Business Jet Market to Surpass US$41 Billion in 2030

The business jet market will be worth US$41.89 billion in 2030, according to Canada-based consultancy Emergen Research. In 2021, revenue from this market reached US$28.73 billion and it is expected to grow at a CAGR of 4.2% until 2030.

Cost-effectiveness associated with air traveling fares, rising disposable income of end-users and the rapid adoption of technologically advanced components in the aviation industry are major factors driving market revenue growth, according to the study.

Business jets offer pleasant and comfortable travel, are convenient, safe and take less time. They are generally utilized for business travel and by multimillionaires for personal purposes. Among the main manufacturers of business jets, General Dynamics, Gulfstream, Embraer, Airbus, Boeing and Bombardier stand out. These companies invest heavily in R&D to manufacture aircraft with increased performance. Revenue growth in business jets is driven by these efforts, in addition to the introduction of new aircraft models and other major factors, according to Emergen Research.

Before the COVID-19 pandemic, the business jets market was growing considerably. Worldwide, jet deliveries grew by 12.5% in 1H19, according to the US General Aviation Manufacturers Association (GAMA). The pandemic brought supply chain disruptions and a decrease in demand for air travel. While commercial airlines suffered the largest impact, business travel was also affected. In the EU, business jet deliveries saw a decline of 17.5% in 2020.

Although the business jets market is expected to continue growing, it will also still face challenges, such as certification delays and different interpretations of national rules across countries. “As a result, manufacturers will be at a disadvantage if these variables allow competitors to get their aircraft on the market sooner. In addition, market growth is also hampered by the lengthy certification process required by aviation authorities,” reads the study.

Aircraft Type Insights

Based on aircraft type, the global business jets market is segmented into light, mid-sized and large planes. The large segment accounted for a moderate revenue share in 2021 due to significant investments in establishing new aircraft service center in several countries, according to Emergen Research.

The mid-sized business jet segment is expected to register a CAGR of 44%. While manufacturers continue investing in innovative fuels and more efficient aircraft, one of the key drivers for market growth is a stronger focus on improving passenger experience, reads the study.

In 2021, North America accounted for 43.8% of business jets’ global market revenue. In Latin America, the market is expected to have a CAGR of 0.3% from 2019 to 2024, according to Mordor Intelligence. Currently, business jets older than 30 years account for about 25% of Latin America’s business jet volume. The high percentage of older business jets suggests that future retirements may open the door to newer business jet deliveries to the region. In the region, Brazil represents the largest market revenue for business jets, followed closely by Mexico and Colombia.