Airlines Market Share, Size, Trends, Industry Analysis Report, By Transport Type (Domestic, and International); By Application; By Region; Segment Forecast, 2024- 2032
- Published Date:Jan-2024
- Pages: 116
- Format: PDF
- Report ID: PM3892
- Base Year: 2023
- Historical Data: 2019-2022
The global airlines market size and share was valued at USD 346.81 billion in 2023 and is expected to grow at a CAGR of 3.53% during the forecast period.
Airlines form the foundation of our contemporary global society. Their significance is diverse, contributing to economic expansion, fostering cultural connections, and ensuring prompt emergency responses. It enhances global accessibility but also accelerates progress and advancement across a broad spectrum of industries and pursuits.
An airline is a company operator that offers air transport services to carry passengers and freights worldwide. It primarily consists of airplanes, pilots, cabin crew, loaders, passengers, and other staff. Airlines use aircraft to offer their services and may form partnerships or alliances where they both operate the same flight. Depending on their operating region, airlines can have a license issued by a governmental aviation body or may be recognized with an air operating certificate. Airlines play a crucial role in the travel industry across the globe.
Airlines are often grouped into three categories, which include international airlines, national airlines, and regional airlines. International airlines, which operate large passenger jets, are focused on providing global services and carrying passengers/cargo over large distances. National airlines typically employ medium-sized and large-sized jets and focus on offering services in areas within the nation. Regional airlines, which are the smallest of the three main airline types, are focused on providing services within specific regions. Growth in employment opportunities in the aviation industry is projected to spur the airline market demand in the upcoming years.
The market report provides a thorough analysis of the airlines industry, covering all the major aspects stakeholders need to know. It sheds light on the key developments and trends that are anticipated to drive the airlines market demand over the forecast period. Besides, it maps the qualitative impact of various key factors on market segments and geographies. Furthermore, it examines the key steps taken by industry participants to strengthen their presence in the industry.
To Understand More About this Research: Request a Free Sample Report
The airline industry offers convenience, encompassing critical domains like economic progress, cultural interchange, and emergency readiness. The primary factor propelling market growth in this industry is the swiftness of transportation coupled with cost-effectiveness. When compared to alternative modes of transport, air travel stands out as the quickest and most dependable means to move goods globally. It is primarily utilized for the efficient transportation of small parcels and mail.
Furthermore, in situations demanding rapid delivery, airways are also employed for transporting heavy goods. The surge in passenger transport is another significant factor driving market expansion. With airlines introducing new offerings on a daily basis, an increasing number of individuals are opting for air travel over road or rail, as it not only comes at a similar cost but also significantly saves time.
- For instance, in July 2023, during the Paris Airshow, IndiGo, India's budget airline, made aviation history by placing an order for 500 A320neo aircraft from Airbus. This multibillion-dollar deal marks the largest order ever made by a single carrier in the field of civil aviation.
The global airline industry is poised for growth in the coming years, driven by factors such as increasing disposable income, a burgeoning middle class, and heightened demand for travel. Additionally, the relatively stable forecast for jet fuel prices enables airlines to implement surcharges, augmenting revenue streams from both passenger and cargo transportation.
Moreover, over the past 30 years, the availability and cost of aviation fuel have consistently stood out as pivotal economic determinants impacting the airline industry. Additionally, the scarcity of aerospace climate governance and the imperative for its establishment at both national and regional levels to combat emissions from aviation presents significant challenges that the market is poised to confront in the projected period.
For Specific Research Requirements, Request for a Customized Research Report
Rising employment opportunities in the airline industry are projected to spur the demand.
Increasing employment opportunities within the airline industry will experience growth. This surge is attributed to heightened government support, including capital injections, loans, tax payment deferments, and reduced tax burdens for airlines. These measures are expected to fuel market expansion over the forecasted period. Additionally, increased involvement and investments from the private sector, a surge in business activities resulting in heightened demand for non-scheduled aircraft, amplified utilization of terminal fees by builders and operators augmented international trade and heightened freight traffic will further create huge growth opportunities in the forecast period.
The market is primarily segmented based on transport type, application, and region.
By Transport Type
To Understand the Scope of this Report: Speak to Analyst
By Transport Type Analysis
Domestic segment accounted for the largest market share in 2022
The domestic segment commands the largest market share in the global airline market. This dominance is attributed to the substantial number of passengers commuting within a country on a daily basis for various reasons, including work and leisure. Additionally, the volume of freight flights is notable in the domestic sector, as many flights are engaged in the swift intra-country delivery of mail, parcels, and other packages.
The international segment is expected to grow at the fastest growth rate over the next coming years on account of the ease of air travel regulations and increasing tourism. Numerous nations have loosened their regulations on international air travel, fostering heightened competition among airlines and subsequently driving down fares for consumers. This has, in turn, spurred an increase in demand. Moreover, the tourism industry plays a pivotal role in propelling international air travel. Highly sought-after destinations worldwide draw in millions of tourists annually, significantly fueling the expansion of the global international airlines market.
Furthermore, increasing awareness and accessibility is another factor contributing to the growth. The availability of online booking platforms, travel agencies, and improved marketing strategies have made it easier for people to plan and book international trips, thereby boosting demand.
By Application Analysis
Passenger segment accounted for the largest market share in 2022
The passenger segment accounted for the largest market share in 2022 and is likely to retain its market position throughout the forecast period. Passengers constitute the primary source of revenue for airlines. Ticket sales, ancillary services, and loyalty programs contribute substantially to an airline's financial viability. As a result, understanding and catering to passenger needs and preferences is paramount for sustained success in the industry.
Moreover, passengers play a crucial role in shaping airline strategies. Their demands for comfort, convenience, and value influence decisions regarding routes, aircraft configurations, and service offerings. Airlines that prioritize passenger satisfaction are more likely to build strong brand loyalty and garner positive reviews, which can lead to increased market share and profitability.
Passengers also drive innovation in the airline industry. Their evolving expectations for in-flight entertainment, connectivity, and amenities have spurred technological advancements and improvements in customer experience. This competitive edge encourages airlines to invest in modernizing their fleets and adopting cutting-edge technologies.
Additionally, passengers contribute significantly to the broader economy. The influx of travelers stimulates tourism, hospitality, and retail sectors, creating a positive multiplier effect. This economic impact extends beyond the airline industry itself, benefiting a wide range of businesses and local communities.
The freight segment is expected to grow at the fastest growth rate over the next coming years on account of the rapid increase in the movement of goods across borders, supporting international trade and supply chains. Airlines transport time-sensitive and high-value cargo, including perishable goods and medical supplies, crucial for industries like pharmaceuticals and agriculture. Additionally, freight transportation via air ensures access to remote and underserved regions, aiding in disaster relief and humanitarian efforts. This capability is vital for emergency response and delivering aid during natural disasters or crises. Overall, the efficient movement of freight by airlines is essential for economic development, emergency response, and sustaining global trade networks.
Asia Pacific region dominated the global market in 2022
The Asia Pacific region dominated the global market with the largest market share in 2022 and is expected to maintain its dominance over the anticipated period. The growth of the segment market can be largely attributed to the substantial population and the surge in air travel within countries such as China, India, and Russia.
Additionally, the region's status as a manufacturing hub amplifies cargo profitability for local airlines, while the escalating demand for commercial air travel propels further growth. According to Boeing's forecast reports, the Asia-Pacific region is anticipated to represent roughly half of the world's air traffic and approximately 40% of all upcoming aircraft deliveries over the next two decades.
The North America region is expected to be the fastest-growing region, with a healthy CAGR during the projected period. North America boasts a stable and robust economy, providing a conducive environment for the airline industry to flourish. This stability encourages both leisure and business travel. Moreover, the region is at the forefront of aviation technology, with many airlines investing in modern and fuel-efficient fleets. This enhances operational efficiency and cost-effectiveness.
Key Market Players & Competitive Insights
The airlines market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include:
- Air France KLM
- American Airlines Group
- ANA Holdings
- British Airways
- Delta Air Lines
- Deutsche Lufthansa
- Hainan Airlines
- Japan Airlines
- LATAM Airlines Group
- Qantas Airways
- Ryanair Holdings
- Singapore Airlines
- Southwest Airlines
- Thai Airways International PCL
- United Continental Holdings
- WestJet Airlines
- In June 2023, British Airways planned to expand in the Indian aviation sector and has raised its weekly flight frequency beyond pre-pandemic levels.
- In February 2023, Singapore Airlines acquired a 25% share in Air India, followed by an investment of $267 million in the Tata-owned airline. After merging with Vistara, Air India's CEO, Campbell Wilson, declared that the combined carrier would operate under the name "Air India". This strategic merger not only fortifies Singapore Airlines' presence in the Indian market but also positions it to vie competitively in the growing aviation sector.
Airlines Market Report Scope
Market size value in 2024
USD 354.79 billion
Revenue Forecast in 2032
USD 473.91 billion
3.53% from 2024 – 2032
2019 – 2022
2024 – 2032
Revenue in USD billion and CAGR from 2024 to 2032
By Transport Type, By Application, By Region
North America, Europe, Asia Pacific, Latin America; Middle East & Africa
Report customization as per your requirements with respect to countries, regions, and segmentation.
In today’s hyper-connected world, running a business around the clock is no longer an option. And at Polaris Market Research, we get that. Our sales & analyst team is available 24x5 to assist you. Get all your queries and questions answered about the Airlines Market report with a phone call or email, as and when needed.
Explore the landscape of airlines industry in 2024 through detailed market share, size, and revenue growth rate statistics meticulously organized by Polaris Market Research Industry Reports. This expansive analysis goes beyond the present, offering a forward-looking market forecast till 2032, coupled with a perceptive historical overview. Immerse yourself in the depth of this industry analysis by acquiring a complimentary PDF download of the sample report.
Browse Our Top Selling Reports