The business jets market is estimated at USD 18.8 billion in 2020 and is projected to grow to USD 38.0 billion by 2030, at a CAGR of 7.3% during the forecast period.
An increasing number of high net worth individuals is one of the significant factors driving the business jets market
Besides an increasing number of high net worth individuals, recommencement of global economic growth, and upcoming new aircraft programs are expected to drive the growth of the market.
The outbreak of COVID-19 has led to a significant economic toll on the aviation sector due to air travel restrictions in various countries. The crisis having idled much of the aviation business; fleet readiness, and maintenance considerations are of paramount significance to tackle the challenges posed by the pandemic. However, with certain relaxations across regions, business jet operators and service providers have witnessed a sluggish demand for charter services., Clients are choosing to charter to gain quicker access, skip long and crowded check-in, customs, and immigration queues of people with unknown travel histories.
Based on aircraft type, large segment projected to lead business jets market during the forecast period
Based on aircraft type, the large segment is projected to lead the business jets market during the forecast period. This growth can be attributed to the comfort that large business jets provide. Large jets comprise standard heavy jets and ultra-long-range heavy jets, which are priced much higher than light and mid-sized jets. The delivered volume of large jets is 1/3rd that of total business jets, and its price is more than double of average business jet price, leading to a larger market share.
Based on point of sale, OEM segment projected to lead business jets market during the forecast period
Based on the point of sale, the OEM segment is projected to lead the business jets market during the forecast period. Aircraft are equipped with various components and subcomponents before being delivered to operators. This stage of installation is known as OEM. The OEM phase is one of the crucial aspects of the business jets market. Over the years, there has been a significant rise in demand for business jets around the world.
Based on range, less than 3,000 NM segment is projected to grow at the highest CAGR during the forecast period
Based on range, the less than 3,000 NM segment is projected to grow at the highest CAGR during the forecast period. Business jets that fall under the range of less than 3,000 NM are generally used for short-distance domestic travel. These aircraft have access to small airports and can and can modify departure and arrival processes and time, which drives the growth of this segment.
North America is estimated to account for the largest share of the business jets market in 2020
North America region is expected to account for the largest share of the global market in 2020. This can be attributed to the maximum number of high-net-worth individuals in this region, and presence of major business jet manufacturers in this region such as Textron (US), Bombardier (Canada), and Gulfstream (US), among others. Additionally, the availability of airports across North America enables ease in business travel across the region. Geographically, North America is the biggest region, by area, hence it is important for business travelers to opt for the fastest mode of transport to save time, resulting in increasing demand for business jets.
Market Dynamics
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Companies Profiled
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