The Low Cost Carrier (LCC) market in Europe is Expected to Witness Significant Growth at a CAGR of 16.30% During the Forecast Period (2023–2030): MRFR

Oct 2022, MRFR Press Release/Market Research Future has published a Cooked Research Report on the Global Low Cost Carrier (LCC) Market.

Overview

The global Low Cost Carrier (LCC) market is projected to grow at a 16.30%% CAGR during the forecast period, 2023–2030.

Regional Analysis

The geographic analysis of the Low Cost Carrier (LCC) market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America.

North America is expected to showcase the fastest growth trend owing to the presence of major aircraft manufacturers in the region. Several manufactures including Boeing, Lockheed Martin, and United Technologies are continuously investing in the R&D of advanced aircraft. Industry participants are continuously engaged in strategic collaborations and partnerships to supply aero structures & aircraft components to support their aircraft production. Furthermore, in February 2020, the acquisition of Bombardier by Airbus and the Government of Québec is expected to drive the regional jets business expansion in North America.

The presence of multiple aircraft manufacturers across the region including Daher, Stelia Aerospace, and Latecoere are primarily contributing to the Europe low-cost carrier (LCC) market growth over the study timeframe. The increasing prominence of low-cost carriers along with the expanding regional connectivity will support the regional growth over the forecast timeframe. The increasing air traffic coupled with higher airline frequencies is propelling the demand for new aircraft across the region. Additionally, the proliferating MRO services will play a major role in the industry expansion over the study timeframe. Manufacturers are also emphasizing on expanding their production facilities to meet their previous order backlogs. For instance, in June 2018, Airbus inaugurated its fourth production line to manufacture the A320 product line-up in Hamburg, Germany. This strategy enabled the company to ramp up the production of its single-aisle aircraft to 60 per month until mid-2019.

Asia Pacific will showcase considerable growth in the aero structures market owing to increasing air passenger travel across the region. The strong infrastructure development and upgrading of airports along with improving regional connectivity of airliners are providing a positive outlook for regional growth. The increasing focus of air carriers on fleet modernization and the expanding tourist destination networks coupled with higher disposable incomes are supporting the low-cost carrier (LCC) market expansion until 2030. Furthermore, the emergence of new regional jet manufacturers in China along with new airlines in India is supporting the market growth over the forecast timeframe.

Rising disposable incomes along with improving economic conditions are providing potential air travel opportunities over the region. The growing demand for commercial aircraft owing to increasing air passenger traffic coupled with the replacement of the existing fleets will boost market growth over the forecast timeframe. For instance, in 2017, Airbus estimated that the region will register a lucrative demand for 3,320 air carriers until 2036. The expansion of regional airlines to provide improved air travel facilities will support the market size over the projected timeframe. Furthermore, the growing presence of MRO service players in the region is also offering new opportunities for business expansion

The Latin America low-cost carrier (LCC) market is driven by the proliferating airliners across the region. Additionally, airliners are significantly expanding their airline routes and focusing on providing convenience to customers, thus boosting their market shares. Aircraft manufacturers are entering the region to improve their sales and support their geographical expansion, thus boosting their market shares. For instance, in November 2019, Lockheed Martin expanded its sales network in Latin America with a new sales office in Chile.

Competitive Analysis

The key players of the Low Cost Carrier (LCC) market include AirAsia Berhad, EasyJet plc, IndiGo, JetBlue Airways Corporation, Norwegian Air Shuttle ASA, Ryanair DAC, Ryanair DAC, SpiceJet Limited, Spirit Airlines, Inc., WestJet Airlines Ltd, Alaska Air Group, Inc, Azul S.A, Air Arabia PJSC, Jetstar Airways Pty Ltd, Eurowings, Scoot, PAL Express, and Flynas.

Segmental Analysis

The Low Cost Carrier (LCC) Market has been segmented based on aircraft type, operation, purpose, distribution channel, and region.

by Aircraft Type the market has been segmented into Narrow-Body and Wide-Body, by Operations the market has been segmented into  Domestic and International, by Purpose the market has been segmented into Leisure Travel, VFR, Business Travel, and Others and by Distribution Channel the market has been segmented into Online, Travel Agency, and Others.