Press release
Key Trends Influencing the Growth of the Domestic Aviation Market in 2025: Elevation Of Aircraft Capabilities With Advanced Technology Integration In Domestic Aviation
Domestic Aviation Market Size
What Is the Expected CAGR for the Domestic Aviation Market Through 2025?
In the last few years, the domestic aviation market size has seen a constant increase. The market is projected to escalate from its value of $973.87 billion in 2024 to $1005.06 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 3.2%. The growth observed in the historic period is largely due to factors like economic development, liberalization of airlines, growth in urbanization and population, progress in infrastructure, and promotional activities in tourism.
What's the Projected Size of the Global Domestic Aviation Market by 2029?
A consistent rise in the size of the domestic aviation market is anticipated in the upcoming years. By 2029, it is projected to escalate to $1176.92 billion with a compound annual growth rate (CAGR) of 4.0%. This augmentation during the forecast period can be credited to the financial bounce back after the pandemic, initiations pertaining to sustainable aviation, rebound of business travel, digital alterations, and transformations in consumer attitudes. Observable trends during this period are shifting customer expectations, aid, and policies from the government, competitive pricing and rivalry of airfares, tailored passenger services, and an increase in short-haul flights.
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Top Growth Drivers in the Domestic Aviation Industry: What's Accelerating the Market?
The growth of the domestic aviation market is anticipated to be propelled by the expansion of the tourism industry. The travel sector, also known as the tourism sector, explores the concept of individuals journeying to various locations, nationally or internationally, for leisure, social activities, or business dealings. Following the COVID-19 lockdowns, tourists are now at liberty to travel freely from one location to another, leading to a significant rise in flight usage. For example, the World Tourism Organization, a Spain-based United Nations agency committed to endorsing responsible, sustainable, and accessible tourism for all, released a report in June 2022 stating that international travel saw a surge of 182% annually, with the number of visitors reaching 117 million, in stark contrast to the forty-one million in Q1 2021. Consequently, the escalating tourism industry serves as a driving factor for the domestic aviation market.
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What Trends Will Shape the Domestic Aviation Market Through 2029 and Beyond?
The rise in technology innovation is a prominent trend gaining traction in the domestic aviation sector. Major firms in the market are developing tech solutions to solidify their market standing. For example, Garmin Limited, a US-based firm specializing in innovative GPS technology, announced in February 2022 an extended engine monitoring capability. This feature is now available for selected Pilatus PC-12/47 and PC-12/45 aircraft, with the integration of the TXi Engine Indication System display. Garmin has also earned the Federal Aviation Administration (FAA) al Type Certification (STC) for the GFC 600 autopilot in Pilatus PC-12/47 aircraft. This new installation equips the system with added operational features, such as autopilot-associated VNAV descents, wholly coupled missed approaches, and Smart Glide safety technology. These features aid in autopiloting and adjusting for the aircraft's optimum glide speed while guiding the aircraft within the selected airport's range, allowing the pilot to execute a landing in case of engine failure.
What Are the Main Segments in the Domestic Aviation Market?
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 Top Companies are Driving Growth in the Domestic Aviation Market?
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.
Which Regions Will Dominate the Domestic Aviation Market Through 2029?
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.
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