Air Transportation Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

The air transportation market is expected to register a CAGR of 4.2% during 2023–2031. The rise in adoption of sustainable aviation fuel and efficient air transportation is likely to remain a key trend in the market.

Air Transportation Market Analysis

• The air transportation industry supports various activities, such as air transportation services for passengers and cargo, as well as activities such as aircraft construction, aviation safety, and the implementation of advanced air mobility services.
• Historically, governments played a key role in the development of the airline industry - owning part of it, subsidizing and creating new passenger airlines. This is based on understanding the importance of air transport as an engine of economic development for the logistics, advanced business services and tourism sectors, even beyond air hubs – and socially.
• Air transport facilitates global integration, trade, and tourism and, above all, creates new employment opportunities. The increasing demand for air transport and discussions about future paradigms with a focus on digitalization, environmental sustainability and changing relationships with the global and local environment pave the way to further technological developments, increased environmental sustainability and more accessible air transport with the aim of improving air transport as valuable catalyst for growth, globalization, trade, tourism, and employment.

Air Transportation Market Overview

• The air transportation market primarily refers to the transportation of people and goods within open airspaces using aircrafts. The sphere is comprised of interrelated activities, such as scheduled and non-scheduled air transportation, aircraft manufacturing and air safety.
• The air transportation market is projected to record a robust growth trajectory owing to the rise in air passengers, expanding airports and increasing popularity of air freight. The market activity across the geographies is dictated by economic, political, and demographic factors.
• The U.S domestic market is among the biggest air travel market across the world with substantial air passenger traffic and associated cargo transportation. The evolution of industry is shaped by factors, such as the air transport single market in Europe, COVID-19 pandemic, strategic decisions and aggregate competition in the global air transport market.

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Air Transportation Market: Strategic Insights

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Air Transportation Market Drivers and Opportunities

Rise in Air Transportation Across the Globe to Favor the Market

• The increase in air travel across the world can be attributed to the industry’s growth based on a variety of factors. One instrumental reason for the growth in the air transport industry is the constant progress in the safety and predictability in air travel, which fosters air transport development. On the other hand, new technologies, such as the development of the Boeing 747, the first wide-body plane which was nicknamed the ‘jumbo jet’, are other reasons for the decrease in the cost of air travel.
• This has led to cheaper long-haul flying and enabled the development of international tourism, which significantly benefitted the middle class. Additionally, the structure of the air transport network is another reason for the increase in the average distance flown by planes, as they form hubs, which implies that the distance between two specific airports increased relative to the past. However, the drastic growth in aviation has also been countered by recessions and the effects of geopolitical instability, such as the impact of the COVID-19 pandemic.

Rise in Aircraft Fleet Orders

• There are, however, some ready explanations to the observation that worldwide there has been a big increase in aircraft fleet orders. First of all, as the rate of air travel continues to increase around the world, especially in parts of Asia where demand is growing, a major and expanding need for new aircraft will be required for a long time as people keep increasing their travel, which, in turn, increases demand for new aircraft.
• The response by the airlines is an order for 100 Boeing 787 Dreamliners with an option for 100 more aircraft. In fact, only a few weeks ago, United Airlines announced an order for 100 Boeing 787 Dreamliners with the option for 100 more, for a list price of more than $37 billion. It is expected that this large order is designed to expand its airline fleet and remain competitive in the airline business by having a modern, fuel-efficient, and operationally more effective aircraft to improve the airline’s delivery service to its customers.
• Such rise in aircraft fleet order across the globe is expected to create opportunity for the key players operating in the air transportation market.

Air Transportation Market Report Segmentation Analysis

Key segments that contributed to the derivation of the air transportation market analysis are transportation type and transportation mode.

• Based on transportation type, the air transportation market is divided into domestic and international.
• On the basis of transportation mode, the market is divided into fixed-wing aircraft, rotary-wing aircraft.

Air Transportation Market Share Analysis by Geography

• Air transportation market Report comprises a detailed analysis of five major geographic regions, which includes current and historical market size and forecasts for 2021 to 2031, covering North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and South & Central America.
• Each region is further sub-segmented into respective countries. This report provides analysis and forecasts of 18+ countries, covering air transportation market dynamics such as drivers, trends, and opportunities that are impacting the markets at the regional level.
• Also, the report covers PEST analysis, which involves the study of major factors that influence the air transportation market in these regions.

Air Transportation market Report Scope

Air Transportation Market Regional Insights

The regional trends and factors influencing the Air Transportation Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Air Transportation Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Air Transportation Market Report Scope

Air Transportation Market Players Density: Understanding Its Impact on Business Dynamics

The Air Transportation Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Air Transportation Market are:

1. Air France
2. KLM
3. American Airlines Group
4. China Southern Airlines
5. Delta Air Lines

Disclaimer: The companies listed above are not ranked in any particular order.

Air Transportation Market News and Recent Developments

The air transportation market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the air transportation market are listed below:

• The US department of defence awarded contracts commercial airlines for one-time transport of assets. Through this agreement, various airlines such as Air Transport International, Wilmington, Ohio; Alaska Airlines, Seattle, Washington; Allegiant Air and others are expected to move military cargo and personnel across the the continent. (Source: The US Department of Defence, Government Website, January 2024)
• The governments of Saudi Arabia and Barbados have signed an air transportation agreement aiming to set regulatory frameworks for safe air travel and air transportation services. (Source: The Government of Saudi Arabia and Barbados, Government Website, November 2023)

Air Transportation Market Report Coverage and Deliverables

The “Air Transportation Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Air transportation market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Air transportation market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Air transportation market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the air transportation market
• Detailed company profiles