Business Aircraft

Business Aircraft

A business jet is an aircraft designed for use by individuals or companies for transportation purposes. These aircraft are typically smaller than commercial airliners but larger than private planes. They have more advanced avionics systems and amenities such as leather seats, Wi-Fi connectivity, and gourmet kitchens. Business jets can be used for both personal and professional travel needs. Business jets offer many benefits over traditional forms of air travel, including increased privacy and convenience, reduced flight delays, and improved productivity due to the ability to work during flights. However, they also come with higher costs, both in terms of the purchase price and operating expenses.

The Business Aircraft Jet Market is expected to grow at a steady CAGR of around 4.72% owing to the growing demand for aircraft charting by affluent people across the globe. Furthermore, private jets are becoming more popular amongst wealthy individuals and business owners, who lead busy lives and require flexible scheduling options. Business aircraft provide a way to travel quickly and efficiently without having to adhere to rigid timetables. Moreover, there is a growing concern about safety among business travelers, especially after COVID-19, particularly those who frequently fly for work. Business aircraft are generally considered safer than commercial airlines, thanks to their high maintenance standards where everything is customized personally for the individual. Additionally, increasing globalization has fueled the rise of international trade and business travel, there is a growing need for efficient and comfortable ways to move people and goods around the world, which in turn is driving the demand for private jets in the market. For instance, there were almost 21,979 active private jets in 2019 worldwide, and the industry forecasts that in the next 10 years, this number will increase between 6,362 to 7,300 new jets valued between USD 204 billion and USD 236 billion. This surge in the number of private jets is attributed to high demand which is also rising steadily.

• Based on type, the market is segmented into light, mid-sized, large, and airliners. The mid-sized private jets segment holds the majority of the market share as of 2022. The primary factors responsible for this domination are their versatility, where mid-sized private jets offer a balance between the luxury and comfort of a large jet and the affordability and practicality of a light jet. They are often used for long-haul flights, but can also be used for shorter flights and as a convenient option for business travel. Furthermore, they offer a longer range and faster cruise speeds than light jets. Moreover, mid-sized private jets are often considered to be among the safest types of private jets, with a lower accident rate than larger jets, which is also one of the major factors that is responsible for their high demand.
• On the basis of end-user, the market is bifurcated into private owner and operator. The operator's segment is anticipated to witness significant growth in CAGR terms during the forecasted period. With private jets becoming an affluent person cab-hailing service from just being in the reach of the ultra-rich is fueling the growth of this segment. Where high net worth individuals who cannot afford to buy and maintain a private jet but are capable of chartering private planes are high in numbers and driving up the demand for the operator services. For instance, The number of HNWIs around the world is increasing at a rapid pace. According to the Wealth-X Very High Net Worth Handbook 2021, the global “very high-net-worth” population—those with a net worth of between USD 5 million and USD 30 million—rose 1.5% to 2.7 million last year. Their combined wealth also increased 1.2% to a total of USD 26.8 trillion.
• Based on range, the market is segmented into <3000 NM, 3000-5000 NM, and >5000NM. The majority of the market share in the private jet industry is held by medium-range private jets, which are typically defined as aircraft with a range of 3,000-5,000 NM. The primary factors responsible for this domination are rising business travel, and medium-range private jets are well-suited for this type of travel, as they can fly to most major business destinations without the need for a refueling stop. Furthermore, medium-range private jets are generally more cost-effective than longer-range aircraft, as they require less fuel and have lower operating costs. Making them an attractive option for private jet owners.
• For a better understanding of the market adoption of the business jet market, the market is analyzed based on its worldwide presence in countries such as North America (The U.S., Canada, and the Rest of North America), Europe (Germany, The U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is one of the largest and most dynamic private jet markets in the world. The region is home to a large number of wealthy individuals and businesses, which has driven the demand for private jet travel. Furthermore, fractional ownership has become increasingly popular in North America, as it allows individuals to own a share of a private jet without the burden of full ownership. This has made private jet travel more accessible and affordable for a wider range of individuals. Moreover, the private jet industry has seen significant technological advancements in recent years, which have made private jet travel more accessible and affordable. The use of advanced materials and design has made private jets more fuel-efficient and environmentally friendly. These are the factors that have contributed to the demand for private jets in the North American region and will further fuel the growth of the industry.
• Some of the major players operating in the market include AIRBUS; Bombardier; Dassault Aviation; Embraer; Gulfstream Aerospace Corporation; Honda Aircraft Company; PILATUS AIRCRAFT LTD; Boeing; Textron Inc.; and Piper Aircraft, Inc.