Global business jet market overview

A business jet is an aircraft specifically designed or modified for commercial or private purposes, usually with a high level of comfort, safety and flexibility. According to the characteristics of aircraft size, range, speed and price, business aircraft can be divided into four categories: light, medium, heavy and super heavy. The global business jet market is mainly composed of the United States, Europe, China and the Middle East, with the United States accounting for more than half of the market share.

In 2021, the global business jet market will be severely affected by the new crown epidemic, resulting in a significant reduction in flight activity, reduced deliveries, and order cancellations or delays. Global business jet deliveries in 2021 were 644, down 20.4 percent from 809 in 2019, and are not expected to return to 2019 levels until 2023. However, in this dilemma, there have also been some positive changes.

The increase of new users. Due to the restrictions on commercial flights caused by the epidemic, many people who use business jets for the first time have flocked to the market in search of safer, more convenient and private ways to travel.Global business jets inA total of 3.3 million flights were flown in 2021, a record for a single year and 7% higher than in 2019. In addition, sales of business jets usually account for 10 to 20% of total sales for the first time, and this figure has risen to more than 30%.

Second-hand business jet market hot. Demand for second-hand business jets has surged due to a shortage of new aircraft and rising prices, and industry insiders say current aircraft prices have reached, in some cases even higher than pre-epidemic levels. In the first quarter of 2023, the second-hand business jet market is in the stage of "rebalancing". Trading activity has slowed down, indicating that the market has started to decline from the high point in 2022. IADA certified dealers completed 239 transactions, 17% less than 288 transactions in the same period in 2022, but 12% more than 213 transactions in the same period in 2021. The number of planes traded also fell from 259 to 197, and business jets traded at a lower price.

The introduction of new models. Stimulated by market demand, major business aircraft manufacturers have launched a number of new models to meet the needs and preferences of different customers. In February 2021, Textron Airlines launched the second generation of "Certificate of Award" CJ4 light double-engine jet business jet. Dassault Airlines Launches Falcon 10X in May; In September, China Commercial Flight sent its first business aircraft CBJ to the 13th China Air Show, and Bombardier launched the "Challenger" 3500, a super-medium business aircraft. In October, Honda aircraft showed the latest light business aircraft concept model HondaJet2600 for the first time, textron Airlines Launches M2 Gen2 and XLS Gen 100.00g Cessna "Certificate of Award" Business Aircraft Upgrade Types, Gulfstream Launches G400 and G 40000.00g New Business Jet with Large and Spacious Cabin.

Business jet market analysis in the Asia-Pacific region

The Asia-Pacific region is one of the most dynamic and potential economic regions in the world, and it is also an important growth point for the business jet market. By the end of June 2022, the total number of business jets in the Asia-Pacific region is 1201, of which 467 are owned by mainland China and Hong Kong, accounting for 38.9 percent of the total in the region; Australia has 218, accounting for 18.1 percent; India has 140, accounting for 11.7 percent; Japan has 79, accounting for 6.6 percent; Singapore has 53, accounting for 4.4 percent; and other countries and regions have 244, accounting for 20.3 percent.

Despite the impact of epidemics and trade frictions, the business jet market in the Asia-Pacific region still shows some resilience and vitality.

China remains the largest business jet market in the region. Despite a 11.2 percent drop in fleet numbers, China remains the region's largest business jet market. China and Hong Kong have reduced a total of 62 aircraft, mostly light aircraft. This is mainly due to the outbreak led to a decline in flight demand, policy restrictions, operating costs and other reasons. However, against the backdrop of epidemic prevention and control and economic recovery, China's business jet market still has great potential, especially in the central and western regions, countries and regions along the Belt and Road, and high-end tourism.

Australia had the highest net fleet growth. Australia is the only country in the Asia-Pacific region to achieve net fleet growth in 2021, adding a total of 14 aircraft, including eight light aircraft, four medium aircraft and two heavy aircraft. This is mainly due to factors such as better control of the epidemic in Australia, strong flight demand, and government support for business aviation.

The most popular aircraft is the G650ER long-range business jet, with 91 aircraft. In the Asia-Pacific region, the most popular business jet is the Gulfstream G650ER, with 91 aircraft, accounting for 8% of the total in the region. This aircraft has ultra-long range, high speed performance and spacious and comfortable cabin, can meet the needs of transcontinental and transoceanic flight. This was followed by the Cesna "Citation" CJ3 and the Bombardier "Challenger" 60, with 66 and 64 respectively.

The most popular business jet maker was Textron, with 323. In the Asia-Pacific region, the most popular business jet manufacturer is Textron Airlines, with 323 aircraft, accounting for 28.4 percent of the total in the region. Textron Aviation is best known for its Cesna "Citation" series of light jet business jets, suitable for short-haul and low-cost flights. This was followed by Bombardier and Gulfstream with 241 and 222, respectively.

Business jet market outlook

In 2022, with the increase in vaccination rates and the relaxation of travel restrictions, the global business jet market is expected to continue to grow, especially in the Asia-Pacific region, where business jet demand will have greater potential. Full Year 2022Global business jet deliveries will reach722, up 12.1 percent from 2021. However, while the market is recovering, there are some uncertainties and challenges, such:

Changes in the international situation. The Russo-Ukrainian war has undermined the chances of the global economy recovering from the COVID-19 pandemic, at least in the short term. This conflict may lead to the consequences of rising oil prices, currency devaluation, credit tightening, and shrinking investment, which will have a negative impact on the global business jet market. In addition, Sino-US trade frictions, tensions in the Taiwan Strait, and the nuclear issue on the Korean Peninsula may also have an adverse impact on the business jet market in the Asia-Pacific region.

requirements of sustainable development. With the increasingly serious problem of global climate change, the business aviation industry is also facing the pressure and responsibility of reducing carbon emissions, improving energy efficiency and protecting the environment. To this end, the business aviation industry needs to take a series of measures, such as the use of sustainable aviation fuel (SAF), the development of more energy-efficient and environmentally friendly aircraft and engines, and the strengthening of energy-saving management and carbon compensation. SAF is reported to be made from a range of feedstocks such as biomass, waste products, natural oils, fats and other carbon sources, and can reduce carbon life cycle emissions by up to 80% compared to traditional aviation jet fuel made from crude oil. And the SAF can be put into service without the need to upgrade refueling facilities, engines or aircraft. At present, many business airlines and organizations around the world have begun to use or promote SAF, such as NetJets, Wheels Up, Signature Flight Support, Neste, etc.

The promotion of technological innovation. Technological innovation is an important driving force for the development of the business aviation industry and a key factor in improving competitiveness and meeting customer needs. In the future, the business aviation industry will face more technological innovations and changes, such as electric or hybrid aircraft, supersonic aircraft, unmanned aircraft, artificial intelligence, big data, cloud computing, etc. These technologies will bring greater efficiency, safety and convenience to the business aviation industry, as well as more challenges and opportunities.

Views and Suggestions of Champ Consulting Group

Shangpu Consulting Group believes that the business jet market is a market full of changes and competition, which requires business aviation enterprises to constantly adapt to market demand, enhance their own strength and seize development opportunities. To this end, we give the following suggestions:

Focus on market dynamics and grasp customer needs. Business aviation enterprises should pay close attention to the development trend and changes of the global and Asia Pacific business jet market, and timely adjust their strategies and plans to meet the market demand. At the same time, business aviation enterprises should deeply understand the needs and preferences of customers, provide more personalized, differentiated and high quality services, and enhance customer loyalty and satisfaction.

Focus on sustainable development and fulfill social responsibility. Business aviation enterprises should actively respond to global climate change, take effective measures to reduce carbon emissions and energy consumption, and protect environmental resources. At the same time, business aviation enterprises should use sustainable development as a competitive advantage, enhance their brand image and reputation, and win the trust and support of customers and society.

Strengthen technological innovation and enhance core competitiveness. Business aviation enterprises should increase investment and support for technological innovation and develop more advanced, efficient, safe and environmentally friendly aircraft and engines to meet the needs of different customers. At the same time, business aviation enterprises should use artificial intelligence, big data, cloud computing and other new technologies to optimize their own operation management, risk control, customer service and other aspects to enhance their core competitiveness.

Conclusion

In short, the business jet market in 2023 will be a market full of challenges and opportunities. Business aviation companies need to continue to innovate and forge ahead to adapt to market changes and seize development opportunities. Shangpu Consulting Group will continue to pay attention to the development of the business jet market and provide professional consulting services for business aviation enterprises.