Business Jet Market - Analysis of Growth, Trends Progress and Challenges (2018-2023)
Business Jet Market The market is expected to register a CAGR of 5.84% during 2017-2022 (the forecast period). Business jet holds the largest share in the general aviation market, in terms of revenue. The economic crisis of 2008-09 affected the business jet market, which further decelerated the sales. However, since then the market recovered smartly, and in 2016, the annual sales of business jet accelerated, during 2007-2008. Moreover, the shipment of business jet increased by 11.2% to 129 units in the first quarter of 2017, compared to that of 2016.
Due to the increasing incomes at a global level, business jet, especially in the light and very light category, have ceased to be the domain of only the ultra-rich. Moreover, timeshare and fractional ownership programs have enabled people to own private jets. Most popular light business jet can be purchased in around USD 4-8 million, thus, expanding the customer base. The biggest restraint that affects the business jet sales, especially in the regions of South America, Africa, and Asia-Pacific, is the lack of infrastructure. Moreover, if the infrastructure is available, the expenses are extremely high that makes an operation, based on business jets service, unfeasible.
With regards to business jet, approximately 3/4th of the sale is centered in the developed regions, such as North America and Europe. The rest of the regions are highly underpenetrated and are expected to witness massive growth rates, thus, driving the business jet market. India is one of the most promising markets for business jets. The strict regulatory framework set by the DGCA (Directorate General of Civil Aviation) governs policy regulations for private jet ownerships and charter companies.
Asia is witnessing a great transformation, moreover, India and China are expected to be the market leaders by 2020.
Business Jet Market Revenue Share by Aircraft Size (2016)
Globally, the Gulfstream 500/550/650 series is one of the most popular business jet series and around 88 units were sold, which was recorded as one of the highest sales for any business jet type, over the last five years. However, in future, light jets and very light jets can be one of the largest sellers, for instance, around 125 units and 206 units of Cessna Citation M2 and the Phenom 300, respectively, were sold over the last 3 years.
Questions Answered in the Report
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