Business Jet Market

Market Overview

The global business jet market size was valued at USD 15.8 billion in 2021. It is projected to reach USD 19.73 billion by 2030, growing at a CAGR of 2.50% during the forecast period (2022-2030). 

Business jets, often known as private jets or bizjets, are jet aircraft intended for carrying fewer passengers. Some business jets are utilized by public entities, government officials, or military services. Business jets may be modified for various purposes, such as the evacuation of casualties or express package deliveries. The demand for premium onboard amenities is rising, driving the development of aftermarket systems. The MRO activities, which include the replacement, repairs, and maintenance of crucial business jet systems and their constituent parts, are covered by the aftermarket systems area of the business jet industry.

Market Dynamics

Global Business Jet Market Drivers

• Increasing Number of High-Net-Worth Individuals

High-Net-Worth Individuals (HNWI) live an international lifestyle and are the key stakeholders in the worldwide general aviation business. Hence frequent long-haul flights are frequently necessary for them. In addition to owning private aircraft, they frequently choose to charter private aircraft or participate in fractional ownership programs. However, a portion of the wealthy population also chooses personal or professional ownership. For Ultra-High-Net-Worth Individuals (UHNWI), using a private aircraft is a practical and economical way to accommodate their hectic schedules across many nations and time zones.

Although UHNWIs in the United States have long controlled the private aviation sector, legislative developments in emerging economies have caused the need for private aircraft to become more global. Due to their preference for luxury, Middle Eastern UHNW people tend to purchase planes that are nearly 2.5 times more expensive than the global average of their counterparts. With a significant percentage of the new high net worth individual (HNWI) wealth internationally, Asia-Pacific solidified its position as a haven for wealthy people.

• Growing Demand for New Aircrafts with Advanced Features

In recent years, the market for business jets has expanded. Several manufacturers are making modern business jets emphasizing improved passenger experience and fuel efficiency. By introducing newer models and luring in more clients, several manufacturers are seeking to increase their level of competition in the market. Incorporating sophisticated subsystems and cutting-edge technologies onboard a modern business aircraft was made possible by implementing new safety standards and emission norms. This has pushed the demand for and extent of collaboration between aircraft OEMs and the upstream supply chain. Advanced parts and materials are other aspects of more recent business jet generations that lessen the need for routine maintenance.

Global Business Jet Market Restraint

• Bargaining Power of Buyers

A select few large-scale business jet suppliers affect consumers' bargaining power in the general aviation industry. Manufacturers' negotiating power is being weakened by rising buyer consolidation and collective pooling. However, business jet manufacturers have an advantage in negotiations because of the high level of customization that consumers demand. The market players will be impacted if the buyer decides to switch to another business jet manufacturer's fleet, as the OEMs lose devoted customers and billions in potential future revenues. On the other hand, several business jet operators maintain fleets from the same manufacturer to reduce maintenance costs.

Global Business Jet Market Opportunities

• Emergence of e-VTOL Aircraft

Traffic time within a city has increased as intracity travel has become more congested. Traditional business jets are ineffective in such circumstances since they take off and land at airports, the availability of which is typically restricted to urban areas. VTOL aircraft might be helpful for intracity travel because they can take off and land at several vertiports inside a city. The concept of urban air mobility includes eVTOL aircraft, which make city travel easier because they are less expensive and less noisy. Technology breakthroughs in battery capacity, the construction of infrastructure like vertiports and charging pods, and a robust legal framework are all necessary for the concept to be commercialized. Thus, the market for business aircraft is anticipated to expand with the introduction of eVTOL technology because they are already needed.

Regional Analysis

The global business jet market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant shareholder in the global business jet market and is expected to grow at a CAGR of 1.85% during the forecast period. The United States owns 61.6% of the whole business jet fleet now in use worldwide. Due to travel restrictions in most countries, corporate aviation activity has been hindered globally since the epidemic. The 12 states that recently lifted their travel restrictions are driving the business aviation revival in the US. Compared to last year, March departures from those regions are up 11% thus far. Florida gateways, including Palm Beach International, Miami Opa-Locka Executive, and Naples Airports, are all reporting records to travel levels. At the same time, flights from Florida to Puerto Rico, Jamaica, Colombia, and Costa Rica improved by more than 50%. Apollo Jets, a brokerage, has been added to VistaJet's US operations to increase its reach. Apollo Jets does not use an air operator certificate to run its own or a managed fleet.

VistaJet recently purchased businesses, including XOJET, JetSmarter, and Red Wing Aviation, to increase its presence internationally. However, the acquisition strengthened Vista Global's position in international business aviation and added 4,000 customers, including several well-known athletes and celebrities. One of the critical markets for business jets in North America is Canada. The Praetor 600 jet from Embraer just earned type certification from Transport Canada. The Praetor 600 jet can connect the distances between Toronto and London, Montreal and Paris, or Calgary and Honolulu by traveling 3,700 nautical miles at Mach 0.8. With a fleet of 30 aircraft, Canadian air charter firm FastAir operates Citation X, Gulfstream 200, Citation XLS, G150, HondaJet Elite, King Air 350, and King Air Executive/Commuter. Additionally, it offers an FBO for VIP and maintenance services.

Europe is expected to grow at a CAGR of 3.16%, generating USD 3.03 billion during the forecast period. Approximately 327 business jets are currently in use in the United Kingdom. According to estimates, the number of commercial flights decreased by almost 75% from the previous year due to the epidemic. However, only a 40% reduction in business aviation flights was made. Business jet market growth in the nation is anticipated to be fueled by fleet modernization initiatives of corporations due to the rise in business aviation demand. The UK aviation industry will continue to participate in the European Aviation Safety Agency (EASA) system throughout the transition phase, and EU legislation will continue to be applied in the nation. The conditions of the Open Skies Agreement are anticipated to change after Brexit. New regulations might prevent private planes with British registration from flying freely within Europe. The German market is in turmoil due to the customers' shifting demands due to their cost consciousness. In contrast to the fractional divisions, the charter industry consequently prospered over the past few years. It is anticipated that ongoing plans to replace the fleet during the projected period will fuel market expansion in business aviation.

Asia-Pacific is anticipated to grow significantly during the forecast period. China has put more emphasis on general aviation during the past few years. According to it, one of the strategically expanding businesses is general aviation. The Chinese government has implemented changes to boost the effectiveness and allocation of aerospace over the last few years. China established up to 50 new general aviation airports in 2020, demonstrating the importance the government places on building the infrastructure for private aviation. The demand for corporate aircraft has been fueled by Chinese businesses' expansion into international markets. However, because of the high expense of ownership, many businesses now favor affordable charter planes.

Greater China is the largest business jet operator in the Asia-Pacific as of March 2021, with a total fleet of 414 business aircraft. Top business jet models in Greater China's active fleet include the Gulfstream G450 and G550, Dassault Falcon 7X, and Bombardier Challenger 850. During the forecast period, macroeconomic factors such as the nation's rapid GDP growth, the globalization of the economy, steady economic development, thriving luxury tourism, and the rising number of HNWIs and UHNWIs in the area are anticipated to fuel demand for business jets in the nation. Only five airports in Japan have specific facilities for private jets: Haneda, Narita, Kansai, Osaka, and Chubu Centrair International Airport. Deregulation has increased business flight activity into and out of Japan during the last few years. In recent years, the government has prioritized constructing business jet infrastructure. New charter businesses have emerged in the nation in recent years due to the expanding need for charter services, which is anticipated to fuel the market for business jets in the nation.

Brazil is anticipated to grow steadily during the forecast period. Currently, there are 787 business aircraft in service in Brazil, and 70% of travel there is for business rather than 30% for vacation. There are still more than 60 charter operators in Brazil, even though there were over 300 active operators at the beginning of 2000. Belo Horizonte to So Paulo and So Paulo to Rio de Janeiro, both less than 350 miles apart, are two of the most well-liked charter routes. The economy and aviation infrastructure have limited the development of business aviation in the nation. However, the country has a very high potential for growth. The GCC's most operational business aircraft are located in Saudi Arabia. The increase of High-Net-Worth Individuals and Ultra-High-Net-Worth Individuals in Saudi Arabia is mostly to blame. As a result, the number of business flights in the nation is continuously rising. Additionally, it is predicted that the rise in HNWI and UHNWI in Saudi Arabia will promote the acquisition of private aircraft during the forecast period.

Segmental Analysis

The global business jet market is segmented by aircraft type.

By Aircraft Type Analysis

Based on aircraft type, the global business jet market is bifurcated into light jets, mid-size jets, and large jets.

The large jet segment is the highest contributor to the market and is expected to grow at a CAGR of 2.71% during the forecast period. The large jet segment includes heavy jets, ultra-long-range, and executive liners/business liners. These aircraft can carry ten or more passengers and have roomy cabins. Ultra-long-range jets have a range of roughly 6,000 nautical miles, whereas heavy jets have a flight time of up to nine hours non-stop and a range of about 4,000 nautical miles. As of March 2021, 6553 of the 22,700 flying aircraft were large jets, accounting for 28.9% of the world's active business jet fleet. This is typically indicative of the mindset of owners and pilots who desire to cover vast distances without stopping at unneeded points.

For charter flights and business travel, these planes are typically selected. The market for these big jets, which can provide significant cost savings while accommodating up to 20 passengers, is anticipated to be driven by the recent trend of ride-hailing of charter planes. Some of the aircraft taken into consideration in this segment include the Falcon 7X/8X from Dassault, the ACJ 319, the ACJ320neo, BBJ MAX 8, BBJ 787-9, Challenger 650, Legacy 650E, Falcon 2000LXS, Falcon 2000S, Falcon 900LX, Global 5000/6000/6500/7500, and Gulfstream G500/550/600/650/650ER. Nevertheless, as the travel limitations are being relaxed, the category will expand in the upcoming years.

Super mid-size cabin aircraft and mid-size private planes are also included in this segment. Travelers who need a larger flight capacity favor these jets. Mid-size jets can readily handle short-haul and long-haul flights, ensuring transcontinental capability, with an average range of 2,200 nautical miles or around five hours of non-stop flying. These aircraft are appropriate for customers who prefer more headroom, total standing capacity, and extra luggage space because they have larger cabins than light jets. Additionally, these jets have more fashionable interiors and can accommodate 5 to 10 passengers in the highest luxury and convenience.

In most cases, mid-size planes include space for two pilots, a flight attendant, a service galley, and an onboard restroom. Compared to big aircraft, they are easier to operate and may still use smaller airports. Super mid-size aircraft can travel 3,500 nautical miles on average and have a maximum flying length of seven hours. They can also accommodate an enclosed bathroom, a service galley, and a sizable standing and walking area and includes the Gulfstream G280, Challenger 300/350, Citation Latitude, Citation Longitude, Citation Sovereign+, Embraer Legacy 450/500, Embraer Praetor 500/600, and Challenger Sovereign+. According to Embraer, the Praetor 500 and 600 aircraft cabins will receive several modifications. This includes sanctioning the use of MicroShield360, announcing the certification of a new electronic lavatory pocket door, and making HEPA filters standard on all Praetor aircraft.

Recent Developments

• July 2022- Airbus Corporate Jets (ACJ) recently delivered an ACJ319neo to an unnamed new private client in Western Europe. The CFM International LEAP-1A-powered aircraft will be operated by Jet Aviation and be open for charter flights.
• September 2022- Boeing and Wisk unveiled the concept of operations for Urban Air Mobility.