OMR Global – Reports
Business jet market is anticipated to grow at a considerable CAGR of 5.3% during the forecast period. Rising disposable income, increasing urbanization, an increase in high-net-worth individuals, an increase in air travelers, and other factors are driving global market growth. Business-class jets are mostly used for business travel and individual use by multimillionaire celebrities. They provide a more pleasant and comfortable journey and are more convenient and safe. Companies are also launching new business jets to meet the increasing demand. For instance, in February 2023, during the IDEX expo in Abu Dhabi, Embraer Defense & Security displayed a mockup of the P600 airborne early warning (AEW) aircraft it is developing in collaboration with IAI/Elta Systems. The P600 is based on the Embraer Praetor 600 super-midsize business jet’s airframe and is outfitted with a low-weight, cutting-edge, high-efficiency digital S-band Elta AESA radar in a dorsal radome. In addition, the aircraft will have civil and military IFF, ESM, ELINT, and COMINT capabilities, as well as an innovative and strong self-protection suite. The P600 will be outfitted with a full communication suite that includes data networks and satellite connectivity for operating beyond line of sight (BLOS).
Segmental Outlook
The global business jet market is segmented by type and platform. Based on type, the market is sub-segmented into light business jet, mid-size business jet, and large business jet. Based on platform, the market is sub-segmented into on-demand service and aircraft management service. Among platforms, the on-demand service segment is expected to dominate the market during the forecast period, owing to the growing demand for new business aircraft in the US, China, and the UAE. Additionally, the growth is also supported by the presence of many private jet service providers in emerging and developed economies.
The Large Business Jet Segment Holds a Prominent Share in the Global Business Jet Market
Based on type, the market is sub-segmented into light business jet, mid-size business jet, and large business jet. Due to significant investments in establishing new aircraft service centers in various countries, the large business jet segment is expected to account for the largest market share. For instance, on December 7, 2022, Bombardier announced the opening of a new service center at Abu Dhabi International Airport (AUH) by 2025. Bombardier is a major producer of innovative aircraft and is well renowned for its world-class experiences and services.
Regional Outlook
The global business jet market is segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the rest of the world (the Middle East and Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among the regions, the North American region is expected to generate the highest market share, followed by the European market. Substantial expenditures in research and development efforts, expanding regional air travel, and increasing disposable income are important drivers driving market revenue growth in Europe.
The North American Region is Expected to Dominate the Global Business Jet Market
The North American is anticipated to grow at a considerable rate in the marker. According to the data presented by Stratus Jet Charters, there were over 21,979 operational private jets across the globe in 2019, and North America represented approximately 71% of all private aircraft. The growing presence of leading market players such as Bombardier, Textron Inc., and others is a primary driver of market revenue growth. These firms are making major investments, in increasing comfort and simplifying flight characteristics. Businesses are also collaborating with various pilot training colleges to create aircraft models that are properly constructed for teaching and built for adventure. For instance, on December 6, 2022, Joby Aviation, a California-based aircraft manufacturer, joined Aviation High School to teach aircraft mechanics. The New York City high school programme is a component of company’s goal to develop services and infrastructure for aircraft. This is particularly important as electric propulsion gets traction in aviation technology and dozens of high school students acquire experience servicing and operating aircraft systems. Additionally, increased adoption of innovative aircraft systems and growing support from corporate aviation in the US are boosting market revenue growth in North America. Due to the advent of hybrid-electric propulsion technology, the US is likely to account for the greatest revenue share holder.
Market Players Outlook
The major companies serving the global business jet market include Airbus SE, Bombardier Inc., Cirrus Design Corp., Dassault Aviation, Embraer, and others. These companies are considerably contributing to the market’s growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, investments, and new product launches to stay competitive in the market. For instance, in August 2022, Bombardier purchased the first Challenger 3500 Business Jet based in Europe for use in charter operations with Air Corporate SRL. In addition, Textron Inc., the parent company of the aviation brands Cessna, Beechcraft, and Bell, said in March 2022 that it had struck a deal to acquire Pipistrel, a world-renowned developer and leader in electrically powered aircraft with offices in Slovenia and Italy.
