PUBLISHER: The Business Research Company | PRODUCT CODE: 1659009
PUBLISHER: The Business Research Company | PRODUCT CODE: 1659009
Domestic aviation, commonly referred to as domestic flights, pertains to air travel occurring within the borders of a specific nation. For a flight to be categorized as domestic, both the departure and arrival cities must be situated within the same country. The significance of domestic aviation lies in its contributions to tourism, enhanced connectivity, and facilitation of trade, thereby fostering economic growth, elevating living standards, and creating job opportunities.
The primary categories within domestic aviation encompass commercial aircraft and other aircraft types. Commercial aircraft are specifically designed for the routine transportation of people and cargo between designated airports. The engines propelling domestic aircraft include turbofans, turboprops, and turboshafts, catering to diverse end-users such as government entities, commercial enterprises, and private individuals.
The domestic aviation market research report is one of a series of new reports from The Business Research Company that provides domestic aviation market statistics, including domestic aviation industry global market size, regional shares, competitors with a domestic aviation market share, detailed domestic aviation market segments, market trends and opportunities, and any further data you may need to thrive in the domestic aviation industry. This domestic aviation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The domestic aviation market size has grown steadily in recent years. It will grow from $973.87 billion in 2024 to $1005.06 billion in 2025 at a compound annual growth rate (CAGR) of 3.2%. The growth in the historic period can be attributed to economic growth, airline deregulation, urbanization and population growth, infrastructure development, tourism promotion.
The domestic aviation market size is expected to see steady growth in the next few years. It will grow to $1176.92 billion in 2029 at a compound annual growth rate (CAGR) of 4.0%. The growth in the forecast period can be attributed to economic recovery post-pandemic, sustainable aviation initiatives, business travel recovery, digital transformation, shifts in consumer behavior. Major trends in the forecast period include evolving consumer expectations, government support and policies, airfare competition and pricing, customized passenger services, rise in short-haul flights.
The domestic aviation market is poised for growth, driven by the burgeoning tourism industry. As travel restrictions eased post-COVID-19, there has been a substantial surge in people traveling for leisure, social, or business reasons, both domestically and internationally. Notably, the World Tourism Organization reported a remarkable 182% year-over-year increase in international travel in Q1 2022, with 117 million visitors, compared to 41 million in Q1 2021. This significant rise in the tourism sector is a key factor propelling the growth of the domestic aviation market.
The rising trend of air travel is anticipated to drive growth in the domestic aviation market in the coming years. Air travel involves the movement from one location to another using flying vehicles such as airplanes, helicopters, hot air balloons, and other aircraft capable of sustained flight. Domestic air travel is vital to the aviation industry, as it contributes to economic development, job creation, and enhanced connectivity within a nation. For example, in March 2023, a report from the Bureau of Transportation Statistics, a US-based government agency, revealed that US airlines transported 194 million more passengers in 2022 than in 2021, marking a 30% year-on-year increase. In total, US airlines handled 853 million passengers from January to December 2022 (unadjusted). Consequently, the increase in air travel is fueling the growth of the domestic aviation market.
Technological advancement is a significant trend gaining traction in the domestic aviation market. Leading companies in this sector are concentrating on developing technological solutions to enhance their market position. For example, in February 2022, Garmin Limited, a US-based provider of innovative GPS-enabled technology, introduced an expanded engine monitoring capability available for select Pilatus PC-12/47 and PC-12/45 aircraft through the TXi Engine Indication System display. Moreover, Garmin received Federal Aviation Administration (FAA) Supplemental Type Certification (STC) for the GFC 600 autopilot system in Pilatus PC-12/47 aircraft. This installation brings additional operational features and capabilities, including autopilot-coupled VNAV descents, fully coupled missed approaches, and Smart Glide safety technology, which automatically engages the autopilot and adjusts pitch for the aircraft's optimal glide speed while directing it within range of the chosen airport, enabling the pilot to execute an approach and landing in the event of an engine failure.
Leading companies in the domestic aviation market are focused on launching innovative solutions, such as AI-based aviation agents, to maximize their profits. An AI-based aviation agent employs generative AI and traditional machine learning techniques to deliver a personalized and efficient customer experience. For instance, in November 2023, Air India, an India-based domestic airline service, unveiled Maharaja, the world's first AI virtual agent. This state-of-the-art technology aims to transform the customer service experience. The AI-powered agent can respond to nearly 6,000 inquiries daily in four different languages, distinguishing it from typical digital assistants. Utilizing the Azure OpenAI service, Maharaja has addressed over half a million client inquiries, demonstrating its impressive capabilities.
In January 2022, Talace Private Limited, an India-based firm specializing in the aviation industry, completed the acquisition of Air India for an undisclosed sum. This strategic transaction further solidifies Talace Private Limited's strategic alliance with Tata and positions the company strategically to participate in the burgeoning growth phase of the Indian aviation market. Air India is an India-based aviation company that offers connections to over 70 international and 100 domestic destinations for travel plans.
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 Aereas 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.
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.
The countries covered in the domestic aviation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Domestic aviation market consists of sales of helicopter, piston fixed-wing aircraft, turboprop aircraft, and business jets. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Domestic Aviation Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on domestic aviation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for domestic aviation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The domestic aviation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.