India to become Third Aviation Market
According to International Air Transport Association(IATA) said it will displace the UK for the third place in 2026. India likely to be set for becoming third largest aviation market in 2020 after United States and China .
At present, India is among the fastest growing and currently ninth largest aviation market in the world. The Indian Aviation market witnessed 224 million passengers in 2016. Expected to add up to 337 million passengers according to the study by the International Air Transport Association (IATA).
India expected to grow in 478 million passengers in 2036 on the back of strong demand Growth rate of 11 percent on domestic market over the next 10 years while the combined growth rate for domestic and international routes would also more than 10 percent. The market is also estimated to have 800 aircraft by 2020. Globally a total of 7.8 billion passengers are expected to travel in 2036 with the Asia-Pacific leading the demand .
Boeing Co said on Monday it expects Indian airlines to order up to 2,100 new aircraft worth $290 billion over the next 20 years, calling it the highest-ever forecast for Asia’s third-largest economy.
India is one of the world’s fastest-growing aviation markets with domestic passenger traffic growing at more than 20 percent a year over the last few years. “The increasing number of passengers combined with a strong exchange rate, low fuel prices, and high load factor bodes well for India’s aviation market, especially for the low-cost carriers .
Interestingly, the growth of the aviation sector in India is also linked to the Regional Connectivity Scheme where-in of the 400 airstrips in India, 100 will be operational under the first phase of the scheme. The organization says that routes to, from, and within Asia-pacific will see an extra 2.1 billion annual passengers by 2036 for an overall market size of 3.5 billion.
China will displace the US as the world’s largest aviation market (defined by traffic to, from and within the country) around 2029. India will displace the UK for the third place in 2026, while Indonesia enters the top ten at the expense of Italy,” IATA said in its forecast. “Growth will also increasingly be driven within developing markets.