By 2030, the business jet industry is expected to be worth $41.89 billion, according to a market research and strategic consulting firm.
According to the most recent analysis, conducted by Canadian-based Emergen Research, revenues hit $28.73 billion in 2021 and are projected to grow at a compound annual growth rate (CAGR) of 4.2% over the next five years.
Major drivers driving this market’s revenue growth include rising demand for environmentally friendly aviation fuel and sizable investments in replacing the fleets of aging aircraft. 2,000 business jets, with an average age of 17 years, are expected to be retired between 2016 and 2025, according to research by the manufacturer Bombardier Inc.
Aging planes might also need to be replaced if they can’t keep up with environmental regulations and the efforts of numerous governing bodies to promote a cleaner environment.
The market revenue growth is now being significantly influenced by the growing focus on environmentally friendly business aviation. For instance, on December 18, 2022, Rolls Royce and Gulfstream Aerospace Corp. declared that they had completed the first OEM test flight of an ultralong-range business aircraft using 100% sustainable aviation fuel (SAF).
Despite the optimism, Emergen Research finds that there are still barriers to prospective expansion, such as current manufacturing difficulties and backlogs in part manufacture.
In terms of business aircraft purchases, there has been a lot of uncertainty since 2019. The global economy, the amount of high-net-worth individuals, the price of fuel, among other considerations, all pose challenges to this industry.