The Europe Light and Very Light Jets Market is expected to register a CAGR of over 1% during the forecast period.
- Europe has a favorable ecosystem for the growth of the light and very light jets market. The increasing number of short-distance business trips and the presence of a large number of HNWIs and globally renowned corporate organizations in Europe, combined with the growing travel and tourism industry in the region is generating the demand for charter, corporate and personal non-scheduled travel. These factors are driving the growth of the market currently.
- However, the advent of the Covid-19 pandemic has badly affected the revenues of business jets operators. According to the European Business Aviation Association, several business jet operators were adversely impacted financially due to travel restrictions by national authorities, which may further force them to either cancel or postpone their purchase plans.
Key Market Trends
Increasing Utility Value of Light and Very Light Jets Driving New Purchases
Light and Very Light jets are witnessing significant growth in usage across Europe. These jets have high utility value, due to their lower purchase costs and higher user demand translating to higher profits. Most of the intra-European business aviation trips that occur take around 4-8 persons on an average, with trip distances not exceeding 800 nautical miles. Most city-pairs in Europe are under 1,000nm apart, and these jets offer the opportunity for time-efficient travel with fewer costs for such city-pair journeys. The increase in the number of shorter journey requirements has made Europe a lucrative market for light and very light jets. The growth in usage is primarily attributed to the fact that they can cater to the short-distance charter requirements of the customers at minimal operational costs as compared to a large or a mid-size jet for the same distance. The aforementioned factors are generating the demand for these light and very light jets across Europe.
Light Jet Segment Recorded the Highest Share in 2019
As of 2019, the market share for light jet aircraft was more compared to the very light jet segment. The deliveries for the light jet aircraft were higher compared to the very light jets in Europe in 2019. The deliveries of some prominent aircraft models in this segment, like Cessna Citation CJ3+/CJ4, Learjet 75, Pilatus PC-24, and Embraer Phenom 300, were 25 in total in 2019, which made up to more than 60% of the sales volume of the market under study. The average price for light jets is more than USD 9 million, which is more than twice the mean price of the very light jets, thereby helping the segment dominate the market in terms of revenues. The demand for light jets is increasing in Europe from various customers including corporate companies, charter companies, HNWIs, and governments. In February 2019, the Swiss Government officially took the delivery of the PC-24 light jet that was ordered in 2014. Such developments are expected to increase the prospects for light jets segment in the market during the forecast period.
Embraer SA, Honda Aircraft Company, Cirrus Design Corporation, Textron Inc., and Pilatus Aircraft Ltd are some of the major players in the market. The market comprises only a few players developing the light and very light jets in the industry. As the demand for light jets is increasing, players are introducing new models with added amenities to attract customers and increase their market share. In February 2020, Honda Aircraft Company announced that it has secured European steep-approach certification for up to 8 occupants for its new light jet model, the HondaJet Elite. The entry of such newer models into the market will make it more competitive in the years to come.
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