ID: MRFR/A&D/7032-HCR | February 2021 | Region: Global | 173 pages
The global Low Cost Carrier Market is registered to achieve a market share of USD 4,19,723.53 million by the end of the year 2030. Further, the LCC market is projected to hold a CAGR of 16.31% during the forecast period of 2020-2030. Low-Cost Carriers have gained a cost advantage over FSCs (full-service carriers), which go through different operational processes. This LCC airline is more affordable for air passengers or travelers.
The Low Cost Carrier Global Market has two types of aircraft. The major narrow-body aircraft are Boeing B737s and B727s; and Airbus A321, A320, A319, and A318. These airplanes are developed in a way to cater to budget travelers and usually fly over short routes. On the other hand, the major wide-body aircraft are Boeing B-787, B-777, B-767, and B-747; and Airbus A380, A350, A340, A330, A310, and A300. These airplanes are growing demands worldwide as it is connecting international destinations and designed for long-haul routes with heavy traffic. Moreover, the international operational segment is projected to register a higher Low Cost Carrier Market Size during the research timeframe of 2019 to 2025. This segment is fueling the market growth due to the growing LCCs for medium-haul international flights.
The Middle East & African region is driving the Low Cost Carrier Market growth due to the increasing tourism and increased air travel in the region. This region has increased the low-cost seats from 5.52 million to 41.91 million departing seats from 2009 to 2018. In the last 10 years, it has shown a 659% exceptional growth rate. In the past few years, the Latin American region has also shown an increase in air passenger traffic, fueling the demand of the Low Cost Carrier Global Market in the region. For instance, the low-cost carrier has shown an increase to 65% of domestic traffic seats across Mexico and Brazil from 2009 to 2018.
COVID-19 impact Analysis
The ongoing COVID-19 pandemic has brought lots of destructions to the Low Cost Carrier Global Market. The global lockdown and social distancing norms have restricted all international and national air traveling. As a result, the global market has lost its demands, supply, and productivity.
However, the manufacturing players have adopted certain tactics to regrow the demand of the Low Cost Carriers and generate the Low Cost Carrier Global Market Share in the forecast timeframe.
The global Low Cost Carrier Market is driving the market growth due to several factors such as the increasing internet booking, high aircraft utilization, lower wage scales, lower rates of unionization among employees, short ground turn-around times, use of secondary airports, minimum cabin crew, and one class of seating. Additionally, the rising tourism industry and global travel are other major factors to boost up the growth of the Low Cost Carrier Market.
The Indian Government plans to provide affordable and connective flying to the masses through the National Civil Aviation Policy (NCAP)2016. This has aimed to promote simplified procedures, e-governance, business, and deregulation. This policy has the scheme named Regional Connectivity Scheme or UDAN consist of a one‑hour journey of 500 km with all-inclusive taxes of INR 2,500. Therefore, the global has more scope to drive Low Cost Carrier Market Growth in the research period.
In the past few years, significant growth of 3.5% has been witnessed in the air passenger traffic worldwide due to the increasing disposable incomes, increasing capabilities to spend by developing countries, decreasing airfares, and higher living standards. This increasing number of air travelers is bringing lucrative opportunities for the global Low Cost Carrier Market Trends.
Recently, the global Low Cost Carrier Market has accounted for the higher growth due to the growing demand for low-cost carriers than the FSCs in developing countries. This is bringing more opportunities for the manufacturers and market leaders to develop their business.
According to the Low Cost Carrier Market Forecast report, the global market might get hampered due to the high operational cost and low profitability. In addition, the volatile crude oil price can also be a market restraint in the upcoming years.
Hence, the global market involves more manufacturers and market leaders to the low-cost carriers to enhance the market growth in the review timeframe.
The Low-Cost Carrier Market Forecast report explains that the global market might face significant challenges while setting up an airline in specific locations of the globe as it includes significant risks, high competition, and high start-up costs.
The market players are focusing on these market challenges to add more innovative techniques to generate higher Low-Cost Carrier Market Revenue in the upcoming years.
Cumulative growth Analysis
The Low Cost Carrier Market Analysis explains that the European market has shown significant growth in the research timeframe due to the steadily increasing passenger traffic over time.
As per the Low Cost Carrier Market Outlook report, the European market is projected to provide low-cost seats for 50% of all seats across the region by the end of the year 2027.
Market Segment Overview:
The global Low-Cost Carrier Market has been categorized as wide-body and narrow-body aircraft in terms of aircraft type segments.
Among these two, the narrow-body aircraft is larger and has lesser capacity than the wide-body aircraft.
The global Low-Cost Carrier Market has been segregated into a travel agency and online channels based on the distribution channel segment.
Out of all, the online segment is predicted to account for the highest Low Cost Carrier Market Share in the research period due to the increasing online marketplace usages for flight bookings. On the other hand, the travel agency segment is estimated to show a steady decline in the CAGR growth rate in the review period due to the decreasing demands of travel agencies for flight bookings by customers across the world.
On the basis of operation segment, the global Low Cost Carrier Market has been classified into international and domestic.
In 2018, the domestic operation segment led the LCC market with generating the higher Low Cost Carrier Market Size. This segment is growing on a large scale due to the growing number of domestic air travelers.
According to the Low Cost Carrier Market Analysis, the global market is classified into various geographical locations such as North America, Asia-Pacific, Europe, Middle East & Africa, and Latin America.
The Low Cost Carrier Market is dominated in the North American region. This regional market is estimated to hold the same position in the review period because of prominent LCC airlines in the regions like Southwest Airlines Co., JetBlue Airways Corporation, WestJet Airlines Ltd, and Spirit Airlines, Inc. The Asia Pacific market is predicted to hold the highest CAGR in the research period due to the increasing investments in the regional market and the growing air passenger traffic in countries like Malaysia, Indonesia, China, and India. In 2008, the Asia Pacific Low-Cost Carrier accounted for 14% of seat capacity, which has increased to 29% seat capacity in 2018.
Competitive Landscape Analysis
The present Low Cost Carrier Market Trends showing the potential growth across various regions due to the support of the important manufacturing players such as:
Therefore, these market players use their strategic ideas to thrive the Low Cost Carrier Market Growth in the review period. For instance, these players are focusing more on the research and development of low-cost carriers to enhance the customer base in the upcoming years.
The global Low Cost Carrier Market has accounted the significant growth in the current period and is projected to grow on a large scale in the forecast period. This report is the result of in-depth analysis of market trends, market drіvеrѕ, market rеѕtrаіntѕ, market challenges, market орроrtunіtіеѕ, regional analysis, and market segments. Also, this report has included both qualitative and quantitative analysis to measure the global Low Cost Carrier Market’s performance and create more value in the upcoming years.
According to the Low Cost Carrier Market Outlook report, the global market has been impacted negatively due to the COVID-19 pandemic. Still, the market players of the carrier market have imposed unique strategies to combat the pandemic situation.
By Aircraft Type:
By Distribution Channel:
Frequently Asked Questions (FAQ) :
Low Cost Carrier (LCC) market can expand at 16.31% CAGR by 2030.
By 2030, the Low Cost Carrier (LCC) market value can reach USD 4,19,723.53 Million by 2030.
EasyJet Airline Company Limited (UK), AirAsia Berhad (Malaysia), and IndiGo (India) are some renowned names in the Low Cost Carrier (LCC) market.
The rise in need for robust supply chain can promote the Low Cost Carrier (LCC) market.
High cost of crude oil can restrains the Low Cost Carrier (LCC) market expansion.