Business Jet Market - Segmented by Range (less than 3000 NM, 3000 - 5000 NM, more than 5000 NM), By Aircraft Type (Light Jet, Mid - Size Jet, Large Jets) and Geography - Growth, Trends and Forecast (2018 - 2023)
The market for business jets is anticipated to grow at a CAGR of about 1.49% during the forecast period. The Increasing Initiatives as well as the rising aircraft programs coupled with the increasing travel and tourism in the developing regions as well as the increasing number of ultra- high net worth individuals shall drive the business jet market in the coming years.
Business jet or a private jet is a jet aircraft that has been designed for transporting small groups of people. Business jets may also be adapted for other roles, such as evacuation of casualties or express parcel deliveries, etc. Business jet manufacturers are presently focusing on the development of ultra-long-range jets that can travel almost halfway around the world, which can present fresh possibilities in personal and business travel. Additionally, various key new models are gaining importance in the business jet market such as Gulfstream G650ER, Bombardier Global 7000 and 8000, and Dassault Falcon 7X and 8X.
Worldwide air travel has grown at a historically sharp pace, over the past two decades, with year-over-year passenger travel growth for the past five years averaging 6.2%. Lower airfares, improving standards of living, and a growing middle class in large emerging markets, like China and India, are major contributors to the increased air travel. The middle class in both countries, combined, grew from 80 million in 2000 to 135 million in 2016, an increase of nearly 70%. China has contributed significantly to the world’s traffic growth over the past 10 years, as its passenger growth has increased at an average rate of more than 10% per year from 2007-2017. India is expected to become the third-largest commercial aviation market by the early 2020s. The high economic growth in the country is fueling more than 20% passenger traffic growth per year in its domestic market.
Additionally, there is a direct correlation between HNW (High Net worth Individuals) and UHNW (Ultra High Net worth Individuals) growth and business aviation demand. HNW individuals prefer business jets due to various reasons, such as convenience, mobility, and efficiency of time and productivity. According to the World Bank Report, Asia-Pacific, North America, and Europe are the largest contributors to high-net-worth-individual Growth. Asia-Pacific remains the highest contributor. North America saw a percentage change of 7.8% from 2015-2016, whereas Asia-Pacific and Europe saw a percentage change of 7.4% and 7.7% respectively. The number of HNWI’s in North America was 5.2 million in 2016, 5.5 million in Asia-Pacific, and 4.5 million in Europe. Also, there is a rise in private charter jets, used by luxury travel companies, to cater to the demands of HNWIs/UHNWIs. As a result, the demand for business charter is expected to grow
North America and Europe have the largest number of shipment by geography, due to the presence of infrastructure required for such airplanes. North America is one of the premium markets for business jet operations.Europe is expected to be the greatest contributors to the market in the future. In India, the business jet market is expected to grow, owing to the fact that the region does not have stringent laws and regulations that can hinder the performance of the business jets. North America currently is the market leader in the global business jet market, and it is expected to grow significantly in the near future. The European region is also expected to witness impressive growth rates in the coming years.
Major Players - Air Charter International, Airbus Business Jet, Bloom Business Jet, Boeing Business Jet, Dassault Aviation among others.
Key Developments in the Market
- May 2018- Airbus Corporate Jets have reported that their first ACJ320neo aircraft have entered into production. Moreover, the components for the ACJ320 neo aircraft are being manufactured in Europe.
- May 2017- Airbus Business jet and Italian Car manufacturer Pagani announced a new cabin design for the Airbus A319 Neo aircraft. The name of the design is Infinito.
Reasons to Purchase the Report
- Analyzing various perspectives of the market with the help of Porter’s Five Forces Analysis
- Detailed analysis on the segment that is expected to register the highest growth rate
- Study on the region and country that are expected to dominate the market
- Identifying the latest developments, market shares, and strategies employed by the major market players
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