India Aviation Market Size | Industry Demand and Growth Forecast 2025

Q: What factors drive the overall growth of India’s aviation market?

Growth is largely driven by rising demand for affordable air travel, increased regional air connectivity, and government infrastructure support.

Q: What are the major challenges in the Indian aviation market?

Key challenges include volatile fuel prices, congested airspace at metro airports, airline profitability pressures, and policy delays.

Q: Which regions are expected to lead in market share?

Metro cities like Delhi, Mumbai, Bengaluru, and Hyderabad remain key hubs, but regional centers like Ahmedabad, Lucknow, and Guwahati are expanding fast.

Q: What is the impact of infrastructure development in the aviation sector?

Ongoing infrastructure investments are enhancing capacity, safety, and connectivity, setting the stage for long-term sustainable growth.

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Code: MTA4237

Publication Date: Jun 2025

What is the India Aviation market size?

According to 6Wresearch internal database and industry insights, the India Aviation Market is expected to grow rapidly in the coming years, registering a CAGR of 7.4%.

This growth is attributed to increasing demand for domestic air travel, expanding regional connectivity under government schemes, and increasing investment in the infrastructure of the airport.

Additionally, the rise of digital evolutions within the low -cost carrier and airline operations has made air travel more accessible and efficient to a broad section of the population.

Key Growth factors

Government-backed programs are promoting the development of new airports.
The amount of domestic air passenger is increasing due to cheap fare, high disposable income and availability of more routes.
IndiGo, Air India and Akasa Air are adding aircraft to meet the growing demand.
Public-private partnerships and airport upgrades are significantly increasing capacity.
Airbus, Boeing, and Embraer have boosted production pipelines and MRO operations in India.

India Aviation Market Trends

India aviation market has experienced significant growth over the last few years, establishing itself as one of the fastest-growing aviation sectors in the world. A key trend driving this growth is the increasing domestic passenger traffic, fueled by a rising middle class, improved connectivity, and government initiatives such as the UDAN scheme to make air travel more affordable and accessible in regional areas. Additionally, the demand for fuel-efficient and eco-friendly aircraft has risen as airlines focus on sustainability and cost-effectiveness.