Five-Year Worldwide Outlook for Growth Continues
Forecast Projects $186.8 Billion in Total Transaction Volume Over the Next 5 Years
Gobal Jet Capital’s Business Jet Market Outlook summarizes the outputs of our proprietary transaction forecast model between 2022 through 2026. It reflects projections of activity in the business jet market in the new and pre-owned market segments. The business jet market grew in 2021 and is expected to continue to grow over the next five years as the global economy continues to expand.
- Total new and pre-owned business jet transaction unit volume are forecast to decrease 8 percent in 2022 as pre-owned transactions take a step back from all-time high volumes seen in 2021. However, the increase of new deliveries and growing demand for larger jets should drive a 3 percent increase in transaction dollar volume, despite the decrease in overall transaction counts.
- The new market is forecast to expand, driven by strong orders and increasing backlogs at major aircraft manufacturers. As manufacturers steadily increase production, new deliveries are expected to increase 7 percent in 2022 and grow at a compound annual growth rate of just over 4 percent over the next five years. New delivery dollar volume will grow faster as heavy aircraft continue to grow in popularity.
- An uptick in new deliveries, a continued normalization of markets, and a lack of options in pre-owned inventories are expected to cause pre-owned transactions to decline by 11 percent in 2022. However, continued market demand should increase pre-owned deliveries over the next five years, with pre-owned transactions expected to increase at a CAGR of just under 1 percent.
- North America is forecast to continue to be the largest market for both new and pre-owned business jets. Europe is also an important market and Latin America will remain a significant market for pre-owned aircraft.