The business jet market is set to take off as wealthy individuals and corporations look to travel safer doing the Pandemic. After years of slow growth, it looks like the industry is about to turnaround thanks to all of the bad news for the travel sector.
According to the new market research report “Business Jets Market by Aircraft Type – Global Forecast to 2030“, published by MarketsandMarket, the Business Jets Market size 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.
In the short term, finding alternatives to commercial travel will have a big impact. While in the medium term, the increasing number of high net worth individuals, upcoming new aircraft program, and aging fleet size will drive the growth of the market. Though the market has witnessed a slow growth in recent years, aircraft with Vertical Take-off and Landing (VTOL) capability and environment-friendly propulsion technologies, including electric and hybrid engines, are expected to reduce the operating costs drastically and serve as an opportunity for the market growth up to 2030.
“There will always be those who can afford private jets”
The COVID-19 outbreak has impacted the business aviation industry adversely due to air travel restrictions on domestic as well as international flights across countries, resulting in the grounding of aircraft fleets and a sudden dip in aircraft orders and deliveries in 2020. However, with certain relaxations across regions, business jet operators and service providers have witnessed a sluggish demand for charter services. For instance, Go Air airlines has operated 51 charter flights carrying 8,951 passengers to India until June 2020. Clients are choosing to charter to gain quicker access, skip long and crowded check-in, customs, and immigration queues of people with unknown travel histories.
“The light aircraft segment is expected to grow at the highest CAGR in the business jets market during the forecast period”
Based on aircraft type, the light segment is projected to grow at the highest CAGR from 2020 to 2030. The growth of this segment can be attributed to new startups focusing on developing aircraft in the light category. Commercialization of urban air mobility will further drive the growth of light business jets market, which will be used for intra- and intercity travel.
“Based on systems, the avionics sub-segment of OEM systems is projected to grow at the highest CAGR from 2020 to 2030”
The growth of this segment can be attributed to the periodic upgrades in avionics systems. Manufacturers are currently focusing on avionics components to develop products that are more reliable, accurate, and efficient. Continuous improvements in software technology have modified the human-machine interface of avionics systems. It has become more user-friendly and can automate a wide variety of in-flight tasks, thereby reducing the workload of the flight crew to a large extent.