Northbrook, IL -- (SBWIRE) -- 03/10/2021 -- The business jets market is projected to grow from an estimated USD 18.8 billion in 2020 to USD 38.0 billion by 2030, at a CAGR of 7.3% 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.
The light aircraft segment is projected to grow at the highest CAGR during the forecast period
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. Growth of urban air mobility between 2025 to 2030 is expected to drive the overall business jets market further.
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The 3,000 – 5,000 NM segment is projected to grow at the highest CAGR during the forecast period
Based on the end use, the market has been less than 3,000 NM; 3,000-5,000 NM; and more than 5,000 NM. The medium range of 3,000 to 5,000 NM aircraft generally includes mid-size and a few large business jets. The increasing demand for business travel and short-haul flights is the primary factor driving the growth of the business jets market. With private aviation showing robust growth over the last few years, the demand for exclusive flight services has exceeded pre-recessionary levels. The increase in the intercity travels by the VVIPs and corporate individuals drives the market for business jets with the range of 3,000 -5,000 NM.
The OEM segment accounts for the largest market size during the forecast period.
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.
North America is expected to account for the largest share in 2020
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 2020. 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.
Key Market Players
Major players operating in the business jet market include Bombardier (Canada), Embraer (Brazil), Textron, Inc. (US), Gulfstream (US), Airbus (Netherlands), 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.