The Business Jet Rental Market is projected to grow at a CAGR of 15.49% during the forecast period to reach US$13.513 billion by 2026, from US$4.931 billion in 2019. A business jet refers to an aircraft that is turbofan-powered and is intended to transport small groups of people. Based on the aircraft type, the market is divided into the light jet, mid-size jet, and large jet. Some of the most prevalent types of business jets are single-pilot airplanes, propeller-driven jets, turbine aircraft, and piston jets. These aircraft are usually used for business trips, leisure travel, short-haul flights, and VVIP transportation by individuals, and also by private and government organizations. They can also be transformed for various objectives, such as rapid parcel delivery, emergency evacuation, and military cargo transportation.
Technological advancements, time-saving capabilities, increase in net disposable income, growth in tourism activities, convenience, and high hygiene levels are prime factors driving the growth of the business jet rental market.
Development in tourism activities as business jet rental services grow, their expansion by introducing more routes both nationally and internationally will additionally propel the market demand for this segment. Technological advances in the aviation sector and interior cabin products are anticipated to make this growth probable and successful. As business jet rentals are being used for more than one activity now to meet different needs of individuals, people are gradually apprehending its advantages. These jets provide comfort, optimum performance, convenience, ease of travel, and shorter fleet time, and hence are hugely adding to its enhanced demand. As airline travel becomes remarkably stressful, tiresome, and time taking due to an escalation in the number of passengers every day, a huge quantity of customers are starting to favor business jets to travel because of its benefits. Such enhanced demand is expected to favorably impact the business jet rental market as well. Moreover, the advantages offered by business jet rentals such as fewer people, lack of crowd and queues, high hygiene levels, direct flights, and flying as per one's schedule contributes to the growth of the market. The introduction of new aircraft programs coupled with a growing number of high net worth personnel is anticipated to propel the growth of the market.
A considerable challenge for the business jet rental market is the lack of infrastructure in several nations. Developing economies such as Nigeria, India, China, and Malaysia although have the potential market for business jet rentals, the infrastructure of these countries makes it unsuitable for the business jet rental market to grow. There are several cities which are not well connected in terms of ease of travel. Specific areas do not have airports and aerodromes, some do not have convenient landing space, and some areas are not readily available from city limits.
Based on geography, North America is expected to hold a significant market size and the European region is also anticipated to increase.
By region, the North American market is expected to account for a notable share in terms of revenue and is anticipated to continue its dominance over the market throughout the forecast period. The presence of leading players and large adoption of private jet rentals among end-users particularly in the US are factors driving the growth of the market in this region. Moreover, huge domestic investment and customer spending are also amongst the factors boosting the expansion of this market in North America. The regional business aviation network, including producers, suppliers, dedicated airports, and Fixed Base Operators (FBOs) observed rapid expansion, creating it one of the most attractive regions for business aviation across the globe. In addition, the availability of airports across the region facilitates ease in business travel. As North America is the largest region by area, it is crucial for business travellers to opt for the speediest mode of transport to save time, this further results in the growing demand for business jets.
The market in Europe is assumed to account for profitable growth in terms of revenue in the forecast period, essentially due to increasing investments for the expansion and modernization of aviation infrastructure. Determinants such as longer distances between the towns as well as insufficient ground transportation networks in the region are encouraging the requirement for large and medium business jets, this, in turn, will propel the growth of the business jet rental market in the region.
The COVID-19 pandemic had a huge impact on the commercial airline sector but its impact on the business jet rental market was comparatively positive. Due to the spread of the novel coronavirus, there were severe restrictions on commercial flights and people were concerned about their health and safety, this led to the boost in the business jet rental market as these jets provided less crowded terminal, safety and hygienic measures, less contact time with others , and security clearance.
Moreover, the business jet activity witnessed incremental growth in the latter half of 2020 in comparison to the first half of the year because of the controlled permit for commercial flights.
With the ease of travel restrictions, more people opted for private jet for convenient, safer, and faster travel.
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