Very Light Jet Market Report

Market Insights

The very light jet market was estimated at US$ 5.1 Billion in 2021 and is expected to grow at a CAGR of 9.3% during 2022-2028 to reach US$ ~7.5 Billion in 2028.

Due to poor consumer confidence and high jet prices, the demand from end users has significantly decreased. The overall production activities of industry participants have decreased as a result of operations with insufficient health safety measures, limited labor capacity, and shifting customer emotions. However, due to its optimistic demand prognosis and rising need for personal commuting solutions from the executive class population, there are most likely opportunities for the very light jet to see sales momentum starting in 2022.

In comparison to other choices, a very light aircraft provides speed, a high degree of comfort and amenities, and is a fuel-efficient way of air travel. Due to its opulent and comfortable transportation alternatives and quick commuting times, private aircraft solutions like extremely light planes have recently been immensely popular around the globe, especially among business professionals and the ultra-wealthy.

Additionally, during the past ten years, the cost of running a very light plane has decreased by 30% to 50%. These costs are equivalent to first- and business-class fares on commercial airlines. The increased use of opulent transportation options and the decrease in in-flight operating expenses are expected to boost future growth of the very light jet industry.

The very light jet market is anticipated to increase as a result of factors including rising interest in private aviation and rising health concerns. However, unstable raw material costs lead to increased very light jet prices, and rising environmental concerns and alternative aviation options are restraining industry expansion. On the other hand, it is anticipated that unrealized potential in growing economies and engaging into contracts and agreements for long-term commercial prospects would present market participants with profitable growth chances.

During the coronavirus epidemic, there has been a considerable deal of concern about the health risks associated with commercial aircraft travel alternatives. Due to the significant danger of virus transmission on commercial and charter aircraft, users of very light planes, such as extremely rich people and corporate leaders, are particularly concerned about commercial travel alternatives. Very light planes have a seating capacity of two to ten people, reducing the danger of virus transmission and offering a practical means of transportation. The market for extremely light planes has been sustained during the epidemic by a change in lifestyle and the sporadic requirement. pushing increased market demand as a result.

The price of raw commodities including steel, aluminum, and copper has recently increased and fluctuated due to factors like the general demand-supply imbalance, currency changes, exchange rates, mining operations, and uncertain trade activities. Many of these materials are used to create the parts and components of ultralight jet aircraft. The entire cost of extremely light aeroplanes was directly influenced by the increased cost of these components. The very light jet market is expected to have growth challenges due to the very light aircraft' rising cost.

Several investments/guidelines in the industry have been directed in recent years, which would boost the overall market. Some of them are:

• Corporate leaders and the extremely rich create demand for ultra-light aircraft solutions due to increased comfort and health concerns. Very light jet made-to-order product lines are often produced in small numbers in accordance with written contracts and agreements. Contracts and agreements between very light jet end-users and developers anticipate the implementation of the very light jet solution. These contracts contain a set of conditions that must be fulfilled within a given amount of time. These contracts and agreements provide chances for a long-term investment with end users. Market participants must concentrate on getting contracts and agreements if they want to gain a competitive edge worldwide.
• Some emerging countries, particularly in the Asia-Pacific area, have had rising trade activity, strong GDP growth, and rising per capita income over the past ten years. It is predicted that this would help extremely light jet sales. The prospective markets for extremely light planes include India, China, Nigeria, and Malaysia. The infrastructure in these nations, however, is insufficient for the use of extremely light planes. Demand for infrastructure developments is anticipated to rise in these countries due to rising aviation passenger traffic and a growing preference for private aviation solutions. During the projected period, it is anticipated that expanding aviation infrastructure projects and rising air passenger traffic would present opportunities for the very light jet market in emerging areas.

Segment Analysis

The market for extremely light jets is divided into Ultra-Light Aircraft and Light Aircraft based on the type of aircraft. Light aircraft are frequently used for military training and executive transportation because of their small size and a high degree of performance. Over the past several years, businesses have expanded the number of light aircraft they make accessible to their employees so they may go to important meetings and conferences.

The market for extremely light aircraft is divided into three categories based on materials: aluminium, composites, and others. The development of lightweight aircraft components, which enhance the performance and fuel economy of jets, heavily relies on composite materials. For lightweight jets, epoxy reinforced with carbon fibre, glass, and aramid is the main composite material. Due to its lower weight than aluminum and good operating strength, this material is essential in creating a very light plane since it can be employed for structural applications and component development. The extensive range of uses for composites in ultra-light planes and the rapid pace of product innovation indicate that the composites market will soon expand..

The market is divided into four categories based on geography: North America, Europe, Asia-Pacific, and the Rest of the World. A rise in the need for private aviation solutions and improvements in aviation technology throughout the nations in the area would drive the demand for the very light jet in North America. The booming aviation business in the US benefits from both an increasing US economy and rising consumer spending rates. Government agencies have been working on improving aircraft efficiency and creating cutting-edge jet technology.

Increased aviation norms, such as those governing green mobility, and technology improvements are to blame for the growth of the very light jet market in Europe. Multiple aviation medium emission rules are common, which forces manufacturers to provide technologically sophisticated, economical, and lightweight new energy-driven jet solutions. High levels of disposable income, an increase in the adoption of European policies, and the adaptability of extremely light jets for a variety of applications all contribute to the market growth in this region. 

Key Players

The following are the major players in the very light jet market:

• Bombardier Inc.
• Honda Motor Co., Ltd.
• MSC Aerospace LLC
• Cirrus Industries, Inc.
• Diamond Aircraft Industries Gmbh
• Nextant Aerospace Holdings, LLC
• Embraer S.A.
• Pilatus Aircraft Ltd
• Stratos Aircraft, Inc.
• Textron Inc.

There is stiff competition in the very light jet market. The growth of the companies is directly dependent on the industry conditions and government support. These companies differentiate their very light jet based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:

• The Global 8000 Aircraft, the only four-zone cabin business aircraft with an 8,000 nautical mile range, was presented by Bombardier Inc. in 2022.
• In 2022, Bombardier Inc. released an Environmental Product Declaration for the Challenger 3500, the industry's top mid-size business jet.
• The DA62 MPP, a showpiece aircraft that will tour North America in the summer of 2022, was jointly unveiled by Diamond Aircraft Industries Gmbh and Air Bear Tactical Aircraft.

The overall competitive landscape has been affected due to these mergers and acquisitions. 

Research Methodology

This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both the qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
• Market trend and forecast analysis
• Market segment trend and forecast
• Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for the existing and new players
• Key success factors