Global demand for business jet market was valued at USD 24.33 Billion in 2018 and is expected to reach USD 33.06 Billion in 2025 at a CAGR of above 4.48%
Business Jet Market
The global demand for business jet market was valued at USD 24.33 Billion in 2018 and is expected to reach USD 33.06 Billion in 2025 at a CAGR of above 4.48% between 2019 and 2025. Business jet manufacturers are focusing on increasing customer satisfaction and operational efficiency. Several areas of focus for manufacturers include reducing carbon emissions, increasing operating costs and updating aircraft systems and cabin interiors. This led to the launch of new technologies for aircraft. In 2016, the Legacy 650E and the Praetor 500 were released by the Embraer and in 2018 the Praetor 600. In 2018, the Global 5500 and 6500 were launched by Bombardier. Honda introduced the TBM 910 in 2017 and Honda Jet Elite in 2018. Moreover, Daher released the TBM 910 in the year 2017 and TBM 940 in 2019.
The introduction of new aircraft programs and rising number of high net worth personnel will drive the demand for business jets industry. Moreover of advanced jets provide more range, performance and efficiency level at comparable price. Such new aircrafts will demand more replacement with new features and attract first time buyers, thereby fueling the market growth. The technologies such as advanced connectivity solutions, interiors, avionics, and more efficient engines are attracting the new generation buyers, leading to slowdown of traditional aircrafts. These factors are contributing to the healthy growth of business jets industry.
On the basis of aircraft type, the business jets are categorized into light, mid-sized, large, and airliner. The light aircraft is likely to grow at a fastest rate in the coming year, owing to the rising demand for air taxi and urban air mobility. Moreover, the factors such as growing demand for business Unmanned Aerial Vehicles (UAVs) and recreational flights are also predicted to positively impact the light weight business jets market at a large extent.
In terms of point of sale, the OEM module accounted for the largest market size over the forecast period. The OEM segment covers total OEM revenue for futuristic and conventional business jets. The segment is also considered to be fastest-growing due to the commercialization of electric & hybrid business air vehicles, release of new aircraft programs, and cost of aftermarket. The operation, repair and maintenance and parts replacement cost is low when compared to the overall OEM market. Therefore the OEM segment is anticipated to lead the business jets market in the near future.
The global business jets market covers five major geographic regions, namely, Asia Pacific, North America, Middle East & Africa, Europe, and Latin America. North America is anticipated to hold the largest market share in 2019. The growth is attributed due to the presence of major business jet manufacturers such as Bombardier, Textron, and Gulfstream among others. The existence of large number of high-net-worth individuals is also likely to fuel the market growth in North America. Moreover, the airports across the region enable ease in business travel. Geographically, North America occupies a huge area, thus it is not easy for business travelers to opt for the fastest mode of transport inorder to minimize time, thereby driving the demand for business jets.
The key players operating in the business jet market include Bombardier, Textron, Inc., Embraer, Gulfstream, Boeing and Airbus among others. Startups such as Zunum Aero, Eviation Aircraft, and XTI aircraft are some of the organizations focusing on introducing their business jets before 2025.