A market research and strategy consulting company has estimated that the size of the business jet market will total $41.89 billion by 2030.
The latest analysis, by Canadian based Emergen Research, revealed that revenues reached $28.73 billion in 2021 and are expected to register a Compound Annual Growth Rate (CAGR) of 4.2% during the forecast period.
Increasing demand for sustainable aviation fuel, plus significant investments in replacing old aircraft fleets, are major factors driving this market revenue growth.
The research revealed that manufacturer Bombardier Inc. anticipates 2,000 business jets will be taken out of service between 2016 and 2025, with the average age of business jets being 17 years.
Aging jets may also be replaced if they are unable to keep up with environmental rules and the efforts of many governing agencies to create a cleaner ecology.
Increasing focus on sustainable business aviation is also a key factor currently driving the market revenue growth.
For example, on 18 December 2022, Rolls Royce and Gulfstream Aerospace Corp. announced that they had taken the first original equipment manufacturer test flight of an ultralong-range business aircraft fueled by 100% sustainable Aviation Fuel (SAF).
Despite the optimism, Emergen Research indicates there are still factors that are restraining potential growth, including recent manufacturing challenges and delays in part production.
Since 2019, there has been much uncertainty in terms of orders for business aircraft. This market is subject to numerous risks due to factors such as the global economy, the number of hight-net-worth individuals and fuel prices, amongst others.