The business jet market size is expected to reach USD 38.0 billion by 2030 from USD 18.8 billion in 2020 , at a CAGR of 7.3% during the forecast period. An increasing number of high net worth personnel and the introduction of new aircraft programs are expected to drive the growth of the market. Business Jets Market Size, Forecast to 2030 With COVID-19 Impact Analysis The COVID-19 outbreak has impacted the aviation industry adversely due to air travel restrictions on domestic as well as international flights across countries, resulting in the grounding of aircraft fleets and a sudden dip in aircraft orders and deliveries in 2020. This is expected to negatively impact the business jets market in the short term; slow recovery is expected in Q1 of 2021. The aviation industry could take 2-3 years to recover from the financial effects of COVID-19, leading to lower air travels and passenger traffic compared to previous estimates. The temporary halts in production have impacted the OEM market for business jets adversely. Aircraft deliveries have been delayed in the first and second quarter of 2020, due to lockdowns in various countries, which has further fueled the decline in the revenue of manufacturers. However, with certain relaxations across regions, business jet operators and service providers have witnessed a sluggish demand for charter services. For instance, Go Air airlines has operated 51 charter flights carrying 8,951 passengers to India until June 2020. Clients are choosing to charter to gain quicker access, skip long and crowded check-in, customs, and immigration queues of people with unknown travel histories. Business Jets Market Dynamics: Driver: Introduction of new programs Manufacturers in the business jets industry are focusing on improving passenger experience and increasing operational efficiency. Lowering carbon footprints, reducing operational cost, and upgrading avionics, cabin interiors, and aircraft systems are some of the areas of focus for manufacturers. This has resulted in the introduction of new aircraft programs. Embraer launched the Praetor 500 and the Praetor 600 in 2018 and the Legacy 650E in 2016, Bombardier launched Global 5500 and Global 6500 in 2018, Cessna launched Citation Longitude in 2016, Honda launched Honda Jet Elite in 2018, and Daher launched TBM 910 in 2017 and TBM 940 in 2019. Restraint: Lengthy period of product certification from aviation authorities Business jets manufacturers are required to undergo product certification before launching a new model in the market. However, due to the lack of process efficiency in the certification processes, aviation authorities delay certification. Safety is the most important parameters considered while providing certifications, where zero deviation is acceptable. For manufacturers to reach this level, multiple tests and iterations are needed. This results in lengthy periods to get approvals. This adds to the delay in the production process of the company, leading to market size loss. The time lag due to certification issues leads to loss of booked orders. Opportunity: eVTOL aircraft Business jets aircraft are being used for intercity travel by businessmen and companies to save time. However, intracity travel has become congested, which increases the travel time within a city. In such cases, traditional business jets cannot be used, as they can take off from and land at an airport, the availability of which is mostly restricted to one in each city. For intracity travel, VTOL aircraft can be beneficial as they can take off and land at multiple vertiports within a city. With eVTOL aircraft, the ease of travel within the city increases as they are cheaper and less noisy. eVTOL aircraft are part of urban air mobility. For the concept to commercialize, there is a need for technological advancements in terms of battery capacity; building infrastructure such as vertiports and charging pods; and robust regulatory framework. With the advent of eVTOL technology, the business aircraft market is expected to witness growth, as the demand is already present in the market. Full Report @ https://www.marketsandmarkets.com/Market-Reports/business-jet-market-33698426.html
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