Market Scenario

Global business jet market was valued at US$ 20.19 billion in 2023 and is projected to hit the market valuation of US$ 28.60 billion by 2032 at a CAGR of 4.04% during the forecast period 2024–2032.

The demand for private planes is increasing and there are various reasons behind this. On a worldwide scale, the number of business jets delivered rose by 10.3% in 2023, with 760 units being sold overall. Such growth has been accredited to more high-net-worth individuals (HNWIs) and corporations desiring flexible, secluded, and efficient modes of transport while on their journeys. Additionally, private flights have become necessary due to the rise in remote working as well as the need for safe travel options that guarantee privacy; hence contributing greatly into these statistics too.

Some of the prominent end users in the global business jets market include celebrities and government officials among others such as entrepreneurs or corporate executives who often use them for their businesses’ needs or personal convenience. Where corporate usage accounts for about 62%. Thereby, it is making up majority share points while catering towards productivity optimization during work hours without wasting time waiting around at airports. This may not be favorable enough especially when dealing with urgent matters concerning companies’ operations at different locations globally where every minute counts towards achieving desired results. Furthermore, the number of billionaires across the globe increased by 3.6%. Thus, it is causing higher desire levels towards owning private jets by ultra rich individuals. The Asia-Pacific region witnessed 15% increase in business jet deliveries showing how much emerging economies are growing up fast.

The main manufacturers in the business jet market involved in making these types of aircrafts are Gulfstream Aerospace followed by Bombardier then Dassault Aviation and Embraer. Gulfstream commands 15.21% market share whereas Bombardier holds over 18.75%. Bombardier delivered 123 while gulfstream had 142 business aircrafts in 2023. Dassault and Embraer also recorded significant improvements where their numbers grew by 12% and 9% respectively through constant innovation such as increasing range, speed, and connectivity.

During the same year, there were 760 units sold globally. Out of which, North America accounted for 55%. Wherein, the cost of buying a business plane largely depends on its size i.e light jets costing US$ 3 million while large, long range airplanes could be priced over US$ 70 million. In line with this, the future looks bright for business jet market as we expect global fleet size to grow by 4.8% per annum. As a result, the total fleet size is projected to hit 25,000 private planes by 2030, which mainly driven by technological advancements like electric or hybrid propulsion systems among others.

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Market Dynamics

Driver: Increasing Demand for Corporate and High-Net-Worth Individuals

The growing demand from commercial clients and high net worth individuals (HNWIs) is a major driver in the business aviation industry. There were 2,640 billionaires in 2023, up from 2,095 in 2020. This sudden increase in wealth correlates to the number of business jets sold. Corporate customers took up 65% of all business jet purchases during 2023 which is a significant increase from 58% recorded in 2019. Corporate clients spent an average of $1.2 billion on aviation annually with 45% going towards buying and maintaining aircrafts according to Fortune 500 companies’ records. The main reasons for these expenses are the flexibility and time savings that come with this form of transportation.

Personalized travel experiences have driven business jet market growth through HNWIs who still remain influential players within this sector. In one year alone, they bought over 1,250 private planes – which represents a 20% hike from their previous year’s figure of about 1,000 units purchased. The average net worth among individuals falling under this category stands at around $150 million. Typically, 15% is allocated towards luxury goods such as yachts or even private jets themselves. With America being home base for most wealthy people owning these types of aircrafts followed closely behind by Europe where 45% versus 30% respectively account for global sales volume. Average usage per annum equals 250 hours while majority focus long haul flights especially overseas. Customized interiors coupled advanced inflight services represent unique selling propositions with eighty percent featuring personalized designs as part new orders.

Another development taking place within this business jet market involves usage rates vis-à-vis chartering service providers targeting corporate clients alongside HNWIs alike. In total, there was 25% increase observed across all categories compared against the year 2022 figures but more specifically 60% bookings were made directly from businesses themselves. Large sized jet hourly fees stand at US$10,000 globally. However, on average, most of the customers tend to book such aircrafts 50 ties annually. Therefore, cost effectiveness together with its flexibility has seen fractional ownership rise by 15% in 2023 alone.

Trend: Increasing Demand for Large Jets

In the corporate business jet market, one of the most important trends has been an increasing demand for bigger planes, which is fueled by the necessity for long-range flights and better onboard facilities. Large jets accounted for 38% of total deliveries in 2023, up from 33% in 2020. The Gulfstream G650ER is a very popular model that can fly 7,500 nautical miles nonstop from New York to Dubai — and this year alone, deliveries of this type were up by 15%. Last year saw the Bombardier Global 7500 report a sales increase of 12%. These have full-size beds and showers among their comforts; features like these are especially appealing to corporate customers and those with high net worths.

Corporate flying has done much to boost demand for large jets in the business jet market: In 2019, some 65% of Fortune 500 firms used them (it was 70% last year), while they now spend on average about four hours more per medium/large aircraft each year (330 hours) than previously (290 hours). Most business airplanes are operated out of North America — where half of all such jets go — while a quarter head to Europe. However, there have been significant improvements in other regions such as the Middle East where there was an increase in deliveries due mainly economic growth and tourism accounting for around 10% of the business jet market.

The average price tag attached to large business jet pricing & operating costs is about US$30 million. However, a Gulfstream G700 can cost closer to US$75m. with the recent advancements, the new designs burn 20% less fuel than earlier models. It has also been witnessed that, in the last 2 years, 60% of the manufactures have upgraded their avionics systems making them even safer during flight operations. Large jet maintenance costs have fallen by 8% over five years so running them isn’t quite such an expensive proposition anymore either which is good news for owners who might be seeking opulent travel experiences without breaking the bank.

Challenge: High Competition and Market Saturation

High rivalry and market saturation are the major challenges facing the business jet market. Global market in 2023 was made up of 20 major manufacturers; with 73% market share is being held by top 7 companies. Wherein, Bombardier Inc., Embraer S.A, Gulfstream Aerospace Corporation, Textron Aviation and Boeing Commercial Airplanes are key market players. This has caused price wars due to high competition among themselves hence making them lower their prices by 10% for mid-sized jets over the last three years on average globally. Worldwide deliveries rose by 5% to 720 business jets in 2023 from previous year but makers’ profit margins continue shrinking at a rate of minus three (-3%) per annum.

In addition to this, there is also a problem of oversupply from used aircrafts, which further saturates the business jet market. In 2023, pre-owned jets accounted for 40% of all transactions done while it was only 35% back in 2020. An increase of 12% for two years ago. Availability of more second-hand planes leads them into selling at lower prices than new ones. Thus, it is heightening competitive nature among buyers too who want good quality products at less cost. On average those sold were ten years old and demanded 15% less money compared to brand new models thereby necessitating continuous innovation and provision for distinctive attributes by producers as a response so that their commodities can stay relevant always. Moreover, there has been noticeable growth within maintenance plus refurbishment arena associated with these types of airplanes which are not new anymore. Service requests shot up by 20% during year 2023 after which such services were sought frequently than before. An indication that users still find value in these machines even when they no longer function well or look appealing outwardly.

The need to remain competitive has pushed manufacturers into pouring large sums into research and development activities. In 2023 alone, on average each leading business jet builder spent US$ 1.5 billion as R&D cost which is 10% higher than previous year 2022. Technological advancements like advanced avionics systems, fuel efficiency improvement mechanisms, and better cabin comfort features are necessary for keeping ahead of competitors.

Segmental Analysis

By Type

Based on type, the jet segment is dominating the global business jet market as a huge sum involved in buying these capital-intensive assets. Jets are luxury items with exorbitant price tags — anywhere between $3 million and $70 million plus, depending on the make and model. This investment outweighs all cumulative costs of keeping an aircraft operational during its useful life. Thus, creating imbalance in how incomes are generated. Moreover, the demand for jet is skyrocketing due to continuous improvement coupled with preference for new, better performing and more comfortable models. In 2023, the jet segment accounted for over 93.2% revenue share of the business jet market. 

Furthermore, general wealth increase worldwide and the growth of emerging markets are among some of the reasons why business jet purchases have gone up. These areas are pumping a lot of money into business jets for prestige and practicality purposes as well. What is interesting is that between 2021 and 2026, the market is likely to witness a CAGR of a 7.1% in deliveries within the Asia-Pacific region alone. In 2023, over 720 units delivered which represents an increase of 10% from the previous year. Most were sent over North America (almost 60%).

By Engine Type

In the business jet market, jet engines hold higher share than turboprop engines because they perform better. In 2023, the jet engine segment generated over 65.8% market revenue as they can fly faster and higher than planes with propellers, reducing travel time significantly and making journeys more comfortable for passengers. This is especially important for people traveling on business. So, jets are commonly used for long-haul flights where they can keep up high speeds and altitudes that enable them to cover great distances faster. It’s worth noting that the worldwide market for jet engines is expected to grow at an average annual rate of 3.46% until 2032.

Moreover, purchases of commercial helicopters together with private aircrafts increased by 4.8% within the last twelve months indicating rising demand. The fact that business jets can escape turbulent air by flying very high ensures smoothness as well as reliability during trips. Additionally, breakthroughs in technology have resulted into quieter fuel-efficient jet engines which are necessary for executives preferring silence aboard their flights in the business jet market. 

Besides, turboprop-powered units are projected to experience an increase in sales volume averaging about 5.10% per year. In recent years, there have been many technological advances. For example, the development of high-bypass-ratio turbofans has made planes quieter and more fuel efficient. Jets are built to fly well at high altitudes and speeds, which is why they are best for long distance travel that makes up most of corporate aviation. Last year charter activities for jets increased by 3.5% even though they cost more than turboprops to operate showing people prefer their speed and comfort over anything else.

By System

Based on system, the propulsion system of the business jet market is holding over 31.8% revenue share, which is significantly than avionics and cabin interiors each. The propulsion system is an essential part of any aircraft that gives it power to fly. This alone makes the industry important as well as a top priority for investments in aerospace technology. One main driver for demand in this sector are newer models with higher levels of fuel efficiency. Additionally, the growth rate in business aviation demand from countries such as China, UAE or US also greatly benefits segments related to propulsions systems among others. A global survey predicts that revenues will increase at a CAGR of 4.1%. 

Furthermore, the demand for advanced propulsion systems in business jet market is being driven by increasing number of private jet service providers in developed and developing countries. In 2023 alone, there was a 17% rise in the use of private jets for business or personal travel indicating that this sector is growing rapidly. Technological improvements have fueled another important driver – environmental friendliness through fuel efficiency and emission reduction efforts in propulsion systems design worldwide such as hybrid-electric ones whose development has been catalyzed by global drive towards zero net carbon emissions by 2050. From 2023 to 2030, the market for hybrid-electric propulsion is projected to expand at a CAGR of 10.5%. Also, the segment of propulsion system take advantage of high cost and complexity related with manufacturing and servicing an engine. Among all parts, engines are the costliest in an airplane which only can be maintained by skilled labor forces at specified places; therefore, sales revenue will constantly flow in from both original sales as well as post-sale service provision. On average, it costs about $12 million – $35 million per unit for new jet engines depending on their model number and features they possess.

By End Users

Based on end users, the operator segment is dominating the business jet market over 55.83%. This dominance is mainly driven by fleet modernization and an increase in demand for private jet operators in North America and Europe especially, the sector has experienced substantial growth. With 16,000 business jets accounting for 69% of all worldwide private planes situated in this area alone, it holds the biggest share of the market globally. Moreover, what makes operators more appealing to a wider range of customers is their capability to provide many different services such as charter operations; fractional ownership plans or even jet card program among other things too. Additionally, these companies have more cost advantages from scales which lets them service their fleets better than any individual owner could do so also.

Also, continuous needs for new or replacement aircrafts is also adding fuel to the dominance of operators that will help speed up sales during next year’s even more as predicted already. For example, North America is expected to continue being the largest business jet market because of the economic growth that is ongoing and an increased number of wealthy people. Additionally, about 30 private airline companies control a big part of this market whereby the biggest operators such as NetJets and Flexjet are leading in terms of size. This combination provides an opportunity for operators to give customers attractive prices coupled with high-quality services thereby ensuring satisfaction among them which in turn ensures loyalty from them. With 663 jets expected to be delivered within the predicted period also shows how much robustness there has been towards growths or investments made by operators into becoming one.

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Regional Analysis

North America is the biggest maker and consumer of business jet market. The region accounted for about 70% of the worldwide fleet in 2023, with the United States leading the world. It alone has 12,000 private jets — more than any other country — making it the center of private aviation. Canada also has a strong aerospace industry that contributes to North American dominance. That might be because there are so many big manufacturers in the region: Gulfstream, Bombardier and Textron Aviation to name a few. Some 120 Gulfstream jets were delivered in 2023 alone, reflecting high local demand. But concentration of wealth is also key; North America is home to over 7 million people worth at least $1 million each, and many choose business jets for their comfort and time saving qualities. There are over 5,000 airports in the region too — more than anywhere else — which helps create such a large private aviation network.

Europe imitates North America in terms of the business jet market due to significant economic reasons and a burgeoning wealthy population. In 2023, Europe possessed roughly 15% share of worldwide business jets fleet which is considered a considerable increase from previous years. This growth was largely driven by the United Kingdom, Germany, France among other countries that are housing together around 1800 private planes. There is strong demand for new planes in European countries where about 50 were delivered by Airbus alone last year because its political stability coupled with economic stability as well as technological advances has fueled this development.

Also. there are approximately 3.5 million people classified as high net worth individuals living in different parts of Europe business jet market thereby increasing their need for privately owned aircrafts. According to EBAA report, there was a rise of 5% YoY in terms of number flights operated using these types machines showing positive directionality within such markets. This is even further supported by well-established aviation infrastructures across many states comprising at least more than 2,500 airports specifically designed for catering private aviation needs throughout the region.

South America is seeing significant growth in the business jet market, even though it is smaller by comparison. In 2023, the business jet fleet of the region grew by 4% driven primarily by Brazil and Mexico. Regional demand remained strong with Brazil having delivered 50 jets last year alone – being home to one of world’s top manufacturers such as Embraer. This can be attributed to economic growths within South America which saw approximately 600,000 new HNWIs created in 2023 alone. It should also be noted that this area exceeds worldwide estimates for annual air traffic demand growth rates at 5.6%.

While there are some countries facing economic hardships in the South America region, overall outlook on business jet market remains positive. This is because investments into aviation infrastructures have been made evident wherefore an estimated $1bn is planned to be invested towards upgrading airports across Brazil by 2025 alone. Such developments among others underscore potentiality behind this region becoming a major player within global business jets market.  With an expected yearly increase of about 3.5% over next ten years based on current fleet expansion trends.

Top Players in Global Business Jet Market

• Airbus Corporate Jets
• Bombardier Inc.
• Boeing Commercial Airplanes
• Dassault Aviation
• Embraer S.A.
• Gulfstream Aerospace Corporation
• Honda Aircraft Company
• Pilatus Aircraft Ltd.
• Textron Aviation
• Sirius Aviation
• Other Prominent Players

Market Segmentation Overview:

By Type

• Jets
  • Light Jets
  • Midsize Jets
  • Super Midsize Jets
  • Large Cabin Jets
  • Ultra-Long-Range Aircraft
  • Airliner
• Others
  • Services
  • Repair & Maintenance
  • Charter Services

By Engine Type

• Jet engines
• Turboprop engines

By System

• Propulsion System
• Avionics
• Cabin Interiors
• Others

By End User

• Operator
• Private Jet Users

By Point of Sale

• OEM
• After Market

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America