Full Service Carrier Market Overview
The full service carrier market was valued at USD 282.665 billion in 2023 and is projected to grow from USD 290.23 billion in 2024 to USD 445.412 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.5% during the forecast period (2024 – 2032). Key drivers include the expansion of international trade and tourism, increased air passenger traffic, and rising per capita income globally.
Full Service Carrier Market Trends
The aviation sector provides the quickest method of travel to distant locations, essential for international business. Full-service carriers market offer the crucial connectivity required for maintaining international trade and tourism. For example, Lufthansa’s Boeing 747-8i offers enhanced long-distance travel with features like new flatbed business class seats and individual television monitors in economy class. The growing need to support expanding international trade and tourism sectors is driving the demand for full-service carriers.
Competitive Fares Boosting Market Growth
Intense competition in the aviation industry and a decrease in overall air travel costs have significantly reduced full-service carrier rates. This has led to a substantial increase in air passenger traffic. For instance, global air travel saw a 6.4% increase in 2018, with 8.8 billion passengers. International passenger traffic grew by 6.7%, while domestic passenger traffic grew by 5.5%. The increase in air passenger volume directly boosts the full-service carrier market.
Full Service Carrier Market Segment Insights
The full service carrier market is segmented based on connectivity into regional and international. The international segment dominated the market. Full-service carriers are in high demand due to the rise of low-cost carriers offering ancillary services, indicating a shift towards prioritizing comfort over ticket cost.
Aircraft Type
The market is segmented based on aircraft type into fixed-wing and rotary-wing aircraft. The fixed-wing aircraft segment generated the greatest revenue due to increased demand for long-distance, international travel.
Services
The market is segmented based on services into in-flight entertainment, meals, beverages, and others. The in-flight entertainment segment generated the most revenue, with airlines using audiovisual entertainment to differentiate themselves from competitors.
Regional Insights
North America
North America dominated the full service carrier market due to high disposable incomes and significant growth in the aviation industry. The US and Canada are major contributors to this market.
Europe
Europe accounted for the second-largest market share, driven by an increase in air passenger travel and supportive government policies promoting tourism. Germany held the largest market share, while the UK was the fastest-growing market in the region.
Asia-Pacific
The Asia-Pacific region is expected to grow at the fastest CAGR from 2023 to 2032. The region’s growth is driven by increased travel and tourism activities, with full-service carriers offering enhanced travel experiences. China held the largest market share, and India was the fastest-growing market in the region
Key Market Players and Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines. Strategic initiatives include new product launches, contractual agreements, mergers and acquisitions, and collaborations. To remain competitive, full-service carriers must offer cost-effective services.
Key players include:
- American Airlines (US)
- China Eastern Airlines (China)
- China Southern Airlines (China)
- Delta Airlines (US)
- United Airlines (US)
- Air China (China)
- All Nippon Airways (Japan)
- British Airways (UK)
- Emirates (UAE)
- Lufthansa (Germany)
- Turkish Airlines (Turkey)
Notable Developments
- March 2022: DNATA partnered with EasyJet to oversee the airline’s onboard catering services, enhancing DNATA’s global network.
Full Service Carrier Market Segmentation
Connectivity Outlook
- Regional
- International
Aircraft Type Outlook
- Fixed-Wing Aircraft
- Rotary-Wing Aircraft
Services Outlook
- In-flight Entertainment
- Meals
- Beverages
- Others
Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
Recent News :
However, competition from low-cost service providers is proving to be a significant market deterrent. In addition, some of the service providers have started charging for the extra service provided which can put a string on the market growth. But FSCs are developing new strategies to fight back. For instance, they are developing loyalty rewards programs to retain their client base. In India, Jet Airways found success by implementing the same.
About US
Market Research Future (MRFR) is a global market research company that takes pride in its services, offering a complete and accurate analysis with regard to diverse markets and consumers worldwide. Market Research Future has the distinguished objective of providing the optimal quality research and granular research to clients. Our market research studies by products, services, technologies, applications, end users, and market players for global, regional, and country level market segments, enable our clients to see more, know more, and do more, which help answer your most important questions.
Contact us:
Market Research Future (part of Wantstats Research and Media Private Limited),
99 Hudson Street,5Th Floor New York 10013, United States of America
Sales: +1 628 258 0071 (US) +44 2035 002 764 (UK)
Email: Sales@marketresearchfuture.com