The global business jet market size is expected to reach USD 29.32 billion by 2025, registering a CAGR of over 3% from 2019 to 2025, according to a new report by Grand View Research, Inc. The global business jet deliveries are expected to reach 919 units by 2025.
A rising number of high net worth individuals, especially in the mature economies, has fueled the growth. Moreover, increased access to private aviation has resulted in a significant surge in the demand for charter services, thereby supporting the revenue generation.
Passenger safety is the top priority in the business aviation industry. Aircraft operators seek safety approvals via independent auditing systems.
The companies operating in the marketplace focus on adopting advanced technologies for the utmost safety of the customers. They are incorporating various technological advancements, such as ground and satellite-based Wi-Fi, in-flight video conferencing, and charter booking systems.
These advancements are expected to act as a driving force for the business jet market over the forecast period.
The OEMs are increasingly replacing mechanical flight control systems with lightweight digital flight systems. Reducing an aircraft’s weight increases its payload capacity, as well as the ability to fly greater distances with the same payload.
The OEMs are also implementing new engine designs that focus on improving propulsion efficiency while reducing emission and noise levels. Such innovations by the business jet OEMs are expected to induce immense potential to the market size till 2025.
Various factors are responsible for the growth of the business jet market. These include the aging fleet size, and the rise in number of high-net-worth individuals such as VVIPs and celebrities and the fact that their work over international and national borders are a high priority. This increases the need to provide transport facility within the minimum time span. Besides this, the introduction of new programs in the aviation industry is also promoting the growth of private jets in the market.
However, the market may face rough waters due to factors such as uncertainty of orders to fly depending on the schedule of the VVIPs and their schedule. This, coupled with the lengthy time taken to obtain product certification from aviation authorities may also hamper the market in future.
Geographically, the market for business jets is dominated by North America. This is because of the presence of a large number of players such as Bombardier, Gulfstream, Textron, and others. In addition, the rise in investments in research and development is also presumed to help this region generate high revenue in the forecast period as well.
On the other side, the surge in demand for private jets in the Middle East and Africa is anticipated to attract high revenue to the region. The increasing investments in the aviation industry will help this region witness a progressive growth rate in the forecast duration.
Furthermore, the rising investments in the aviation sector and geographical expansion of the aviation industry in the developing nations of Asia Pacific such as China and India are prognosticated to help this region grow at rapid pace in the forecast duration.