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The global business jet market size was valued at USD 42.14 billion in 2022 and is anticipated to grow from USD 43.97 billion in 2023 to USD 62.66 billion by 2030, exhibiting a CAGR of 5.19% during the forecast period.
A business jet is designed to transport small groups of people. Recently, there has been exceptional growth in high-net-worth travelers generating a high demand for private aviation and procurement of enhanced business aircraft sales worldwide. Additionally, with demand originating from corporate customers & high net worth individuals, the core & traditional pivots of business aviation remain buoyant. Additionally, fleet modernization programs by developed and emerging economies are anticipated to improve fleet capabilities and generate demand for new charter services with enhanced cabin interiors and advanced avionics.
A key trend to sustain in the market is the implementation of better interiors and technology equipment in aircraft. This includes using advanced safety features, fighter technology, and innovative flight deck in corporate jets. Furthermore, key market players are focusing on launching advanced private jets to provide customers with an unmatched experience with all safety features. For instance,
Disrupted Global Supply Chain Led to a Drop in Demand For the Product
The global COVID-19 pandemic has majorly impacted the global economy including aviation industry which thoroughly impacted individual net worth as well. Nationwide lockdowns led to a stupendous drop in the demand for aviation related transactions. During pandemic airport operations were completely stopped subsequently leading to a strong decline in the demand for business jets. However, as the number of cases declined, airport operations were resumed and a huge growth in the number of passengers has been observed after two years of pandemic. This growth is expected to drive the market demand in the forecast period.
Increasing Use of eVTOL jets Bolster Market Growth
The emergence of electronic transport mediums has led to a need to adapt sustainable air travel methods. The same can be observed with the increased use of eVTOL technology-equipped jets. eVTOL refers to Electronic Vertical Takeoff and Landing aircraft, a next-generation aircraft that is sustainable, quiet, and safe to travel. The demand for eVTOL is anticipated to grow in the forecast period with an increase in the awareness and use of eco-friendly ways of travel. Additionally, the rising purchasing power of personnel and a subsequent rise in frequent travel is expected to boost the eVTOL market in the forecast period. For instance, in December 2022, the creator of eVTOL, AIR, completed their first complete flight succeeding in proper transition in cruise and hover. The AIR ONE prototype is loaded to a full capacity of about 1100Kgs.
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Increase in Purchasing Power and Net Worth of Individuals and Increased Air Travel to Accentuate Market Growth
A continuous increase in air travel in developing and developed countries is anticipated to increase demand for new airports in major countries. This is due to a rise in individuals' overall net with and purchasing power in a post-pandemic scenario. The economy is gradually flourishing and returning to the pre-pandemic situation, leading to a rise in people's net worth, hence growing market for corporate jets.
Furthermore, growing urbanization in Asia and increasing demand from countries like India and China propel the market's growth. The rising demand for advanced business aircraft from millionaires and the thriving aviation sector drive the market's growth. Additionally, as the economy reopens after the pandemic, business-related travel has resumed, leading to an overall accentuation in market growth. Increased demand for appropriate jet interiors and associated services will boost the market in the forecast period.
Increase in Refurbishment of Pre-Owned Aircraft and Emergence of OEM Market Players Drive Market Growth
An increased number of pre-owned aircraft renewed as corporate jets and an increase in the number of original equipment manufacturers in the business aircraft market are anticipated to grow in the forecast period. Introducing new models in the existing fleet drives the growth of the global business aircraft market. According to the data from GAMA, the General Aviation Manufacturers Association, the deliveries of corporate jets increased statistically by over 12% in the first half of 2019. Due to their advantages, the demand for new models such as Pilatus PC-24, Cirrus SF50 Vision, and Gulfstream G500 is maximum.
The emergence of new market players is expected to grow the market positively. Furthermore, advancements and customized aircraft refurbishment are significant drivers for the market. Key market players are involved in customized corporate aircraft-making for customers, leading to the personalization of the aircraft according to the customer.
Cost of Procurement to Limit Market Growth
Procuring private jets is costly and time-consuming and isn’t affordable for the general public. Only people with high purchasing power and net worth, such as big business owners and celebrities, can afford private jets. Customization of pre-owned aircraft adds to the overall cost since it involves general maintenance and repair and additional costs of new interiors. Additionally, numerous government procedures are involved in procuring a private jet, which takes processing time. Hence, despite growing demand and technological advancements, the cost and time for procuring a business aircraft limit the business jet market growth to a certain limit.
Large Business Jet Share Accounted for the Largest Market Share, Owing to Increased Business Travel
The type is segmented into light, mid-size, and large business aircraft.
The large business aircraft segment accounted for the highest market share, owing to the strong demand for business travel after the pandemic. In a post-pandemic scenario, when all air travel has been resumed, companies and the global economy have started to return to growth patterns leading to a subsequent rise in air travel for business.
The light and medium corporate jet segments held significant market shares and are projected to grow at a steady CAGR owing to high availability and comparatively lower procurement cost than large private jets.
The Presence of Major Market Players to Boost the On-Demand Segment Growth
Based on the system, the market is divided into propulsion system, aero structure, cabin interiors, avionics, and others.
The propulsion system segment will dominate the market during the forecast period. This growth can be attributed to the rising demand for new business aircraft in countries such as China, UAE, and the U.S. Additionally, the growth is also owing to the rise in many private jet service providers in developed and emerging economies.
The cabin interiors segment is expected to grow significantly during the forecast period due to the demand for MRO services and aircraft modernization programs.
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Increasing Net Worth of Individuals to Increased Demand for Private Segment
The end-user segment is classified into operators and private end users.
The operator segment dominated the market in 2021. The increase in fleet modernization and demand for private jet operators across North America and Europe drive the segment's market growth.
The private segment is anticipated to increase during the forecast period. This is due to the increasing demand for private jets from high-net-worth individuals and corporate companies.
Preowned segment to Hold Dominance in Forecast Years Owing to Increased Demand for Renewed Aircraft
The market is divided into preowned and new deliveries based on ownership. The pre-owned segment accounted for a higher market share owing to the historical availability of preowned aircraft. Additionally, a rise in the refurbishment of old aircraft as new private jets is anticipated to boost market growth in the forecast period.
Growth in net worth, purchasing power, and increased global business-related travel is expected to boost the market for the new deliveries segment from 2023-2030.
The market is segmented into North America, Europe, Asia Pacific, the Middle East, and the Rest of the World.
North America Business Jet Market Size, 20122 (USD Billion)
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North America dominated the business jet market share in 2022 and was valued at USD 19.88 billion. The growth in this region is due to the presence of major key players, the largest fleet size, rising demand for electric aircraft, and availability of required infrastructure propelling the corporate aircraft market growth across the region. The growing demand in the U.S. and Canada preliminarily drives the adoption of business aircraft in North America.
The Asia Pacific is projected to show remarkable growth during 2022-2030. The growth is due to the increasing development and investment of infrastructures by countries like Japan, India, and China. Additionally, the adoption of business aircraft in countries of the region is likely to drive the Asia Pacific region due to operators and service providers' increasing usage of aircraft in these countries. Customers’ preference for corporate jets for the demanding long-range routes and due to other travel restrictions. Even in the global market, there has been the highest demand for large jets from the Asia Pacific market.
Europe will showcase significant growth from 2023 to 2030. This is due to a rise in leasing facilities, advanced technology-based aircraft and charter service providers and operators. Air Partner, Jetfly, NetJets Europe, and VistaJet are some of the prominent charter providers in Europe. Furthermore, due to the changing flying behavior of passengers, the growth of private jets in the market has surged during 2021.
During the forecast period, the Middle East region is projected to witness constructive growth owing to high demand in large economies such as the UAE, Saudi Arabia, and Israel. Growing aviation emission rules have fueled the demand for private and newer aircraft. Furthermore, prominent high-net-worth individuals (HNWI) in the Middle East have positively impacted the market's demand-side dynamics. In contrast, the associated ownership benefits, such as evolving fractional ownership or private jet card programs, have been critical factors in promoting market growth.
The rest of the world will grow moderately from 2023 to 2030. The growth in this region is due to increased spending on procuring next-generation jets from Latin America and Africa. The rising budget and growing programs for modernizing fleets propel market growth.
Key Players Focus on Providing a Variety of Cost-Effective Services to Survive the Market
The market's competitive environment is highly fragmented due to several major players, such as Airbus SAS and the Boeing Company. These companies focus on providing best-in-class corporate jets. Moreover, jet manufacturers look forward to producing technologically advanced hybrid engines and establishing solid partnerships with emerging economies.
An Infographic Representation of Business Jet Market
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The report provides detailed information on the market and focuses on aspects such as service types, airport types, infrastructure types, and key players. In addition, market research reports provide insights into corporate jet service trends, competitive environment, market competition, product prices, and market conditions, focusing on key industry developments. In addition to the above factors, it contains several factors that have contributed to the sizing of the global market in recent years.
Value (USD Billion)
CAGR of 5.19% from 2023-2030
By Business Jet Type
Fortune Business Insights stated that the global market size was USD 42.14 billion in 2022 and is projected to reach USD 62.66 billion by 2030.
Registering a CAGR of 5.19%, the market will exhibit rapid growth during the forecast period (2023-2030).
The pre-owned segment will dominate this market during the forecast period.
The Boeing Company and Airbus S.A.S are the leading players in the global market.
North America topped the market in terms of share in 2023.
The U.S. dominated the market in 2022.
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