Domestic Aviation Market is Estimated to Witness High Growth Owing to Opportunity of Infrastructure Development

 

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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