The business jet market has been forecast to increase at a compound annual growth rate (CAGR) of 9.4% through to 2016, driven by the increasing number of billionaires across the world, and the increasing demand for business aircrafts from emerging economies.
A business jet is a jet aircraft designed for transporting small groups of people. Business jets may be adapted for other roles, such as the evacuation of casualties or express parcel deliveries, and some are used by public bodies, government officials or the armed forces.
Before the recession, business jet manufacturers delivered a record 1,313 narrow-body planes in 2008. A new 10-year forecast predicts business jet deliveries of 9,234 units valued at $255 billion in revenue, although it doesn't project demand for narrow-body jets returning to pre-recession levels at any point in the decade.
The steady economic growth in emerging economies has had a positive impact on rising demand for business jets in these countries. Continuous economic growth in emerging economies has improved the financial status of the people in these countries, leading to an increase in their per capita income and disposable income. In addition, the increasing corporate profitability in developing countries is expected to propel the demand for business jets.
Moreover, the growing contribution of emerging economies in the global GDP is also propelling the demand for business jets. For instance, in 2012, emerging economies accounted for 28% of global GDP. By 2030, the emerging economies are expected to account for 40% of the global GDP.
One of the major challenges in this market is the increasing direct operating cost of business jets. The high operating cost is expected to deter potential customers from buying business aircraft, thereby inhibiting the growth of the market.
Key players currently dominating the business jet market include Bombardier Inc., Cessna Aircraft Co., Dassault Aviation S.A., and Gulfstream Aerospace Corp.
For more information on the business jet market, see the latest research: Business Jet Market
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