# India Aviation Market (2023-2029) --- ## Report Summary The India Aviation Market worth USD 19.84 billion in 2026 is projected to reach USD 26.71 billion by 2031, growing at a CAGR of 5.10% during 2026-2031. --- ## India Aviation Market Table of Content Table of Contents - 1. Executive Summary - 1.1. Executive Summary: India Aviation market - 2. Country Profile: India - 2.1. India Country Overview, 2017-2023 - 2.2. Population Analysis, 2010-2025 - 2.3. India’s GDP, 2017-2022 - 2.4. Inflation Rate, 2017-2022 - 2.5. Population by Income Class, 2023 - 2.6. Urbanization, 2023 - 3. India Aviation Market Overview and Sizing - 3.1. Ecosystem of Major Entities Operating in the India Aviation Market - 3.2. Business Lifecycle and Genesis - 3.3. Value Chain in the Aviation Market in India - 3.4. Popular Revenue Models in the India Aviation Market - 3.5. India Aviation Market Size by Value (USD Bn), 2018-2023 - 3.6. India Aviation Market Size by Volume (Mn), 2018-2023 - 4. Snapshot of India Aviation Market - 4.1. Ecosystem and Overview of the Aviation Market in India - 4.2. Timeline of Major Aviation Companies in India - 4.3. Market Share of Major Companies - 5. Industry Analysis - 5.1. SWOT Analysis of the Aviation Market in India - 5.2. Porter’s Five Forces Analysis of the Aviation Market in India - 5.3. Trends and Development in India Aviation Market - 5.4. Growth Drivers in India Aviation Market - 5.5. Issues and Challenges in the India Aviation Market - 5.6. Government Initiatives - 6. Future Outlook - 6.1. India Aviation Market Size by Value (USD Bn), 2023-2029 - 6.2. India Aviation Market Size by Volume (Mn), 2023-2029 - 7. Analyst Recommendations - 7.1. Target Market and Offline Marketing - 7.2. Risks and Mitigation Strategies - 8. Research Methodology - 9. Disclaimer - 10. Contact Us --- ## India Aviation Market Overview India Aviation Market Highlights The India aviation market expanded from USD 8.30 Bn in 2018 to USD 16.10 Bn in 2022, reflecting a historical CAGR of 11.7%. Looking ahead, the market is forecast to reach USD 26.71 Bn by 2028, growing at a CAGR of 10.7% during 2023–2028. Structurally, India is also positioned for a major demand step-up—by 2030, it is anticipated to surpass China and the United States to become the world’s third-largest air passenger market. In terms of operating momentum, domestic passenger traffic reached 270.34 Mn in 2023, posting 62% growth vs. 2022, indicating strong post-pandemic normalization and demand recovery. Key growth drivers underpinning this trajectory include urbanization and infrastructure development, rising FDI in aviation, expansion of the tourism industry, and deeper low-cost carrier (LCC) penetration, which continues to broaden access and stimulate price-led demand. *The India Aviation Market was valued at USD 16.10 Bn in 2022 compared to USD 8.30 Bn in 2018 developing at a historical CAGR of 11.7 %.* --- ## India Aviation Market Definition ### Market Definition **Definition of India Aviation Market** India Aviation market has been defined as the sum total of revenues earned by all domestic airlines in the country including commercial, military, and cargo services. The report provides market size based on value in USD Bn. The market incorporates segmentations including by service type (Scheduled air transport service, Non-scheduled air transport service, and Air cargo service), by aircraft type (Commercial Aviation, General Aviation, and Military Aviation), and by Passenger Class (P Economy Class, Business Class, and First Class). The report includes prominent players such as Indigo, Vistara, Air India, SpiceJet, Go Air, Air Asia, Akasa Air, and others. --- ## Taxonomy | ID | Parent ID | Label | | --- | --- | --- | | 1 | | India Aviation Market | | 2 | 1 | By Service Type | | 3 | 2 | Scheduled air transport service | | 4 | 2 | Non-scheduled air transport service | | 5 | 2 | Air cargo service | | 6 | 1 | By Aircraft Type | | 7 | 6 | Commercial Aviation | | 8 | 6 | General Aviation | | 9 | 6 | Military Aviation | | 10 | 1 | By Passenger Class Type | | 11 | 10 | Economy Class | | 12 | 10 | Business Class | | 13 | 10 | First Class | --- ## India Aviation Market Ecosystem ### Market Ecosystem **Ecosystem of India Aviation Market** India Aviation market is highly consolidated with the top five players holding approximately 90% of the market share. Indigo, Vistara, Air India, SpiceJet, and Go Air are some of the prominent players in the market with Indigo being the single largest player in the market. India Aviation market comes under the direct control of the Ministry of Aviation market alongside the presence of other regulatory bodies such as DGCA (Directorate General of Civil Aviation) and the Airports Authority of India. --- ## India Aviation Market Size (By Value, in USD Bn), 2018-2023 Over the last three years, India’s aviation market has emerged as one of the fastest-growing sectors in the country. In 2023, India became the third-largest domestic aviation market globally, and it is anticipated to further strengthen its position by emerging as the world’s third-largest aviation market by surpassing the United Kingdom in 2024. In value terms, the India aviation market stood at USD 16.10 Bn in 2023 compared to USD 8.30 Bn, reflecting a CAGR of 11.07% over the period. The market faced a sharp disruption in 2020, contracting by 19.1% YoY due to the closure of domestic and international flights amid the COVID-19 pandemic. However, the industry rebounded strongly post-pandemic—2022 recorded the highest YoY growth of ~89%, and momentum sustained into 2023, with the market recovering further and registering 13.4% YoY growth, reaching a market size of USD 15.16 Bn. --- ## India Aviation Market Segmentation, 2023 ### India Aviation Market Segmentation by Type of Service by Value (In %), 2023 In 2023, scheduled air transport service dominated the India aviation market with a 75% market share, followed by non-scheduled air transport service (15%) and air cargo service (10%). Scheduled air transport leads due to the convenience of regular, predictable flight schedules, enabling passengers to plan travel more easily. To ensure accessibility and reliability, scheduled operators provide multiple flight options through the day with varied departure and arrival times. Additionally, scheduled airlines run extensive route networks, linking major cities, regional hubs, and remote destinations across India, while also supporting international connectivity. ### India Aviation Market Segmentation by Type of Aircraft by Value (In %), 2023 In 2023, the India aviation market was dominated by commercial aviation, which accounted for 85% market share, supported by the strong fit of these aircraft for India’s domestic and regional route structure. Commercial aircraft typically offer an effective balance of capacity, range, and operating economics, making them well-suited for short- to medium-haul operations across the country. Within the commercial fleet, narrow-body aircraft such as the Airbus A320 family and Boeing 737 family are prominent, known for their efficiency, versatility, and suitability for these route profiles. In comparison, general aviation and military aviation represented smaller segments, holding 10% and 5% market share respectively. ### India Aviation Market Segmentation by Type of Passenger Class by Value (In %), 2023 Economy class is the largest passenger class segment in the Indian aviation market, holding a dominant 80% market share, followed by business class (15%) and first class (5%). Economy class leads primarily due to its affordability versus premium cabins, making it the preferred choice for the majority of leisure and budget-conscious travelers seeking cost-effective air travel. It is particularly well-suited for domestic journeys in India, offering a strong mix of accessibility and convenience for intra-country routes. Moreover, rising disposable incomes and the expansion of India’s middle class are further accelerating demand for air travel, reinforcing the continued growth of economy-class passenger volumes. --- ## India Aviation Market Analysis ### India Aviation Market Passengers Growth, 2018-2023 **Growth in Domestic Passengers (In Mn), 2018-2023** In 2023, a total of 270 Mn passengers utilized domestic airline services in India compared to 243 Mn passengers in 2018. The market witnessed a substantial decrease in 2021 owing to the nationwide closure of air services in India. The market picked up speed in 2022 post the covid-19, however, the overall growth was still on the negative side compared to the pre-pandemic era. In 2021, approximately 167 Mn passengers used air service in India compared to 275 Mn passengers in 2020. **Growth in International Passengers (In Mn), 2018-2023** In 2023, approximately 56 million international passengers arrived in India through air services compared to 65 million in 2018. The market decreased drastically in 2021 and 2022 owing to global pandemic Covid-19 and the closure of international flights. In 2021, only 10 Mn international passengers visited India through air services followed by 22 Mn in 2022. The market recovered in 2023 but still failed to match the pre-pandemic numbers. In 2019, highest ever international passengers arrived in India reaching a number of 69 Mn passengers followed by 67 Mn in 2020. ### India Aviation Market Increasing Investments and Developments The government of India has allowed 100% FDI (Foreign Direct Investment) for scheduled air transport service, regional air transport service, and domestic scheduled passenger airlines under automatic routes. However, government approval is still required in the case of FDI over 49%. In May 2023, Union Aviation Minister Jyoti raj Scindia announced that the government is planning to invest INR 1 lakh Cr (USD 12 Bn) in the airport industry in the coming years. In the next four to five years, India aviation industry is ready to witness an investment worth INR 35,000 Cr (USD 4.99 Bn). Additionally, the government is also aiming to spend USD 1.83 Bn for the expansion of airport infrastructure along with aviation navigation services by 2026. As per the Ministry of Civil Aviation, India is planning to increase its airport strength by making 220 operation airports by the end of 2025 compared to 140 airports in 2023. Additionally, with 133 new flights cargo flights for perishable food items will be increased to 30%. ### India Aviation Market Challenges **Regulatory Hurdles and Policy Uncertainty** Regulatory obstacles and policy uncertainty apply to difficulties that emerge from complicated regulations, bureaucratic processes, and confusing government policies within the aviation industry. These difficulties take many different forms such as unclear policy frameworks, unpredictable government choices, and delays in regulatory approvals. **Skilled Manpower Shortage** The shortage of skilled manpower in the aviation industry refers to challenges in recruiting, training, and retaining qualified professionals across various aviation disciplines including pilots, aircraft engineers, air traffic controllers, and maintenance technicians. The rapid growth of the aviation industry, alterations in demographics, insufficient training facilities, and intense competition for skilled labour are some of the causes of the skilled labour shortage in India. Additionally, manpower shortages are made worse by the specialized nature of aviation professions and the strict regulatory requirements. **High-Operating Costs** High operating costs in the Indian aviation market include a wide range of costs that airlines experience such as fuel prices that are affected by international oil prices and currency exchange rates, airport fees, maintenance and repair costs for aircraft, labour costs, aircraft leasing and financing costs, insurance premiums, costs associated with complying with regulations, and marketing and distribution costs. **Seasonal Demand Fluctuations** Seasonal factors like holidays, festivals, weather patterns, and travel trends cause variations in passenger traffic and freight volumes which are referred to as seasonal demand fluctuations. Such variations result in capacity limitations, supply and demand imbalances, and fluctuating revenue for airports and airlines. ### India Aviation Market Recent Developments In October 2022, the Prime Minister of India laid the foundation stone of the C-295 Aircraft Manufacturing Facility in Vadodara, Gujarat. Additionally, in September 2021, India finalized a deal worth INR 21935 Cr with Airbus Defense and Space to purchase 56 C-295 aircraft. In 2023, DGCA (Directorate General of Civil Aviation) approved the import of 470 and 500 aircraft respectively by Air India Ltd. and Interglobe Aviation Ltd (Indigo). The aircraft is predicted to be imported by the end of 2025 as per the induction plan of airlines. In 2022, Mumbai International Airport Ltd (MIAL) fundraised an amount worth USD 75 million in debt from a US-based private asset manager, Apollo Global under a private placement. In June 2021, Under the guidance of the World Economic Forum (WEF), SpiceJet announced its goal of flying 100 million domestic passengers on a Sustainable Aviation Fuel (SAF) blend by 2030. --- ## India Aviation Market Company Profile | Year | Company | Description | | --- | --- | --- | | 1987 | InterGlobe Aviation Limited (Indigo) | InterGlobe Aviation Limited, operating as IndiGo, is a prominent low-cost airline based in Gurgaon, India. It is the largest airline in India by passengers carried and fleet size, with a significant domestic market share. Founded in 2006, IndiGo offers domestic and international air transport services, cargo services, and in-flight sales. With a fleet of over 350 aircraft serving 119 destinations, IndiGo is known for its punctuality and operational excellence in the aviation industry. | | 2013 | Tata SIA Airlines Limited (Vistara) | Tata SIA Airlines Limited, operating as Vistara, is an Indian full-service airline based in Gurgaon with its hub at Indira Gandhi International Airport. The carrier, a joint venture between Tata Sons and Singapore Airlines, commenced operations on 9 January 2015. As of April 2023, Vistara has a 8.7% share of the domestic carrier market, making it the second largest domestic airline, behind IndiGo. The airline was founded in 2013 and serves 50 destinations with a fleet of Airbus A320neo, Airbus A321neo, and Boeing 787-9 aircraft. | | 1932 | Air India Limited (Air India) | Air India is a government-owned airline based in New Delhi, India, founded in 1932 as Tata Airlines. It is the country’s flag carrier and operates a fleet of Airbus and Boeing aircraft, serving 94 domestic and international destinations. Air India is a member of Star Alliance and has a frequent-flyer program called Flying Returns. The airline has a hub at Indira Gandhi International Airport and operates under the IATA code AI and ICAO code AIC. Air India has a rich history and has been a significant player in the Indian aviation industry for many years. | | 2004 | SpiceJet | SpiceJet is a low-cost airline based in Gurgaon, India, founded in 2005. It operates a fleet of Boeing 737 and Bombardier Q400 aircraft, serving 63 destinations across India and 11 international destinations. SpiceJet is a member of the International Air Transport Association (IATA) and has a frequent-flyer program called SpiceClub. The airline operates under the IATA code SG and ICAO code SEJ. SpiceJet has been a significant player in the Indian aviation industry, known for its low-cost business model and extensive domestic network. | | 2001 | Air Asia | AirAsia, a Malaysian low-cost airline, headquartered near Kuala Lumpur, operates domestic and international flights to over 166 destinations across 25 countries. Founded in 1993, it is the largest airline in Malaysia by fleet size and destinations. AirAsia has received numerous awards for being the world’s best low-cost carrier. The airline’s innovative approach to low-cost travel has made it a pioneer in the Asian aviation industry, consistently providing affordable and reliable air travel services. | --- ## India Aviation Market Future Outlook ### India Aviation Market Future Outlook (By Value, in USD Bn), 2023-2028 According to the International Air Transport Association (IATA), India is expected to overtake China and the United States by 2030 to become the world’s third-largest air passenger market. To accelerate domestic aviation growth, the government is also expected to invest approximately INR 98,000 Cr (USD 12 Bn) by end-2025. Within this outlook, the India aviation market is projected to reach a market size of USD 26.71 Bn by 2029, expanding at a CAGR of 10.07% over the forecast period, with the market expected to grow steadily and record its highest YoY growth of ~13% in 2028 and 2029. In parallel, to strengthen airport infrastructure and capacity, the Airports Authority of India (AAI) is planning an additional investment of INR 25,000 Cr (USD 3.8 Bn) over the next five years. --- ## India Aviation Market Macroeconomic-Indicators ### India Size of Population, (In Million), 2017-2023 India's population was valued at 1437 million in 2023, increasing by 30 million from 1407 million in 2022. By the end of 2025, India's population is predicted to reach 1500 million. ### Population Based on Age Group in India, (in %), 2010-2025 In the year 2020, The population between the 25-49 age group is the largest age group (36.40%) in India followed by 0-14 (26.40%), 50+ (19.40%), and 15-24 (18%). ### India's GDP, (In USD Bn), 2017-2023 In 2023, India's GDP was valued at USD 3732 billion compared to USD 2710 billion in 2018. The country’s GDP is expected to reach 5000 billion by the end of 2025. ### India Inflation Rate, (In %), 2017-2023 In 2023, India’s Inflation rate stands at 5.66 % an increase of approximately 2.5% from the 2018 inflation rate of 3.94%. During the COVID-19 pandemic in 2020, the inflation rate in India surged unexpectedly to 6.62% from 3.72% in 2019. ### Population of India by Income Class, (in %), 2023 As of 2023, India comprises of majority of the middle-class population which is 57% of the total population of India. After the middle class comes the lower-class category which comprises 33% of the total population of India. The remaining 10% of the population belongs to a high-income class. --- ## Frequently Asked Questions Find quick answers to common questions about the India Aviation Market **Q: How big is the India Aviation Market?** A: The India Aviation market was valued at USD 16.10 Bn in 2023 growing at a CAGR of 11.07% between the forecasted period of 2018-2023. **Q: What is the future market size of the India Aviation Market?** A: The India Aviation Market is anticipated to reach a market size of USD 26.70 Bn with a compound annual growth rate of 10.07% over the forecast period of 2023–2028. **Q: Who are the key players in the India Aviation market?** A: Indigo, Vistara, Air India, SpiceJet, Go Air, Air Asia, and Akasa Air are some of the prominent companies operating in the India Aviation market. **Q: What are the growth drivers of the India Aviation market?** A: Urbanization and Infrastructure Development, Foreign Direct Investment (FDI) in Aviation, Growing Tourism Industry, and Low-Cost Carrier (LCC) Penetration are some of the major growth drivers of the India Aviation market. **Q: Which segment is dominating the India Aviation Market?** A: Scheduled air transport services dominate the India Aviation Market followed by Non-scheduled air transport service and Air cargo service.