Low-Cost Carrier Market: Current Analysis and Forecast (2023-2030)

Report Description

The Low-Cost Carrier Market was valued at 213.28 billion in the year 2022 and is expected to grow at a steady rate of around 12.73 % during the forecast period (2023-2030), owing to the growing need for smaller vehicle coping with city traffic and reducing the operation cost of owning vehicle by individual customers and smaller families. Furthermore, Some of the factors attributed to the growth are the high demand for economical flights for both domestic and international travel. Additionally, with these low freight carriers there is an emerging need among the consumers for economical air travel. The low-cost air travel services revolve around five major components including attracting new customers, ticket prices to be offered as sustainable basis, maximizing efficiency and economic growth of tourist areas by economical air ticket prices.

A large number of airlines have focused on offering air fare on reasonably lowered prices due to which a sizeable number of air travelers have managed to opt air travel as a convenient mode of transportation. This has been majorly seen among the developing nations where income is relatively low. Considering the focus on developing airports in tier2 and tier3 cities in many of the countries to reduce the cost of air travel the demand for low-cost carriers is anticipated to increase in the future.

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Insights Presented in the Report

“Amongst Aircraft Type, the Narrow Body Aircraft Segment Held Majority of the Market Share in the Year 2022.”

Based on the aircraft type, the market is segmented into narrow body, wide body and other type of aircraft. Of these narrow body aircrafts have grabbed a sizeable market share in the global low-cost carrier market. Considering the usage of aircraft for low-cost operations for both domestic and international travel a large number of airlines across the globe have intensified their investment towards the acquisition of narrowbody aircraft. Widebody aircrafts have higher maintenance cost as well as are more suitable for business class and first-class traveling which offers higher per person revenue for the airlines. Other types of aircrafts include turboprop engines which have a lower seating capacity and have limited application for commercial low-cost flying. This is one of the major shifts that would steer the low-cost carrier market growth and help the segment hold a dominant market share in the forecast years, i.e., 2023-2030.

Narrow Body aircraft have 3-4 m diameter accommodating single aisle due to which the seating capacity comes densely packed. The respective type of aircrafts has majorly been opted by airlines to reduce their cost as with low air travel and leftover seats, the narrow body aircraft still cost less to operate due to their lower weight and size. This type of aircraft is also used extensively in the domestic flying purposes where a widebody aircrafts often find difficulty in landing and take-off due to their greater size and weight. Boeing 737 and Airbus 320 are some of the majorly used narrowbody aircraft across the globe. The respective aircraft, due to their lesser number of engines, lesser seating capacity, smaller airframe, weight, etc., offer a greater versatility to reduce the operational cost as well as operating the aircraft from medium to large sized runways. According to Boeing Corporation between 2023-2042 a total number of 32,420 narrowbody aircrafts would be delivered of this nearly 40% would be used for the low-cost carrier operations across the globe.

“Amongst Destination, the International Destinations holds the Majority Share of the Market.”

Based on destination, the low-cost carrier market is fragmented into two parts domestic and international. Of these domestic destinations have grabbed a sizeable market share. Some of the factors that have assisted the higher demand for domestic low-cost air flights are consumers looking forwards to travel through budget airlines for short-period air travel to save both money and time. As opposed to this international travels are usually long-distance due to which using low-cost services with no-frill would be relatively incontinent for the passengers and hence opting for other services as food. Additionally, with the expansion of domestic ports across the globe has also pave the growth path for the low-cost carrier market.

International travel across the globe has recovered immensely after the COVID-19 pandemic. This is majorly due to the revival of the economic activities subsequently promoting employment, education and tourism opportunities for the travelers. According to the UNWTO data the international travel across the globe has recovered remarkably noting 92%, 84% and 64% recovering from the 2019 level. International tourism receipts could reach USD 1.4 trillion in 2023, about 93% of the USD 1.5 trillion earned by destinations in 2019. Additionally, after COVID-19 in 2020 many of the customers started opting for low-cost carriers due to weaker economic conditions across the globe.

Low-Cost Carrier Market Report Coverage

“Asia Pacific is anticipated to be one of the Fastest Growing Market for Low-Cost Carriers across the Globe during the Forecast Period (2023-2030).”

Asia Pacific is emerging as one of the fastest-growing markets for automotive and automotive-related products. Asia-Pacific is home to some of the fastest-growing economies, such as China, India, Indonesia, South Korea, etc. These countries have been witnessing emergence due to the growth of population as well as economic growth that has allowed consumers to look towards economical and affordable budget airlines travel. Among these countries, there is a high demand for domestic and international for Low-Cost Carriers in the Asia-pacific region. India, and China being some of the major markets in the region has witnessed a high demand budget air travel. Many of the low-cost carrier services providers have announced their plans to expand their fleet in the coming years to accommodate growing traffic. These trends, coupled with a rising focus of the government towards developing air travel infrastructure is anticipated to contribute to the growing market of Low-Cost Carriers in the APAC region.

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Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

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The global Low-Cost Carrier market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Low-Cost Carrier Market Analysis (2023-2030)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global Low-Cost Carrier market were the three major steps undertaken to create and analyze the adoption of Low-Cost Carrier in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Low-Cost Carrier market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the Low-Cost Carrier market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Low-Cost Carrier market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as by aircraft type and destination. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Low-Cost Carrier market. Further, we conducted factor analysis using dependent and independent variables such as by aircraft type and destination of the Low-Cost Carrier market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Low-Cost Carrier market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Low-Cost Carrier market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2030 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the Low-Cost Carrier market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global Low-Cost Carrier market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Low-Cost Carrier market. data was split into several segments & sub-segments after studying various parameters and trends in the areas of the by aircraft type and destination in the global Low-Cost Carrier market.

The main objective of the Global Low-Cost Carrier Market Study

The current & future market trends of the global Low-Cost Carrier market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the Low-Cost Carrier market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of by aircraft type and destination.
• Define and analyze the regulatory framework for the Low-Cost Carrier
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the Low-Cost Carrier market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of the Low-Cost Carrier market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry

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