Low-cost Carrier Market Size Projected To Hit $949.97 Bn By 2032
The low-cost carrier market size was valued at USD 200.18 billion in 2022 grew to USD 233.91 billion in 2023 and is predicted to hit around USD 949.97 billion by 2032, Report by Precedence Research.
Ottawa, June 27, 2023 (GLOBE NEWSWIRE) -- The global *low-cost carrier market* is expected to expand at the fastest CAGR of 16.85% from 2023 to 2032. Low-cost carrier services are provided by the airlines for the short haul traveler. The passengers who are looking for an affordable medium of transport and a quick mode of *transportation **services* are more likely to prefer such services due to the cost-effectiveness. the market for low-cost carrier is accelerating with the entry of new key players globally that are focused on offering cost-optimized services for passengers. The global low-cost carrier market is expanding due to the rising demand for domestic flights, growing aviation operations, technological advancements and rising disposable income.*Ask here for sample pages@* *https://www.precedenceresearch.com/sample/3074*
*Key Insights:*
· Asia Pacific led the global market with the largest market share in 2022.
· North America region is predicted to grow at the fastest CAGR from 2023 to 2032.
· By Type, the short-haul segment dominated the market with the highest market share in 2022.
· By Type, the long-haul segment is expected to expand at the significant CAGR from 2023 to 2032.
· By Application, the individual segment led the market with the largest revenue share in 2022.
· By Application, the commercial segment is expected to dominate the market with the maximum share between 2023 and 2032.
*Regional Snapshot*
Asia Pacific dominated the market with the largest market size in 2022. The growth of the region is increased due to the increasing demand for affordable mediums for transportation. The low-cost carriers are the most affordable fare prices which is one of the major factors for the growth of the market in the region. Increased technological advancement in aviation and rising aviation operations will drive the growth for the low-cost carrier market in the region. Due to the increasing consumer disposable income, the consumer makes their air travel viable also driving the growth of the market. Moreover, the rising number of airports in multiple countries of Asia Pacific also highlights the development of the low-cost carrier market in the region.
Europe is another fastest growing marketplace for low-cost carriers. The presence of major players such as easyJet, Ryanair, Wizz Air and Norwegian Air Shuttle in Europe contributes to the market’s growth. The aviation operations in the major countries such as France, United Kingdom, Germany and Italy are continuously evolving, this presents an opportunity for the low-cost carrier market to grow.*Report Highlights: *
· By type, the short-haul segment dominated the market with the largest revenue share in 2022, the segment will continue to grow during the forecast period. The growth of the segment is attributed due to the rising demand for airline services for domestic travels.
· By application, the individual segment holds the major market share of the low-cost carrier market in 2022. The growth of the segment is attributed due to consumer preferences for lower cost flights, especially for traveling within the country.
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*Scope of this report**:**Coverage* *Details*
Market Size in 2032 USD 949.97 Billion
Market Size in 2023 USD 233.91 Billion
CAGR (Growth Rate) 16.85% from 2023 to 2032
Market By Type · Short-haul
· Long-haul
Market By Application · Individual
· Commercial
Market By Geography · North America
· Europe
· Asia-Pacific
· Latin America
· Middle East and Africa
Key Players Southwest Airlines Co., AirAsia Group Berhad, easyJet plc, JetBlue Airways Corporation, Norwegian Air Shuttle ASA, Spirit Airlines, Inc., IndiGo, Wizz Air Holdings plc, Allegiant Travel Company, and Others.
*Market Dynamics*
*Drivers: *
*Booming online market*
Traditionally, travel booking agencies or airports were main elements for passengers to book flight tickets and schedule their journey. With multiple technological advancements, the tickets for low-cost carriers are now available online. Online tickets are often available on airlines’ official websites, apps and multiple other booking and shopping platforms. Such services create a significant driver for the market while offering convenience to passengers.
*Restraints: *
*Lesser services offered*
Low-cost airlines provide less service than established airlines do. Passengers cannot rely on food, beverages, entertainment and other additional services that are offered by traditional flights. Such services charge less and often scheduled for short route, especially intra-city and intra-nation routes. Considering the fares and short term of traveling, services such as food, beverages and entertainment are avoided in low-cost carriers. This factor may limit passengers from adopting low-cost carrier services which may turn out to be a major restraint for the market.
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*Opportunities: *
*Rising penetration of commercial agreements between companies*
Airline commercial agreements are more and more popular since they benefit both parties in a number of ways. These agreements call for the pooling of expenses and resources, which may boost productivity and save costs. Additionally, as airlines may provide more flights to more locations thanks to commercial agreements, there may be a rise in passenger demand. As a result of being able to draw in more passengers, both airlines may see an increase in revenues. Finally, commercial agreements may potentially result in more airline operations. As a result, airlines may be more flexible and productive as they collaborate to discover the best operational solutions.
*Challenges: *
*Limitations with the infrastructure of airport*
Low-cost carriers often rely on regional or secondary airports as they schedule the operations by maintaining the minimized costing formula. However, these airports may have limited capacity for landing which may pose a challenge for the low-cost carriers to land. Such challenges with infrastructure at airport may result in issues with efficient ground operations for low-cost carriers.
*Recent Development*
· In June 2023, easyGroup’s easyJet announced the launching of “easySlim” the new mobile travel data service providing low-cost mobile travel data for users around the world.
· In June 2023, Lynx Air, the new startup planning to announce the launch of services for the headquarters of Calgary. Lynx Air will be launching a low-cost carrier for budget-conscious travelers with stripped-down fares.
· In May 2023 FlyOne, the Moldovian carrier introduced a new route to Berlin. The aircraft connect two capital cities twice a week on Airbus A220. For now, there is no direct connection or route for 735 miles.
*Market Segmentation**:*
*By Type*
· Short-haul
· Long-haul
*By Application*
· Individual
· Commercial
*By Geography*
· North America
· Europe
· Asia-Pacific
· Latin America
· Middle East and Africa
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