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

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.

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.