Small and medium-sized aircraft refers to a category of airplanes that are designed for shorter flights and have a relatively lower passenger capacity and payload capability compared to larger commercial jets. These aircraft are commonly used for regional travel, private aviation, and business purposes. They typically accommodate fewer than 100 passengers and have a maximum takeoff weight ranging from a few thousand kilograms to around 40,000 kilograms. Small and medium-sized aircraft play a crucial role in connecting remote regions, serving local air transportation needs, and facilitating private air travel.
The Global Small and Medium-Sized Aircraft Market was valued at 30 billion USD in 2022, it is projected to reach 42.01 billion USD by 2030 with a CAGR of 4.3% in the forecast period of 2023-2030. Several factors contribute to the drivers of the small and medium-sized aircraft market:
Regional Connectivity: Small and medium-sized aircraft enable regional connectivity by providing air transport options to remote areas and smaller airports that are not served by larger commercial jets. They play a vital role in connecting underserved regions, boosting tourism, and facilitating business activities.
Private and Business Aviation: Small and medium-sized aircraft cater to the needs of private and business aviation. These aircraft offer flexibility, convenience, and time-saving advantages for corporate travel, allowing executives to reach their destinations quickly and efficiently.
Cost-Efficiency: Small and medium-sized aircraft are generally more cost-effective to operate compared to larger commercial jets. They have lower fuel consumption, maintenance costs, and operational expenses, making them an attractive option for regional airlines and private aircraft owners.
Market Demand: Increasing passenger demand for regional air travel, particularly in emerging economies, drives the market for small and medium-sized aircraft. Growing urbanization, rising disposable incomes, and a desire for faster travel contribute to the demand for air transportation services within and between regional centers.
The small and medium-sized aircraft market is served by several key players. While the landscape can change over time, here are some notable companies in this sector AeroDelft, Airbus S.A.S., Bye Aerospace, Eviation Aircraft, HES Energy Systems, Joby Aviation, Lilium, Pipistrel d.o.o, Wright Electric, ZeroAvia, Inc.
Exclusive Jets, LLC, doing business as FlyExclusive, is a prominent supplier of upscale private jet charter experiences for up to 30 Cessna Citation CJ3+ aircraft. In April 2022, Textron Aviation announced a purchase deal with Exclusive Jets, LLC. Five aircraft are expected to be delivered to FlyExclusive by 2023, and additional aircraft will be purchased with delivery scheduled for 2025.
Airbus Corporate Jets, a division of Airbus, and Alpha Star Aviation signed a contract in November 2021 for the installation of cutting-edge and distinctive In-flight Entertainment (IFE) equipment on business aircraft.
The small and Medium-Sized Aircraft Market is segmented into point of scale, aircraft type, end-use, system, and range. Based on the Point of scale market is further segmented into OEM and Aftermarket. Based on the Aircraft type market is segmented into light, mid-sized, large, and airliner. Based on end-use the market is bifurcated into private and operator. Based on the range market is segmented into Less than 3,000 NM, 3,000–5,000 NM, and More than 5,000 NM.
According to the system, the small and Medium-Sized Aircraft market is expected to develop at the greatest CAGR in the aftermarket systems category over the forecast period. The demand for premium onboard amenities is rising, which is driving the development of aftermarket systems. The MRO activities, which include the replacement, repairs, and maintenance of crucial small and Medium-Sized Aircraft systems and their constituent parts, are covered by the aftermarket systems area of the business jets industry. The aftermarket segment includes aerostructures, avionics, aircraft systems, cabin interiors, doors, windows, and windscreens among its components and systems.
The market is divided into three types: light, mid-size, and large aircraft. The largest market share was held by the large segment, which is also expected to rule during the forecast period. Additionally, the COVID-19 epidemic has affected the aviation sector and resulted in strict airport regulations, which have changed how business travel is perceived around the world. The development of huge private jets was also spurred by this cause.
The market is divided into operator and private segments based on end-user. In the year 2021, the operator segment dominated the market. The segment is expanding as a result of rising fleet modernization and rising demand for business jet operators in North America and Europe.
In 2022, North America is anticipated to hold the greatest market share for small and medium-sized aircraft worldwide. This is explained by the existence of a sizable population of high-net-worth individuals as well as significant business jet manufacturers, including Textron Inc. (US), Bombardier Inc. (Canada), Gulfstream Aerospace (US), and Piper Aircraft (US). Furthermore, the accessibility of airports across North America makes business travel to the continent simple. Geographically speaking, North America is the largest region by area, therefore business travelers must choose the fastest means of transportation to save time, which is driving up demand for small and medium-sized aircraft.
Asia Pacific is expected to experience exceptional growth in the forecast period. The development is a result of China, India, and Japan's increased infrastructure investment and development. Furthermore, the growing use of business jets by operators and service providers in China, India, and Japan is projected to propel the Asia Pacific market for small and medium-sized aircraft. Due to various travel limitations as well as challenging long-distance journeys, Asia Pacific customers favor private aircraft. The Asia Pacific region has the biggest demand for jumbo jets even on the worldwide market.
The small and medium-sized aircraft market plays a vital role in regional connectivity, private aviation, and business travel. The demand for these aircraft is driven by the need to connect remote regions, catering to private and business aviation needs, and achieve cost-efficiency. Factors such as market demand, fleet modernization, technological advancements, and government initiatives contribute to the growth and development of this market. Key players in the market, including Textron Aviation, Embraer, Bombardier, Pilatus Aircraft, and others, continuously innovate and offer a diverse range of aircraft models to meet the evolving needs of operators and passengers. As regional air travel continues to expand and demand for efficient transportation options rises, the small and medium-sized aircraft market is poised for further growth and advancements.