The International Air Transport Association (IATA) has released its first 20-year passenger growth forecast, projecting that passenger numbers are expected to reach 7.3 billion by 2034.
That represents a 4.1 per cent average annual growth in demand for air connectivity that will result in more than a doubling of the 3.3 billion passengers expected to travel this year. Among the highlights of the report is the expectation that China will overtake the United States as the world’s largest passenger market (defined by traffic to, from and within) by 2030. Both markets, however, are expected to remain the largest by a wide margin. In 2034 flights to, from and within China will account for some 1.3 billion passengers, 856 million more than 2014 with an average annual growth rate of 5.5 per cent. Traffic to, from and within the US is expected to grow at an average annual growth rate of 3.2 per cent that will see 1.2 billion passengers by 2034 (559 million more than 2014). The report, the first from the new IATA Passenger Forecasting service, produced in association with Tourism Economics, analyses passenger flows across 4,000 country pairs for the next 20 years, forecasting passenger numbers by way of three key demand drivers: living standards, population and demographics, and price and availability.
Future growth trend highlights
• By 2034 the five fastest-increasing markets in terms of additional passengers per year will be China (856 million new passengers per year), the US (559 million), India (266 million), Indonesia (183 million) and Brazil (170 million). • Eight of the 10 fastest-growing markets in percentage terms will be in Africa with Central African Republic, Madagascar, Tanzania, Burundi and Kuwait making up the five fastest-growing markets. • In terms of country-pairs, Asian and South American destinations will see the fastest growth, reflecting economic and demographic growth in those markets. Intra-Pakistan, Kuwait-Thailand, United Arab Emirates (UAE)-Ethiopia, Colombia-Ecuador and intra-Honduras travel will all grow by at least 9.5 per cent on average for the next 20 years, while Indonesia-East Timor will be the fastest growing pair of all, at 14.9 per cent. "It is an exciting prospect to think that in the next 20 years more than twice as many passengers as today will have the chance to fly. Air connectivity on this scale will help transform economic opportunities for millions of people. At present, aviation helps sustain 58 million jobs and US$2.4 trillion in economic activity. In 20 years’ time we can expect aviation to be supporting around 105 million jobs and US$6 trillion in GDP," said Tony Tyler, IATA’s director general and ceo. Largest markets
Analysis of the 10 largest air passenger markets defined by traffic to, from and within for the period 2014-2034 shows: • The United States will remain the largest air passenger market until around 2030, when it will drop to number 2, behind China. Cumulatively over the next 20 years the US will carry 18.3 billion more passengers and China 16.9 billion. • Currently the ninth largest market, India will see a total of 367 million passengers by 2034, an extra 266 million annual passengers compared to today. It will overtake the United Kingdom (148 million extra passengers, total market 337 million) to become the 3rd largest market around 2031. • Reflecting a declining and ageing population, Japanese air passenger numbers will grow just 1.3 per cent per year and decline from the fourth largest market in 2014 to the ninth largest by 2033. • Germany and Spain will decline from fifth and sixth position in 2014 to be the eighth and seventh largest markets respectively. France will fall from seventh to 10th while Italy will fall out of the top 10 altogether in around 2019. • Brazil will increase passenger numbers by 170 million and rise from 10th to fifth. Its total market will be 272 million passengers. • Indonesia will enter the top ten around 2020 and attain sixth place by 2029. By 2034 it will be a market of 270 million passengers. Regional growth highlights:
• Routes to, from and within Asia-Pacific will see an extra 1.8 billion annual passengers by 2034, for an overall market size of 2.9 billion. In relative terms it will increase its size compared to other regions to 42 per cent of global passenger traffic, and its annual average growth rate, 4.9 per cent will be the joint-highest with the Middle East. • The North American region will grow by 3.3 per cent annually and in 2034 will carry a total of 1.4 billion passengers, an additional 649 million passengers a year. • Europe will have the slowest growth rate, 2.7 per cent, but will still cater for an additional 591 million passengers a year. The total market will be 1.4 billion passengers. • Latin American markets will grow by 4.7 per cent, serving a total of 605 million passengers, an additional 363 million passengers annually compared to today. • The Middle East will grow strongly (4.9 per cent) and will see an extra 237 million passengers a year on routes to, from and within the region by 2034. The UAE, Qatar and Saudi Arabia will all enjoy strong growth of 5.6 per cent, 4.8 per cent, and 4.6 per cent respectively. The total market size will be 383 million passengers. • Africa will grow by 4.7 per cent. By 2034 it will see an extra 177 million passengers a year for a total market of 294 million passengers.
Domestic air passengers markets
• The fastest-growing domestic market will be China, which will grow at 5.6 per cent per year and by 2034 will account for 1.0 billion passengers (691 million additional domestic passengers compared to today). • The United States domestic market will expand by 3.2 per cent per year, to 822 million passengers, an additional 384 million passengers annually compared to 2014. • The Indian and Brazilian domestic markets will grow at 6.9 per cent and 5.4 per cent respectively. India will be adding 159 million extra passengers and Brazil 147 million. Their total domestic air markets will be 215 million and 226 million. • Indonesia will be the fifth largest domestic market. It will grow at 6.4 per cent, adding an extra 136 million passengers a year by 2034. The total Indonesian domestic market will be 191 million. • The remaining top ten domestic markets will be Turkey (annual growth of 5.3 per cent), Philippines (5.9 per cent), Mexico (4.6 per cent), Colombia (6.0 per cent), and Vietnam (6.2 per cent).
Explanation of demand drivers
The Global Passenger Forecast Report explains future trends in passenger numbers by means of three key demand drivers: living standards, population and demographics, and price and availability. • Living standards have a known effect on the propensity to fly. Countries on a growth curve up to approximately US$20,000 per capita see correspondingly faster increases in the number of flights taken per person per year. • Population and demographics reflects not just population trends over the next 20 years but also measures such as the old-age dependency ratio. On these measures, countries such as Japan, Russia and Ukraine are expected to undergo significant population decline. African nations, on the other hand, are set for rapid population growth. Typically, the nations with growing populations also have younger populations, and working-age groups are more likely to fly than over-65s. • Price and availability looks to predict future trends of the price of air travel and the extent of future air connectivity. The unit cost of air transport has fallen by a factor of four since 1950. However, the past decade has seen prices bottom out, largely due to the increased cost of oil. In the coming two decades, the downward trend in the real cost of air travel is expected to resume, at a rate of around one-to-1.5 per cent per year. Air connectivity is expected to increase with the addition of new longer-range mid-size aircraft. Greater liberalisation of air markets has the potential to increase global air traffic growth by more than one percentage point per year.
The International Air Transport Association (IATA) has released its first 20-year passenger growth forecast, projecting that passenger numbers are expected to reach 7.3 billion by 2034.
That represents a 4.1 per cent average annual growth in demand for air connectivity that will result in more than a doubling of the 3.3 billion passengers expected to travel this year. Among the highlights of the report is the expectation that China will overtake the United States as the world’s largest passenger market (defined by traffic to, from and within) by 2030. Both markets, however, are expected to remain the largest by a wide margin. In 2034 flights to, from and within China will account for some 1.3 billion passengers, 856 million more than 2014 with an average annual growth rate of 5.5 per cent. Traffic to, from and within the US is expected to grow at an average annual growth rate of 3.2 per cent that will see 1.2 billion passengers by 2034 (559 million more than 2014). The report, the first from the new IATA Passenger Forecasting service, produced in association with Tourism Economics, analyses passenger flows across 4,000 country pairs for the next 20 years, forecasting passenger numbers by way of three key demand drivers: living standards, population and demographics, and price and availability.
Future growth trend highlights
• By 2034 the five fastest-increasing markets in terms of additional passengers per year will be China (856 million new passengers per year), the US (559 million), India (266 million), Indonesia (183 million) and Brazil (170 million). • Eight of the 10 fastest-growing markets in percentage terms will be in Africa with Central African Republic, Madagascar, Tanzania, Burundi and Kuwait making up the five fastest-growing markets. • In terms of country-pairs, Asian and South American destinations will see the fastest growth, reflecting economic and demographic growth in those markets. Intra-Pakistan, Kuwait-Thailand, United Arab Emirates (UAE)-Ethiopia, Colombia-Ecuador and intra-Honduras travel will all grow by at least 9.5 per cent on average for the next 20 years, while Indonesia-East Timor will be the fastest growing pair of all, at 14.9 per cent. "It is an exciting prospect to think that in the next 20 years more than twice as many passengers as today will have the chance to fly. Air connectivity on this scale will help transform economic opportunities for millions of people. At present, aviation helps sustain 58 million jobs and US$2.4 trillion in economic activity. In 20 years’ time we can expect aviation to be supporting around 105 million jobs and US$6 trillion in GDP," said Tony Tyler, IATA’s director general and ceo. Largest markets
Analysis of the 10 largest air passenger markets defined by traffic to, from and within for the period 2014-2034 shows: • The United States will remain the largest air passenger market until around 2030, when it will drop to number 2, behind China. Cumulatively over the next 20 years the US will carry 18.3 billion more passengers and China 16.9 billion. • Currently the ninth largest market, India will see a total of 367 million passengers by 2034, an extra 266 million annual passengers compared to today. It will overtake the United Kingdom (148 million extra passengers, total market 337 million) to become the 3rd largest market around 2031. • Reflecting a declining and ageing population, Japanese air passenger numbers will grow just 1.3 per cent per year and decline from the fourth largest market in 2014 to the ninth largest by 2033. • Germany and Spain will decline from fifth and sixth position in 2014 to be the eighth and seventh largest markets respectively. France will fall from seventh to 10th while Italy will fall out of the top 10 altogether in around 2019. • Brazil will increase passenger numbers by 170 million and rise from 10th to fifth. Its total market will be 272 million passengers. • Indonesia will enter the top ten around 2020 and attain sixth place by 2029. By 2034 it will be a market of 270 million passengers. Regional growth highlights:
• Routes to, from and within Asia-Pacific will see an extra 1.8 billion annual passengers by 2034, for an overall market size of 2.9 billion. In relative terms it will increase its size compared to other regions to 42 per cent of global passenger traffic, and its annual average growth rate, 4.9 per cent will be the joint-highest with the Middle East. • The North American region will grow by 3.3 per cent annually and in 2034 will carry a total of 1.4 billion passengers, an additional 649 million passengers a year. • Europe will have the slowest growth rate, 2.7 per cent, but will still cater for an additional 591 million passengers a year. The total market will be 1.4 billion passengers. • Latin American markets will grow by 4.7 per cent, serving a total of 605 million passengers, an additional 363 million passengers annually compared to today. • The Middle East will grow strongly (4.9 per cent) and will see an extra 237 million passengers a year on routes to, from and within the region by 2034. The UAE, Qatar and Saudi Arabia will all enjoy strong growth of 5.6 per cent, 4.8 per cent, and 4.6 per cent respectively. The total market size will be 383 million passengers. • Africa will grow by 4.7 per cent. By 2034 it will see an extra 177 million passengers a year for a total market of 294 million passengers.
Domestic air passengers markets
• The fastest-growing domestic market will be China, which will grow at 5.6 per cent per year and by 2034 will account for 1.0 billion passengers (691 million additional domestic passengers compared to today). • The United States domestic market will expand by 3.2 per cent per year, to 822 million passengers, an additional 384 million passengers annually compared to 2014. • The Indian and Brazilian domestic markets will grow at 6.9 per cent and 5.4 per cent respectively. India will be adding 159 million extra passengers and Brazil 147 million. Their total domestic air markets will be 215 million and 226 million. • Indonesia will be the fifth largest domestic market. It will grow at 6.4 per cent, adding an extra 136 million passengers a year by 2034. The total Indonesian domestic market will be 191 million. • The remaining top ten domestic markets will be Turkey (annual growth of 5.3 per cent), Philippines (5.9 per cent), Mexico (4.6 per cent), Colombia (6.0 per cent), and Vietnam (6.2 per cent).
Explanation of demand drivers
The Global Passenger Forecast Report explains future trends in passenger numbers by means of three key demand drivers: living standards, population and demographics, and price and availability. • Living standards have a known effect on the propensity to fly. Countries on a growth curve up to approximately US$20,000 per capita see correspondingly faster increases in the number of flights taken per person per year. • Population and demographics reflects not just population trends over the next 20 years but also measures such as the old-age dependency ratio. On these measures, countries such as Japan, Russia and Ukraine are expected to undergo significant population decline. African nations, on the other hand, are set for rapid population growth. Typically, the nations with growing populations also have younger populations, and working-age groups are more likely to fly than over-65s. • Price and availability looks to predict future trends of the price of air travel and the extent of future air connectivity. The unit cost of air transport has fallen by a factor of four since 1950. However, the past decade has seen prices bottom out, largely due to the increased cost of oil. In the coming two decades, the downward trend in the real cost of air travel is expected to resume, at a rate of around one-to-1.5 per cent per year. Air connectivity is expected to increase with the addition of new longer-range mid-size aircraft. Greater liberalisation of air markets has the potential to increase global air traffic growth by more than one percentage point per year.
