The growing preference for affordable air travel options has significantly boosted the domestic aviation market. Low-cost carriers offer point-to-point travel on competitive fares compared to traditional full-service airlines. They have simplified the flying experience by eliminating frills and optimizing operations to keep costs low. This has made air travel accessible to a wider consumer base.
The global domestic aviation market is estimated to be valued at US$ 12.55 Billion in 2024 and is expected to exhibit a CAGR of 33% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growth of low-cost carriers has been a major trend driving the domestic aviation market size. Their affordable fares have spurred demand for short-haul domestic air travel. To stay competitive, low-cost carriers continue finding new ways to optimize operations and reduce ticket prices. Many are taking delivery of new fuel-efficient aircraft to lower operating costs per seat. This allows passing on greater savings to flyers. Carriers are also investing in advanced revenue management systems to dynamically adjust fares based on demand. This helps maximize seat occupancy as well as yields. The expanding network of low-cost carriers across many countries has not only promoted domestic leisure travel but also increased business mobility within national economies.
Segment Analysis
The global domestic aviation market is dominated by economy and premium economy segments. The economy segment accounts for around 60% share of the overall domestic aviation market. These economy class tickets are preferred by business travelers and leisure travelers looking for affordable travel options within a country. The segment witnesses high demand due to availability of low fares and convenience of air travel over other modes of transportation for short-haul trips.
Key Takeaways
The global domestic aviation market is expected to witness high growth over the forecast period of 2024 to 2031. Market size is projected to reach US$ 12.55 Bn by 2024.
Regional analysis: North America region currently dominates the global domestic aviation market. The region accounts for over 35% share of the overall market. Availability of high disposable incomes and well-developed air travel infrastructure in countries like the US and Canada has resulted in high preference for air travel even for short domestic routes.
Key players: Key players operating in the domestic aviation market include IBM Corporation, Oracle Corporation, Xerox Corporation, Nintex Limited, Source Code Technology Holdings Inc, Software AG, Appian, Pegasystems, Bizagi, Newgen Software Technology, and Zoho. IBM holds the leading position with its extensive flight operations and passenger management solutions for airlines and airports. Oracle and Xerox also have a sizable market share through their offerings in cargo and baggage management, digital flight operations, and customer relationship management.
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