The Business Jet Market is valued at USD 18. 14 billion in 2021 and poised to grow at a CAGR of 4. 53% during the forecast period to reach USD 20. 69 billion by 2027. The COVID-19 pandemic affected the business jet market in the short term, as the orders and deliveries witnessed a decline in 2020 and 2021 compared to 2019.
New York, July 25, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Business Jet Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)" - https://www.reportlinker.com/p06309341/?utm_source=GNW
However, no long-term effect is anticipated on the market as the charter service providers’ (and other business jet users) fleet modernization plans have not been hampered. The business jet activity started witnessing an increase in late 2020 due to restricted access to commercial aviation. The increase in business jet operations is expected to strengthen the demand for business jets in the coming years.
Approximately 1/3rd of the business jet fleets currently in operation are more than 10 years old, which is driving the business jet operators and charter providers to invest in fleet modernization programs and enhance their fleet’s capabilities. This factor is expected to boost the market’s growth during the forecast period.
With the growth of the tourism sector in Latin America and Southeast Asia, many charter operators are planning to introduce new charter routes in the regions and further expand their presence. This factor is generating demand for lightweight and fuel-efficient business jets.
Over the past few years, there has been a significant increase in high-net-worth individuals and ultra-high-net-worth individuals globally. This increase is generating demand for private travel, subsequently driving the procurement of private jets with enhanced cabin interiors.
Key Market Trends
Large Jets Accounted for the Highest Share in the Market in 2021
The large jet segment currently dominates the market in terms of market share, attributed to their relatively higher prices than light jets, despite the former’s lower deliveries compared to the latter. In 2021, the demand for large jets was high, as they have a large cabin space that can accommodate approximately 19 passengers. However, the segment’s growth was affected due to restrictions on long-distance travel globally. In the coming years, the segment is projected to witness positive growth with the easing of travel restrictions. Aircraft OEMs are launching new large jets with improved features to attract customers. For instance, in December 2021, the ACJ TwoTwenty, launched in 2020, completed its first flight in Canada. The order for six ACJ TwoTwenty aircraft was received in 2020, including two from Comlux, a Switzerland-based charter company, and four from other undisclosed companies. The interior of Comlux aircraft will include a business and guest lounge, a private entertainment space, and a private suite, including a bathroom. The first aircraft was successfully delivered to Comlux in January 2022. On the other hand, fractional ownership of large jets may also rise as owners try to avoid overhead costs and choose shared aircraft because of the market’s economic downturn and uncertainties. Such factors are anticipated to boost the market’s growth during the forecast period.
North America Held the Largest Market Share in 2021
North America currently has the largest share in the market and is expected to continue its dominance during the forecast period. The region holds the most extensive operating business jet fleet (about 15,000 aircraft) globally, with the United States accounting for the majority of its share. Due to the presence of many high-net-worth individuals and corporate companies, the majority of the demand is for light jets and large jets. Furthermore, there has been an increase in the demand for charter services in the region over the past few years. Due to the impact of COVID-19 on commercial aviation, there was an increase in demand for business aviation in 2020. Although the overall flight activity dropped in 2020, the business aviation flight activity began to gradually recover from May 2020 and robustly increase in 2021, following the easing of social restrictions in the region. In addition, the charter companies have decreased prices to take advantage of the business jet opportunities. The growth in charter operations in the region has propelled the fleet modernization programs by charter operators to enhance their fleet efficiencies. According to Honeywell, approximately 15% of North America’s business jet fleet is expected to be replaced in the coming years. Several end users are looking to acquire new and upcoming business jets for their fleets. In March 2021, NetJets, the company with the largest global fleet of business jets, announced that it had placed a purchase order for 20 of the upcoming Aerion AS2 business jets. Such fleet modernization programs are anticipated to accelerate the growth of the business jet market in North America during the forecast period.
The business jets market is highly competitive with the presence of several major players. However, in terms of market share, few players such as Bombardier Inc., Textron Inc., Gulfstream Aerospace Corporation, Embraer SA, and Dassault Aviation SA are currently dominating the market. Textron Inc., Gulfstream, and Bombardier accounted for more than half of the business jet deliveries in 2021. To further increase their presence in the market, the companies are developing new advanced business jet models with enhanced cabin interiors and better fuel efficiencies. Such innovations are expected to attract new potential customers, which may help the aircraft OEMs increase their share in the market in the coming years. The aircraft OEMs are developing region-targeted strategies to enhance their sales. For instance, Airbus is currently in plans to enhance its geographical footprint in the Middle-East as it plans to take advantage of the growing opportunities of larger aircraft. Such targeted plans of aircraft OEMs are expected to help the companies increase their sales and profits in the coming years.
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06309341/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: email@example.com US: (339)-368-6001 Intl: +1 339-368-6001