The global business jet market size was valued at $26.8 billion in 2022, and is projected to reach $41.4 billion by 2032, growing at a CAGR of 4.5% from 2023 to 2032.
Business jets, also known as private jets or corporate jets, are used for transporting small groups of people. Business jets are gaining huge popularity as they are equipped with high-end amenities such as excellent interiors, delightful culinary experiences, advanced technologies, and personalized services. Also, business jets are typically characterized by their speed and luxury as well as they offer luxury and flexibility in terms of travel destinations.
Business jets are quite popular as they can travel at a higher speed compared to commercial airlines which reduces the travel time. For instance, Dassault Falcon 900B is one of the popular heavy business jet with a spacious cabin, excellent short runway performance, and long-distance capabilities. In addition, Bombardier is one of the leading business jet manufacturers which is well-known for its spacious and quietest jets. One of the major advantages of business jets is the ability to fly directly to smaller airports closer to the destination. This saves travel time by minimizing layovers, waiting time, security checks, and others.
Also, the business jet reputation in the Asia-Pacific region is growing rapidly owing to increase in the demand for business aviation. An increase in the number of high-net-worth individuals in the countries namely Japan, India, China, Australia, and others have led to an increase in the demand for business jets. In addition, the China government has gradually relaxed regulations on private jets having a positive impact on the business jet market growth. Also, China is investing heavily in the aviation infrastructure with the construction of new airports to cater to business jets. This has boosted the accessibility & convenience for the travelers. Commercial Aircraft Corporation of China, Ltd. (COMAC) has been developing business jet models to compete in the global market. In addition, various events such as Asian Business Aviation Conference & Exhibition (ABACE) are conducted to boost the adoption of business jet in the country.
Private jets are quite expensive to purchase as well as the cost of operation and maintenance is high. The initial cost of buying a private jet can cost millions of dollars. In addition, the cost of maintenance, crew salaries, and insurance hanger fees can increase the cost of purchasing business jets. Also, some private jets have range limitations. For instance, ultra-long-haul flights may require refueling stops that can be time-consuming and inconvenient. In addition, private jets have fewer seats compared to commercial airplanes owing to which accommodating a large number of people can be difficult. Private jet owners and operators need to follow certain guidelines as they are governed by stringent regulations & restrictions including security protocols, custom procedures, and limitations with respect to the operating speed. These factors are anticipated to restrain the business jet industry in the upcoming years.
Technological advancements have led to more fuel-efficient engines and the development of lightweight materials. In addition, improved aerodynamics have reduced the operating costs and environmental impact of business jets which is anticipated to create excellent opportunities in the business jet industry. Advanced avionics includes the use of enhanced navigation and safety. In addition, high-speed Internet connectivity and advanced communication systems onboard allow passengers to remain connected during flights which makes business travel more effective. The development of hybrid & electric propulsion systems can reduce emissions as well as it offers operational flexibility. Furthermore, advancements in cabin layouts & entertainment systems can maximize travel comfort. These factors are anticipated to boost the business jet market expansion during the forecast years.
The key players profiled in this business jet market report include Bombardier Inc., Gulfstream Aerospace Corporation, Textron Aviation Inc., Dassault Aviation, Embraer, Pilatus Aircraft Ltd., Airbus, Cirrus Aircraft, LLC, The Boeing Company, and Honda Aircraft Company, LLC. Business expansion and agreement are common strategies followed by major market players. In July 2023, Gulfstream Aerospace Corporation, leading business jet manufacturer, announced the addition of three authorized warranty facilities in China to its worldwide Customer Support network. This will help the company in expanding its customer support in China and other Asian countries.
The business jet industry analysis is segmented on the basis of type, category, and region. By type, the market is divided into very light jets, light jets, medium jets, and heavy jets. By category, the market is classified into new and pre-owned. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By type, the heavy jets sub-segment dominated the market in 2022. Heavy jets are becoming highly popular as they are the longest-range private jets with large cabins and excellent comfort. Also, heavy jets can fly anywhere in the world at excellent speeds. A typical heavy jet can accommodate up to 12 passengers. The heavy jets include a fully equipped galley with luxury amenities such as fully reclining seats. With heavy jets travelers can choose their food & beverage preferences on board and these jets have the highest safety standards. Heavy business jets can reach several destinations that commercial flight routes cannot reach. This is extremely useful for industries that have operations in remote areas such as the natural resources industry. Heavy business jets are also used for emergency purposes such as disaster relief, medical transport, and other emergencies.
Heavy business jets offer unparalleled flexibility, and the travelers can choose the flight schedule based on their need. In addition, business jets provide a higher level of privacy and security so that the travelers can conduct the business meetings. Most of the business jets are equipped with excellent amenities such as spacious work areas, Wi-Fi, conference rooms, and others that provide excellent comfort and luxury experience to travelers. These factors are anticipated to boost the popularity of heavy business jets in the upcoming years.
By category, the pre-owned sub-segment dominated the global business jet market share in 2022. Pre-owned business jets are quite popular owing to its affordability due to which the people can benefit from private jet travel without high initial investment. Also, the buyers can avoid the steepest part of depreciation curve such as hidden cost of ownership with pre-owned business jets. In addition, a pre-owned jet allows for a faster acquisition process when compared to buying new business jets.
Many pre-owned business jets are well-maintained by their owners owing to which the buyers need not spend additional money on repair and maintenance work. The use of predictive maintenance, data analytics, and real-time monitoring can help operators in monitoring any operational defect before a hazard in pre-owned business jets. Also, when the buyers are purchasing the business jets, they can also check the business jets track record and the performance history. These factors are projected to boost the pre-owned business jet demand in the upcoming years.
By region, North America dominated the global market in 2022. The popularity of business jets is growing in the countries namely the U.S., Canada, and Mexico as these countries are major business hubs with the presence of a large number of financial centers, business hubs, and industries. For instance, according to General Aviation Manufacturers Association (GAMA), the industry trade association, in 2022, the business jet deliveries were 712 units. Among these, 488 were manufactured in the U.S. Globally, North America accounted for 13% of the total market share in overall business jet sales globally in 2022.
Also, there is extensive R&D ongoing in the U.S. in the field of soundproofing technologies to reduce noise pollution. Advancements in electric vertical takeoff and landing (eVTOL) aircraft can boost urban transportation by enhancing travel times. These factors are anticipated to boost the popularity of business jets in North America.
Impact of COVID-19 on the Global Business Jet Industry
- The COVID-19 pandemic has had a significant impact on the business jet market. The pandemic led to widespread travel restrictions, quarantines, and closed borders.
- The lockdown greatly impacted business travel affecting the business jet demand during the pandemic. As many businesses scaled back operations or switched to remote work models, the need for corporate travel was greatly reduced.
- The pandemic led to economic uncertainties that have negatively affected the corporate budgets for travel as well as discretionary spending thereby affecting demand for private jet travel. Also, aircraft manufacturing and maintenance faced several challenges in terms of lockdowns, supply chain disruptions, and reduced workforce availability.
- Several conferences, events, and trade shows were canceled owing to which the demand for private jet travel declined.
Key Benefits For Stakeholders
- The business jet report provides an exclusive and comprehensive analysis of the global business jet market trends along with the business jet market forecast.
- The report elucidates the business jet market opportunity along with key drivers, and restraints of the market. It is a compilation of detailed information, inputs from industry participants and industry experts across the value chain, and quantitative and qualitative assessment by industry analysts.
- Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the market for strategy building.
- The report entailing the business jet market outlook to map the qualitative sway of various industry factors on market segments as well as geographies.
- The data in this report aims on business jet market statistics, trends, and developments affecting the business jet market growth.
Business Jet Market Report Highlights
Market Size By 2032
USD 41.4 billion
CAGR of 4.5%
2022 - 2032
Key Market Players
The Boeing Company, Dassault Aviation., Textron Aviation Inc., Bombardier Inc., Cirrus Aircraft, LLC, Pilatus Aircraft Ltd., Gulfstream Aerospace Corporation, Honda Aircraft Company, LLC, Airbus, Embraer