World Business & Business Jet industry to Recover by Early 2030s
Posted by Akshata Sharma on July 22nd, 2019
A business jet is an aircraft used by business people, politicians & other government officials, and high-net-worth individuals. Business jets provide an efficient and productive means of air travel to cater to schedules of various individuals or groups and to reach destinations that are not covered by commercial airlines. These aircraft are also used during emergencies such as floods, evacuations, etc. Business jets are owned generally by high-net-worth individuals, governments, businesses, and operators such as charter companies. 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. The recommencement of global economic growth, an increasing number of high net worth individuals, and the introduction of new aircraft programs are expected to drive the growth of the market.
Based on the point of sale, the OEM segment is projected to grow at the highest CAGR from 2019 to 2030. The growth of this segment can be attributed to increasing aircraft deliveries during the forecast period. New aircraft programs such as Embraer’s Praetor 500 and 600; Bombardier’s Global 5500, 6500, and 8000; and Textron’s Citation Longitude, among others contribute to increasing OEM deliveries.
Based on systems, the avionics sub-segment of OEM systems is projected to grow at the highest CAGR from 2019 to 2030. The growth of this segment can be attributed to the 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.
In terms of geographic coverage, the business jets market has been segmented into six regions, namely, North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. Asia Pacific is expected to be the fastest-growing region for business jets market during the forecast period. Asia Pacific’s GDP forecast is estimated to rise in the coming years, developing countries such as China and India are expected to have considerable potential for the market.
China, in recent times, has become a market for huge foreign investments due to the stable growth and robust developments in its economy. With improvements in technology, business jets are acting as the emerging frontiers in the aircraft industry. Investments in more efficient power electronics, lightweight components, and more competent batteries together will drive the business jets market growth during the forecast period.
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About the AuthorAkshata Sharma
Joined: July 22nd, 2019
Articles Posted: 107
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