The Business Jet Rental market is projected to grow at a CAGR of 16.51% during the forecast period to reach US$13.648 billion by 2027, from US$4.684 billion in 2020.
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 light jets, mid-size jets, and large jets. 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, an 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 the different needs of individuals, people are gradually apprehending their advantages. These jets provide comfort, optimum performance, convenience, ease of travel, and shorter fleet time, and hence are hugely adding to their enhanced demand. As airline travel becomes remarkably stressful, tiresome, and time-consuming due to an escalation in the number of customers every day, a huge quantity of customers are starting to favour business jets for travel because of its benefits. Such enhanced demand is expected to favourably impact the business jet rental market as well. Moreover, the advantages offered by business jet rentals, such as fewer people, lack of crowds and queues, high hygiene levels, direct flights, and flying as per one's schedule, contribute 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 have the potential market for business jet rentals, but 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. Certain areas lack airports and aerodromes; others lack convenient landing space; and still others are inaccessible from city limits. Pie charts
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 widespread 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), has observed rapid expansion, making one of the most attractive regions for business aviation across the globe. In addition, the availability of airports across the region facilitates business travel with ease. . 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 European market is expected to grow profitably in terms of revenue during the forecast period, owing primarily to increased investments in 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 novel coronavirus, there were severe restrictions on commercial flights, and people were concerned about their health and safety. This led to a 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, 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 opt for a private jet for convenient, safer, and faster travel.
|Market size value in 2020||US$4.684 billion|
|Market size value in 2027||US$13.648 billion|
|Growth Rate||CAGR of 16.51% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, End-Use, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||NetJets, Wheels Up, VistaJet, XO global LLC, Magellan Jets, Jettly, JetSuite, Victor, GlobeAir, Oxygen Aviation|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the business jet rental market size by 2027?
A1. The business jet rental market is projected to reach a total market size of US$13.648 billion by 2027.
Q2. What are the growth prospects for the business jet rental market?
A2. The global business jet rental market is projected to grow at a CAGR of 16.51% over the forecast period.
Q3. What is the size of the global business jet rental market?
A3. Business Jet Rental Market was valued at US$4.684 billion in 2020.
Q4. Which region holds the largest market share in the business jet rental market?
A4. The North American market is expected to account for a notable share in the business jet rental market.
Q5. What factors are anticipated to drive the business jet rental market growth?
A5. 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.
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