The global commercial airline market size is estimated to grow by $260 billion between 2022 and 2027, according to Technavio. The market is estimated to decline at a CAGR of 6.31%, however growth momentum will slow over the forecast period.
APAC is estimated to account for 52% of the global market growth during the forecast period. The region comprises approximately half of the world's population and has a large consumer base with a growing number of middle-class households. The region's total GDP increased from $9 trillion in 2000 to $35 trillion in 2021, and APAC now accounts for about 37% of global GDP. India and China are two of the emerging economies in APAC. The region witnessed an increase in passenger air travel in 2021, mainly due to the increased spending power of middle-class households. Therefore, such factors drive the growth of the market in the region during the forecast period.
Commercial Airlines Market – Segmentation Assessment
This report broadly covers market segmentation by revenue stream (passengers and cargo), type (international and domestic), and geography (APAC, Europe, North America, Middle East and Africa, and Americas). from the south ).
Market share growth by the passenger segment will be significant during the forecast period. Most of the low cost airlines are trying to modernize the existing fleet to exploit new market opportunities in the global commercial airline market and a growing number of air passengers is a major factor driving the acquisition of new aircraft. Therefore, major aircraft OEMs have begun refurbishing their existing production facilities to ensure scheduled deliveries. Therefore, such factors drive the growth of the segment during the forecast period.
The key factor driving the growth of the market:
The creation of new air routes to take advantage of the market potential is the main factor driving the growth of the global commercial airlines market.
The launch of new routes creates new revenue streams for airline operators and helps them deliver commercially viable customer services.
For example, in 2021 more than 2,000 new routes with airports in Europe were launched, to which 134 airlines contributed.
In addition to initiating the acquisition and modernization of aircraft fleets, it encourages the participation of regional component manufacturers, both in scheduled and unscheduled maintenance. Therefore, factors such as these will drive the focus of the market during the forecast period.
Major trends influencing the market:
The growing demand for luxury air travel is an emerging trend driving the growth of the global commercial airline market.
Countries that have increased demand for air travel include the US, China, France, Indonesia, Japan, and India. Commercial airlines constantly monitor and adapt to consumer expectations to provide efficient service as part of the luxury air travel package.
As a result of increasing wealth, people are spending more and more on unique experiences instead of accumulating material goods. It becomes a big challenge for airlines to serve individual luxury customers while remaining exclusive and relevant.
In response to this demand, aircraft interior designers are experimenting with modern systems with new, luxurious seats integrated into the business class and first class segments of modern aircraft.
The A350 and B787, which allow airlines to offer personalized services to their high net worth individual passengers, are examples of this type of aircraft.
Therefore, the demand for premium air tickets is expected to fuel the growth of the global commercial airline market during the forecast period.
Main challenges hindering the growth of the market.
Rising operating expenses are the major challenges hampering the growth of the global commercial airline market.
Factors such as a significant increase in the number of LCCs and various consolidation agreements make the airline industry more competitive.
Online travel agencies (OTAs) and other intermediaries invest in technology solutions to establish their digital presence and market penetration, which are challenges for the commercial airline market.
Therefore, rising fuel prices and labor costs, coupled with increasing competition, may hinder revenue generation by commercial airline operators.
What are the key data covered in this Commercial Airlines market report:
Market CAGR during the forecast period
Detailed information on the factors that will drive the growth of the commercial airlines market between 2023 and 2027
Accurate estimation of the market size of commercial airlines and their contribution to the market with a focus on the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the commercial airline market in APAC, Europe, North America, the Middle East and Africa, and South America
A comprehensive analysis of the competitive market landscape and detailed information about the vendors.
Comprehensive analysis of the factors that will challenge the growth of commercial airline market providers
Source: Technavio.