Business Jet Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Business Jet Market has been segmented by Aircraft Type (Light Jet, Mid-size Jet, Large Jet), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle-East and Africa). The report offers market size and forecast for Business Jet Market in value (in USD billion) for all the above segments.

Market Snapshot

Study Period:

2018 - 2026

Base Year:

2020

Fastest Growing Market:

North America

Largest Market:

North America

CAGR:

3 %

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Market Overview

The business jet market was valued at USD 15.05 billion in 2020 and is projected to grow to about 18 billion by 2026 with a CAGR of approximately 3% during the forecast period (2021 - 2026).

The COVID-19 pandemic has affected the business jet market in the short term as the orders and deliveries have witnessed a decline in 2020. However, no long-term effect is observed on the market as the fleet modernization plans of the charter service providers (and other business jets) have not been affected. Furthermore, due to the increase in charter operations due to the COVID-19 pandemic, the demand for business jets is expected to further increase in the coming years.

Approximately 1/3rd of the business jet fleet currently in operation are more than 10 years old. This is driving the business jet operators and charter providers to invest in the fleet modernization programs and enhance the capabilities of their fleet. This is expected to propel the growth of the market during the forecast period.

Also, with the growth in 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 light weight 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 procurements of private jets with enhanced cabin interiors.

Scope of the Report

A business jet or a private jet is an aircraft that is designed to transport small groups of people. The scope includes the procurement of business jets purchased by individuals (such as VIPs, athletes, 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 market 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.

Aircraft Type
Light Jet
Mid-size Jet
Large Jet
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Rest of Europe
Asia-Pacific
China
India
Japan
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Large Jet Segment Accounted for the Highest Share in the Market in 2020

The large jet segment currently dominates the market in terms of market share. This is due to relatively higher prices compared to light jets despite the lower deliveries compared to light jets. 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 traveling globally. Nevertheless, in the coming years, the segment will witness positive growth as the travel restriction will be 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 kilometers. 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 is 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 is Anticipated to Register the Highest CAGR during the Forecast Period

North America region currently has the highest share in the market and is expected to continue its dominance during the forecast period. The region holds the largest operating business jet fleet (more than 14,000 aircraft) in the world with the United States accounting to majority of its share. Due to presence of many high-net-worth individuals and corporate companies, majority of the demand is for light jets and large jets. Furthermore, there has been increase in charter services demand 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. For instance, Monarch Air Group, a US-based charter company announced that the company has witnessed an increase (year-on-year) of 125% in total bookings till June 2020 compared to June 2019 and approximately 50% of its new charter contracts were received in June 2020. 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 efficiencies of their fleet. 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 has 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 during the forecast period.

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Competitive Landscape

The market of business jets is highly competitive with several major players in the market. 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. 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 would 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 geographic 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 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, and electro-chromatic windows, and LED lighting.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD billion)

    1. 5.1 Aircraft Type

      1. 5.1.1 Light Jet

      2. 5.1.2 Mid-size Jet

      3. 5.1.3 Large Jet

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 United Kingdom

        2. 5.2.2.2 France

        3. 5.2.2.3 Germany

        4. 5.2.2.4 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 India

        3. 5.2.3.3 Japan

        4. 5.2.3.4 Rest of Asia-Pacific

      4. 5.2.4 Latin America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Rest of Latin America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 United Arab Emirates

        3. 5.2.5.3 South Africa

        4. 5.2.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Airbus SE

      2. 6.2.2 The Boeing Company

      3. 6.2.3 Bombardier Inc.

      4. 6.2.4 Dassault Aviation SA

      5. 6.2.5 Embraer SA

      6. 6.2.6 Gulfstream Aerospace Corporation

      7. 6.2.7 Textron Inc.

      8. 6.2.8 Honda Aircraft Company

      9. 6.2.9 Cirrus Design Corporation

      10. 6.2.10 Pilatus Aircraft Ltd

      11. 6.2.11 SyberJet Aircraft

      12. 6.2.12 Eclipse Aerospace, Inc.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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