Low-Cost Carrier (LCC) Market Insights and Industry Analysis by Aircraft Type (Narrow-Body, Wide-Body), by Operations (Domestic, International) and by Distribution Channel (Online, Travel Agency), and Region, Competitive Market Size, Share, Trends, and Forecast
New York, US, June 30, 2021 (GLOBE NEWSWIRE) -- Low-Cost Carrier Market Overview
According to a comprehensive research report by Market Research Future (MRFR), “Low-Cost Carrier Market Information by Aircraft Type, Operations, Distribution Channel, and Region - Forecast till 2025”, the market is anticipated to reach USD 247.36 Billion by 2025, expanding at a CAGR of 8.62%.
Market Scope and Drivers:
Due Low-cost airlines have expanded rapidly worldwide in recent years, thanks to increased economic growth, ease of travel, the travel and tourism industry, urbanization, changes in lifestyle, consumers' desire for low-cost service with non-stops and regular service, increase in buying power of middle-class households, particularly in developing regions, and high internet penetration. The market is mainly being driven by an increase in global air passenger traffic, as well as an increase in demand for low-cost carriers. High aircraft use, internet booking, use of subsequent airports, reduced wage grades, minimum cabin crew, lower rates of staff unionization, higher class of seating, and fast ground turn-around times are just a few of the other factors propelling the industry ahead.
The market is expected to expand due to rising demand for LCCs in developing countries due to an increase in domestic air travelers. Additionally, major airlines are growing their investments in this business model, which is propelling the industry forward. Furthermore, lifestyle changes and unexpected increases in middle-class household buying power in developing regions are fueling demand development. The majority of business travelers choose not to fly in LCC because the payment is handled by the company. However, the industry is rapidly expanding in comparison to the business travel market. Since business travel is a significant cost center, businesses are increasingly embracing LCCs.
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Major Players in the Low-Cost Carrier (LCC) Market are:
AirAsia Berhad (Malaysia)
EasyJet Airline Company Limited (UK)
JetBlue Airways Corporation (US)
Norwegian Air Shuttle ASA (Norway)
Ryanair DAC (Ireland)
Southwestern Energy . (US)
SpiceJet Limited (India)
Spirit Airlines, Inc. (US)
WestJet Airlines Ltd (Canada)
However, demand growth is hampered by volatile crude oil prices, rising terrorism and crime rates, political instability, and natural disasters. The airline industry has been harmed by the COVID-19 pandemic. The restrictions on travel and tourism imposed by the lockdown, on the other hand, had limited demand for low-cost airlines. Nonetheless, in the coming years, clear airport rules, infrastructure investment, and operational and financial improvements would open up new possibilities. Furthermore, the low-cost airline industry is expected to face a number of challenges, including high investment and operating costs but low profitability.
Browse In-depth Market Research Report (173 Pages) on Low-Cost Carrier (LCC): https://www.marketresearchfuture.com/reports/low-cost-carrier-market-8504
By Aircraft Type, the market has been segmented into narrow-body and wide-body. The narrow-body segment is also expected to grow at the highest CAGR during the forecast period. The rise can be attributed to airlines' increased use of narrow-body aircraft. This planes have smaller running costs than wide-body planes, and in this business model, keeping operating costs down is the most critical aspect.
By Operations, the market has been segmented into domestic and international. The domestic Operations segment is expected to grow at a faster CAGR during the study period. An increase in the number of domestic air passengers, as well as an increase in the number of airports in developed countries, are driving the increase.
By Distribution Channel, the market is segmented into online and travel agency. The online distribution channel segment is expected to grow at the fastest pace during the forecast period. This is attributed to a rise in the use of online marketplaces for flight bookings, which save time and resources while still providing all flight details and being easy to use. The global online travel market is forecast to reach USD 1,091 billion by 2022, with Asia-Pacific growing at the fastest pace. The high penetration of online transactions aids the creation of a low-cost LCC model. The rapid use of internet purchases has helped in labor control and the removal of middle-man payments.
The LCC market is dominated by North America. Due to the involvement of prominent LCC airlines such as JetBlue Airways Corporation, Southwestern Energy ., Spirit Airlines, Inc., and WestJet Airlines Ltd., this pattern is expected to continue throughout the forecast period. The United States (US) had the most seats, followed by Spain and the United Kingdom (UK). The increase in seat sales can largely be attributed to increased domestic demand.
During the review period, the European market is projected to expand due to steadily increasing passenger traffic. By 2027, it is expected that half of all seats in the area will be low-cost. Spain sold the most seats in the European zone, followed by the United Kingdom, Italy, and Germany.
During the forecast period, the aircraft seating market in Asia Pacific is expected to grow at the fastest pace. The countries in this area have upgraded their capabilities by undertaking innovations in the field of aircraft seating, which has provided a major opportunity for OEM manufacturers to expand their businesses. During the forecast period, the market in this area is expected to grow at the fastest rate. The LCC market in India saw the highest number of seats sold in the Asia-Pacific region due to a rise in middle-income community customers and increasing demand for low-cost air tickets. The growth of air passenger traffic in countries like China, India, Malaysia, and Indonesia is encouraging LCC airline operators to invest more in the field. The estimated growth in GDP in emerging economies such as China over the next ten years presents significant demand potential. Because of its steady growth and robust economic reforms, China has recently attracted substantial foreign investment. Furthermore, the Indian government's plan to expand and improve the country's aviation infrastructure is expected to benefit this area.
The Latin American area has seen an increase in air passenger traffic in recent years, which is expected to fuel demand growth. LCCs have begun to reach the domestic markets of Chile, Peru, and Argentina, in addition to the three major markets of Brazil, and Colombia. Since Argentina's currency is weak and the economy is unpredictable, domestic travel on low-cost carriers has benefited.
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