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Asia-Pacific Business Jet Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 82 Pages
  • October 2021
  • Region: Asia Pacific
  • Mordor Intelligence
  • ID: 4833372

The Asia-Pacific business jet market is anticipated to register a CAGR of over 2.5% during the forecast period 2021 - 2026.

The Covid-19 pandemic has impacted the business jet market in Asia-Pacific in the year 2020. The imposition of lockdowns and the reduction in business travel has impacted the revenues of charter flight operators, whereas the turbulence in business environments has resulted in the HNWIs in the region preferring to save money and reduce spending on assets like business jets. This has resulted in the reduction of new deliveries from 35 in the year 2019 to 23 in 2020. On the other hand, flight activity of business jets has come down by as much as 26% in the year, which has also reduced the demand for the business jet MRO activities in the Asia-Pacific region. However, the flight activity in the first half of 2021 has witnessed an increase as compared to the same period in 2020, which is expected to drive the prospects of the market in focus.

The growth in business aviation in China, Australia, and Southeast Asian countries due to the growth in business travel and tourism sector, has been the primary growth driver for the market. Also, the growing number of high net-worth individual (HNWI) clientele in Asia-Pacific has had a positive effect on the demand-side dynamics of the market.

China is the largest market in the Asia-Pacific region, accounting for a significant share of the market in the region each year. The country is also expected to continue its dominance in the market in the years to come.

Key Market Trends

Long Range Segment to Dominate the Market During the Forecast Period

Currently, the long-range business jet segment has the highest share in the market, and it is also expected to grow with the highest CAGR in the years to come. Business jet manufacturers are focusing more on the development of ultralong-range jets that can travel almost halfway around the world, which can open fresh possibilities in personal and business travels. Business jet customers generally prefer jets that can provide access to demanding, long-range routes. Even in the global market, the demand for long-range business jets is mainly generated from the customers in Asia-Pacific. Some of the prominent aircraft models in this segment are Gulfstream G500/550/650/650ER, Global 6000/Express, Challenger 604/605/650, Dassault’s Falcon 7X, and Boeing’s BBJ 777/787. Bombardier’s new Global 7500 business jet entered service in 2019, and it is expected to generate huge sales, mainly due to its long-range capabilities. The biggest markets for long-range aircraft in the Asia-Pacific region are economies that are far from their main trading partners. For example, the Chinese business activities in Africa have been increasing over the years, with Chinese investors making huge investments in the African mining and agriculture sectors. With limited direct commercial flights between China and Africa, Chinese investors and corporate leaders are now opting to use long-range business jets to travel to Africa and conduct their business in an efficient way. Such developments have bolstered the demand for long-range business jets in the region.

China was the Largest Market for Business Jets in 2020

As of August 2021, China has a total fleet of 288 operational business jets, making the country, the largest operator of business jets in Asia-Pacific. Macroeconomic factors, such as the country's strong GDP growth, globalization of the world economy, steady development of local companies, flourishing luxury tourism, and the increasing number of High Net Worth Individuals (HNWIs) in the country are expected to drive the demand for business jets in the country during the forecast period. In 2020, 9 business jets were delivered to the customers in China, 2 less than that of 2019. Furthermore, due to the Covid-19 pandemic, the overall business jet flight activity of the country witnessed a decline in 2020, reducing the demand for MRO activities. Nevertheless, with the reduction in the new cases and the lifting of restrictions, flight activity has improved in the last quarter of the year. Over the years, the growth of the market in the region has been impeded by government regulations, restricted aerospace, and a lack of infrastructure that supports private aviation. But in the past few years, the Chinese government made reforms to improve the efficiency and allocation of aerospace as well as the construction of new general aviation airports in the country. As China is becoming a business hub, business aviation in the country is growing at a high pace. Also, many local Chinese banks are supporting the financing of private jets in the country, which is enabling the procurement of new business jets.

Competitive Landscape

Bombardier Inc., Textron Inc., Gulfstream Aerospace Corporation, Dassault Aviation, and Embraer SA are some of the major players in the market currently. Customers in Asia-Pacific are preferring aircraft that have advanced amenities and enhanced comfort during long-distance travel, and this will be a market opportunity for aircraft OEMs to introduce newer models with advanced facilities. Aircraft models, like the Global 7500, which are introduced recently, have gained a lot of speculation. G7500 is expected to further strengthen the position of Bombardier in the market in the years to come. In February 2020, Gulfstream Aerospace Corp. announced that its new Gulfstream G700 made its first flight, and the company officially launched its flight-test program. The focus on increasing the range, provision of spacious and technologically advanced cabin interiors, and increasing the safety and comfort of passengers during travel are some of the major considerations that the OEMs will be mindful of, in the upcoming period.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Overview
4.1.1 Business Jet Fleet Data (in units) (2018 - 2021)
4.1.2 New Deliveries (in units) (2018 - 2021)
4.1.3 Flight Activity (in hours) (2018 - 2021)
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD billion)
5.1 Range
5.1.1 Short Range
5.1.2 Medium Range
5.1.3 Long Range
5.2 Aircraft Type
5.2.1 Light Jet
5.2.2 Mid-size Jet
5.2.3 Large Jet
5.3 Country
5.3.1 China
5.3.2 India
5.3.3 South Korea
5.3.4 Japan
5.3.5 Australia
5.3.6 Rest of Asia-Pacific
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Bombardier Inc.
6.2.2 Gulfstream Aerospace Corporation
6.2.3 Textron Inc.
6.2.4 Dassault Aviation
6.2.5 Embraer SA
6.2.6 The Boeing Company
6.2.7 Airbus SE
6.2.8 Honda Aircraft Company

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Bombardier Inc.
  • Gulfstream Aerospace Corporation
  • Textron Inc.
  • Dassault Aviation
  • Embraer SA
  • The Boeing Company
  • Airbus SE
  • Honda Aircraft Company