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Market for business jets continues to soar
Indian air transport market projected to grow by 262% in the next 20 years
The 31st annual Global Business Aviation Outlook projects 8,500 new business jet deliveries valued at $274 billion over the next decade. The market is estimated to witness a healthy growth in the forecast period of 2023-2028 to reach about $46.8 billion by 2028.
The global business and private jet market was valued at $28.11 billion in 2022 and is projected to grow at a CAGR of 16.2% during the forecast period 2023-2033.
The business and private jet market has been experiencing steady growth in recent years. The private jet industry has evolved to become a luxury service that caters to individuals and businesses, who value time and privacy. One of the main drivers of growth in the private jet market is the increasing demand for personalized travel experiences. Private jet customers are willing to pay a premium for the convenience, comfort, and privacy offered by private jet travel. Private jets offer a level of comfort and luxury that is unmatched by commercial airlines. They allow passengers to avoid the hassles of airport security, long queues, and flight delays. Another factor that has contributed to the growth of the private jet market is the globalization of business. Companies are operating in multiple countries, and executives need to travel more frequently to manage their businesses. Private jets offer a more efficient way for business executives to travel, enabling them to attend multiple meetings in different locations in a single day.
Largest market by body type-Large Jet: The increasing number of HNWIs and UHNWIs is driving the demand for large business jets.
Fastest-growing market by body type-Large Jet: The consumers’ preference for high premium quality and convenient jets that offer large and personalized space is driving the adoption rate of large jets.
Largest market by region-North America: The United States is the major contributor to the growth of the regional market due to its strong economy and increased procurement of various business jet models. Business turboprops and small cabin jets each make up 35% of the fleet carrying these new users, followed by medium jets (18%) and large long-range jets.
One of the significant market opportunities for the business and private jet market is the emergence of new demand sources and emerging markets. As more regions of the world become increasingly connected and globalized, the demand for private jets is likely to grow. Emerging economies, in particular, are expected to drive growth in the private jet market, as more individuals and businesses become affluent and seek luxury travel options.
Moreover, new demand sources, such as tourism and the entertainment industry, are also expected to drive growth in the private jet market. Private jets offer an attractive travel option for high-end tourists, particularly those looking for a more personalized and exclusive travel experience. Similarly, private jets are commonly used by the entertainment industry for travel to locations and other events.
Technological advancements and innovation: Another significant market opportunity for the business and private jet market is technological advancements and innovation. The private jet industry has traditionally been slow to adopt new technologies, but there are increasing signs of change. New technologies like digital platforms and blockchain offer opportunities for greater efficiency and cost savings. They also improve the overall customer experience. For example, digital platforms can enable easier and more streamlined booking and management of private jet travel, while blockchain technology can provide increased security and transparency in transactions.
Moreover, there are opportunities for innovation in the development of new and more fuel-efficient private jets, as well as the integration of more sustainable technologies, such as electric or hybrid propulsion.
Competitive landscape: The major players operating in the business and private jet market are Airbus SE, BAE Systems, Boeing Company, Bombardier Inc., Dassault Aviation SA, Eclipse Aerospace, Inc., Embraer S.A, Eviation Aircraft, flyExclusive, General Dynamics Corporation, Honda Aircraft Company, Jet Edge International, Joby Aviation, Mooney International Corporation, NetJets IP, LLC, Pilatus Aircraft Ltd., Piper Aircraft, Inc., PlaneSense, Inc., Raytheon Technologies Corporation, Solairus Aviation, Textron Inc., VistaJet, Wheels Up and Zunum Aero. These players have adopted various strategies, comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion and new product launches.
According to IATA, air transport market in India is forecast under the “current trends” scenario to grow by 262% in the next 20 years. This would result in an additional 370.3 million passenger journeys by 2037. If met, this increased demand would support approximately $126.7 billion of GDP and almost 9.1 million jobs.
