Business jets comprise of jets of different types as well as services, according to the use. In 2013, there were nearly 3,650 charters and air taxi fleet, globally. The market for business jets, since its inception into the aviation world decades back, has witnessed some considerable growth over the past few years.
Key Market Drivers and Constraints
Growing economies, increase in demand for replacement of older fleet, increasing activities in the aviation industry, and the on-going globalization are the main triggering factors for the growth of this market, thereby shaping the future of this market in the coming years. The North American market is mainly driven by the high demand for new aircrafts, since it has the highest number of older aircraft in the world. The market in Asia-Pacific is expected to become a key market, owing to the rising economic growth, thus, offering ample space for the growth of this market.
However, strict rules and regulations employed by the government in developing countries and lengthy processes for the product certification by the aviation authorities may hamper the growth of this market.
Rising at a CAGR of 6.86% during the projected period, the value of global business jet market is expected to reach $33.8 billion from $20.9 billion by 2020. North America was the biggest market, with 52% of the total market share in 2013, while Europe stands second after North America, showing a steady growth rate. On the other hand, Latin America, APAC, and Africa are expected to become the key growing markets for business jets, with them holding 12%, 11%, and 6% of the total share of the global business jet market, respectively.
Among the services, the air charter market has witnessed a substantial growth over the past years. This market segment is mainly driven by the high demand from North America and Europe, which accounted for 70% of the overall demand. However, recently, the strongest growth in the charter market has been found in APAC, Latin America, and Africa.
On the basis of types of aircraft, the light and mid-size jet segment is projected to exhibit a significant growth between 2014 and 2020. However, the large jet segment may witness a minor drop in the growth rate, overall. However, APAC is expected to foresee a significant growth in the large jet segment.
The key players competing in this market are Bombardier Inc. (Canada), Gulfstream Aerospace Corporation (U.S.), Cessna Aircraft Company (U.S.), Dassault Aviation S.A. (France), and Embraer S.A. (Brazil). Moreover, the new entrants in the markets like Honda Jet and Comac are anticipated to take into account the growing demand in this market.
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Scope of the Research
The global market for business jets has been analyzed and predicted by splitting it into the following segments and sub-segments:
- Type: Light Jet, Mid-Size Jet, Large Jet
- Service: Charter, Fractional Ownership, Jet Card Programs
- Geography: North America, Europe, Asia-Pacific, Middle East, Latin America, Africa