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Business Jet Market Size, Share & COVID-19 Impact Analysis, By Business Jet Type (Light, Mid-Size, and Large-Size), By Platform (On-Demand Service and Aircraft Management Services), By System (Propulsion System, Aerostructures, Avionics, and Others), By End-Use (Private and Operators), By Point of Sale (OEM and Aftermarket), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI101585

 

KEY MARKET INSIGHTS

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The global business jet market size was USD 24.21 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with business jets witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a huge decline of -12.1% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 25.87 billion in 2021 to USD 36.94 billion by 2028 at a CAGR of 5.22% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.


According to JetNet IQ, the global market forecast foretells up to 7,404 new jet deliveries over the upcoming decade with a valuation of up to USD 236 billion. However, till September 2020, segmental trajectories of brand new and pre-owned jets have grown divergent. Pre-owned jet transactions have been minimally impacted than new jet deliveries, while both segments' year-on-year sale volumes have shown a declining trend. The total rebound (up to 85% of 2019 levels) of the global market is anticipated to be achieved by mid-2021. According to Honeywell Aerospace, the future purchase behavior of 80% of customers has not been impacted. The remaining customers have shown the short-term future purchase restrained by less than 1%.


Short-term Impact amid COVID-19 on the Private Jets Market is Expected to Recover By Mid-2021


The ongoing COVID-19 pandemic has changed the market dynamics for the forecast period, as air travel demand has nosedived since the coronavirus outbreak and its resurgence of the second wave worldwide. To overcome the negative effects of this pandemic, various companies are focusing on the following factors:



  • The ongoing pandemic has not impacted business aviation more than commercial aviation, as it has made a speedy recovery by the end of 2020 and continues to do so in 2021. According to Honeywell Aerospace's research study of private jet owners and operators, around 80% of respondents have conveyed that there is no impact on their future purchase plans and their revenue, while approx. 20% of the respondents have mentioned that there is a short-term impact on their near future purchases, but not the long-term purchase plans.

  • Governments and their region groupings (G7, Quad, and others) worldwide have articulated the solution for supply chain management by considering their problems during the pandemic. For instance, Quadrilateral Security Dialogue (QUAD/QSD) has considered establishing an alternative supply chain process in the wake of trade disruptions worldwide.

  • Companies are looking forward to expanding the market for executive jets, sleeking their operational processes, and emphasizing inventory management to overwhelm the impact of the coronavirus on their businesses. For instance, in February 2021, Bombardier announced that it would lay off around 1600 workers for the loss adjustment owing to the declining demand in the aviation industry and halt of the production of Learjet 75 private jets.

  • Companies would have to design new safety norms to maintain social distancing even after COVID has subsided. For instance, private jet operators with fixed-based operators (FBO) such as JSX Air, a subsidiary of JetSuiteX Inc., are strictly following air travel guidelines, such as social distancing on their private jet flights amid the ongoing pandemic.

  • Companies should implement the Just-In-Time concept to procure and deliver private jets to end-users. For instance, private jets operators, such as SkyJet, Surf Air, Blue Star Jets, Beacon, PrivateFly, and Victor, are playing a crucial role in the private jets market.


LATEST TRENDS


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Development of Innovative Cabin Interiors and Demand for In-flight Connectivity are Prominent Market Trends


A cabin interior system encompasses multiple subsystems, such as lighting, cabin seating, lavatory, galley, and windshields. The rising adoption and demand for in-flight 4G & 5G connectivity in the cabin interior are anticipated to fuel the business jet market growth. Private jet operators are emphasizing the acquisition of Gogo Avance L5, which provides 4G and 5G connectivity. Moreover, key companies, such as Panasonic Avionics, Zodiac Aerospace, and Honeywell Corporation, are actively engrossed in developing and designing lightweight and cost-effective cabin interior systems and relevant products.  Besides, the conventional business aviation modernization with technologically advanced cabin interior systems and components is anticipated to fuel the market's growth.


DRIVING FACTORS


Surging Demand for All-electric Business Aircraft and Eco-air Jets to Aid Growth


According to the International Civil Aviation Organization (ICAO), the demand for all-electric aircraft remains steady, with a growth rate between 2% and 5%. However, in a decade, this growth rate is expected to reach 24%. Thus, companies across geographies are looking forward to investing in research and development capabilities to design and develop more electric aircraft in the next few years.


According to the U.S.-based electric jet start-up Ampaire Inc., it is actively involved in designing and developing electric business jet solutions. Moreover, this can lead to a reduction in maintenance costs by 50%. Furthermore, it improves takeoff & landing efficiency by 66%, with no fuel emission from the tailpipe of the aircraft. These operational benefits and cost-effective solutions can propel the adoption of eco-friendly propulsion aircraft systems.


Increasing Sizes of Aging Fleet to Fuel the Market Growth


According to a JetNet IQ study, the average age of executive jets worldwide as of March 2020 was 18.2 years. Private jets of the ultra-long range are the youngest amongst the whole business aviation fleet. In the type of executive jets, heavy jets have had many maintenance, repairs, and overhaul (MRO) operations in the past few years. These aircraft can be replaced by next-generation executive jets in the upcoming years. Moreover, private firms and original equipment manufacturers (O.E.M.s) are focusing on developing technologically advanced small private jets for on-demand service applications.


RESTRAINING FACTORS


Uncertainty of Orders May Restrain the Growth of Market 


In May 2020, the Canadian jet manufacturer Bombardier announced its shutdown of manufacturing facilities due to the loss of production caused by the COVID-19 pandemic. The company was planning to lay off around 2,500 employees owing to the impact of COVID-19. However, its recent contract with the Canadian government of USD 105 million has minimized the risk. The OEM is looking forward to continuing with the manufacturing of executive aircraft in the upcoming years.


Moreover, disruptions in the supply chain have largely impacted sales and production activities worldwide. Companies are looking forward to incorporating the cost-effective e-platform to overcome the impact of the pandemic in the near future. Furthermore, the unscheduled orders from end-users, such as private players and OEMs, have hampered the market growth.


SEGMENTATION


By Business Jet Type Analysis


Changes in the Nature and Duration of Business Trips to Boost Ultra-high Range Jet Segment


Based on the type, the ultra-long-range jet segment is expected to display an accelerated growth rate during the forecast period due to the rising demand for long-range jets in the U.S. In November 2020, the market share of ultra-long-range jets by units and revenue stood at 27.1% and 52.2% of the overall business aviation market, respectively. The ongoing pandemic has impacted the aviation industry owing to the adoption of stringent airport operation protocols worldwide. This factor has altered the nature and duration of business trips worldwide. The light jets and mid-size jets segments held dominant market shares in 2020 because of their comparatively lower costs and high demand from on-demand service providers and private owners.


By Platform Analysis


On-demand Service Segment Held Highest Share in 2020 Owing to Presence of Various Service Providers Worldwide


The market is segmented into on-demand service and aircraft management services based on the platform. The on-demand services segment accounted for the largest business jet market share in 2020. It was owing to the presence of a large number of private jet service providers in developed and emerging countries. The aircraft management service segment is anticipated to project a promising CAGR during the forecast period due to the increasing usage of outsourcing management services, such as Jet Linx Aviation LLC by end-users.


By System Analysis


Investment in Technological Advancement and Hybrid Systems to Boost Growth of Propulsion System Segment


The market is segmented into propulsion systems, aerostructures, avionics, and others by the system. The propulsion systems segment accounted for a dominant market share in 2020 and is also anticipated to be the fastest-growing segment during the forecast period due to the surging investments by major players in hybrid-electric propulsion systems and the development of an electric aircraft fleet. For instance, Rolls Royce has been investing in developing the E-Fan X hybrid-electric propulsion technology since 2017.


The aerostructures segment has been in the process of market consolidation for business and commercial jets. For instance, in April 2021, Airbus commenced the consolidation and restructuring of aerostructures activities for business and commercial aircraft in France and Germany to simplify the organizational structure.


By End-Use Analysis


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Operators Segment to Dominate Backed by Surging Fleet Modernization Programs across UAE, China, and Singapore


The market is bifurcated into operators and private, based on end-use. The operators segment held a dominant share in 2020. The dominance is due to the charter service operators' fleet modernization and the rising demand for service-based operators in countries such as the UAE, China, and Singapore. The private segment is expected to grow at a significant CAGR during the forecast period due to the rising demand for conventional aircraft up-gradation with next-generation aircraft. The demand is majorly witnessed by the high net worth individuals for private jets market


By Point of Sale Analysis


Rising Demand for MRO Services by Private Jet Owners in Developed Countries to Fuel Growth of the Aftermarket Segment


Based on the point of sale, the market is segmented into OEMs and aftermarkets. The OEMs segment had accounted for a dominant share in 2020. The dominance is due to the rising demand for new advanced business aircrafts for on-demand service in countries such as the U.S., the UAE, China, and Japan.


The aftermarket segment is anticipated to increase at a promising CAGR during the forecast period due to the rising demand for upgrading existing business aircraft. AMAC Aerospace, for instance, received multiple maintenance, repair, and overhaul (MRO) contracts from major market players, such as The Boeing Company, Airbus S.E., Gulfstream Aerospace L.L.C., Bombardier Inc., and their private customers. As per Bombardier, it aims to profit 20% of revenue by 2025 through aftermarket expansion, corporate restructuring, cost-cutting, improved productivity, and increased sales of high-profit executive jets.


REGIONAL INSIGHTS


North America Business Jet Market Size, 2020 (USD Billion)

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The market size in North America stood at USD 8.62 billion in 2020. The dominance of this region is attributable to the presence of major market players and the rising demand for electric aircraft and on-demand service for private jets in the U.S. These factors, along with favorable government policies and required infrastructure facilities in the U.S. and Canada, are responsible for North America's dominance in terms of the market share.


The market in Europe is anticipated to grow at a significant CAGR due to the rising awareness regarding advanced technology-based private executive aircraft and leasing facilities. However, the market has plummeted owing to the pandemic-induced stringent travel restrictions, slower regional economic growth, and the impact of Brexit. Moreover, the advent of 2021 has surged the growth of the market for private jets in Europe owing to changes in the flying behavior of passengers.


The market in Asia Pacific is expected to grow due to the increasing development of smart cities and investment infrastructure by countries such as China, India, and Singapore. Smart cities incorporate helipads/helidecks in large numbers to minimize issues related to transportation due to densely populated areas. Latin America accounted for a larger share due to the presence of Embraer S.A. and other key OEMs in the region.


KEY INDUSTRY PLAYERS


Key Players Focus on Developing Technologically Advanced Aircraft to Strengthen Their Positions


Key market players, such as Airbus SE, The Boeing Company, and Embraer SA, are involved in designing and developing executive jets with the incorporation of advanced technological systems. Companies are looking forward to producing technologically advanced hybrid engines and establishing strong partnerships with organizations present in developed and emerging economies. These companies are adopting strategies, such as the development of next-generation all-electric business aircraft and geographic expansion, to establish their strong market share.


LIST OF KEY COMPANIES PROFILED:



  • Airbus SE (Leiden, the Netherlands)

  • The Boeing Company (Illinois, the U.S.)

  • Bombardier, Inc. (Montreal, Canada)

  • Embraer SA (State of São Paulo, Brazil)

  • Textron Inc. (Rhode Island, the U.S.)

  • GulfstreamAerospace (Georgia, the U.S.)

  • Dassault Aviation (Paris, France)

  • Cessna Aircraft Company (Kansas‎, the U.S.)

  • Hondajet (North Carolina, the U.S.)

  • Eviation Aircraft (Israel)

  • Joby Aviation (California, the U.S.)

  • Zunum Aero (Washington, the U.S.)

  • Other Players


KEY INDUSTRY DEVELOPMENTS:



  • March 2021 – Gulfstream Aerospace LLC announced the engineering services (ESC) and contractor logistics support (CLS) contracts worth USD 696 million to assist the U.S. Air Force's fleet of C-37B (G550), C-20G (G-IV), C-37A (G-V) utilized by the U.S. Marines, Army, Air Force, Navy, and Coast Guard. Under the contract, the renewal of the previous engineering services contract (ESC) and contractor logistics support (CLS) contracts have been awarded for USD 612 million for ten years and USD 84 million for the fourth-year option.

  • December 2020 – Bombardier obtained a contract worth USD 267 million to deliver ten new Bombardier Challenger 350 executive jets to an undisclosed buyer. It is one of the largest business jet contracts of 2020.


REPORT COVERAGE


An Infographic Representation of Business Jet Market

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The business aircraft market report provides a detailed analysis of the market. It focuses on key aspects, such as leading companies, aircraft types, and leading applications of executive jets. Besides this, the report offers insights into the business jet industry trends and highlights key industry developments. Moreover, the report encompasses various key factors contributing to the market's growth over recent years.


Report Scope & Segmentation

















































  ATTRIBUTE



  DETAILS



Study Period



  2017-2028



Base Year 



  2020



Forecast Period



  2021-2028



Historical Period



  2017-2019



Unit



  Value (USD Billion)



Segmentation



By Business Jet Type



  • Light Jet

    • Very Light Jet

    • Super Light Jet



  • Mid-size Jet

    • Super Mid-size Jet



  • Large Jet

    • Super Large Jet

    • Ultra Long Range Jet





By Platform



  • On-Demand Service Platform

    • Air-Taxis

    • Charter Service

    • Jet Card/Membership Program

    • Fractional ownership



  • Aircraft Management Services



By System



  • Propulsion System

  • Aerostructures

  • Avionics

  • Others (Cabin Interiors, Aircraft Power Systems, Landing Gears)



By End-Use



  • Operators

  • Private



By Point of Sale



  • OEM

    • Conventional

    • Hybrid



  • Aftermarket

    • MRO

    • Parts Replacement





By Geography



  • North America (By Business Jet Type, Platform, System, End User, Point of Sale and Country)

    • The U.S. (By Type)

    • Canada (By Type)



  • Europe (By Business Jet Type, Platform, System, End User, Point of Sale and Country)

    • The U.K. (By Type)

    • Germany (By Type)

    • France (By Type)

    • Spain (By Type)

    • Switzerland (By Type)

    • The Rest of Europe (By Type)



  • Asia-Pacific (By Business Jet Type, Platform, System, End User, Point of Sale and Country)

    • Japan (By Type)

    • China (By Type)

    • India (By Type)

    • Australia (By Type)

    • The Rest of Asia- Pacific (By Type)



  • The Middle East (By Business Jet Type, Platform, System, End User, Point of Sale and Country)

    • The UAE (By Type)

    • Saudi Arabia (By Type)

    • Israel (By Type)

    • Turkey (By Type)

    • The Rest of the Middle East (By Type)



  • Rest of the World (By Business Jet Type, Platform, System, End User, Point of Sale and Sub Region)

    • Latin America (By Type)

    • Africa (By Type)





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 24.21 billion in 2020 and is projected to reach USD 36.94 billion by 2028.

In 2020, the North American market value stood at USD 8.62 billion.

Registering a CAGR of 5.22%, the market will exhibit steady growth in the forecast period (2021-2028).

The propulsion segment is expected to lead this market during the forecast period.

The surging demand for all-electric jets and eco-air jets and the aging fleet size are the major factors driving the markets growth.

Bombardier, Inc., Embraer S.A., Textron Inc., Gulfstream, and Dassault Aviation are the major players in this market.

North America dominated the market in terms of share in 2020.

Key companies are adopting expansion strategies by establishing strong partnerships with other firms and governments. They are also involved in designing and developing next-generation hybrid engine-based jets for various commercial applications.

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Business Jet Market Size, Share and Global Industry Trend Forecast till 2026
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