The North America light and very light jets market is projected to register a CAGR of more than 2% during the forecast period.
- The growth in the number of High Net Worth (HNW) and Ultra High Net Worth (UNHW) individuals and rising income levels are expected to significantly drive the market growth for private jet travel in North America during the forecast period.
- The growing investments in the travel and tourism sector are fuelling the need for cost-effective non-scheduled charter flights and subsequently propelling the market growth for light jets in the region.
- Due to the Covid-19 outbreak, the revenues in the business jet industry has significantly decreased. However, as commercial airline operations decreased, HNW, UNHW, business executives, etc. are preferring light business jets to cater to their travel requirements.
Key Market Trends
Light Jet Segment Recorded The Highest Share In 2019
The light jet aircraft segment dominated the market in 2019 compared to the very light jet segment. The deliveries of light jets are significantly higher in number in the region, totaling 128 jets thereby accounting for 68.4% of total light and very light jets deliveries in North America for the year 2019. Aircraft such as Cessna Citation CJ3+/CJ4/XLS+, Learjet 75, Pilatus PC-24, and Embraer Phenom 300, etc. recorded significant growth in demand from the North American market. The average price for light jets is more than USD 9 million, which is more than twice the mean price of the very light jets, thereby helping the segment dominate the market in terms of revenues. The demand for light jets is increasing in North America from various customers including corporate companies, charter companies, HNWIs, and governments, which is expected to propel the market for light jets in the region during the forecast period.
United States is the Largest Market For Light and Very Light Jets
The United States has one of the largest numbers of light and very light jet shipments by geography, due to the high demand for corporate travel, tourism, personal and leisure travel, etc. from the country. The number of people performing inter-state business travel is high in the United States, who mostly prefer these light and very light jets. In 2019, 174 light and very light jets were delivered to various customers in the US, accounting for more than 93% of sales by volume. The country has the largest number of HNWI and UHNWI populations in the world, which is also driving the market for light and very light jets. HNWIs either purchase personal jets or opt for charter services for their travel needs, which is also driving the demand for charter companies in the country, forcing them to add new jets to their fleet. For instance, in October 2019, Chairman Aviation, a US-based fractional and private aviation membership company, ordered a new Cessna Citation CJ3+, its second Citation jet purchase in 2019. The order marks the third Textron Aviation aircraft addition to its fleet. Such orders are expected to propel the market for light jets in the country during the forecast period.
North America Light And Very Light Jets Market is a consolidated one with players such as Embraer SA, Textron Inc., Honda Aircraft Company, Pilatus Aircraft Limited, Bombardier Inc., dominating the market. The market comprises only a few players developing the light and very light jets in the industry. New players, like Stratos Aircraft, are about to enter the market with new aircraft models, like Stratos 714 and 716X. Prototype assembly for Stratos 716 has started in Oregon from January 2020. Key players are focusing on innovation and technology development to address the customer's demand for efficiency, comfort, and reliability, which is expected to help their growth during the forecast period.
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