October 3, 2017
Jetcraft’s 3rd Annual Business Aviation Market Forecast Predicts Fleet will Grow 33% over Coming Decade
Ten-year projection points to new business cycle, improved absorption rates of pre-owned aircraft and predicts the trend for widebody aircraft will continue
October 4, 2017 (Raleigh, NC) – Jetcraft, the leader in business aircraft sales, marketing and ownership strategies, today released its third annual 10-year business aviation market forecast. The global business aviation installed base of just more than 21,000 aircraft will surpass the 28,000 unit mark (net retirements) in 2026, growing 33% during the forecast period.
Jetcraft’s 2017 forecast calls for 8,349 unit deliveries representing $252 billion in revenues (based on 2017 pricing) to be realized by 2026. North America will again lead the way with 62% (5,176 units) marketshare of unit deliveries, followed by Europe with 17% and Asia with 12% (1,420 units and 1,002 units, respectively).
“Pinpointing the transition into a new business cycle is challenging,” said Jetcraft’s Chairman Jahid Fazal-Karim. “Our forecast indicates we are finally exiting the post-2008 recession period, entering several years of steadier, healthier growth and expanding revenues. This new business cycle should shape our industry for years to come.”
Pre-Owned Market Pace Improves
If market assumptions established over the previous business cycle remain, absorption rates in the pre-owned market will shorten over the forecast period. This trend characterizes a healthy pre-owned market across all aircraft categories, with significant improvement in the Large aircraft segment. Furthermore, absorption rates for pre-owned aircraft should shorten during a period of important new program releases during the coming years.
Larger Aircraft Preference, Substantially More Revenues
Through 2026, our forecast projects significantly more revenue, peaking at $31.4 billion in 2025. This trend is despite limited incremental growth from a unit delivery perspective, as demand continues to shift more toward widebody models at the expense of narrowbodies. The Large jet category will constitute 31% (2,589 units) of the total unit delivery forecast, accounting for more than 63% of total revenue.
“Large aircraft will drive a higher-revenue market in the coming decade,” said Jetcraft President Chad Anderson. “Jetcraft’s experience reinforces this trend, as we’ve seen more and more customers preferring larger, long-range aircraft to support their needs in today’s global business environment.”
Over the past decade, the average aircraft list price increased by 56%. The forecast sees that number growing by an additional 16% by 2026, as 98% of the forecasted revenues from new programs are for widebody models such as the Hemisphere, Global 7000, and Gulfstream 500 and 600.
Other Key Forecast Findings and Observations Include:
- Bombardier will re-acquire the highest revenue market share over the forecast period, with 29.2%.
- Cessna maintains the top position for unit deliveries, at 27.3%.
- For UHNWIs, wealth creation prospects will continue to grow, especially in Asia, further affecting the business aviation market.
- Transaction bandwidth from public companies should see an uptick when their current focus on share buybacks recedes and they turn their attention to capital expenditures.
The forecast draws on the depth of Jetcraft’s five decades of experience connecting buyers and sellers of business aircraft and its position as the leading authority on aircraft ownership strategies. Jetcraft’s full “2017 10 year Business Aviation Market Forecast” is available for download here.
Jetcraft is the leader in international aircraft sales and ownership strategies, managing and maintaining more than 20 regional offices globally. The company’s unparalleled success over more than 50 years in business aviation has earned it a world-class reputation, along with an exceptional customer base, a wide network of connections and one of the largest inventories within the industry.