China's business jet market is set to grow 23% a year as the number of the country's multi-billionaires is set to double, according to a Ledbury Research report.

The number of Chinese multi-billionaires is predicted to increase from 470 in 2012 to 1,040 in 2017, while their penchant for private jets will fuel the growth of the country's business jet market.

A report by Ledbury Research, a London-based researcher studying high net worth individuals, showed that 367 business jets were sold in China last year and its jet market is likely to grow 23% per year.

Chinese billionaires are looking to purchase jets as they often travel between China, Hong Kong and Macau. They also have the need to buy a business jet since they often bring assistants and advisors when they travel, according to Ledbury.

Meanwhile, figures from Brazilian aerospace conglomerate Embraer showed that over 60% of Chinese clients will buy large and ultra-long-rage business jets, while another 33% will choose medium-size planes. Around 44% of them use their jets for personal travel and another 22% use them to make chartered flights.

Liao Xuefong, chairman of the China Business Aviation Group, estimates that China's business jet market will grow by at least 15% per year over the next two decades if people continue to buy at the current speed, which is 80 to 100 business jets a year. He added that the market will grow from the current 400 jets to 6,000 and its value will reach 1 trillion yuan (US$161 billion).

Industrial sources were reserved about the market's outlook however, as the Ministry of Finance plans to impose luxury taxes on business jets. The tax will deal a heavy blow since Chinese owners of imported jets under 25 tonnes already shouldered a 5% tariff and 17% of value-added tax.