The global business jet market size in 2019 was USD 24,100 million. The global impact of COVID 19 was unprecedented and disastrous as the overall business jets market experienced negative demand shocks globally. Based on market analysis, it showed a significant drop of 12.1% in 2020 compared to the average year-on-year growth rate from 2017 to 2019. The market is projected to grow to USD 32.67 billion with a CAGR of 4.8% by 2025. The sudden increase in CAGR is due to a surge in demand for business jets. Moreover, the market is expected to attain pre-pandemic levels by the year 2025.
According to JetNet IQ, global market forecasts over the next decade predict delivery of up to 7,404 new jets worth up to USD 236 billion. An overall recovery in the global market (up to 85% of 2019 levels) is expected to be achieved by mid-2021. The Business Jet market can be segmented by type, platform, systems, and end-users. Based on type there are MidSize, light, and LargeSize jets. Based on the Platform there are OnDemand Service and Aircraft Management Services. Based on systems there are propulsion Systems, Aircraft Structures, Aviation. Based on end-users there are operators and private.
According to the International Civil Aviation Organization, increasing demand for all-electric business aircraft and eco-air jets is supporting the business jet market growth. All-electric aircraft demand is experiencing a growth rate of 2%- 5%. However, within 10 years, this growth rate is expected to reach 24%. Therefore, the investment opportunities in electric aircraft are poised to increase. In 2019, Ampaire Inc, an electric jet startup in the United States was actively involved in the development of electrical business jet solutions.
The introduction of electric aircraft can reduce maintenance costs by 50%. It improves takeoff and landing efficiency by 66% without draining fuel from the tailpipe of the aircraft. These operational benefits and cost-effective solutions can facilitate the adoption of more environmentally friendly aircraft propulsion systems.
Canadian aircraft manufacturer Bombardier announces the closure of the production facility due to production downtime owing to the after-effects of the COVID 19 pandemic. The company planned to dismiss approximately 2,500 employees due to the economic downturn caused by the induced national lockdown. However, a recent USD 105 million deal with the Government of Canada has minimized the after-effects of the pandemic.
OEMs look forward to continuing the production of command aircraft over the next few years. In addition, supply chain disruptions have had a significant impact on sales and production activities around the world. Key players are looking forward to integrating low-cost e-platforms to overcome the effects of pandemics shortly. In addition, unplanned orders from end-users such as retailers and OEMs are supporting the market growth.
The cabin internal system consists of several subsystems such as lighting, cabin seats, toilets, galleys, and windshields. Increasing in-flight acceptance and demand for onboard 4G and 5G connectivity is expected to boost the growth of the business jet market. Private jet operators are highlighting the acquisition of Gogo Avance L5, which offers 4G and 5G connectivity. In addition, leading companies such as Panasonic Avionics, Zodiac Aerospace, and Honeywell Corporation are actively involved in the development and design of lightweight and cost-effective cabin interior systems and related products.
In addition, the traditional modernization of business aircraft with technologically advanced cabin interior systems and components is expected to drive market growth.
Key market players such as Airbus SE, Boeing, and Embraer SA are involved in the design and development of executive jets using advanced technology systems. These companies look forward to manufacturing technologically advanced hybrid engines and building strong partnerships with organizations in developed and emerging countries. Key players are pursuing strategies such as the development and geographic expansion of next-generation all-electric business aircraft to build a strong market share.