Global long-distance coach market projected to outperform GDP growth
Mittwoch, 10. April 2024 | Pressemitteilung- Global long-distance coach market size between EUR 70-75 billion with c.9% projected CAGR (2023-28), driven by ongoing liberalisation, addition of convenient, high-quality supply, and pricing potential
- Long-distance coach market growth rates expected 4-6ppt above global GDP growth
Munich, 10 April 2024. The global long-distance coach market is expected to grow by an average annual rate of c.9% between 2023 and 2028, according to a new market report by OC&C Strategy Consultants. With a size of EUR 70-75 billion (2023), the global long-distance coach market is driven by several supportive macro-economic and industry-specific trends, including growing affluence and per capita spend on travel (especially in less developed markets). Furthermore, the addition of convenient and high-quality supply including the expansion of cross-country networks and fleets, connected with the introduction of standardised quality offers, unlock latent demand and drive growth in affluent regions (Europe, United States) and premiumization in developing markets.
“Long-distance coach markets have recovered above pre-COVID levels in 2023 in almost all continents and we expect growth at substantial rates in the coming years”, said Jan Bergmann, Partner in OC&C’s Retail & Leisure practice. “The long-distance coach market has already grown stronger than global GDP before the pandemic, and we expect this trend to continue in the coming years, supported by tailwinds from Asia-Pacific as well as Latin America and Europe.”
Between 2017 and 2019, the global long-distance coach market grew at 5-6% per year, outperforming global GDP by one percentage point. For the period between 2023 and 2028, the growth rate is expected to be between 4-6 percentage points ahead of GDP growth. This increase is driven by strong projected growth in Asia-Pacific (c.12% CAGR) with a particularly positive trajectory in the Indian premium private-contract segment, while the Latin American (c.7%) and European (c.5%) long-distance coach markets benefit from better affordability versus other modes of transport (train, plane).
Particularly in Europe, expected growth is supported by improved cross-border connectivity: Long-distance coaches increase the frequency as well as consumer awareness of international travel options and cater to the consumer needs for affordability and flexibility.
Contact
Jan Bergmann
Partner, OC&C Strategy Consultants
jan.bergmann@occstrategy.com
About OC&C
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This article is provided for research only and shall not be taken as the basis for any investment decision. Because events and circumstances frequently do not occur as expected, there will usually be differences between predicted and actual results, and those differences may be material. OC&C Strategy Consultants makes no representation or warranty as to the accuracy or completeness of any information contained in this article and, to fullest extent permitted by law, disclaims all liability for loss or damage of whatsoever nature caused by any use of the information.