Business Jets Market Intelligence

Report Coverage

  • Key Global OEM Profiles
  • Global Business Jet/Aviation List
  • Cost Elements Considered for Hiring a Jet
  • Contract Negotiation Practices

Market Size


8 Percent

Market Size North America

$148.5 Bn

Market Size Europe

$54 Bn

Market Size Asia Pacific

$35.1 Bn

Table of contents

  1. Business Jets Executive Summary
  2. Global Business Jets Industry Outlook
  3. Regional Business Aviation Market Outlook
  4. Supply Market Outlook
  1. Business Jets Market Analysis
  2. Global Business Jets Market Maturity
  3. Drivers and Constraints
  4. Key Trends
  5. Regional Market Analysis
  6. Factors Affecting Business Jets
  7. Porter’s Five Forces Analysis
  1. Business Jets Supply Analysis
  2. Supply Trends and Insights
  3. Key Global OEM Supplier List with SWOT Analysis
  4. Global Business Jet/Aviation List
  1. Business Jets Cost and Pricing Analysis
  2. Cost Elements
  3. Pricing Model
  1. Business Jets Procurement Best Practices
  2. Preferred Business Models
  3. KPIs
  4. SLAs
  5. Contract Negotiation Practices

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Global Market Outlook on Business Jets

  • The outlook is based on business aviation demand as measured in new business jet aircraft deliveries. In the last decade, the emerging markets drove the demand to its peak
  • In next 10 years, it is forecasted that the demand for business jets will increase by 8,750 aircrafts at the CAGR of 6 percent and generate a revenue of $270 billion at the CAGR of 8 percent
  • The regional distribution indicates that North America has slower growth because public companies have contracted their spending and the generation of corporate and personal wealth has shifted to other regions
  • Corporate owners and operators are planning to replace or add up to 20 percent to their current fleet size

Global Business Jets Market: Drivers and Constraints

  • The major drivers of the business jets market are geographical new models, technological advancements and globalization of trade
  • Airport infrastructure and high taxes are some of the major constraints in the business jets market


New models in the business jets market and technological advancements

  • New models in the business jets market and technological advances are major growth drivers that would also provide customers with alternatives to full aircraft ownership

Globalization of trade

  • Globalization of trade, thereby leading to expansion from inter-regional partners to globally connected economies, is also a growth driver in the business jet market


  • Airport infrastructure
  • Slot allocation
  • Regulations
  • Security issues
  • High taxes

Porter's Five Forces Analysis

Threat of Substitutes - Low

  • The threat of substitutes is low in the business jets market as the demand for quality aircrafts has kept growing. The top suppliers like Boeing, Airbus, Bombardier etc are the competing brands that can deliver matching quality

  • The factors that minimize the threat from the substitutes are quality, technology, timely delivery and customer convenience

Threat of New Entrants - Low  

  • The barriers to entry and exit are high in the industry. Any new player trying to enter the market will have to make a very large financial investment in infrastructure and supply chain. Skilled human resources and licenses and permits are also expensive
  • There are various regulatory barriers that will also have to be considered when entering the market

Supplier Power –  Low-Medium

  • Business jet companies depend heavily on its suppliers for the raw material required to produce the world class and technologically finest aircrafts
  • The suppliers have low to moderate bargaining power as most of the top business jet companies are major buyers

Buyer Power – Medium

  • The bargaining power of customer are high in most industries for several reasons but  it is moderate in the airlines industry as the level of technological innovation matters and switching costs can be high

Intensity of Rivalry - High

  • The level of competitive rivalry in the business jets market is high because all top suppliers are trying to improve quality and innovation
  • The number of players in the industry is limited. The major players include Boeing, Airbus, Bombardier and Embraer
  • Boeing and Airbus are the market leaders with the largest market share

Preferred Business Model for Engaging with Business Jets: Ownership Models

Full ownership, with leased aircraft and the operation outsourced to a management company, is the preferred model by large companies, as it is highly reliable and gives a great level of flexibility.

Fractional Ownership

  • This model allows the company to have access to an aircraft for a business flight, by paying a fraction of the cost of the actual purchase price
  • The aircraft interest ownership is not in a single aircraft, but it is the purchase of flight time over a fleet of aircraft
  • It is operated by a management company
  • Term: Typically, five years


  • Suitable for a company, which flies its employees during peak times, at short notice, on short haul, with multiple employees to the same destination, with departures from multiple locations or require multiple aircraft between way points
  • Time savings over commercial flights/busy airports
  • Higher reliability


  • Incurs capital outlay and cost of capital
  • Incur direct operating costs
  • May need corporate aviation administrative staffing

Full Ownership

  • This model should be considered by companies, with more than 250 flight hours
  • It requires aircraft purchase with its operation outsourced to a FBO


  • Provides a dedicated aircraft
  • On-demand availability
  • High reliability and time savings over commercial flights
  • Interiors can be tailored to suit the company's business needs
  • Allows great level of flexibility and control relating to transportation


  • Incurs capital outlay and cost of capital
  • Incurs fixed and operating costs
  • Restricted aircraft availability (after reaching a high utilization rate)
  • Loss of use, when the aircraft is undergoing scheduled maintenance
  • Incurs cost of unoccupied flights

Business Jets Market Overview

  • According to business jet market analysis, North America, Europe and CIS are mature markets while Latin America, Middle East and Africa, and APAC are growth markets. As product and service supply chains become more established and complex, the need for global business transport becomes a value advantage.
  • Also, the business jet market outlook shows that increasing complexity in regulations, ownership structures, reporting requirements and safety initiatives in 2018, and beyond, are requiring higher levels of experience and knowledge from aircraft management firms
  • An aircraft management company helps to remove this burden on an aircraft owner, or lead pilot, by providing a team of experts, who work cohesively behind the scenes and provide the best solutions with a greater influence of technology
  • Technological advancements are a driving force across multiple industries including business aviation 
  • Ground and satellite-based in-flight Wi-Fi, with speeds of 15mbps to over 70mpbs, are recently being made available on business jets. Travellers are also looking to stream and conduct video conferencing in the air. Apart from technology directly benefiting clients during travel, charter booking systems are also improving. Booking a private jet charter online without human interaction is now a reality 
  • There are significant advancements in the cockpit, with improvements to safety and situational awareness such as synthetic vision, active side-stick technology, near-visible and infrared spectrum sensors like the revolutionary FalconEye system developed by Dassault Falcon
  • Business jet operators face challenges due to environmental regulations.

Why You Should Buy This Report

  • Information on the business jet market outlook, maturity, key trends, business jets market drivers and constraints, business jet market analysis, etc.
  • Industry outlook and Porter’s five forces analysis of the global business jets market
  • Supply trends and insights and profiles and SWOT analysis of major players like Gulfstream, Bombardier, Cessna, etc.
  • Cost element, pricing models, rental and ownership models, negotiation practices, etc.


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