The North America business jet market is anticipated to register a CAGR of over 4.5% during the forecast period.
- The growth of tourism in this region is mainly driving the business jet market. Also, charter services are expanding their routes and presence which is attributing the growth of the market.
- The emerging aviation emission norms and the diversified requirement of the clientele to personalize their travel experience have bolstered the demand for newer generation aircraft. Also, the presence of a large High Net-worth Individual (HNWI) clientele in North America has had a positive effect on the demand-side dynamics of the market, while the associated ownership benefits, in terms of evolving fractional ownership or private jet card programs, has been a decisive factor promoting the growth of the market in the region.
- Technological advancements in avionics systems, new product launches, and long-term procurement and service agreements are some of the major factors driving the demand for business jet OEMs.
Key Market Trends
Increasing Customer Preference for Luxury Travel Bolstering Demand for Long Range Business Jet
The preference for luxury travel has been growing rapidly in North America mainly due to the presence of many HNWIs in this region. Also, the quality of travel is preferred by passengers such as comfort, in-flight entertainment. The development of lightweight materials may also provide new opportunities for the market. Also, accessories like a seat belt, seat frame/stand, actuators, cushions, cushion covers, hand rest, headrests, and assembly parts and systems increase the inclination of the customer’s experience. To enhance the passenger experience, the airlines are installing new and advanced cabin interior systems like mood lighting, in-flight live streaming, and new fiber seats that are embedded with smart sensors to manually control seat pressure, tension, temperature, and movement by the use of an app on the phone, among others. For instance, in March 2020, Bombardier Inc. introduced its Learjet aircraft which has High-speed 4G Connectivity. The high level of cabin personalization as per the tastes of the customers is one of the major factors driving the adoption of business jets. Also, the hassle in commercial aviation is causing demand in private and business jets. Private aviation reduces the stress and frustration of passengers being subjected to queues for undergoing mandatory security checks at the airports. Additionally, it allows for more flexibility for travel as a flight can be scheduled at any time as per the requirement of the aircraft owner and operator.
The US is Anticipated to Dominate the North America Business Jet Market
The US is anticipated to dominate the market in focus during the forecast period. Certain factors, such as the presence of many HNWIs, increasing demand for newer generation aircraft, and the evolution of new aircraft ownership models have propelled the business prospects of the market players in the US. For instance, in October 2018, Embraer SA introduced the most disruptive and technologically advanced aircraft into mid-size and super mid-size categories - the Praetor 500 and Praetor 600 business jets. The Praetor 500 is the fastest mid-size aircraft that can traverse for over 5,500 km without the need to refuel. Furthermore, to fulfill the demand of consumers in this region, air-charter operations have undertaken a fleet-modernization initiative, which has resulted in the dispersal of several contracts for procuring new business jets. For instance, in October 2019, Embraer SA signed USD 1.4 billion deal with Flexjet, a leading charter operator in the US, for delivering the Praetor Jets, and Phenom 300. Such developments are envisioned to bolster the growth prospects of the US business jets market during the forecast period.
The prominent players in the North America Business Jet Market are Bombardier, Inc., Embraer SA, Dassault Aviation SA, Gulfstream Aerospace Corporation, and Airbus SE. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets. Also, some of the business jet OEMs are integrating advanced navigation and avionics subsystems to enhance the safety standards of the aircraft. For instance, in October 2018, Embraer SA developed Autothrottle and Synthetic Vision System solution for its Legacy 650 business jet. Additionally, luxury travel and comfort is also enhancing capabilities for the market growth, For instance, in November 2019, Seattle-based TCS World Travel introduced a new-built A321LR Airbus SE corporate jet, which has set new standards in the luxury air-travel market, which includes jet expeditions. This jet delivers new standards in comfort and convenience, and also saves time for traveling to a certain destination.
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