At 21.5% CAGR, the Asia Pacific Airline Ancillary Services Market is projected to be worth US$ 148,968.46 million by 2030, says Business Market Insights

According to Business Market Insights’ research, the Asia Pacific airline ancillary services market was valued at US$ 31,373.82 million in 2022 and is expected to reach US$ 148,968.46 million by 2030, registering a CAGR of 21.5% from 2022 to 2030. Rising preference of air travel by middle-income passengers, benefits of frequent flyer program, increasing deployment of in-flight Wi-Fi, and in-flight retail partnerships are the critical factors attributed to the Asia Pacific airline ancillary services market expansion.             

The airlines have started offering Wi-Fi services to attract customers and provide better services to compete with large global airlines. In the coming years, in-flight Wi-Fi is expected to deliver higher speed. For instance, in June 2023, the Thales Group, a defense conglomerate, collaborated with the civil aviation ministry of India to introduce in-flight internet services. In November 2022, AirAsia India and Sugarbox (a cloud technology firm) partnered to provide in-flight Wi-Fi service on all AirAsia aircraft. The collaboration aims to enable passengers to access over 1,000 international and Indian movies. Carrier service providers such as Lufthansa, Austrian Airlines, and Eurowings are anticipated to soon provide their customers with "home-style" broadband, whereas other carrier service providers, including Air France-KLM, SAS, Finnair, British Airways, Aer Lingus, and Iberia, are planning to deploy the latest generation of connectivity equipment. Thus, the increasing deployment of in-flight Wi-Fi owing to rising demand for high connection speed is anticipated to positively influence the growth of the Asia Pacific airline ancillary services market during the forecast period.

On the contrary, cost cutting on airline services is impacting negatively on the growth of Asia Pacific airline ancillary services market. 

Based on type, the Asia Pacific airline ancillary services market is divided into baggage fees, on-board retail and a la carte services, airline retail, and FFP mile sales. The baggage fees segment held 58.8% market share in 2022, amassing US$ 18.44 billion. It is projected to garner US$ 84.14 billion by 2030 to expand at 20.9% CAGR during 2022–2030.

Based carrier type, the Asia Pacific airline ancillary services market is bifurcated into full-service carriers and low-cost carriers. The full-service carriers segment held 69.8% share of Asia Pacific airline ancillary services market in 2022, amassing US$ 21.90 billion. It is projected to garner US$ 98.81 billion by 2030 to expand at 20.7% CAGR during 2022–2030.

Based on country, the Asia Pacific airline ancillary services market has been categorized into China, Japan, India, Australia, and the Rest of Asia Pacific.  Our regional analysis states that the Rest of Asia Pacific captured 33.5% share of Asia Pacific airline ancillary services market in 2022. It was assessed at US$ 10.50 billion in 2022 and is likely to hit US$ 49.07 billion by 2030, exhibiting a CAGR of 21.3% CAGR during 2022–2030.            

Key players operating in the Asia Pacific airline ancillary services market are Air France KLM SA, Delta Air Lines Inc, Deutsche Lufthansa AG, Qantas Airways Ltd, The Emirates, and United Airlines Holdings Inc, among others.

• In January 2022, the increased capacity and additional flights provide more options for passengers traveling to and from Australia, thereby enhancing their travel experience. Emirates' commitment to offering customers more options, including their new Premium Economy cabin. This showcases the airline's dedication to providing a differentiated product and service experience. Additionally, the availability of Emirates' extensive global network and the inclusion of freight capacity on the Boeing 777-300ER.

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