Demand for private jets is expected to continue its robust growth over the next decade with a projection of 9,250 new deliveries worth US$265 billion. North America is set to maintain its global dominance as the marketplace for these aircraft in the years to 2024, followed by the Europe-Middle East-Africa segment and South America, according to the latest market analysis by Brazil-based Embraer Executives Jets.
North America, with its long culture of using private jets, is projected to take delivery of 4,620 aircraft (50% of the world's total), worth copy20 billion (45%), over the period. The Europe-Middle East-Africa segment would need 2,360 aircraft (26%) valued at $77 billion (29%); South America 850 (9%) worth copy6 billion (6%); China 835 (9%) worth $33 billion (12%); and and Asia-Pacific 570 (6%) worth copy9 billion (7%). On an annual average, the number of delivery will be 925 units, compared with 705 as recorded by the General Aviation Manufacturers Association, an industry body based in the US. The improved economic environment in the US may prove to be a key driver of the turnaround in the global private jet market that has been sluggish in recent years, while new private jet models entering into service would help propel demand, said Claudio Camelier, vice-president for sales and marketing at Embraer Executive Jets. Against the backdrop of a robust outlook, Embraer is working to raise its profile and share of the global private jet market, which soared in its first decade of operation. The company's market share grew from a mere 2.27% in 2005 (when global unit delivery was 749) to 16.5% in 2014 (when global unit delivery was 705).
Over the 10-year period, Embraer has delivered 900 units in six models to 60 countries. An industry estimate puts the current number of private jets in operation worldwide at 20,000. In Asia-Pacific plus China, Embraer has a strong presence with 80 units flying in the region and the number is growing as the company penetrates the market. China, India and Indonesia are the company's main markets, though it is drumming up sales in Southeast Asian countries such as Thailand and Malaysia.
Its most recent sales campaign in Southeast Asia centred on the Legacy 500, the newly developed mid-size aircraft that entered into service late last year. The company demonstrated the aircraft, which can seat up to 12 passengers and fly in the range of 3,125 nautical miles, to potential buyers in the region. Mr Camelier declined to say how many Legacy 500s, with a base price of $20 million, were projected to sell worldwide or in the region, though he said five have been ordered.