According to the General Aviation Manufacturers Association (GAMA), global shipments of private jets in 2017 rose to 2,324 units, reflecting an increase of 2.5% from 2016 levels. The gains, the GAMA notes, were led by increased deliveries from Honda Jet, Cirrus Aircraft, and Textron. Honeywell International also forecasts promising increases in business jet deliveries in the forthcoming decade. According to the company’s Global Business Aviation Outlook, between 2020 and 2029, worldwide business jet shipments could reach 7,600 at an estimated value of USD 248 billion, signalling good news for the industry. The analysis states that the global industry value stood at USD 27.54 billion in 2019 and contains the following information.
Stringent Travel Restrictions to Contain COVID-19 to Impede Industry Growth
The business jet industry growth has hit a roadblock in the form of the COVID-19 pandemic. Governments around the world have imposed strict travel restrictions for non-essential journeys to contain the spread of the coronavirus. However, the demand for executive aircraft is picking up again, though at a sluggish pace. Embraer, for instance, analysised decent earnings of USD 130 million in the Second Quarter of 2020, stating that business jet demand is stabilizing worldwide. However, reaching demand and revenue levels of the pre-COVID period is expected to be a prolonged process for this industry.
The global business Jet industry is projected to reach USD 35.56 billion by 2027, exhibiting a CAGR of 5.37% during the forecast period. Increasing business aircraft deliveries worldwide will be a key growth determinant for this industry.
Worldwide Companies in 2022
List of Companies Profiled in the Business Jet Industry Analysis are Zunum Aero (Washington, the U.S), Eviation Aircraft (Israel), Cennas Aircraft Company (Kansas, the U.S.), Gulfstream (Georgia, the U.S.), Embraer SA (State of São Paulo, Brazil), The Boeing Company (Illinois, the U.S.), Joby Aviation (California, the U.S.), Hondajet (North Carolina, the U.S.), Dassault Aviation (Paris, France), Textron Inc. (Rhode Island, the U.S.), Bombardier, Inc. (Montreal, Canada), Airbus SE (Leiden, the Netherlands).
North America to Occupy Prominent Industry Position
North America, with industry size of USD 9.75 billion in 2019, is anticipated to lead the business jet industry share during the forecast period. This is mainly attributable to the robust aviation infrastructure in the region along with the steadily climbing demand for hybrid jets in the region.
Europe to Register Substantial Growth
In Europe, emergence of leasing facilities and rapid adoption of advanced aircraft propulsion systems will be the two chief growth drivers for the regional industry. Asia Pacific is expected to offer lucrative business opportunities for industry players owing to promising economic growth, establishment of foreign businesses in India and China, and speedy rise in business air travel in the region.
Contractual Partnerships to Create New Growth Avenues for Industry Players
The competition in the business jet industry is being increasingly characterized by contractual agreements between companies and government bodies and among players themselves. These partnerships and ventures are opening new vistas of growth for the industry and its participants and enhancing industry potential.
Business Jet Segmentation
Business Jet Industry Size, Share & Analysis, By Business Jet Type (Very Light Jet, Light, Super-Light, Super-Mid-Size, Large, Super Large, Ultra Long Range, and Converted Airliners), By Platform (On-Demand Service, Aircraft Services, and Leasing), By System (Propulsion System, Aerostructures, Avionics, and Others), By End Use (Private and Operators), By Point of Sale (OEM and Aftermarket), and Regional data.
Worldwide Industry Developments
- June 2020: Bombardier signed a CAD 105 million contract with the Federal Government to supply two of its signature Challenger jets to upgrade half of the executive aircraft fleet of the Canadian Armed Forces. The replacement decision was taken by the government citing outdated technology in two of the four business jets in the fleet.
- April 2019: Airbus’s ACJ319neo, a member of the A320neo family, completed its maiden flight, which also saw the testing of its private jet features. The aircraft has been engineered for the K5 aviation of Germany and will also feature a premium VVIP cabin designed by Fokker Techniek.