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The air charter services market size is estimated to grow by USD 8827.65 million at a CAGR of 5.37% between 2022 and 2027. The growth of the market depends on several factors, including the increasing demand for cargo charters, the shift toward aircraft renting, and the introduction of membership programs.
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The Increasing demand for these services is notably driving the market growth, although factors such as volatility in aviation fuel prices will impede the industry growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
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. 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.
Our market report analysis of the Life Cycle of the Global market from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the global market, focusing on the adoption rates of the major regions such as the US, China, Singapore, the UK, and Germany. Our researchers have included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies for 2022-2027.
Global 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 industry.
Gama Aviation Plc. - The company offers services like business aviation, special aviation, and technology and outsourcing with a high focus on business aviation. Its key offerings include business jet aircraft where the crew maintains a high standard and performance is monitored constantly for the safety and benefits of the customers.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market players, such as
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors 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 15.23 billion in 2017 and continued to grow by 2021. 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. Furthermore, our report provides a brief analysis of historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing demand for the Market from residential consumers, which is driven by changing lifestyles and a growing preference for comfort.
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APAC is projected to grow at 34% by 2023. 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.
Segment Overview
Our market report forecasts revenue growth at global, regional & country levels and provides an analysis of the market growth and trends from 2017 to 2028. We have segmented the market based on type, product, distribution channel, and region.
The Market caters to high-net-worth individuals, business travelers, and those in need of emergency medical services or air ambulance transportation. It offers on-demand services with complete aircraft for flexible and personalized travel alternatives. This market provides swift and efficient transportation, bypassing check-in and security lines at commercial airports.
Technological platforms and mobile applications facilitate bookings, similar to e-commerce retail or express delivery services. Private jets and helicopters are available for charter, offering personalized services and amenities. Safety and security measures are paramount, especially for business activities or travel to remote regions. Charter passengers include corporate travelers, celebrities, sports teams, and high-net-worth individuals seeking exclusive air travel experiences.
The market also serves air tourism and leisure travel, offering personalized flight schedules and destinations. In the charter freight segment, air charter services provide efficient air freight transportation, minimizing delivery times, and inventory holding costs, and ensuring security for high-value commodities.
Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.37% |
Market growth 2023-2027 |
USD 8.82 Billion |
Market structure |
Fragmented |
YoY growth (%) |
4.2 |
Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key consumer countries |
US, China, Singapore, UK, and Germany |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
Air Charter Service India Pvt. 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 Forecasting, growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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