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The air charter services market size is forecast to increase by USD 7.76 billion, at a CAGR of 4.6% between 2023 and 2028. Market expansion relies on various factors, notably the rising need for cargo charters, the transition towards aircraft rental services, and the advent of membership programs. The escalating demand for cargo charters underscores the vital role they play in logistics, facilitating swift and efficient transportation of goods across diverse sectors. Simultaneously, the trend towards aircraft renting reflects a paradigm shift in the aviation industry, offering flexibility and cost-effectiveness to businesses and individuals alike. Additionally, the introduction of membership programs presents new avenues for customers to access exclusive benefits and services, further driving market growth. These factors collectively contribute to the dynamic evolution of the aviation market, fostering innovation and meeting the evolving needs of stakeholders. As such, understanding and leveraging these trends are pivotal for businesses seeking to capitalize on emerging opportunities in the aviation sector. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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In the dynamic landscape of air travel, air charter services cater to a diverse clientele ranging from high-net-worth individuals and business travelers to those in need of emergency medical services or air ambulance transportation. Offering on-demand flexibility and personalization, these services extend from private jets for exclusive journeys to accommodating tour operators and vacation packages. With a focus on efficiency, charter flights swiftly transport time-sensitive cargo and facilitate event-based travel with precision. However, amidst the allure of luxury and convenience, safety remains paramount, addressing safety and security issues alongside evolving regulatory shifts and environmental considerations. Economic fluctuations and high operating prices pose challenges, especially within the mid-size jets segment such as the Citation Excel equipped with advanced avionics systems like Collins Pro Line Fusion. Navigating through regulatory compliance and economic volatility, the air charter services market persists, driven by a commitment to excellence and adaptability. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for cargo charter services is driving the market growth. Some of the large charter operators across the globe have reported robust demand for cargo charters. The surge in air cargo volumes has a positive prospect for air cargo providers and cargo charter operators. This also leads to the renewal of long-term charter contracts. One of the major reasons for the increasing demand for cargo charter operators is the shipment of oversized and difficult-to-fit products in comparison to the standard logistic containers and aircraft used by air cargo operators. Some primary reasons behind the rise in the volume are last-minute capacity, unforeseen complications, time constraints, and other urgent factors.
Additionally, the nature of the freight, the use of remote or makeshift airstrips, and the use of airports that are not serviced by scheduled airlines drive the decision to engage cargo charter operators. In terms of commercial cargo, rising demand for e-commerce has impacted these significantly, and it is expected to grow further in the forecast period. These services are generally required as an aid for serving new global markets and act as a promising option for responding to sudden surges in demand.
Innovative additions to charter service portals are the primary trend driving the demand of the market. Air charter booking websites like PrivateFly, JetSetGo, and BookMyCharters have changed the whole scenario of private jet booking, making it as easy as booking a cab online. These online platforms allow customers to book a private jet quickly and in an easy-to-use manner by just selecting or entering a few required details about the journey, such as the departure and arrival location and time, the date of the journey, and the number of passengers.
In addition, to instant bookings, these portals also offer other information and tools to gain the knowledge required and make the optimum decision as per the client's requirements without involving a middleman. This elimination of a middleman or agent also reduces the cost significantly, which will drive the market growth during forecast growth.
Volatility in aviation fuel prices is the major challenge impeding the demand of the market. The majority of charter service providers use fuel-powered business jets. These business jets account for a significant share of the global aviation market. Fuel cost is one of the key components of the overall charter price paid by the customer and accounts for approximately one-fourth of the total price. Since they are priced on a pay-as-you-go basis, they offer customers the freedom of selecting from different service operators for each flight. This forces charter operators to review their fuel buying prices and ensure competitive pricing.
Further, owing to an increment of 6.5% in the prices of aviation fuel in 2021, the total sales of conventional fuel-powered light aircraft witnessed a considerable decline during the same period. International crises, such as wars, create a surge in fuel prices. Technavio expects fuel prices to surge by 40.65% during the forecast period due to global factors in play, such as the Organization of the Petroleum Exporting Countries (OPEC) limiting its output, the US pulling out of the nuclear agreement with Iran, and the decline in Venezuelan oil output. A surge in fuel prices may limit the potential interest of buyers, as the same will increase the cost of travel associated with each trip, reducing the viability of this mode of transport.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and trends report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Gama Aviation Plc. - The company offers services like business aviation, special aviation, and technology and outsourcing with a high focus on business aviation.
The research report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the charter passenger segment will be significant during the forecast period. The vendors are looking for an end-to-end payment platform that is specifically designed for the business aviation industry. It has brought a revolution in the business aviation payment industry, significantly contributing to the growth of the global market by easing out payment transactions. Emerging economies like India are attempting to gain a higher market share in the global market by raising their performance standards and improving infrastructure to facilitate growth and connectivity.
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The charter passenger segment showed a gradual increase in market share of USD 15.91 billion in 2018. The rise in trip requests portrays a scenario of changing broker-operator interactions as well as stronger charter demand. The vendors are looking for an end-to-end payment platform that is specifically designed for the business aviation industry. It has brought a revolution in the business aviation payment industry, significantly contributing to the growth of the global market by easing out payment transactions.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is the fastest-growing region in the market compared to other regions. Another region offering significant growth opportunities to vendors is North America. In the US, there are over 5,000 active airports, as well as over 250,000 general aviation aircraft. This is boosting the market to drive the resurgence of domestic business aviation with a considerable increase in the number of flights and flight hours. The growing number of private charter operators will have a positive impact on the market in the region.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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In today's ever-evolving travel landscape, on-demand air charter services have become synonymous with unparalleled luxury and convenience. From the plush comfort of aircraft seats to meticulously curated vacation packages, discerning consumers seek tailored experiences that transcend traditional air travel. These services offer flexibility in route selection, allowing passengers to indulge in exquisite cuisine while traversing between departure and arrival terminals of commercial airports. With the advent of mobile applications and seamless e-commerce retail, booking a private journey is just a tap away. Catering to diverse needs, from express delivery services to exclusive air travel experiences, the market caters to a broad spectrum of clientele including corporate travelers, celebrities, and sports teams. As the demand for air tourism and leisure travel surges, charter services expand to accommodate the charter freight segment, ensuring swift and secure transportation of high-value commodities and medical supplies. Despite facing challenges such as competitive pressure and weather disruptions, the industry remains resilient, offering a glimpse into a world where every flight is a bespoke adventure.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market Growth 2024-2028 |
USD 7.76 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.32 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, UK, Germany, China, and Singapore |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air charter service group ltd, Air Charters Europe NV, Air Partner Ltd., Asia Jet Sdn Bhd, ASIAN SKY GROUP, BlueStar Air Services, European Air Charter, Flexjet LLC, Gama Aviation Plc, GlobeAir AG, Jet Aviation AG, Jet Linx Aviation LLC, Luxaviation S.A., NetJets Aviation Inc., PrivateFly Ltd., Solairus Aviation, TAG Aviation, VistaJet Group Holding Ltd., and Wheels Up Partners LLC |
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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