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Booming Tourism Fuels Soaring Growth In The Domestic Aviation Sector Driver: Leading Transformation in the Domestic Aviation Market in 2025

02-26-2025 12:27 PM CET | Aerospace & Defense

Press release from: The Business Research Company

Domestic Aviation Market Research

Domestic Aviation Market Research

What market dynamics are playing a key role in accelerating the growth of the domestic aviation market?
The expansion of the tourism industry is anticipated to stimulate the domestic aviation market's growth in the future. Often associated with individuals travelling domestically or internationally for pleasure, social or business purposes, the tourism sector is intrinsically connected to the aviation industry. Following the lifting of COVID-19 restrictions, tourists now possess the freedom to travel between destinations, leading to a significant surge in flight bookings. For instance, a report released by the World Tourism Organization, a UN agency based in Spain tasked with encouraging responsible, sustainable, and universally affordable tourism, stated that in Q1 2022, global travel soared by 182% on a year-on-year basis, with the number of international travelers reaching 117 million, a stark increase from forty-one million in Q1 2021. Thus, the escalating trends in the tourism industry serve as a catalyst for the growth in the domestic aviation market.

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How will the growth rate of the domestic aviation market shape industry trends by 2034?
Over the past few years, the size of the domestic aviation market has been consistently expanding. Its rise from $973.87 billion in 2024 to $1005.06 billion in 2025 projects a compound annual growth rate (CAGR) of 3.2%. Factors such as economic expansion, deregulation of airlines, urban and population growth, infrastructure enhancement, as well as tourism promotion have contributed to the historic period growth.

The size of the domestic aviation market is projected to experience consistent expansion in the upcoming years, with expectations to reach $1176.92 billion in 2029, growing at a compound annual growth rate (CAGR) of 4.0%. The anticipated growth throughout this period is due to factors such as post-pandemic economic resurgence, initiatives for sustainable aviation, rejuvenation of business travel, digital innovation, and changes in customer habits. Key trends influencing this period comprise changing consumer demands, support and regulations from government, competitive flight fares, personalized passenger experiences, and an increase in short-distance flights.

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What trends are poised to drive the future success of the domestic aviation market?
The rise in technological progress is becoming a significant trend in the domestic aviation sector. Major firms in this market are focusing on the creation of technology-based solutions to establish a strong position. Garmin Limited, a US-based entity that excels in the delivery of innovative GPS-enabled technology, revealed in February 2022 that they're expanding engine monitoring ability for selected Pilatus PC-12/47 and PC-12/45 aircraft through the TXi Engine Indication System display. Additionally, Garmin has secured a Supplemental Type Certification (STC) from the Federal Aviation Administration (FAA) for the GFC 600 autopilot in Pilatus PC-12/47 aircraft. This upgrade adds further operational functions and features to the system, including autopilot-connected VNAV descents, completely linked missed approaches, and Smart Glide safety technology. The latter can automatically trigger the autopilot and pitch to meet the aircraft's optimal glide speed, guiding the aircraft within access to the selected airport so the pilot can perform an approach and landing in case of engine dysfunction.

Which primary segments of the domestic aviation market are driving growth and industry transformations?
The domestic aviation market covered in this report is segmented -

1) By Type: Commercial Aircrafts, Other Types
2) By Engine Type: Turbofan, Turboprop, Turboshaft
3) By End-User: Government, Commercial, Private

Subsegments:
1) By Commercial Aircrafts: Regional Jets, Narrow-Body Aircraft, Wide-Body Aircraft, Turboprop Aircraft
2) By Other Types: Private Jets, Helicopters, Cargo Aircraft, Air Ambulance Services

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Which geographical regions are pioneering growth in the domestic aviation market?
North America was the largest region in the domestic aviation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the domestic aviation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the influential players reshaping the domestic aviation market landscape?
Major companies operating in the domestic aviation market are Singapore Airlines Ltd., Air New Zealand Limited, Queensland and Northern Territory Aerial Services Ltd. (Qantas), Qatar Airways, Virgin Australia International Airlines Pty. Ltd., All Nippon Airways, American Airlines, SpiceJet Ltd., The Boeing Company, Airbus SE, Textron Inc., Embraer S.A., United Airlines Holdings Inc., Delta Air Lines Inc., Southwest Airlines Co., Air India Limited, LATAM Airlines Brasil, Gol Linhas Aéreas Inteligentes S.A, Air China Limited, Hainan Airlines Holding Co. Ltd., Spring Airlines Co. Ltd., Juneyao Air, Shenzhen Airlines Co. Ltd., Xiamen Airlines Co. Ltd., Lucky Air Co. Ltd., Tianjin Airlines Company Limited, Beijing Capital Airlines Co. Ltd.

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What Is Covered In The Domestic Aviation Global Market Report?

• Market Size Forecast: Examine the domestic aviation market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the domestic aviation market for a structured understanding.
• Key Players Overview: Analyze major players in the domestic aviation market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the domestic aviation market.
• Segment Contributions: Evaluate how different segments drive overall growth in the domestic aviation market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the domestic aviation market.
• Industry Challenges: Identify potential risks and obstacles affecting the domestic aviation market.
• Competitive Landscape: Review strategic developments in the domestic aviation market, including expansions, agreements, and new product launches.

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