NY, USA, September-23, 2019 /Aerospace --
The business jets market is projected to grow from an estimated USD 24.7 billion in 2019 to USD 36.4 billion by 2030, at a CAGR of 3.6% during the forecast period. An increasing number of high net worth personnel and the introduction of new aircraft programs are expected to drive the growth of the market.
Typically, light, mid-sized, large, and airliner are the four types of business jets available. The light segment is projected to grow at the highest CAGR during the forecast period. Growth of this segment can be attributed to the anticipated commercialization of air taxis, which will be used as business jets for inter and intracity travel.
Based on the point of sale, the market has been segmented into OEM and aftermarket. The OEM segment accounts for the largest market size during the forecast period. The OEM segment is the total OEM market size for conventional and futuristic business jets. Also, OEM is the fastest-growing market during the forecast period; this growth attributed to the introduction of new aircraft programs, and the commercialization of electric & hybrid business air vehicles. Cost of aftermarket, which includes Maintenance, Repair, and Operations (MRO) cost and parts replacement, is low when compared to the overall OEM market, hence OEM segment leads the business jets market during the forecast period.
Based on the end-user, the business jets market has been segmented into private, and operator. Operator segment is expected to grow at the highest CAGR during the forecast period. The burden of depreciation cost and high operating & maintenance cost of private ownership is driving the growth of this segment. Operators have options to optimize their operations through multiple customers
Based on systems, the business jets market has been segmented into OEM systems and aftermarket systems, which are segmented further into aerostructures, avionics, aircraft systems, cabin interiors, and doors, windows, and windshields. Aircraft systems, a sub-segment of OEM systems, is poised to account for the largest market share during the forecast period. This sub-segment includes systems such as propulsion systems, electrical systems, hydraulic systems, pneumatic systems, environmental control systems, emergency systems, and landing systems. As these systems are the backbone for the functioning of an aircraft, they together account for major aircraft cost, hence are anticipated to hold the largest market share.
The business jets industry has been studied for North America, Europe, Asia Pacific, Middle East, Latin America, and Africa. North America is estimated to account for the largest share of the global market in 2019. This can be attributed to the presence of a large number of high-net-worth individuals coupled with the existence of major business jet manufacturers such as Textron (US), Bombardier (Canada), and Gulfstream (US), among others.
Additionally, the availability of airports across North America enables ease in business travel across the region. Geographically, North America is the biggest region, by area, hence it is critical for business travelers to opt for the fastest mode of transport to save time, resulting in increasing demand for business jets.
Major players operating in the business jet market include Bombardier (Canada), Embraer (Brazil), Textron, Inc. (US), Gulfstream (US), Airbus (Netherland), and Boeing (US), among others. Startups such as Eviation Aircraft, Zunum Aero, and XTI aircraft are some of the companies focusing on launching and commercializing their business jets before 2025.