fi systems, electro-chromatic windows, and LED lighting.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.1.1 Business Jet Fleet Data (in units) (2018 - 2021)
4.1.2 New Deliveries (in units) (2018 - 2021)
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD billion)
5.1 Aircraft Type
5.1.1 Light Jet
5.1.2 Mid-size Jet
5.1.3 Large Jet
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 France
5.2.2.3 Germany
5.2.2.4 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 Rest of Asia-Pacific
5.2.4 Latin America
5.2.4.1 Brazil
5.2.4.2 Rest of Latin America
5.2.5 Middle-East and Africa
5.2.5.1 Saudi Arabia
5.2.5.2 United Arab Emirates
5.2.5.3 South Africa
5.2.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Airbus SE
6.2.2 The Boeing Company
6.2.3 Bombardier Inc.
6.2.4 Dassault Aviation SA
6.2.5 Embraer SA
6.2.6 Gulfstream Aerospace Corporation
6.2.7 Textron Inc.
6.2.8 Honda Aircraft Company
6.2.9 Cirrus Design Corporation
6.2.10 Pilatus Aircraft Ltd
6.2.11 SyberJet Aircraft
6.2.12 Eclipse Aerospace, Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Business Jet Market market is studied from 2018 - 2026.
What is the growth rate of Business Jet Market?
The Business Jet Market is growing at a CAGR of 2.5% over the next 5 years.
What is Business Jet Market size in 2018?
The Business Jet Market is valued at 15 Billion USD in 2018.
What is Business Jet Market size in 2026?
The Business Jet Market is valued at 17 Billion USD in 2026.
Which region has highest growth rate in Business Jet Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Business Jet Market?
North America holds highest share in 2020.
Who are the key players in Business Jet Market?
Gulfstream Aerospace Corporation, Dassault Aviation SA, Bombardier Inc., Airbus SE, Textron Inc., Embraer SA are the major companies operating in Business Jet Market.
