Domestic Aviation Market is Estimated to Witness High Growth Owing to Opportunity of Infrastructure Development
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Domestic Aviation Market |
The domestic aviation market in
India involves the transport of passengers and goods by air within the domestic
borders of India. Key players in this market operate scheduled flights between
major cities and regions within India using a variety of aircraft ranging from
turboprops to jets. The market caters to business and leisure travelers seeking
to cover long distances in less time compared to other surface transport
options. Rising income levels have significantly expanded the number of Indians
opting to travel by air domestically. The global domestic aviation market in
India is estimated to be valued at US$ 10.89 Bn in 2023 and is expected to
exhibit a CAGR of 2.8% over the forecast period 2023 to 2030, as highlighted in
a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers propelling
the growth of the domestic aviation market in India is the increasing
middle-class population with higher disposable incomes. As per estimates, the
Indian middle class will grow to about 600 million people by 2030. This
expanding consumer base has greater aspirations and seeks upgraded lifestyle
choices and experiences such as air travel. Additionally, growing urbanization
is leading more Indians to migrate from rural areas to cities for education and
employment opportunities. This urban migration in turn is fueling air passenger
traffic between major urban centers within India. The market is also benefiting
from low airfares and availability of flight options connecting even smaller cities
as airlines expand their domestic route networks. Government initiatives to
improve air connectivity through schemes such as UDAN (Ude Desh ka Aam Naagrik)
and tax incentives for domestic MRO services are further aiding market growth.
SWOT Analysis
Strength: The domestic aviation
market within a country provides convenient travel option for short and medium
haul travels within the country. There is a widespread network of domestic
routes connecting major as well as minor cities. Many airlines have established
hub and spoke model to efficiently connect passengers. Additionally, government
support for developing regional air connectivity has augmented the
infrastructure development.
Weakness: High taxation and
regulatory restrictions imposed on airline operations increase operating costs.
Adverse weather conditions in certain regions hamper flight operations leading
to delays and cancellations. There is intense price competition among airlines
keeping profit margins low.
Opportunity: Growing middle class
and rising disposable incomes are increasing demand for air travel within
countries. Emergence of low cost carriers is making air travel affordable for
common masses. Regional airports are being upgraded to accommodate larger
aircraft and handle higher passenger traffic. Development of new routes to
connect remote areas will help boost regional economies.
Threats: Volatility in crude oil
prices adversely impacts the airline industry. Economic slowdowns lower
passenger traffic and airline revenues. Outbreak of epidemics and pandemics
severely restrict travel affecting the aviation industry. Natural calamities
and geopolitical tensions in certain regions also deter passengers from flying.
Key Takeaways
The Global
Domestic Aviation Market Size is expected to witness high growth over
the forecast period of 2023 to 2030. Rapid urbanization, economic development
and expanding low cost airlines are driving greater adoption of air travel
within countries. Major regional markets like North America, Asia Pacific and Europe
account for majority of the global market revenues.
Regional analysis: The Asia Pacific region dominates the global
domestic aviation market with over 35% share. Countries like India and China
have huge populations and fast expanding domestic airline networks. Upgradation
of regional airports under regional connectivity schemes are aiding passenger
growth. Low cost carriers like Air Asia and Spicejet have facilitated air
travel for masses.
Key players: Key players operating in the domestic aviation market
are Singapore Airlines,Air New Zealand,Qantas,Qatar Airways,Virgin
Australia,Emirates,All Nippon Airways,EVA Air,American Airline,Spicejet,The
Boeing Company,Airbus SE,Lockheed Martin Corporation,Textron Inc,Embraer S.A.
Their product innovations, fleet modernization programs are enabling greater
fuel efficiency. Strategic partnerships, codes share agreements are helping
expand domestic presence.
Get More Insights Here
https://www.newsstatix.com/domestic-aviation-market-size-share-growth-outlook-2023/
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