Global Jet Capital Predicts Soaring Financial Future for Business Jets

The business jet market is projected to reach $162.1 billion in total transactions for both new and used private jets, with a compound annual growth rate (CAGR) of 7.4 percent through 2025, according to a recent report by Global Jet Capital (GJC).

“This outlook provides a summary of the outputs of our proprietary transaction forecast model,” said Andrew Farrant, chief marketing officer at GJC. “It reflects projections of future activity in the business jet market in both the new and pre-owned segments across different geographic markets around the world.”

GJC’s report indicates that the business jet market is growing as the global economy rebuilds after COVID-19 shutdowns; it also notes that the business jet market experienced only a slight decline during the pandemic.

The report concludes that the private jet market will continue to grow for the next five years. The transaction figures in the forecast are based on residual values, not OEM list prices.

Projected New Business Jet Transaction Volume
By the end of 2021, GJC predicts transaction volume will rise by 5.5 percent from 2020. Dollar volume is projected to grow from 15.5 percent. Through 2025, the market is anticipated to grow from 3,308 transactions worth $29.3 billion in 2021 to 3,743 transactions worth $36.3 billion in 2025.

During the pandemic, delivery of new business jets dropped 24.2 percent, with a 16.4 percent drop in dollar volume from the previous year. In 2021, delivery of new business jets should increase by 11.8 percent and dollar volume by 13.9 percent, particularly in the second half of the year. GJC predicts it will take until 2023 before deliveries return to pre-pandemic levels.

Used Private Jet Inventory Sinks as Demand Increases
Low inventory of housing and cars stretches into the private jet industry. Historically low pre-owned inventory has aircraft buyers looking at new planes for sale rather than seeking used business jets, in order to get an aircraft that suits their needs within a guaranteed timeline.

GCJ reports that business jet deliveries will likely increase at a CAGR of 5.4 percent through 2025, with a dollar volume increase of 7.3 percent CAGR.

Used business jet transactions will still make up 79.4 percent of the total market, which held strong during the pandemic, although less spending was noted during this time period.

However, the preowned business jet market will continue to grow, with transactions increasing by 4 percent this year and dollar volumes projected to increase by 17.5 percent. And as larger aircraft grow in popularity and in demand, dollar volume will increase at 7.5 percent. This projection was calculated using data sources that extend over 30 years, plus a GCJ in-house valuation analysis.

Increase in Demand for Large Business Jets for Sale
Demand for light jets will grow, but the biggest increase will be in medium and heavy jets, as long-range flying and larger passenger capacity are the most important features requested from buyers of the best business jets.

In 2020, heavy jets made up 24.7 percent of transactions, with an anticipated increase to 28.1 percent by 2025. Light and medium jets will likely decline as a ratio of overall transactions, but very light jets will increase slightly.

In general, however, all jet sizes remain in demand this year and as the years progress, especially as the private aviation industry becomes more popular and necessary as people adapt to life after the coronavirus pandemic.

Find the Best Business Jets for Sale on AircraftExchange
If cost savings is more of a priority over ordering your company’s new private jet, then purchasing a used business jet should be a major part of your plan to grow your fleet.

To get the best deal, your organization should seek to buy a used private jet through an aircraft dealer accredited by the International Aircraft Dealers Association. This accreditation helps to guarantee ethical business practices when purchasing a private jet for sale, and connects you with the most reputable private aviation service providers in the industry.

Meet an IADA Accredited Aircraft Dealer on AircraftExchange.com, the only online marketplace that vets and verifies every aircraft listed for sale. They’ll work only in your best interest to ensure you complete your transaction with a used jet that meets your needs and exceeds your expectations.