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

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, due to the increase in charter operations owing to the COVID-19 pandemic, 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 the 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 (in USD billion). The report excludes helicopters used for business travels.

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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 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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