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The global business jet market size was valued at USD 27.54 Billion in 2018 is projected to reach USD 36.21 Billion by 2026, at a CAGR of 3.41% during the forecast period.
A business jet is a small aircraft usually designed for private air travel with the capacity of maximum takeoff weight of 4000 to 9000 kg, some of the larger aircraft are also customized into business jets by their operators. These business jets are generally used for leisure use, business tours, short-haul flights, VVIP transport and for transportation of VVIP government passengers.
The demand for Business jets is mainly from VIPs, government officials, corporates, charter service providers, and celebrities. The growing demand for business jets from corporate and government officials is rising due to their benefits such as an individual conduct business during flights, reduced travel time, and on-demand flight scheduling. In addition, celebrities and corporates used private jets for personal travel intercity and outside the country.
Increasing an individual’s income, and the introduction of new aircraft design and launching programs are the major factors for market growth. Additionally, technological advancements in interiors such as virtual windows, video call system, and inflight entertainment facilities in business aviation are driving the business jet market.
In recent years, the global aviation sector has witnessed the highest demand for new aircraft deliveries. Rapid technological advancements in avionics, entry of new players in the business aircraft market, and growing economies are the important factors are supporting the growth of the business jet market.
Nowadays, the introduction of new models from startups using advanced technologies such as all-electric vertical take-off and landing (eVTOL), Optimum Speed Tiltrotor (OSTR) technology, and hybrid-electric propulsion system is popular among end-users. This is owing to more safety, security, reliability, and comforts to passengers.
The introduction of the latest technologies in the manufacturing of business jets and increase in demand for urban air mobility due to traffic congestion, growing environmental concerns, and smart city programs will create immense opportunities during the forecast period. Beside this, rise in expenditure on research and development and easy financing with low-interest rates are the other driving factors of the business jets market.
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Business jets OEMs are investing into development of new aircraft models to diversifying their current business jets offerings, rapid commercialization of futuristic technologies such as electric propulsion and Electric Vertical Takeoff and Landing (eVTOL) are supporting the growth of business jet market. For instance, Boeing (US) and JetBlue (US) have invested in Zunum Aero (US), to develop hybrid electric jet, GE Aviation (US) one of the largest aircraft engines OEM have invested in XTI Aircraft (US) to develop hybrid-electric propulsion system. In addition, Hanwha Systems (South Korea) invested USD 25 Billion in Karem Aircraft Inc. (US) to develop the Electric Vertical Takeoff and Landing (eVTOL) aircraft. These investments and technological up-gradation are estimated to drive the business jets market during the forecast period.
“The introduction of new business models and increased investments from OEMs in startups is likely to propel the Business Jets Market.”
Important factors boosting the global business jets market include introduction of new programs and the addition of new models with advanced technologies in the product line. Increasing investments from aircraft OEMs such as Boeing invested in Zunum Aero, and Aerion for the development of advanced supersonic business jet leads to the growth of business jet market. Introduction of advanced technologies from startups such as all-electric vertical take-off and landing (eVTOL), hybrid-electric propulsion system, and Optimum Speed Tiltrotor (OSTR) technology will improve the performance of aircraft and thus promote the market in future.
Business jets are majorly used by Corporates, VIPs, government officials, and others due to their benefits such as reduced travel time and on-demand flight scheduling. This leads to a rise in demand for technically advanced business jets across the globe. Aircraft OEMs expand their business jet segment by introducing new models and up-gradation of old business aircraft.
“Rapidly growing economies and increasing an individual’s income to drive the Business Jets Market.”
The rise in the demand for business aircraft across the globe is supported by the growing economies and an increase in the number of high nets worth individuals. The need for new business aircraft is witnessing tremendous growth as the major business aircraft OEMs, such as Airbus, Boeing, Embraer, Textron Aviation, Bombardier, Inc., and among others, will be delivering more number of aircraft during the forecast period.
The increasing number of startups in business jets manufacturing, growing economy in countries like China and India, and rise in disposable income led to development in the business aviation sector, which creates demand for business aircraft. Advancements in avionics system and cabin interiors provide ambiance and comfort to passengers leads to rising for advanced business jets.
“Introduction of new air taxis used as the light business jet is driving the market for Business Jets Market.”
Based on aircraft type, the overall business jets market share is segmented into light business aircraft, mid-size business aircraft, large business aircraft, an airliner. Among these, the light business jet segment holds significant shares in business jet market and continues its domination during the forecast period. Introduction of new air taxis and rapidly growing technology are driving the business jets market. Airliners also witnessed a significant growth due to increased use by sports teams and VIPs.
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"Increase in the demand for customized aircraft interiors is driving the business jets market."
On the basis of point of sale, the business jets market is segmented into Original Equipment Manufacturers (OEMs) and aftermarket. The Aftermarket segment includes repair and maintenance of the global business jets fleet. This segment is growing at the highest CAGR, considering the rise in the requirement of business jets maintenance, repairs and overhauling services from business jets operators. Increase in the requirement for luxury features and more passenger comfort from private owners is driving the aftermarket segment of business jet market.
“Adoption of advanced technologies such as eVTOL, OSTR, and hybrid-electric propulsion system drives the growth of the market.”
Based on systems, the business jet market segmentation covers aircraft systems and components such as aerostructures, aircraft systems, propulsion systems, avionics, cabin interiors, landing gear and others contributed to the highest growth in business jets market and continue its domination during the forecast period. The aerostructures includes aircraft fuselage, empennage, flight control surfaces, wings, nose, and nacelle & pylon among other structural components of the aircraft. The growth of different parts of aircraft system is attributed to the introduction of new aircraft models, adoption of advanced technologies such as 3D printing, and aerospace robotics in aircraft systems manufacturing. Adoption of these technologies witnessed a rapid growth owing to expansion of business jets through partnerships and collaborations, investments in startups and increased spending on R&D. The cabin interiors segment is witnessing tremendous growth owing to the rise in the customization of business jets.
“Optimization of operations through multiple end-users drives the market during the forecast period.”
Based on end-user, the business jets market is segmented into private and operator. Operator segment has the highest shares and anticipated to dominate the market during the forecast period. There is high cost involved in maintenance, repair, and operations of an aircraft. Thus, end-users prefer operators over private ownerships and this is anticipated to further propel the growth of the operator segment in the forecast period. Air Charter Service, one of the key players in operator segment provides different facilities such as arranging aircraft charters for tour operators, travel management companies, and travel agents which will create demand for operator segment.
North America holds the largest business jets market share and is projected to be dominant throughout the forecast period. North America is dominating region due to the presence of a large number of high-net-worth individuals and also the presence of major business jet OEMs such as Gulfstream, Textron, Bombardier, and among others. Furthermore, the improvement of advanced manufacturing techniques within the region, and rise in the R&D spending is helping the market expand for business jets. In addition to that, the availability of airports throughout the region made comfortable business travel within the region and this is also driving the regional market.
North America Business Jets Market Size, 2018
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Increased saturation in business jets market and shifted leading manufacturers focus towards the Middle East and Africa slow down the growth in North America. The increase in the demand for business aircraft for VVIP transport in the Middle East and Africa is driving the region. The growing demand for private jets is due to the rise in individual’s net worth and increasing investments in aviation sector across the region. Thus, the Middle East and Africa are evolving as a significant market for business jets OEMs and service providers during forecast period. Asia Pacific also shows a considerable growth owing to increase spending on aviation sector from countries like China and India. Countries such as China, India, South Korea, and rest of Asia Pacific are expected to drive the of business jets market in the region. The presence of Aircraft OEMs such as COMAC (China), estimated to start delivering business aircraft during the forecast period, is supporting the growth of business jets market.
“Market Players like Airbus SE, Boeing, Bombardier along with startups like Zunum Aero, XTI Aircraft, Eviation Aircraft Will Ensure to Strengthen the Market Position concerning Business Jets across the Globe.”
The Business Jets market is dominated by some key companies due to their strong product portfolio, key strategic decisions, and dominance of market share. These include a group of key companies with widespread geographic presence and continuous R&D resulting in secure regulatory approvals.
Leading aircraft manufacturers majorly focusing on business expansion by investing in startups for development of advance technology aircraft. In addition, companies expand their business by adopting strategies such as sizable investments in startups, mergers & acquisition, joint development, capability enlargement, design and engineering, long term contract & agreements. Startup companies come up with advanced technologies like all-electric aircraft by Eviation Aircraft, hybrid-electric propulsion technology by XTI Aircraft, and advance supersonic jet by Aerion.
Increase in the production of business jets with the introduction of advanced technologies such as hybrid-electric propulsion technologies, OSTR, and eVTOL technology is driving the business jets market. The market is analyzed for the different aircraft type, systems, and end-user segment by the business jets OEMs. The market research covers the scope of different countries and region, which are generating the demand for the business jets market.
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Along with this, the report provides an elaborative analysis of the global market dynamics and competitive landscape for the key manufacturers of business jets.
Value (USD Billion)
By Aircraft Type
By Point of Sale
Fortune Business Insights says that the Business Jets market was valued at USD 27.54 Billion in 2018 and is projected to reach USD 36.21 Billion by 2026
Growing at a CAGR of 3.41% the market will exhibit steady growth in the forecast period (2015-2026)
Light Business aircraft segment is expected to be the leading segment in this market during the forecast period.
Introduction of new programs and increasing investments form OEMs in startups are estimated to drive the business jets market.
Airbus SE, Boeing, Bombardier, Inc., Embraer SA, Textron, Inc., Gulfstream, Dassault Aviation, Cessna Aircraft Company, HondaJet, and others are some of the key players in the market.
North America is estimated to be the largest shareholder in the market.
Increase in disposable income and introduction of new aircraft models are driving the business jets market.
The emergence of hybrid-electric propulsion technology is a new trend in the Business Jets market.