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The business jet market size is forecast to increase by USD 6.32 billion at a CAGR of 4.25% between 2022 and 2027. The expansion of the market is intricately tied to several pivotal factors. Firstly, the proliferation of increased global connectivity fosters a seamless exchange of goods, services, and ideas across borders, facilitating market expansion and international cooperation. Secondly, economic growth and industry expansion drive demand, fueling investments, and fostering entrepreneurial endeavors worldwide. Lastly, technological advancement serves as a catalyst, continuously pushing the boundaries of innovation, efficiency, and productivity, thereby creating new opportunities and avenues for market growth. Together, these factors form a dynamic ecosystem, propelling the market forward and shaping its trajectory in an ever-evolving global landscape.
Market Forecast 2023-2027
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This market research and growth report extensively covers market segmentation by end-user (operator and private), type (large business jet, medium business jet, and light business jet), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
The market is propelled by several key factors. Firstly, the presence of high net worth personnel drives demand, especially for small groups of travelers seeking privacy and convenience. Secondly, aging aircraft fleets necessitate fleet modernization initiatives, leading to the adoption of state-of-the-art private jets with advanced safety features and cutting-edge technology. However, challenges such as fluctuating fuel prices, infrastructure limitations, and funding constraints persist. Nevertheless, emerging trends like the introduction of new charter services and the focus on upgraded cabin interiors and advanced avionics promise to shape the market's trajectory positively. 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. A holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Business jets allow executives and professionals to travel to many international destinations quickly and conveniently. Business jets have the advantage of being able to reach more airports than commercial airlines, including airports in remote or underserved areas. This flexibility saves time and improves overall travel logistics, allowing businesses to respond quickly to global opportunities and challenges.
Furthermore, the demand for enterprise jets is further increased by the globalization of business as companies expand their operations and seek new markets in different regions of the world. As global trade and investment increase, so does the need for convenient and reliable modes of transportation. Therefore, this increase in global connectivity will drive the growth of the market during the forecast period.
This trend can be attributed to a number of factors, the most important of which is the global expansion of business operations. As businesses grow, they need more efficient and convenient travel solutions. Long-haul aircraft permit executives to travel longer distances without the need for multiple layovers or connections, saving time and improving efficiency.
In addition, company class jet passengers expect spacious cabins, advanced technology, and top-notch service when traveling. Long-haul aircraft offer the necessary features to create an atmosphere of comfort and efficiency, making them a desirable choice for discerning travellers. These trends will contribute positively to the growth of the market during the forecast period.
Political tensions, trade conflicts, and changes to travel regulations could negatively impact the industry. Political instability in major markets could also lead to reduced demand for company jets. Due to instability, political uncertainty may lead to reduced investment in private aviation. The market has also been affected by travel bans and visa conditions.
Additionally, during the coronavirus pandemic, travel restrictions and border closures have caused a considerable decrease in the number of company jets used for international flights. This shows how quickly geopolitical events can impact the market. Hence, such factors will impede the growth of the market during the forecast period.
The market exhibits a dynamic landscape driven by various factors. High net worth personnel increasingly opt for private jets, seeking convenience and luxury in air travel. Aging aircraft fleets prompt fleet modernization initiatives, leading to the introduction of state-of-the-art private jets with advanced avionics and safety features. Corporate clients and small groups of travelers fuel demand, spurring the emergence of new charter services. Market dynamics include the replacement of old aircraft fleets with upgraded models featuring improved cabin interiors and technological equipment. Major players in the business aviation industry compete by offering innovative flight deck systems and cutting-edge technology. However, market growth is influenced by factors like fuel prices, infrastructure availability, and funds for investment.
The operator segment will account for a major share of the market's growth during the forecast period.?The operator segment includes many organizations and individuals who use business jets for a variety of purposes, including business travel, charter flights, shared ownership, and more. Enterprise jets are a popular choice among businesses due to their ability to provide quick transportation for important employees and decision-makers, as well as the flexibility and privacy involved in going to work.
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The operator segment was valued at USD 24.89 billion in 2017. The operator segment includes aircraft charter service providers that provide business aircraft rental services to individuals and businesses looking for on-demand travel options. High-net-worth individuals often use corporate jets for personal travel, which further increases the importance of the executive segment. These people seek the luxury, convenience, and benefits that company jets provide when traveling for pleasure or business. Therefore, such factors will drive the growth of the market during the forecast period.
Based on type, the market has been segmented into large business jet, medium business jet, and light business jet. The large business jet?segment will account for the largest share of this segment.? Large business jets redefine the concept of air travel comfort owing to their large cabins, advanced technology, and extended range. Owing to their exceptional range, these aircraft are known for their ability to transport passengers to international destinations, often non-stop. This is especially interesting for businesses and individuals who operate internationally or want to travel to remote locations. This type of flexibility is especially beneficial for business travelers because it allows them to reach remote or underserved areas efficiently. Therefore, such factors will drive the growth of the market during the forecast period.
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North America is estimated to contribute 36% to the growth by 2027. Technavio’s analysts have elaborately explained the regional market trends, drivers, and challenges that are expected to shape the market during the forecast period. North America's predominant position in this sector is mainly owing to the diverse range of industries in the region, including finance and technology, entertainment, and energy.
As a result, these sectors often require quick and adaptable travel arrangements, which is why business jets are important assets for business executives and individuals. High net worth individual. Additionally, major manufacturers such as Gulfstream Aerospace, Bombardier, and others have their global headquarters and manufacturing facilities located in North America, bringing advantage of the region's advanced technology and highly qualified workforce. Hence, such factors are expected to drive market growth in this region during the forecast period.
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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Airbus SE, Bombardier Inc., Cirrus Design Corp., Diamond Aircraft Industries GmbH, Eclipse Aerospace Inc., Embraer SA, Epic Aircraft LLC, Eviation, General Dynamics Corp., Groupe Industriel Marcel Dassault, MSC Aerospace, PIAGGIO AERO INDUSTRIES S.p.A., Pilatus Aircraft Ltd., Stratos Aircraft, Textron Inc., The Boeing Co., XTI Aircraft Co., and Piper Aircraft Inc.
Technavio's market growth and forecasting report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market operates on a global scale, driven by high net worth individuals (HNWIs) seeking luxury and convenience in air travel. Fundamental aspects include improved interior design and advanced technology, attracting individual buyers with a high level of customization. Major market players cater to the needs of prominent business owners, celebrities, and HNWIs by offering pre-owned aircraft and comprehensive maintenance services. The market dynamics involve the emergence of e-VTOL aircraft for intracity travel, reflecting the industry's shift towards urban air mobility. However, challenges such as rising fuel prices and the substantial cost of acquiring and operating a business jet impact the market, influencing both purchases and the cost of charter services.
Further, the industry operates within a dynamic landscape shaped by various factors, such as the commercial aircraft market and the advent of eVTOL technology. It caters to individuals with significant purchasing power and substantial net worth, offering private jet ownership for convenient travel. However, acquiring and operating private jets can be time-intensive and costly, involving routine maintenance, repairs, and refurbishments. The emergence of eVTOL aircraft promises cheaper and less noisy alternatives, driving the need for building infrastructure like vertiports and charging pods. Yet, challenges persist, including regulatory frameworks and budget constraints impacting acquisitions and the market, which encompasses operators ensuring ease of travel for clients.
Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.25% |
Market growth 2023-2027 |
USD 6.32 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.19 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 36% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, Bombardier Inc., Cirrus Design Corp., Diamond Aircraft Industries GmbH, Eclipse Aerospace Inc., Embraer SA, Epic Aircraft LLC, Eviation, General Dynamics Corp., Groupe Industriel Marcel Dassault, Honda Motor Co. Ltd., MSC Aerospace, PIAGGIO AERO INDUSTRIES S.p.A., Pilatus Aircraft Ltd., Stratos Aircraft, Textron Inc., The Boeing Co., XTI Aircraft Co., and Piper Aircraft Inc. |
Market dynamics |
Parent market growth analysis, Market Forecasting, 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 End-user
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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