12,261 pre-owned transactions representing $57.2B in revenue forecast over the next five years
LONDON -- (BUSINESS WIRE) --
Jetcraft, the world leader in business jet sales and acquisitions, is releasing its 5-Year Pre-Owned Business Aviation Market Forecast, introducing an enhanced data-driven methodology recognizing potential market opportunities and incorporating a greater number of global trends.
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Jetcraft’s 2021 Market Forecast predicts pre-owned aircraft transaction volume and value will maintain their current healthy growth rates, reaching 2,647 transactions valued at $12.4B annually by 2025.
Jahid Fazal-Karim, Owner and Chairman of the Board at Jetcraft, says: “Since the pandemic, the true benefits of business aviation have been realized, particularly by new entrants who have had the means to fly privately but never previously the inclination, and we have seen our industry thrive.
“The combination of limited commercial airline services, plus expanding offerings within business aviation, presents the sector with a real opportunity to further broaden its customer base and secure long-term prosperity, and we have highlighted some of these areas in our forecast. We are also predicting the industry will maintain its post-pandemic momentum and expect to see 12,261 pre-owned transactions worth $57.2B in value over the next five years.”
This year’s analysis introduces an updated methodology as well as insights into key drivers reflecting pre-owned market growth, which incorporates global trends data and market opportunities.
Fazal-Karim continues: “Manufacturer backlogs and wait times for new aircraft are rising. This factor, paired with a growing buyer pool, means many will be compelled to turn to pre-owned aircraft to meet their needs.
“Our forecast finds that regional drivers, such as Wealth Levels and Flying Hours, represent the main reasons behind ownership in North America, Asia-Pacific and Europe, and these continents also retain the highest UHNWI populations. So, with the projected growth in wealth converging with increased use in business jet solutions, we expect to see the road to ownership accelerate among many users, which is an exciting prospect.”
Despite record industry demand, Jetcraft expects market values to remain rational. The current market strength is predicted to last until late 2022, with average transaction value set to grow marginally until 2024, partly due to an increase in Large Jet sales which command higher prices. Depreciation rates are expected to return to normal by 2025.
Fazal-Karim concludes: “The evolution of business aviation post-pandemic is a demonstration of the industry’s resilience and growing appeal. I’m especially proud to be sharing our annual industry outlook this year.”
Jetcraft’s complete 2021 5-Year Pre-Owned Business Aviation Market Forecast is available to view at jetcraft.com/market-forecast-2021
Report graphs, high-resolution images and interviews are available on request.
Jetcraft is the leader in international aircraft sales, marketing and ownership strategies, managing and maintaining over 20 regional offices globally. The company’s unparalleled success over nearly 60 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.
For more information, please visit www.jetcraft.com
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Jetcraft’s Owner and Chairman of the Board, Jahid Fazal-Karim (Photo: Business Wire)