9SEPTEMBER 2024PRIVATE AIRCRAFT MARKET GAINING TRACTION AS DISPOSABLE INCOME AUGMENTSVOLVO PIONEERS LONG RANGE SUSTAINABLE TRANSPORTATION WITH UPCOMING ELECTRIC TRUCKSThe private aircraft market has experienced significant growth in recent years and is projected to continue expanding robustly. In 2023, the market size was valued at $26.15 billion and is expected to increase to $28.01 billion in 2024, reflecting a compound annual growth rate (CAGR) of 7.1 percent. This growth can be attributed to several factors, Volvo will introduce a new long-range version of its FH Electric truck, set to revolutionize long-distance and interregional transport. The upcoming FH Electric will feature an impressive range of up to 600 kilometers on including rising demand for business travel, an increase in private aircraft purchases driven by growing wealth among high-net-worth individuals, and the expanding global economy. Additionally, the frequency of international travel has boosted the market for long-range private jets, while the adoption of fractional ownership programs has made private flying more accessible to a broader audience.Major trends expected to shape the market include significant technological advancements by major companies, resulting in more efficient and eco-friendly private aircraft models. The increased adoption of sustainable aviation fuel (SAF) and the rise of hybrid and electric private aircraft are anticipated to transform the industry. Additionally, the growing demand for customized and luxury interiors will likely drive market growth.The rising levels of air travel are another crucial factor propelling the growth of the private aircraft market. As disposable incomes rise, global connectivity expands, and advancements in aircraft technology continue, the demand for both business and leisure travel increases. For example, during the 2024 spring travel period, airlines are expected to carry a record-setting 167.1 million travelers, reflecting a 6 percent increase from the previous year. This increase in air travel, driven by a demand for personalized, flexible, and time-efficient travel experiences, is expected to further stimulate the growth of the private aircraft market. a single charge, enabling transport companies to complete full working days without the need for recharging. This new model is expected to be available for sale in the latter half of 2025.Roger Alm, President of Volvo Trucks, emphasized the significance of this new electric flagship, noting that it will complement Volvo's extensive range of electric trucks and support zero-exhaust emission transport for longer distances. This advancement is particularly beneficial for transport companies with high annual mileage and a strong commitment to reducing CO2 emissions.Volvo Trucks stands out as a global leader in medium- and heavy-duty electric trucks, boasting a portfolio of eight battery-electric models. These models cater to various applications, including city and regional distribution, construction, waste management, and soon, long-distance transport. To date, Volvo has delivered over 3,800 electric trucks across 46 countries, underscoring its commitment to electrification.Alm highlighted the environmental impact of the transport sector, which contributes to seven percent of global carbon emissions. He stressed that battery-electric trucks are crucial in reducing the climate footprint. Beyond their environmental benefits, electric trucks also offer truck drivers a significantly improved working environment with reduced noise and vibrations.
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