Global Business Jet Market 2024-2030

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    BUSINESS JET MARKET

     

    KEY FINDINGS

    1. The General Aviation Manufacturers Association (GAMA) reported 644 new business jets sold worldwide in 2020, a 20.4% decline compared to 2019 sales.
    2. In North America, Bombardier, Gulfstream and Dassault Aviation are the market leaders.
    3. Since the pandemic began, the Business aviation industry has reported high sales of private jets.
    4. According to the International Aircraft Dealers Association, sales firms saw an increased interest from first-time buyers in 2020.
    5. Textron Aviation (Cessna) leads the market in terms of number of units sold. The company delivered 132 aircraft in 2020 and was the leader in the business jet category.
    6. Bombardier reported 114 aircraft deliveries, including specialized aircraft, consisting of 59 Global, 44 Challenger, and 11 Learjet in 2020.
    7. Pre-owned business jet dealers accredited by the International Aircraft Dealers Association (IADA) closed 106 deals in April 2021, double the number (53) made in April 2020.

     

    INTRODUCTION TO THE BUSINESS JET MARKET

    Increasing ability to spend in upper-class households along with lucrative aircraft programs, especially for the business class is expected to further drive the growth of the market in the future.

     

    A business jet refers to an aircraft that is specifically designed for private air travel for a small group of passengers. Some of the common types of business jets include single-pilot aeroplanes, propeller-driven jets, turbine aircraft and piston jets.

     

    These jets are primarily used by individuals as well as private and government organizations for leisure travel, business tours, short-haul flights and VVIP transport.

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    They can also be customized for other applications, such as evacuation during emergencies, express parcel deliveries and transporting goods for the armed forces.

     

    The evolution of new and advanced technology in the aircraft industry has introduced extensive research and development of various aircraft models catering to different needs of the matured economies for now.

     

    Emerging economies across the globe are also being introduced to this relatively new market segment and are only expected to generate an increase in overall demand owing to the converging adoption of advanced technology and more developed market levels.

     

    Growth in tourism activities as charter services expand their reach by introducing more routes both nationally and internationally will further drive the market demand for this segment. Technological advancements in the aviation segment and interior cabin products are expected to make this expansion possible and successful.

     

    BUSINESS JET MARKET SEGMENTATION

     

    There are five basic industry categories of business jets; these categories take into account a variety of parameters like weight, range, size, and cabin space.

     

    BY TYPE

    • Light
    • Mid-sized
    • Large

     

    BY SERVICE

    • On-demand Service
    • Air Taxis
    • Branded Charters
    • Jet-card Programs

     

    BY END-USE

    • Private
    • Operators

     

    BY REGION

    • North America
    • Europe
    • Asia
    • ROW

    BUSINESS JET MARKET NEW PRODUCT LAUNCH

    Bombardier Inc (BBDb.TO), a Canadian company, has unveiled a new long-range business jet as it seeks to remain competitive in a market that caters to the ultra-rich and has stayed strong despite the COVID-19-driven surge in demand for private aircraft.

     

    The Global 8000 will be the world’s fastest business jet, with the longest range and highest speed yet achieved. The plane will enter service in the near future and compete with rivals’ high-end planes.

     

    The list price of the Global 8000 will be slightly higher than that of its predecessor and the company’s flagship Global 7500. The Global 8000 will have the same size as the 19-seater Global 7500 and will be powered by GE’s (GE.N) Passport Engine.

    BUSINESS JET MARKET TRENDS

    Bombardier is a global leader in aviation, specialising in the design, manufacture, and maintenance of the world’s finest business jets. The Challenger and Global aircraft lines are known for their cutting-edge technology, cabin design, performance, and dependability.

     

    This year’s Red Dot Award for Product Design has given the distinction “Red Dot: Best of the Best” to Bombardier’s newest business jet, the Challenger 3500. The famous Red Dot Award is one of the most coveted international design and innovation honours.

     

    The Red Dot: Best of the Best is the top prize in the competition, given to the best goods in a certain category. It is presented for ground-breaking design. The award honours Bombardier’s successful Challenger platform, as well as the company’s inventive spirit and commitment to continual improvement. Red Dot: Best of the Best in the Trains and Planes category went to the Challenger 3500 business aircraft.

     

    The next-generation Challenger 3500 business jet was developed with sustainability in mind, with a revamped interior including clever and environmentally conscious cabin amenities that blend comfort and function.

     

    Bombardier’s exclusive and patented Nuage seat, the first of its kind in the super mid-size sector, is incorporated in the aircraft’s basic configuration, further elevating the passenger experience.

     

    The Challenger 3500 aircraft has the industry’s first voice-controlled cabin to operate lighting, climate, and entertainment systems, as well as wireless chargers throughout the cabin and the only 24-inch and only 4K display in its class.

     

    The growing demand for long-range business aircraft for various activities is driving the growth in the market and is estimated to hold the largest market share in the business jet market. As business jets are being utilised for more than one activity now to fulfil different individual needs, people are slowly realising its benefits.

     

    These jets offer optimum performance, comfort, ease of travel and shorter fleet time thereby greatly contributing to its increased demand.

     

    As airline travel becomes extremely stressful, tiresome and time-consuming owing to an increase in the number of travellers every day, a large number of consumers are beginning to prefer business aviation to travel because it’s more convenient, comfortable and offers adequate privacy to its consumers. Such increased demand is expected to favourably impact the business jet market supply as well as its cost.

     

    Business jets are increasingly being utilized by sportspersons, government officials, tourists, business persons, etc.. Apart from its domestic and commercial applications, country-specific military bases and civilian operators are also using business jets for long and short hauls. Thus, the jet market is expected to witness moderate growth in the forthcoming years owing to its multi-utilities.

     

    New-Generation Aircrafts: Various advancements, including the integration of innovative connectivity solutions, avionics, interiors and more efficient engines in the jets, are acting as another factor contributing to the growth of this market segment.

     

    Original equipment manufacturers (OEMs) are replacing mechanical flight systems with lightweight virtual windows, video calling systems and inflight entertainment systems that aid in enhancing the comfort and overall travel experience for the passengers.

     

    In line with this, the introduction of Electric Vertical Take-off and Landing (eVTOL) aircraft that have superior urban air mobility is creating a positive impact on the market growth.

     

    BUSINESS JET MARKET DRIVERS

    One factor responsible for the growth of the business jet market is the significant growth in global economies and subsequent profits made by multinational corporations and firms globally which in turn resulted in business expansions and an increase in the net disposable income among emerging households.

     

    Globalization of business and trading resulted in the integration of global partners and connected economies which in turn is estimated to propel the demand of business jets in the global market. Time-saving capability increases productivity including the tracking of business essentials, optimizing time, and faster business track, thus increasing the overall efficiency, profit and revenue growth.

     

    Furthermore, the replacement of old private jets with new jets with advanced technology is a factor expected to support the growth of the global business jet market in the near future.

     

    In response to the growing demand, various business jet operators are expanding their portfolio of membership programs, including member plans, preferred charter accounts, and private jet cards. These membership accounts offer reduced rates, additional fleet options, and negligible blackout dates.

     

    The global market for on-demand business jet services is the most popular choice among consumers. These services are subdivided into three business models, namely air taxis, branded charters, and jet card programs. There has been a steady increase in the number of branded charter operators across the industry. These operators offer on-demand flight access along with competitive trip-specific pricing.

     

    The prominent operators in the branded charter arena, such as NetJets, Flexjet, Comlux, and VistaJet, are focusing on renewing their aircraft fleet. Such expansions are expected to create demand for new and cost-effective flight options, thereby driving the growth of the overall market in the forthcoming years.

     

    BUSINESS JET MARKET SIZE AND FORECAST

     

    The Global Business Jet market is estimated at $XX Billion in 2023, growing at XX% CAGR till 2030.

     

    The market in North America accounts for a significant share in terms of revenue and is expected to maintain its dominance over the market in the upcoming years. The presence of prominent players and the high adoption of private jets among end users especially in the US are factors propelling the growth of the target market in this region.

     

    In addition, high domestic investment and consumer spending are also among the factors supporting the growth of this market in North America. The regional business aviation network, including manufacturers, suppliers, dedicated airports, and Fixed Base Operators (FBOs) witnessed rapid expansion, making it one of the most attractive regions for business aviation across the globe.

     

    The market in Europe is expected to account for lucrative growth in terms of revenue in the near future, primarily owing to rising investments for the development and modernization of aviation infrastructure. Factors such as longer distances between the cities as well as deficient ground transportation networks in the region are driving the need for large and medium business jets.

     

    The rising number of high-net-worth individuals, especially in the Middle Eastern countries, is gradually turning the market into a lucrative one, for both aircraft OEMs as well as operators.

     

    However, environmental regulations on old jets is a factor that could affect the growth of the target market in this region. The growing aviation industry in countries such as China and India is a factor anticipated to drive the growth of the business jet market in the Asia Pacific.

     

    BUSINESS JET MARKET RESTRAINTS

    Certification Laws: Business jet manufacturers are required to undergo product certification before launching a new model in the market. However, due to a lack of efficiency in the certification processes, aviation authorities are known to delay certification.

     

    Safety is the most important parameter considered while providing certifications, where zero deviation is acceptable. For manufacturers to reach this level, multiple tests and iterations are needed.

     

    This results in a lengthy approval period thus adding to the delay in the production process. The time lag due to certification issues leads to a loss of booked orders and acts as a market restraint for companies.

     

    Unavailability of Proper Infrastructure: A major challenge for the business jets market is the unavailability of infrastructure in several nations. Developing economies such as India, China, Nigeria, and Malaysia have the potential market for business jets, but the infrastructure of these countries makes it unsuitable for the business jets market to grow.

     

    There are many cities which are not well connected in terms of ease of travel. Certain areas do not have aerodromes and airports, some do not have available landing space, and some areas are not easily accessible from city limits.

     

    COMPETITIVE LANDSCAPE IN THE BUSINESS JET MARKET

    The business jet market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

     

    Bombardier received an order for 10 aircraft. The order details were not disclosed, for competitive reasons, but the total value of the order is US$451.8m (approximately €381.6m), according to current list prices.

     

    JetClub, a fractional ownership company based in Europe, is adding the all-electric eFlyer 800 to its fleet. Bye Aerospace’s eFlyer 800 is an eight-seat twin-turboprop.

     

    The first VVIP Boeing Business Jet 737-8 Max cabin completion has been finalised by Jet Aviation in Basel, Switzerland. The interior was designed, crafted and engineered in-house. The achievement is the company’s third redelivery of 2021.

     

    Bombardier’s Learjet subsidiary has signed an Indefinite Delivery Indefinite Quantity (IDIQ) contract with the US Air Force to support its Battlefield Airborne Communications Node (BACN) programme. The flexible contract includes an immediate firm order for one Global 6000, and as many as five more. The contract includes engineering and modification work and represents a potential total value of close to US$465m (€381.8m).

     

    Aerion has added to its list of launch customers for the upcoming AS2 supersonic business jet. Set Jet, a membership-based private jet charter flight programme, will incorporate the AS2 into its expansion plans to offer faster point-to-point luxury travel. Adding to a growing global customer network, this new order further extends Aerion’s order backlog for the AS2 ahead of manufacturing commencing at Aerion Park in 2023.

     

    The key market players are constantly involved in designing and innovating business jets with the incorporation of advanced technological systems. Companies are looking forward to developing technologically advanced equipment and establishing strong partnerships with the companies in developed and emerging nations.

     

    These companies are adopting strategies such as next-generation all-electric business aircraft and geographic expansion to establish their strong presence in the market.

     

    COMPANIES PROFILED IN BUSINESS JET MARKET

    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2024-2030
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030
    19 Market Segmentation, Dynamics and Forecast by Application, 2024-2030
    20 Market Segmentation, Dynamics and Forecast by End use, 2024-2030
    21 Product installation rate by OEM, 2023
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2023
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix
     
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