online travel agency industry size

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Online travel market - statistics & facts

How big is the online travel market, what are the leading online travel agencies (otas), what travel products do consumers book online, key insights.

Detailed statistics

Online travel market size worldwide 2017-2028

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Most popular travel and tourism websites worldwide 2024

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Online Travel Market

Market cap of leading online travel companies worldwide 2023

Related topics

Online travel trends.

• Artificial intelligence (AI) use in travel and tourism
• Mobile travel trends
• Digitalization of the travel industry
• Impact of technology on travel and tourism

Online travel companies

• Booking Holdings Inc.
• Expedia Group, Inc.

Trip.com Group

Tripadvisor, travel and tourism worldwide.

• Tourism worldwide
• Travel agency industry
• Hotel industry worldwide
• Cruise industry worldwide

Recommended statistics

Industry overview.

• Premium Statistic Market size of the tourism sector worldwide 2011-2024
• Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Revenue of the travel apps industry worldwide 2017-2027
• Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
• Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Market size of the tourism sector worldwide 2011-2024

Market size of the tourism sector worldwide from 2011 to 2023, with a forecast for 2024 (in trillion U.S. dollars)

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Revenue of the travel apps industry worldwide 2017-2027

Revenue of the travel apps market worldwide from 2017 to 2027 (in billion U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Online bookings

• Premium Statistic Travel product online bookings in the U.S. 2023
• Premium Statistic Travel product online bookings in Canada 2023
• Premium Statistic Travel product online bookings in the UK 2023
• Premium Statistic Travel product online bookings in China 2023
• Premium Statistic Travel product online bookings in India 2023
• Premium Statistic Importance to book a trip fully online among travelers worldwide 2023, by generation

Travel product online bookings in the U.S. 2023

Travel product online bookings in the U.S. as of December 2023

Travel product online bookings in Canada 2023

Travel product online bookings in Canada as of December 2023

Travel product online bookings in the UK 2023

Travel product online bookings in the UK as of December 2023

Travel product online bookings in China 2023

Travel product online bookings in China as of December 2023

Travel product online bookings in India 2023

Travel product online bookings in India as of December 2023

Importance to book a trip fully online among travelers worldwide 2023, by generation

Share of travelers who think it is important to be able to book their trip entirely online worldwide as of July 2023, by generation

Market leaders

• Premium Statistic Revenue of leading OTAs worldwide 2019-2022
• Premium Statistic Marketing expenses of leading OTAs worldwide 2019-2022
• Premium Statistic Marketing/revenue ratio of leading OTAs worldwide 2019-2022
• Premium Statistic Number of employees at leading travel companies worldwide 2022
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Premium Statistic Most popular travel and tourism websites worldwide 2024

Revenue of leading OTAs worldwide 2019-2022

Leading online travel agencies (OTAs) worldwide from 2019 to 2022, by revenue (in million U.S. dollars)

Marketing expenses of leading OTAs worldwide 2019-2022

Marketing expenses of leading online travel agencies (OTAs) worldwide from 2019 to 2022 (in million U.S. dollars)

Marketing/revenue ratio of leading OTAs worldwide 2019-2022

Marketing to revenue ratio of leading online travel agencies (OTAs) worldwide from 2019 to 2022

Number of employees at leading travel companies worldwide 2022

Number of employees at selected leading travel companies worldwide in 2022

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Most visited travel and tourism websites worldwide as of April 2024 (in million visits)

Booking Holdings

• Basic Statistic Revenue of Booking Holdings worldwide 2007-2023
• Premium Statistic Number of bookings through Booking Holdings worldwide 2010-2023, by segment
• Premium Statistic Operating income of Booking Holdings worldwide 2007-2023
• Premium Statistic Net income of Booking Holdings worldwide 2007-2023

Revenue of Booking Holdings worldwide 2007-2023

Revenue of Booking Holdings worldwide from 2007 to 2023 (in billion U.S. dollars)

Number of bookings through Booking Holdings worldwide 2010-2023, by segment

Number of bookings through Booking Holdings worldwide from 2010 to 2023, by business segment (in millions)

Operating income of Booking Holdings worldwide 2007-2023

Operating income of Booking Holdings worldwide from 2007 to 2023 (in billion U.S. dollars)

Net income of Booking Holdings worldwide 2007-2023

Net income of Booking Holdings worldwide from 2007 to 2023 (in billion U.S. dollars)

Expedia Group

• Premium Statistic Revenue of Expedia Group, Inc. worldwide 2007-2023
• Premium Statistic Revenue of Expedia Group, Inc. worldwide 2017-2023, by business model
• Premium Statistic Operating income of Expedia Group, Inc. worldwide 2007-2023
• Premium Statistic Net income of Expedia Group, Inc. worldwide 2007-2023

Revenue of Expedia Group, Inc. worldwide 2007-2023

Revenue of Expedia Group, Inc. worldwide from 2007 to 2023 (in billion U.S. dollars)

Revenue of Expedia Group, Inc. worldwide 2017-2023, by business model

Revenue of Expedia Group, Inc. worldwide from 2017 to 2023, by business model (in million U.S. dollars)

Operating income of Expedia Group, Inc. worldwide 2007-2023

Operating income of Expedia Group, Inc. worldwide from 2007 to 2023 (in million U.S. dollars)

Net income of Expedia Group, Inc. worldwide 2007-2023

Net income of Expedia Group, Inc. worldwide from 2007 to 2023 (in million U.S. dollars)

• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb revenue worldwide 2019-2023, by region
• Premium Statistic Airbnb operations income worldwide 2017-2023
• Premium Statistic Airbnb net income worldwide 2017-2023

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb revenue worldwide 2019-2023, by region

Revenue of Airbnb worldwide from 2019 to 2023, by region (in billion U.S. dollars)

Airbnb operations income worldwide 2017-2023

Income from operations of Airbnb worldwide from 2017 to 2023 (in million U.S. dollars)

Airbnb net income worldwide 2017-2023

Net income of Airbnb worldwide from 2017 to 2023 (in million U.S. dollars)

• Premium Statistic Total revenue of Trip.com Group 2012-2022
• Premium Statistic Revenue of Trip.com 2012-2022, by product
• Premium Statistic Revenue of Trip.com 2017-2022, by region
• Premium Statistic Net profit of Trip.com 2012-2022

Total revenue of Trip.com Group 2012-2022

Total revenue of Trip.com Group Ltd. in China from 2012 to 2022 (in billion yuan)

Revenue of Trip.com 2012-2022, by product

Revenue of Trip.com Group Ltd. from 2012 to 2022, by product (in million yuan)

Revenue of Trip.com 2017-2022, by region

Revenue of Trip.com Group Ltd. from 2017 to 2022, by region (in million yuan)

Net profit of Trip.com 2012-2022

Net profit of Trip.com Group Ltd. from 2012 to 2022 (in million yuan)

• Premium Statistic Revenue of Tripadvisor worldwide 2008-2023
• Premium Statistic Revenue of Tripadvisor worldwide 2017-2023, by business segment
• Premium Statistic Revenue of Tripadvisor worldwide 2012-2023, by region
• Premium Statistic Operating income of Tripadvisor worldwide 2008-2023
• Premium Statistic Net income of Tripadvisor worldwide 2008-2023

Revenue of Tripadvisor worldwide 2008-2023

Revenue of Tripadvisor, Inc. worldwide from 2008 to 2023 (in million U.S. dollars)

Revenue of Tripadvisor worldwide 2017-2023, by business segment

Revenue of Tripadvisor, Inc. worldwide from 2017 to 2023, by business segment (in million U.S. dollars)

Revenue of Tripadvisor worldwide 2012-2023, by region

Revenue of Tripadvisor, Inc. worldwide from 2012 to 2023, by region (in million U.S. dollars)

Operating income of Tripadvisor worldwide 2008-2023

Operating income of Tripadvisor, Inc. worldwide from 2008 to 2023 (in million U.S. dollars)

Net income of Tripadvisor worldwide 2008-2023

Net income of Tripadvisor, Inc. worldwide from 2008 to 2023 (in million U.S. dollars)

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Online Travel Market

Online travel market report by service type (transportation, travel accommodation, vacation packages), platform (mobile, desktop), mode of booking (online travel agencies (otas), direct travel suppliers), age group (22-31 years, 32-43 years, 44-56 years, above 56 years), and region 2024-2032.

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Market Overview:

The global online travel market size reached US$ 512.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,267.1 Billion by 2032, exhibiting a growth rate (CAGR) of 10.4% during 2024-2032.  The e scalating penetration of smart devices, easy access to high-speed internet connectivity, the rising popularity of solo travel, and an increasing number of business travelers are some of the major factors propelling the market.

Online travel refers to the process of planning, booking, and managing travel arrangements using online platforms and websites. It encompasses various aspects of travel, including researching destinations, comparing prices, booking flights, accommodations, car rentals, and other travel-related services through online travel agencies (OTAs) and travel booking websites. It has revolutionized the way people plan and book their trips. It provides travelers with convenient access to a wide range of travel options, allowing them to search and compare different airlines, hotels, and other service providers. These platforms offer user-friendly interfaces, advanced search filters, and real-time availability, making it easier for travelers to find the best deals and make informed decisions.

The widespread availability and adoption of internet and mobile technology will stimulate the growth of the market during the forecast period. Moreover, the convenience of accessing a vast array of travel information, comparing prices, and making bookings online is positively influencing the market growth. Apart from this, the ongoing innovation and the development of user-friendly platforms, advanced search functionalities, and personalized recommendations has catalyzed the market growth. OTAs and travel booking websites have invested in providing seamless and efficient booking experiences, making it easier for travelers to find the best deals and make informed decisions. Furthermore, travelers are appreciating the ability to book their flights, accommodations, and other travel services from the comfort of their homes, and online platforms often offer exclusive deals and discounts, enabling travelers to find affordable options. In line with this, the rising demand for convenience and cost savings has augmented the market growth.

Online Travel Market Trends/Drivers:

Increase in Internet and Mobile Penetration

The increasing penetration of the internet and mobile technology has been a significant driver of the market. With more people gaining access to the internet and owning smartphones, the ability to plan and book travel online has become increasingly accessible. Travelers can easily research destinations, compare prices, and make bookings through online platforms, making the process more convenient and efficient. The widespread availability of mobile apps further enhances the accessibility of online travel, allowing travelers to plan and book their trips on the go. Additionally, the integration of online payment systems and secure transaction processes has further facilitated the growth of online travel by providing a seamless and secure booking experience.

Convenience and accessibility

The convenience and accessibility offered by online platforms have transformed the way people plan and book their trips. These platforms provide a one-stop solution, allowing travelers to access a vast array of travel information, options, and services in one place. The ability to browse through numerous airlines, hotels, and travel agencies in a user-friendly interface saves time and effort. Travelers can compare prices, read reviews, and make bookings from the comfort of their homes or while on the go. The 24/7 availability of online platforms means that travelers are no longer restricted by the operating hours of traditional travel agencies. This convenience and accessibility have democratized the travel planning process, empowering travelers to take more control over their itinerary and make informed decisions.

Competitive Pricing and Deals

The competitive nature of the market has resulted in competitive pricing and the availability of attractive deals and discounts. OTAs and booking websites strive to attract customers by offering exclusive promotions, discounted packages, and last-minute deals. The ability to compare prices across multiple platforms allows travelers to find the best available options and secure the most cost-effective deals. The transparency in pricing and the ability to see real-time availability and fluctuations in prices enable travelers to make informed decisions and capitalize on favorable pricing opportunities. The availability of such competitive pricing and deals has made online travel an appealing option for travelers seeking value for their money and cost savings. Moreover, loyalty programs and reward systems offered by these platforms further incentivize travelers to book through their platforms, enhancing customer loyalty and engagement.

Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.

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Online Travel Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global online travel market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on service type, platform, mode of booking and age group.

Breakup by Service Type:

• Transportation
• Travel Accommodation
• Vacation Packages

Travel accommodation dominates the market

The report has provided a detailed breakup and analysis of the market based on the service type. This includes transportation, travel accommodation and vacation packages. According to the report, travel accommodation represented the largest segment.

The dominance of travel accommodation as the primary service type in the market is driven by several key factors. The widespread presence of online travel platforms has made it easy for travelers to access a range of accommodation options, positively influencing the market growth. These platforms offer a comprehensive inventory of hotels, resorts, vacation rentals, and other types of accommodations, providing travelers with extensive choices and convenience.

Apart from this, the ability to compare prices, read reviews, and view photos of accommodations that empowers travelers to make informed decisions is contributing to the market growth. The user-friendly interfaces of these platforms streamline the booking process, allowing travelers to secure their preferred accommodations quickly and easily. Furthermore, the availability of customer reviews and ratings plays a significant role in driving the dominance of travel accommodation in the market.

Breakup by Platform:

Desktop holds the largest share in the market

A detailed breakup and analysis of the market based on the platform has also been provided in the report. This includes mobile and desktop. According to the report, desktop accounted for the largest market share.

The desktop platform typically involves accessing travel websites through web browsers installed on desktop computers, which offer larger screens, full-sized keyboards, and a mouse or trackpad for navigation. Desktop platforms provide travelers with a robust and comprehensive online experience for researching, planning, and booking their travel arrangements. Desktop computers offer a larger screen size and a more comfortable browsing experience, allowing travelers to easily navigate travel websites, compare options, and view detailed information. Moreover, desktop platforms provide greater processing power and stability, enabling faster loading times and smoother functionality for complex booking processes, thereby accelerating the product adoption rate. Furthermore, desktop platforms are preferred for extensive research and planning, as they provide more screen space and functionality for travelers to explore destinations, read reviews, and make informed decisions. Desktop offers various advantages in terms of screen size, processing power, and research capabilities.

Breakup by Mode of Booking:

• Online Travel Agencies (OTAs)
• Direct Travel Suppliers

Direct travel suppliers is the most popular mode of booking

A detailed breakup and analysis of the market based on the mode of booking has also been provided in the report. This includes online travel agencies (OTAs) and direct travel suppliers. According to the report, direct travel suppliers accounted for the largest market share.

Direct booking allows travelers to have a direct relationship with the travel supplier, whether it's an airline, hotel, or car rental company. This direct interaction gives travelers more control and the ability to personalize their travel experience, including selecting specific preferences, customizing packages, and accessing loyalty programs or exclusive offers. Moreover, the surging adoption of direct booking as it provides better pricing and deals compared to third-party OTAs is propelling the segment growth. Additionally, the rising use of direct booking as it allows better communication and customer service as travelers can directly contact the travel supplier for any queries, changes, or requests, eliminating the need to navigate through third-party customer service channels, thereby contributing to the segment growth. Furthermore, the rise of online platforms and technology that makes it easier and more convenient for travelers to directly book with travel suppliers is another major growth-inducing factor.

Breakup by Age Group:

• 22-31 Years
• 32-43 Years
• 44-56 Years
• Above 56 Years

32-43 years dominates the market

A detailed breakup and analysis of the market based on the age group has also been provided in the report. This includes 22-31, 32-43, 44-56, and above 56 years. According to the report, 32-43 years accounted for the largest market share.

The dominance of the 32-43 years age group in the market is driven by several key factors. This age group represents individuals in their prime working and earning years, typically with more disposable income to spend on travel. They are often at a stage in their lives where they have fewer family responsibilities and greater flexibility to plan and embark on trips. Moreover, the 32-43 years age group is tech-savvy and comfortable with using digital platforms for various activities, including travel planning, and booking, thereby accelerating the product adoption rate. They have grown up alongside the rapid advancement of technology and are accustomed to online transactions and digital communication. Apart from this, Online travel platforms offer a convenient and time-saving solution, allowing them to plan their trips at their own pace and from the comfort of their homes or offices. In addition, the rising preference of this age group for convenience and efficiency in their travel arrangements is contributing to the segment growth.

Breakup by Region:

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United States

• South Korea

United Kingdom

• Middle East and Africa

North America exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market.

The dominance of North America as the leading region in the market is driven by several key factors. North America has a highly developed and digitally advanced economy, with a large population of tech-savvy consumers. The region has widespread internet access and a high level of smartphone penetration, making it conducive for online travel activities. Moreover, familiarity and adoption of online platforms for various transactions, including travel bookings, is contributing to the dominance of North America in the market.

Apart from this, North America is home to some of the largest OTAs and travel booking platforms. In addition, these companies offering a wide range of travel services, competitive pricing, and user-friendly interfaces have catalyzed the market growth. The availability of comprehensive travel options, including flights, accommodations, car rentals, and activities, has made North American travelers rely heavily on online platforms for their travel planning and booking needs.

Competitive Landscape:

The market is experiencing a lower-than-anticipated demand compared to pre-pandemic levels however, this is likely to witness a paradigm shift over the next decade with the rise of OTAs, which provide comprehensive platforms for travelers to explore and compare various travel options. Furthermore, online platforms for travel have embraced augmented reality (AR) and virtual reality (VR) to enhance the travel planning experience. With AR, travelers can use their smartphones or wearable devices to virtually explore destinations, visualize hotel rooms or attractions, and even preview menus at restaurants. Additionally, mobile payment options and digital wallets have become widely accepted, allowing travelers to make quick and hassle-free transactions while on the go. We expect the market to witness new entrants, consolidation of portfolios, and increased strategic collaborations among key players to drive healthy competition within the domain.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Expedia Group Inc.
• Fareportal Inc.
• Hostelworld Group plc
• MakeMyTrip Pvt. Ltd.
• priceline.com LLC (Booking Holdings Inc.)
• Thomas Cook India Ltd. (Fairfax Financial Holdings Limited)
• Tripadvisor Inc.

Recent Developments:

• In April 2023, Expedia launched New Feature Powered by ChatGPT to help plan travel. This innovative integration aims to enhance the travel planning experience for Expedia users by providing them with a personalized and conversational approach to trip planning. With this new feature, users can engage in natural language conversations with the ChatGPT system, similar to chatting with a virtual assistant.
• In May 2023, HRS won three sustainability awards at BTN Americas Event by Business Travel News magazine. These accolades acknowledge HRS's comprehensive sustainability program, their role as a green supplier, and their innovative approaches to promoting sustainable travel choices. With these awards, HRS continues to inspire and lead the way in sustainable practices, encouraging positive change across the industry.
• In August 2020, MakeMyTrip launched myPartner platform to assist travel agents in offering enhanced travel booking experiences to travelers. The platform, myPartner, has been designed to provide local travel agents access to one of the widest selections of online travel inventory. While digitizing the day-to-day booking processes of all offline travel agents alike, myPartner has been conceptualized and built to immensely benefit the local travel market beyond metro cities.

Online Travel Market Report Scope:

Key benefits for stakeholders:.

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the online travel market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global online travel market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the online travel industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Key Questions Answered in This Report

The global online travel market was valued at US$ 512.5 Billion in 2023.

We expect the global online travel market to exhibit a CAGR of 10.4% during 2024-2032.

The expanding travel and tourism industry, along with the rising utilization of online travel agencies across numerous hotels to ensure more visibility and increase their overall sales and profitability, is currently catalyzing the global online travel market.

The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations resulting in temporary restrictions on national and international travel activities, thereby limiting the overall demand for online travel.

Based on the service type, the global online travel market has been segmented into transportation, travel accommodation, and vacation packages. Among these, travel accommodation holds the majority of the total market share.

Based on the platform, the global online travel market can be divided into mobile and desktop, where desktop currently exhibits a clear dominance in the market.

Based on the mode of booking, the global online travel market has been categorized into Online Travel Agencies (OTAs) and direct travel suppliers. Currently, direct travel suppliers account for the majority of the global market share.

Based on the age group, the global online travel market can be segregated into 22-31 years, 32-43 years, 44-56 years, and above 56 years. Among these, 32-43 years age group currently holds the largest market share.

On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where North America currently dominates the global market.

Some of the major players in the global online travel market include Expedia Group Inc., Fareportal Inc., Hostelworld Group plc, HRS, Hurb, MakeMyTrip Pvt. Ltd., priceline.com LLC (Booking Holdings Inc.), Thomas Cook India Ltd. (Fairfax Financial Holdings Limited), Tripadvisor Inc., and Yatra.com.

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Online Travel Market Size, Share, Competitive Landscape and Trend Analysis Report by Service types, Platforms, Mode of Booking ,and Age Group : Global Opportunity Analysis and Industry Forecast, 2022-2031

CG : Travel & Luxury Travel

✷  Report Code: A01415

Tables: 196

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The global online travel market size was valued at $354.2 billion in 2020, and is estimated to reach $1,835.6 billion by 2031, registering a CAGR of 14.8% from 2022 to 2031.

Online travel providers aim to ease travel planning and bookings for travelers. The online travel industry is being pushed by quick and easy flight and hotel bookings, an increase in customer trust in online payment, and the option to compare numerous available travel alternatives.. Market players are extensively offering travel services through mobile websites and apps, as it is one of the most preferred mediums of travel bookings, particularly among the young professionals.

The emergence of internet has led to intense exposure of people to social media sites. People first browse through websites, gather detailed information, and review the required product or service before making a purchase. In addition, social media such as Facebook, Twitter, and travel blogs have become a common medium for people to discuss travel plans. Social media acts as a platform for online travel service providers to advertise their services and special offers for online bookings garnering the online travel market growth during the forecast period.

Transportation segment helds the major share of 41.2% in 2020

Social and political disturbances affect the travel & tourism industry in specific regions. Customers tend to avoid these conflict prone areas even if they get travel services at affordable prices. Government of several nations have also declared instructions for travelers to refrain from traveling to countries affected with epidemics or social/political unrest. This, limits the scope of online travel booking to those countries thereby affecting the sales of the online travel market.

The online travel market segmented into service type, platforms, mode of booking, age group, and region. On the basis of service type, the market is categorized into transportation, travel accommodation, and vacation packages. By platform, it is segmented into mobile and desktop. On the basis of mode of booking, it is segmented into online travel agencies (OTAs) and direct travel suppliers. On the basis of age group, market is segmented into ¬22-31 years¬ 32-43 years¬ 44-56 years¬ and >56 years. Region-wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, and rest of LAMEA).

Desktop segment helds the major share of 69.3% in 2020

According to the online travel market trends, on the basis of service types, the travel accommodation segment was the considerable contributor to the market, with $123.7 billion in 2020, and is estimated to reach $719.5 billion by 2031, at a CAGR of 16.0% during the forecast period. Travelers are increasingly being offered a diverse range of hotel options at reasonable costs by market players.. Customers compare accommodation options at several websites to get the best affordable deal. Travelers choose specialized online accommodation providers such as Airbnb, Inc. and OYO Rooms because they provide a wide range of lodging alternatives.. Thus, above mentioned factors are  attributable for the growth of the market through travel accommodation segment.

According to the platforms, the mobile segment was the significant contributor to the market, and is estimated to reach $617.9 billion by 2031, at a CAGR of 15.8% during the forecast period. Increase in usage of mobile and innovative mobile travel apps majorly attribute for the growth of the market through mobile segment. Technology has changed the way people communicate and travel across the globe. With evolving technology and increase in use of mobiles, easy and efficient methods are being developed to make traveling easy and comfortable, thus increasing the growth of travel industry. Mobile travel apps are gradually gaining pace in the market and are preferred by travelers to make their travel arrangements. Thus, increase in usage of the smart phones and growth in digital literacy is likely to proliferate the growth of the online travel market.

Direct Travel Suppliers segment helds the major share of 55.7% in 2020

On the basis of mode of booking, the direct travel suppliers segment was accounted for major share in global online travel market and is expected  to sustain its share throughout the forecast period. Direct travel suppliers are the major revenue contributors in the product market. However, this segment witnesses an increase in threat from the growing online travel agencies (OTAs) market share. To remain competitive, airlines such as Lufthansa AG choose to circumvent OTAs by charging additional fees for bookings made through the OTAs.. The online travel industry through direct travel suppliers is developing at a slower rate, because customers are constantly using OTA platforms..                                

According to the online travel market analysis, on the basis of age group, the 22-31 Years segment was the considerable contributor to the market, with $102.0  billion in 2020, and is estimated to reach $539.2  billion by 2031, at a CAGR of 15.0% during the forecast period. The age group of 22–31 years comprises the young population, which are the early starters in their professional career. When compared to travelers in the older age groups, these travelers are more likely to spend more money on travel and visit new places. These travelers have changed the travel business because of their extensive use of technology, . Smartphones and other mobile devices are largely preferred to make travel arrangements. Furthermore, social media platforms are utilized to evaluate various travel service providers, locations, modes of transportation, and lodging. As a result, the industry is experiencing strong growth in the 22–31 year age group sector..

32 - 43 Years segment helds the major share of 33.6% in 2020

According to the online travel market opportunities, region wise, Asia-pacific gained significant online travel market share and is expected to sustain its share throughout online travel market forecast period. It possesses the highest growth potential in the online travel market, India and China being the most lucrative markets. The growth is attributed to the increase in disposable income, rise in middle-class segment, and greater penetration of internet facilities. Ctrip is the leading player in online travel market in China, whereas MakeMytrip, Yatra, and Cleartrip are the major online travel agencies (OTA) in India. 

The players operating in the global online travel industry have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Expedia Group, Inc., Ebury Partners UK Ltd, Fareportal Inc. , Hostelworld.com Limited, Hurb Co S/A, HRS, MakeMyTrip Ltd., Oracle Corporation, Priceline (Booking Holdings Inc.), SABS Travel Technologies, Tavisca Solutions Pvt. Ltd., Thomas Cook India Ltd., travelomatix.com, Trip.com Group, Tripadvisor, Inc., and WEX Inc.

North America region helds the major share of 33.3% in 2020

Key Benefits For Stakeholders

• The report provides a quantitative analysis of the current trends, estimations, and dynamics of the market size from 2020-2031 to identify the prevailing opportunities.
• Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
• In-depth analysis and the market size and segmentation assist to determine the prevailing market opportunities.
• The major countries in each region are mapped according to their revenue contribution to the market. 
• The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the online travel market.

  Online Travel Market Report Highlights

Analyst Review

The global online travel market is anticipated to witness robust growth in the emerging market of Asia-Pacific. The growth is attributed to increase in disposable income, rise in middle-class segment, and greater penetration of internet facilities. Business travel has also fueled market growth in Asia-Pacific. Approximately, 90% of corporate travelers in the region own either a smart phone or tablet. More than 50% of these travelers manage their travel through these devices. Companies cater to the needs of travelers through innovative mobile travel apps to gain market share. Apps with various features are being developed to stay connected to travelers throughout their journey and to assist them whenever required. Travel apps offer flexibility to travelers, thus becoming an important differentiating factor for the consumers while choosing a travel company. In addition, customers download hotel and airline apps for quick view and booking status. Thus, proliferation of mobile usage and innovative mobile travel apps are expected to foster the growth of the online travel market in the future.

• Travel Destinations
• Luxury Accommodations
• Travel Packages
• Adventure Travel
• Luxury Travel Experiences
• Travel Planning
• Outdoor Activities

Total Market value of Online Travel report was valued at $354.2 billion in 2020.

14.8% is the CAGR of Online Travel Market

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2022 to 2031 would be forecast period in the market report Market

Expedia Group, Inc., Ebury Partners UK Ltd, Fareportal Inc. , Hostelworld.com Limited, Hurb Co S/A, HRS, MakeMyTrip Ltd., Oracle Corporation, Priceline (Booking Holdings Inc.) and SABS Travel

The online travel market segmented into service type, platforms, mode of booking, age group, and region

India online travel market was valued at $12.4 billion and is expected grow at 21.1% during the forecast period.

By the end of the 2031, Asia-Pacific is expected to dominate the online travel market.

Online travel market was negatively impacted the growth of the market and is expected grow at highest CAGR growth rate after COVID-19 scenario.

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Online Travel Market

Global Opportunity Analysis and Industry Forecast, 2022-2031

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Adroit Market Research - Industry Insights

Major players profiled in the study include Expedia Group, Ebury Partners UK, Fareportal, Hostelworld Limited, Hurb Co S/A, HRS, MakeMyTrip, Oracle Corporation, Priceline, SABS Travel Technologies, Tavisca Solutions, Thomas Cook India, travelomatix.com, Trip.com Group, Tripadvisor, WEX. among others.

Latest Developments

• Expedia Group just revealed an Open World Technology platform for 2022. Technology is created for partner organisations. The platform is ideal for the agency looking to launch a new online travel business since it includes a comprehensive ecommerce suit, with several blocks including payments, chatbots, services, and fraud detection.

Online Travel Agencies Market Scope

Key Segments in the global Online Travel Market

By Service Type, 2019-2029 (USD Billion)

• Transportation
• Vacation Packages
• Accommodation

By Device Platform, 2019-2029 (USD Billion)

By Payment Modes, 2019-2029 (USD Billion)

• Debit / Credit Card
• Others (Vouchers, Discount Codes)

By Region, 2019-2029 (USD Billion)

North America

• Rest of Europe

Asia Pacific

• Rest of Asia Pacific

South America

• Rest of South America

Middle-East and South Africa

Frequently Asked Questions (FAQ) :

What is the market value of online travel agencies market in 2032, what is the growth rate of online travel agencies market, which are the top companies hold the market share in online travel agencies market.

1.  Introduction        o Introduction       o Market Definition and Scope       o Units, Currency, Conversions, and Years Considered       o Key Stakeholders       o Key Questions Answered 2.  Research Methodology        o Introduction       o Data Capture Sources       o Market Size Estimation       o Market Forecast       o Data Triangulation       o Assumptions and Limitations 3.  Market Outlook        o Introduction       o Market Dynamics            ? Drivers           ? Restraints           ? Opportunities           ? Challenges       o Porter’s Five Forces Analysis       o PEST Analysis 4. By Service Type, 2019-2029 (USD Billion)       • Transportation       • Vacation Packages       • Accommodation 5. By Device Platform, 2019-2029 (USD Billion)       • Mobile       • Desktop 6. By Payment Modes, 2019-2029 (USD Billion)       • UPI       • E-Wallet       • Debit / Credit Card       • Others (Vouchers, Discount Codes) 7. Regional Overview, 2019-2029 (USD Billion)       North America           o U.S           o Canada       Europe           o Germany           o France           o UK           o Rest of Europe       Asia Pacific           o China           o India           o Japan           o Rest of Asia Pacific       South America           o Mexico           o Dental            o Rest of South America       Middle-East and South Africa 8. Competitive Landscape        o Company Ranking       o Market Share Analysis       o Strategic Initiatives            ? Mergers & Acquisitions           ? New Product Launch           ? Others 9.  Company Profiles       • Expedia Group       • Ebury Partners UK       • Fareportal       • Hostelworld Limited       • Hurb Co S/A       • HRS       • MakeMyTrip       • Oracle Corporation       • Priceline       • SABS Travel Technologies       • Tavisca Solutions       • Thomas Cook India       • travelomatix.com       • Trip.com Group       • Tripadvisor       • WEX. 10. Appendix        o Primary Research Approach            ? Primary Interview Participants           ? Primary Interview Summary       o Questionnaire       o Related Reports            ? Published           ? Upcoming  

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Global Online Travel Market by Service type (Transportation, Travel Accommodation, and Vacation Packages), by Platform (Mobile and Desktop), Mode of Booking (Online Travel Agencies (OTAs) and Direct Travel Suppliers); By Region (U.S., Canada, Mexico, Rest of North America, The UK, France, Germany, Italy, Spain, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, the Netherlands, Luxembourg), Rest of Europe, China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa, Brazil, Argentina, Rest of Latin America) – Global Insights, Growth, Size, Comparative Analysis, Trends and Forecast, 2021-2030

The Global Online Travel Market size was valued at USD 354.2 Bn in 2021. The market is projected to grow USD 1,835.6 Bn in 2030, at a CAGR of 14.8 %. Review sites and travel e-commerce sites make up the majority of the internet travel sector. It provides the convenience of reserving from the comfort of one's own home and frequently entices customers with package deals and cost-cutting choices. As a result, many tourists are opting to book their trips online rather than through traditional brick-and-mortar travel firms. Furthermore, the primary global online travel market is being driven by greater consumer spending power, a government initiative to promote tourism, growing internet and credit card usage, and the creation of new online segments. The increasing penetration of international flight and hotel bookings supplied by online portals such as Booking.com, TripAdvisor.com,  .  

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The emergence of the travel and tourism business, as well as shifting patterns in standard of life, has resulted in a steady increase in the online travel market. The demand for online travels varies depending on the property type and is impacted by factors including location, size, and on-site amenities. The market is likely to be driven by rising disposable income, popularizing weekend culture, the introduction of low-cost airline services, and the developing service industry. The rise in spending power and the style of living are two of the most important factors driving people to luxury resorts. The demand for online travels is also fueled by a city's or country's hosting of sporting events. The development of the market has been hastened by the emergence of online lodging booking services. Marriott International, for example, published a new edition of its mobile app, Marriott Bonvoy, on February 10, 2021, with new features like better booking possibilities, greater personalized experiences, and customizations in earning and redeeming points. As a result, the industry is expected to consolidate due to growing demand for premium services with better booking options.  

COVID-19 Analysis

The epidemic of COVID-19 has had a significant influence on the tourism and travel industries. The global implementation of social distancing, stay-at-home, and travel restrictions has stifled the expansion of the online travel industry. According to the American Hotel and Lodging Association 2021 study, hotel occupancy in the United States fell from 66 percent to around 40 percent in 2020, compared to the previous year. As a result of the pandemic, the hotel industry is likely to suffer a severe slowdown; nevertheless, the market is expected to return to its prior growth trajectory in the coming years.  

Service Type Outlook

The travel accommodation segment accounted largest market share for the global online travel market in 2020. Market competitors are gradually providing travellers with a varied selection of hotel options at reasonable prices. Customers evaluate lodging options across multiple websites in order to get the most cost-effective option. Because they offer a diverse range of housing options, travelers prefer specialized online accommodation providers such as Airbnb, Inc. and OYO Rooms. As a result, the aforementioned reasons are responsible for the market's rise in the travel accommodation segment. These hotels usually have high-end designer interiors created with cutting-edge technology propels the demand for the growth of the global online travel market.  

Global Online Travel Market Report Coverage

Platform Outlook

The mobile segment accounted largest market share for the global online travel market in 2020 owing to the expansion of the market through the mobile sector is mostly due to an increase in mobile usage and the development of novel mobile travel apps. The way people communicate and travel throughout the world has changed as a result of technological advancements. With the advancement of technology and the increased usage of mobile phones, simple and effective techniques are being developed to make travelling simple and comfortable, hence boosting the travel industry's growth. Travelers prefer to make their travel reservations using mobile travel apps, which are gradually gaining traction in the market. As a result, the expansion of the internet travel business is projected to be fueled by an increase in smart phone usage and a rise in digital literacy.  

Mode of Booking Outlook

The online travel agencies (OTAs) segment accounted largest market share for the global online travel market in 2020. Online travel firms are becoming the most popular method of making reservations around the world. The rise of online travel agencies has been one of the most striking examples of industry and society's digital revolution in the last 25 years. OTAs have evolved into digital marketplaces that provide direct access to a wide range of online travel options for both B2B and B2C consumers. OTAs can be thought of as a cross between an e-commerce platform and a travel agency. Expedia, Booking.com, and Trip.com, among others, have dominated the global online travel business (hotels, airlines, packaged tours, rail and cruises).  

Regional Outlook

Asia Pacific dominated largest market share for the global online travel market in 2020 owing to has the most potential for growth in the internet travel business, with India and China being the most profitable areas. The increase in discretionary income, rise in the middle-class section, and increasing penetration of internet facilities are all factors contributing to the expansion. In China, Ctrip is the most popular online travel agency (OTA), whereas in India, MakeMyTrip, Yatra, and Cleartrip are the most popular OTAs.  

Europe is anticipated to emerge as the fastest-growing region over the forecast period. This is due to the presence of some of the world's most popular tourist spots. According to the UNWTO's Foreign Tourism Highlights 2019 Edition, Europe accounted for half of all international visitor arrivals in 2018. The survey also reveals that five major European countries are among the top ten destinations based on foreign tourist arrivals in 2018.  

Key Companies & Recent Developments

Partnerships, strategic mergers, and acquisitions are expected to be the most successful strategies for industry participants to get speedy access to growing markets while also improving technological capabilities.  

In addition, product differentiation and developments, as well as service expansion, are projected to help organizations thrive in the market.  

Market Segmentation of Global Online travel Market

By Service Type

• Transportation
• Travel Accommodation
• Vacation Packages

By Platform

By Mode of booking

• Online Travel Agencies (OTAs)
• Direct Travel Suppliers

Key Players:

• Alibaba Group
• Elong, Inc.
• Tuniu Corporation
• AirGorilla, LLC
• Hays Travel limited
• Airbnb, Inc.
• Yatra Online Private Limited, India
• Trip Advisor Inc.
• MakeMyTrip Limited
• Hostelworld Group PLC (HSW)
• Trivago N.V
• Despegar.com, Corp
• Lastminute.com Group
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Online Travel Market Trends and Analysis by Region, Transportation, Accommodation, Travel Intermediation and Segment Forecast to 2030

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Published: May 05, 2023 Report Code: GRCBBR00002TT-BB

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• Report Overview

Key Players

Table of contents.

Accessing the in-depth insight from the ‘Online Travel’ report can help you:

• Make informed decisions about investments, partnerships, and product development
• Identify your competitors positioning to stay ahead in the market
• Identify promising areas, growth trends, segments, and markets to expand your product portfolio or successful investment
• Anticipate expected changes in demand and adjust your business development strategies
• Identify potential areas of disruption

How is our ‘ Online Travel’ report different from other reports in the market?

• The report presents in-depth market sizing and forecast at a segment level for more than 15 countries including historical and forecast analysis for the period 2019-2030 for market assessment
• Detailed segmentation by type – Transportation (Airlines, Car Rental, Others), Travel Accommodation, Travel Intermediation (Online Travel Agencies, Tour Operator Websites, Other Travel Intermediaries)
• Detailed value chain analysis helping businesses identify areas where they can improve their efficiency and effectiveness, reduce costs, and enhance their competitive advantage
• The report offers consumer, industry, and enterprise trends, along with challenging factors impacting the online travel market.
• The growth innovation matrix included in the report, divides the market players in to four categories i.e., flagbearers, contenders, specialists, and experimenters, which will help value chain participants in understanding how competition is performing based on their revenue growth and their R&D efforts
• Competitive profiling and benchmarking of key players in the market to provide deeper understanding of industry competition

We recommend this valuable source of information to anyone involved in:

• Online Travel Agents
• Tour Operators
• Direct Suppliers
• Hotel Groups
• Car Rental Companies
• Technology Companies
• Ancillary Suppliers
• Venture Capital Firms

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Online Travel Market Overview

The online travel market will be valued at $2.3 trillion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 10.3% over the forecast period. The proliferation of mobile devices, improved network connectivity, and rising disposable income are some of the prime factors responsible for the growth of this market. Furthermore, the growing interest of individuals in frequent travel coupled with the emergence of vlogging culture is anticipated to contribute to market growth.

The travel and tourism industry experienced a significant drop in revenue during the pandemic outbreak owing to travel restriction imposed by governments worldwide. This impacted the sales across the online as well as offline channels with the market value of online travel intermediaries and in-store travel intermediaries declining by 60.1% and 63.8% YoY respectively. However, the impact of COVID-19 compelled several consumers to use online services, which is anticipated to benefit and accelerate the uptake of online travel in the future.

Online Travel Market Outlook, 2019-2030 ($ Trillion)

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Online travel booking enables travel and tourism companies to better engage with their customers, which ensures improved customer satisfaction. Furthermore, it helped travel companies and consumers in managing travel bookings while facing uncertainties in terms of travel dates and cancellations during COVID-19 outbreak. This coupled with changing customer demands, compelled travel companies to invest in updating their websites and building travel apps through which travel brands can expand their digital presence and offer various features and discounts, thereby enhancing customer booking experience.

Online travel booking is gaining immense popularity with the younger generation. Millennials and Gen Z are influenced by digitally smart products, owing to which they are expected to look out for advanced booking systems that offer them a personalized experience. As such travel companies are investing in integrating technologies such as artificial intelligence , machine learning , and Big Data to help automate the online travel booking process, which is anticipated to attract young consumers. Travel companies can leverage the traveler analytics generated by Big Data and offer tailored packages, which is expected to help attract more website and app traffic, subsequently contributing to market growth.

Several travel companies are introducing online platforms and applications for travel booking to capitalize on the expansion and automation capabilities it provides to travel companies. However, online platforms are also vulnerable to data breaches, which may pose a challenge to market growth. As reported in 2019 by American Airlines and United Airlines, both companies were compromised with data breachers stealing miles from the 10,000 reward accounts. With a large amount of personal consumer data on the websites, online travel companies are one of the common targets for cyber-attackers. As such, travel companies are investing in integrating advanced cybersecurity solutions in order to mitigate the threat of cyber-attacks and reassure travelers about the safety of their data.

Online Travel Market Segmentation by Type

The online travel type category is broken down into three segments, including transportation, travel accommodation, and travel intermediation. The transportation segment is anticipated to dominate the online travel market in 2023. The increasing amount of online booking for trains, airlines, buses, and cars coupled with rapid urbanization has contributed to the growth of this segment.

Online Travel Market Share by Type, 2023 (%)

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The travel accommodation segment is expected to exhibit the fastest growth of more than 10% during the forecast period. Travel companies provide a variety of accommodations nowadays such as homestays, hotel rooms, villas, and more, which enables a consumer to book their preferred options based on the requirements. Additionally, travel companies offer these accommodations in different packages such as honeymoon suites, with meal options, group stays, and others, in order to attract various consumer groups, which is contributing to market growth.

The transportation segment is expected to be followed by travel intermediation segment with second highest market share in 2023. This segment is bifurcated in to three sub-segments, namely, online travel agencies (OTAs), tour operator websites, and other travel intermediaries. OTAs held the significant market share of the travel intermediation segment in the past few years and is expected to retain its dominance over the forecast period. The high market share is attributed to the broad range of services that these agencies provide access to the customer. Travelers can research and book variety of products and services, including flights, hotels, cars, activities, and cruises, among others with the travel suppliers though OTAs, which has fueled the demand for this segment.

Online Travel Market Analysis by Region

The North America region is expected to hold the highest market share in 2023 and is anticipated to continue its strong growth over the forecast period. US is the leading market in the region owing to the high technology penetration across the country. Additionally, early technology adoption and enhanced network connectivity are the factors responsible for market growth in North America. Europe held the second highest market share in the online travel market owing to government initiatives in promoting travel & tourism and favorable business environment across the European countries.

Asia-Pacific Online Travel Market Share by Country, 2023 (%)

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The Asia Pacific online travel market is expected to register the fastest growth of more than 10% over the forecast period. This growth is attributed to the enhanced network connectivity and rising disposable income across the region. Additionally, the region has significant amount of young tech-savvy population, responsible for the emerging trend of making travel vlogs, which is further anticipated to boost domestic and international travel across the region, thereby fueling market growth.

The South and Central America and the MEA are anticipated to exhibit strong growth over the future owing to government initiatives to promote tourism across the regions. The South and Central American countries offer tourists with natural attractions such as deserts, jungles, and mountains along with different activities in national parks, thereby attracting wildlife enthusiasts, adventure seekers, and hikers.

Furthermore, the countries in this region also offer various culinary experiences from street food to fine dining restaurants. Although, the region has lot to offer to the travel and tourism industry, lack of technological infrastructure may pose a challenge to market growth. Enhancement in technological capabilities such as data centers and telecommunication networks may help travel vendors in expanding online travel booking network across the region, in turn contributing to market growth.

The Middle East has been experiencing a solid growth with the resumption of tourism activities post pandemic. The frequency of online booking has paced up with the emerging trend of escapism travel, which allows people to work from anywhere they want. The last-minute travel bookings are expected to gain momentum with an increased desire to travel among the domestic travelers.

Additionally, with the increasing demand of luxury hotels , total number of 32,621 hotel rooms were under construction in Saudi Arabia in 2022, which bodes well for market growth. This coupled with the robust technological and tourism infrastructure in the region is expected to fuel the market growth.

Online Travel Market – Competitive Landscape

The online travel market is highly competitive market with the presence of several established and small regional players operating in the market. The established companies in the market are focused on merging and acquiring smaller firms in order to expand their business to new regions as well as utilize their technology to enhance online travel booking platforms and enhance user experience.

The market has three types of suppliers, including online travel agencies (OTAs), direct suppliers, and ancillary suppliers. OTAs are currently dominating the market while facing competition from direct suppliers who are indulging in developing their own online travel booking platforms in order to better engage with the customers.

Key players in the online travel market include:

• Booking Holdings Inc
• eDreams ODIGEO SA
• Expedia Group Inc
• Flight Centre Travel Group Ltd
• MakeMyTrip Ltd
• Singapore Airlines Ltd
• The Emirates Group
• Tongcheng Travel Holdings Ltd
• Trainline plc
• com Group Ltd

Other Online Travel Market Vendors Mentioned

TripAdvisor, Uber Technologies Inc, Marriott International, Hilton Worldwide Holdings Inc, Thomas Cook (India) Limited, lastminute.com N.V., Adventure Inc., Tuniu Corporation, Easy Trip Planners Ltd, Yatra Online Inc, and Hostelworld Group PLC, among others.

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Online Travel Market Research Scope

Online travel market segments and scope.

GlobalData Plc has segmented the online travel market report by type and region:

Online Travel Type Outlook (Revenue, $ Billion 2019-2030)

• Travel Accommodation
• Online Travel Agencies
• Tour Operator Websites
• Other Online Travel Intermediaries

Online Travel Regional Outlook (Revenue, $ Billion 2019-2030)

• North America
• Netherlands
• Switzerland
• Rest of Europe
• Asia-Pacific
• South Korea
• Rest of Asia Pacific
• South and Central America
• Rest of South and Central America
• Middle East and Africa
• Saudi Arabia
• South Africa
• Rest of Middle East and Africa
• Chapter 1 Executive Summary
• Chapter 2 Research Scope and Segmentation
• Chapter 3 Market Overview
• 4.1 Industry Value Chain Analysis
• 4.2 Consumer Trends
• 4.3 Online Travel – Market Challenges Analysis
• 4.4 Online Travel – Market Opportunities Analysis
• 4.5 Industrial Trends
• 4.6 Enterprise Trends
• 4.7 Online Travel – Dashboard Analytics
• 5.1 Global Market Revenue Snapshot
• 5.2.1.1 Global Online Travel Market Estimates and Forecasts, by Type, Transportation, 2019-2030 ($ Billion)
• 5.2.1.2.1 Global Online Travel Market Estimates and Forecasts, by Airlines, 2019-2030 ($ Billion)
• 5.2.1.3.1 Global Online Travel Market Estimates and Forecasts, by Car Rental, 2019-2030 ($ Billion)
• 5.2.1.4.1 Global Online Travel Market Estimates and Forecasts, by Others, 2019-2030 ($ Billion)
• 5.2.2.1 Global Online Travel Market Estimates and Forecasts, by Type, Travel Accommodation, 2019-2030 ($ Billion)
• 5.3.1.1 Global Online Travel Market Estimates and Forecasts, by Type, Travel Intermediation, 2019-2030 ($ Billion)
• 5.3.1.2.1 Global Online Travel Market Estimates and Forecasts, by Online Travel Agencies, 2019-2030 ($ Billion)
• 5.3.1.2.1 Global Online Travel Market Estimates and Forecasts, by Tour Operator Websites, 2019-2030 ($ Billion)
• 5.3.1.4.1 Global Online Travel Market Estimates and Forecasts, by Other Online Travel Intermediaries, 2019-2030 ($ Billion)
• 6.1 Online Travel – Regional Deep Dive
• 6.2.1 North America Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.2.2 North America Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.2.3.1 US Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.2.3.2 US Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.2.4.1 Canada Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.2.4.2 Canada Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.2.5.1 Mexico Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.2.5.2 Mexico Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.1 Europe Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.2 Europe Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.3.1 UK Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.3.2 UK Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.4.1 France Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.4.2 France Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.5.1 Germany Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.5.2 Germany Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.6.1 Netherlands Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.6.2 Netherlands Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.7.1 Italy Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.7.2 Italy Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.8.1 Spain Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.8.2 Spain Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.9.1 Belgium Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.9.2 Belgium Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.10.1 Switzerland Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.10.2 Switzerland Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.11.1 Sweden Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.11.2 Sweden Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.3.12.1 Rest of Europe Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.3.12.2 Rest of Europe Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.1 Asia Pacific Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.2 Asia Pacific Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.3.1 China Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.3.2 China Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.4.1 Japan Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.4.2 Japan Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.5.1 India Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.5.2 India Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.6.1 South Korea Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.6.2 South Korea Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.7.1 Australia Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.7.2 Australia Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.8.1 Singapore Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.8.2 Singapore Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.9.1 Malaysia Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.9.2 Malaysia Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.10.1 Indonesia Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.10.2 Indonesia Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.11.1 Thailand Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.11.2 Thailand Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.4.12.1 Rest of Asia Pacific Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.4.12.2 Rest of Asia Pacific Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.5.1 South and Central America Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.5.2 South and Central America Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.5.3.1 Brazil Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.5.3.2 Brazil Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.5.4.1 Argentina Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.5.4.2 Argentina Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.5.5.1 Rest of South and Central America Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.5.5.2 Rest of South and Central America Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.6.1 Middle East & Africa Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.6.2 Middle East & Africa Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.6.3.1 Saudi Arabia Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.6.3.2 GCC Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.6.4.1 South Africa Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.6.4.2 South Africa Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.6.5.1 UAE Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.6.5.2 UAE Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 6.6.6.1 Rest of Middle East & Africa Online Travel Market Estimates & Forecasts, 2019-2030 ($ Billion)
• 6.6.6.2 Rest of Middle East & Africa Online Travel Market Estimates & Forecasts, by Type 2019-2030 ($ Billion)
• 7.1 Online Travel Market – Growth Innovation Matrix
• 7.2 Online Travel Market – Mergers & Acquisitions
• 7.3 Online Travel Market – Company Profiles
• 8.1 Airbnb Inc
• 8.2 American Airlines Group Inc
• 8.3 Booking Holdings Inc
• 8.4 Despegar.com Corp
• 8.5 eDreams ODIGEO SA
• 8.6 Expedia Group Inc
• 8.7 Flight Centre Travel Group Ltd
• 8.8 MakeMyTrip Ltd
• 8.9 Singapore Airlines Ltd
• 8.10 The Emirates Group
• 8.11 Tongcheng Travel Holdings Ltd
• 8.12 Trainline plc
• 8.13 Trip.com Group Ltd

Fig 81 Rest of Middle East and Africa Online Travel Market Estimates & Forecasts, by Type, 2019-2030 ($ Million)

Frequently asked questions

The online travel market size globally will be valued at $2.3 trillion in 2023.

The online travel market is expected to grow at a CAGR of 10.3% over the forecast period (2023-2030).

The increasing population coupled with the rising disposable income and proliferation of mobile devices are expected to drive the online travel market growth.

Type Segments: Transportation (Airlines, Car Rental, Others), Travel Accommodation, Travel Intermediation (Online Travel Agencies, Tour Operator Websites, Other Travel Intermediaries)

The leading online travel companies are Airbnb, American Airlines Group Inc, Booking Holdings Inc, Despegar.com Corp, eDreams ODIGEO SA, Expedia Group Inc, Flight Centre Travel Group Ltd, MakeMyTrip Ltd, Singapore Airlines Ltd, The Emirates Group, Tongcheng Travel Holdings Ltd, Trainline plc, Trip.com Group Ltd, Trivago NV

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• Consumer Goods and Services /
• Travel and Tourism /
• Travel Intermediaries /
• Online Travel

Online Travel Market, Size, Global Forecast 2024-2030, Industry Trends, Share, Growth, Insight, Impact of Inflation, Company Analysis

• November 2023
• Region: Global
• Renub Research
• ID: 5521700
• Description

Table of Contents

Companies mentioned, methodology, related topics, related reports.

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Online platforms and travel tech have boosted direct bookings, spurring growth

By Type, Online Travel Market is segmented into Package and Direct. The surge of online package and the integration of present day travel technology have drastically catalyzed the increase of direct bookings in the travel industry. This transformation has reshaped how tourists engage with journey suppliers, making it more convenient and efficient. Visitors can seamlessly connect with airlines, hotels, and other service vendors via user-friendly interfaces and real-time records. By eliminating intermediaries, tourists enjoy personalized reviews and better offers. This trend towards direct bookings has empowered vacationers and driven the journey industry to conform and innovate, in addition fueling its online travel agency market size boom and evolution.

Online travel market anticipates the travel accommodation booking segment to attain the maximum rapid growth

The Online Travel Market is divided into Transportation, Vacation Packages, and Travel Accommodation by Service Type. The dominance of travel lodging, pushed through improved online hotel bookings globally, fuels market increase. Additionally, the surge in couples-orientated package vacations, heightened internet adoption, mobile phone usage, and the impact of social media in exploring uncharted locations are expected to reinforce the industry. Competitors are expanding lodging alternatives, and tourists now compare more than one websites for cost-effective choices. Specialized online accommodation providers like Airbnb and OYO Rooms are preferred. These factors contribute to the growth of the global online travel market as hotels with superior technology and high-cease designer interiors advantage recognition.

UPI payment market is experiencing significant growth in the global online travel industry

By Payment Mode, the Online Travel Market is classified into UPI, E-Wallets, Debit/Credit Cards, and Others. The UPI (Unified Payments Interface) payment market is witnessing fantastic growth within the online travel industry. This surge can be attributed to the growing consumer desire for seamless, stable, and efficient digital payment techniques whilst booking flights, accommodations, and travel-related services. With the benefit of UPI transactions, travelers can effects make payments, improving the overall booking experience. Moreover, the unlimited adoption of smartphones and net connectivity has further expanded the integration of UPI payments into numerous online travel platforms. This flourishing trend underscores the pivotal position that UPI is playing revolutionizing payments strategies and driving the increase of the online travel worldwide.

Mobile and tablets is poised to showcase the maximum speedy expansion within the online travel industry

By Booking Devices, the Online Travel Market is sub-segmented into Mobile/Tablet and Desktop. Mobile & Tablets market will expected to dominate within the online travel industry. This is due to the ever ubiquitous presence of smartphones, which has empowered tourists to access travel-related services and make bookings at their fingertips. Mobile apps and web sites have become the go-to travel planning platforms, making the process more handy and consumer-friendly. The convenience of reserving flights, inns, and different travel necessities on the go is an important driving force of this trend. As technology advances and mobile payment alternatives become more secure and seamless, the mobile section's ascension in the online travel industry is about to redefine how human beings plan and embark on their trips.

With China most lucrative market, this sector holds the supreme growth potential in the online travel industry

By Countries, Online Travel Market is split into North America (United States, Canada), Europe (France, Germany, Italy, Spain, United Kingdom, Belgium, Netherlands, and Turkey), Asia Pacific (China, Japan, India, Australia, South Korea, Thailand, Malaysia, Indonesia, and New Zealand), South America (Brazil, Mexico, and Argentina), Middle East & Africa (South Africa, Saudi Arabia, and UAE) and Rest of World. The online travel industry is at a thrilling juncture and the China market shines as the most financially worthwhile. This pivotal area is poised to unleash exceptional growth ability pushed via many factors. With its burgeoning middle class, China is fueling a travel growth, each locally and across the world. The swiftly growing internet and mobile penetration and a tech-savvy population reshape how journey is planned and booked. Furthermore, government projects and investments in infrastructure are facilitating seamless travel experiences. All these elements converge to make China the maximum promising frontier for the online travel industry’s boom trajectory.

In the online travel industry, distinguished players which include Airbnb, Expedia Inc, Booking Holding, Trip Advisor Inc., Trip.Com Group Ltd, Hostelworld Group PLC (HSW), Trivago N.V, Despegar.Com Corp, MakeMyTrip Limited and Lastminute.Com Group are actively shaping the panorama.

This latest Report “Online Travel Market Global Forecast by Type (Package, Direct) Service Type (Transportation, Vacation Packages, Travel Accommodation), Payment Mode (UPI, E-Wallets, Debit/Credit Card, Other), Devices Type (Mobile/Tablet, Desktop), Region (North America (United States, Canada), Europe (France, Germany, Italy, Spain, United Kingdom, Belgium, Netherlands, and Turkey), Asia Pacific (China, Japan, India, South Korea, Thailand, Malaysia, Indonesia, Australia, and New Zealand), South America (Brazil, Mexico, and Argentina), Middle East & Africa (Saudi Arabia, UAE, and South Africa) and Rest of the World), Company Analysis (Airbnb, Expedia Inc, Booking Holding, Trip Advisor Inc., Trip.com Group Ltd, Hostelworld Group PLC (HSW), Trivago N.V, Despegar.com Corp, MakeMyTrip Limited and Lastminute.com)” Provides complete details on Global Online Travel Market

Type - Global Online Travel Market breakup by 2 viewpoints

1. Package 2. Direct

Service Type - Global Online Travel Market breakup by 3 viewpoints

1. Transportation 2. Vacation Packages 3. Travel Accommodation

Payment Mode - Global Online Travel Market breakup by 4 viewpoints

1. UPI 2. E-Wallets 3. Debit/Credit Card 4. Other

Country - This report covers the 26 countries Online Travel Market

1. North America 1.1 United States 1.2 Canada 2. Europe 2.1 France 2.2 Germany 2.3 Italy 2.4 Spain 2.5 United Kingdom 2.6 Belgium 2.7 Netherland 2.8 Turkey 3. Asia Pacific 3.1 China 3.2 Japan 3.3 India 3.4 South Korea 3.5 Thailand 3.6 Malaysia 3.7 Indonesia 3.8 Australia 3.9 New Zealand 4. Latin America 4.1 Brazil 4.2 Mexico 4.3 Argentina 5. Middle East &Africa 5.1 Saudi Arabia 5.2 UAE 5.3 South Africa 6. Rest of the World

All the major players have been covered 3 Viewpoints

• Recent Development

Company Analysis

1. Airbnb 2. Expedia Inc 3. Booking Holding 4. Trip Advisor Inc. 5. Trip.com Group Ltd 6. Hostelworld Group PLC (HSW) 7. Trivago N.V 8. Despegar.com Corp 9. MakeMyTrip Limited 10. Lastminute.com

• Expedia Inc
• Booking Holding
• Trip Advisor Inc.
• Trip.com Group Ltd
• Hostelworld Group PLC (HSW)
• Trivago N.V
• Despegar.com Corp
• MakeMyTrip Limited
• Lastminute.com

In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market. Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice. Primary Research The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:

• Validates and improves the data quality and strengthens research proceeds
• Further develop the analyst team’s market understanding and expertise
• Supplies authentic information about market size, share, growth, and forecast

The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:

• Chief executives and VPs of leading corporations specific to the industry
• Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
• Key opinion leaders (KOLs)

Secondary Research The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:

• Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
• Patent and regulatory databases for understanding of technical & legal developments
• Scientific and technical writings for product information and related preemptions
• Regional government and statistical databases for macro analysis
• Authentic new articles, webcasts, and other related releases for market evaluation
• Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts

Table Information

• Travel Intermediaries

Global Online Travel Booking Service Market by Offering (Accommodation Booking, Transportation Booking, Vacation Packages), Device (Desktop, Mobile), Booking Method - Forecast 2024-2030

•  Report

Global Online Travel Market by Platform (Mobile/Tablets, Personal Computer), Services (Accommodation, Transportation, Vacation Packages), Age Group, Mode of Booking, Modes of Travel - Forecast 2024-2030

Online Travel Agent Global Market Report 2024

• February 2024

Global Online Travel Market Outlook, 2028

• August 2023

Online Travel Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028

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Online Travel Agencies Market

Exploring the Online Travel Agencies Market: A Comprehensive Examination by Transportation, Vacation Packages, Accommodation

Transforming the Travel Landscape- Exploring the Expanding Online Travel Agencies Market and the Influence of Artificial Intelligence on Personalized Travel Experiences. Find more with FMI

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Online Travel Agencies Market Outlook (2023 to 2033)

As per newly released data by Future Market Insights (FMI), the online travel agencies market is estimated at US$ 465.1 million in 2023 and is projected to reach US$ 1,694.2 million by 2033, at a CAGR of 13.8% from 2023 to 2033.

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Revenue of Online Travel Agencies from 2018 to 2022 Compared to Demand Outlook for 2023 to 2033

As per the FMI analysis, the market for online travel agencies secured a 6.70% CAGR from 2018 to 2022, touching US$ 355.4 million in 2022.

The technological development in the tourism industry has digitalized the entire process of travel bookings. Nowadays traveler makes more use of online services for travel booking as they feel it is a convenient and hassle-free process.

The online process has led to the growth of the tourism and hospitality industry. Therefore, online travel agencies play a significant role in the tourism industry.

Online travel agencies comprise various travel bookings, hotel bookings, transportation service bookings, and many more.

Online travel agencies serve the purpose of selling travel services on online platforms. In the last few years, there is a significant rise in the growth of online travel agencies. The growth has helped to revolutionize the tourism industry.

The above-mentioned factors augur well for the online travel agencies market future trends, where it is predicted that the market likely reaches US$ 1,694.2 million by 2033 at 13.8% CAGR through 2033.

What are the Features and Convenience of Use that Drive the Demand for the Online Travel Agencies?

• Online travel agencies offer a range of services either directly from their own companies or act as intermediaries between travel and booking agencies and end users.
• The main purpose of online travel agencies is to provide booking services online, covering everything from selecting a service to the point of sale on the Internet.
• Online portals offered by these agencies provide various services including price comparison, cost estimation, accommodation options, destination information, transportation modes, and even tour packages.
• The convenience, speed, and ease of booking provided by online travel services attract travelers, offering a convenient and efficient way to plan their trips.
• By utilizing online travel services, travelers can save both time and money, making it an appealing option for those seeking efficient and cost-effective travel arrangements.

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What is Fostering the Expansion of the Market Size: The Rise in Disposable Income and New Development Initiatives?

• Increasing disposable income among individuals has played a significant role in driving the demand for online travel agencies, as people now have more financial resources to explore and travel to various destinations worldwide.
• Online travel agencies have successfully established a global reach, expanding their services and operations across different regions and countries, catering to the diverse travel needs and preferences of customers.
• To meet the evolving demands of the market, online travel agencies continuously adopt new strategies and upgrade their technologies, ensuring enhanced service offerings and improved customer experiences.
• The inclusion of travel insurance and baggage insurance by online travel agencies provides an added layer of security and peace of mind for travelers, contributing to the overall convenience and reliability of their services.
• Transparency throughout the booking process is a key focus for online travel agencies, ensuring customers have access to comprehensive information and pricing details, fostering trust and confidence in their decision-making.
• The initiatives taken by online travel agencies, such as integrating advanced technologies and providing comprehensive travel solutions, have successfully attracted the new generation of tech-savvy travelers, generating a strong demand in the market.
• Despite the challenges faced during the pandemic, the online travel agencies market remains resilient and continues to evolve, adapting to changing customer expectations and emerging market trends.

What Impact Does the Increasing Number of Solo Travelers Have on the Growth of the Online Travel Agencies Industry?

• There has been a significant increase in the number of solo travelers in recent years, driven by specific reasons such as leisure, recreation, and engaging in activities like water sports, hiking, riding, skiing, and more.
• The influence of social media has played a major role in attracting a wide audience to explore different regions, leading to a rise in online travel agencies' booking transactions.
• Online travel agencies offer comprehensive tour plans, including vacation packages, and assist solo travelers in making travel, food, and accommodation arrangements through convenient platforms such as phones or other devices.
• This convenience and affordability make online travel agencies a preferred choice for solo travelers, who may lack extensive knowledge or prefer cost-effective options.
• In recent years, online travel agencies have surpassed offline tour operators and travel agents in terms of popularity and usage among solo travelers.

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Country-wise Insights

What is the growth outlook for the europe online travel agencies industry.

The growth outlook for the Europe online travel agencies industry is positive, with a value share of 22.30% in 2022. The industry is expected to continue growing steadily, supported by various factors such as increasing online travel bookings, technological advancements, and evolving customer preferences.

The CAGR of the United Kingdom at 5.00% from 2023 to 2033 indicates a promising growth trajectory for the market. The rising adoption of online platforms for travel planning and booking, along with the convenience and extensive range of services offered by online travel agencies, are driving the industry's growth.

The industry is likely to witness further advancements in mobile applications, personalized travel experiences, and innovative marketing strategies, contributing to the expansion of the Europe online travel agencies market in the coming years.

How Online Travel Agencies Market is Progressing in India?

In India online leading companies like Yatra.com, Kesari Tours, Veena World, Make My Trip, others are dominating the tourism industry in India, contributing to the country’s anticipated CAGR of 6.0% from 2023 to 2033.

India attracts many foreigners to discover and explore its culture and diversity. Foreigners find Indian travel agencies more affordable than booking tours from abroad. Hence, they use Indian online travel agencies’ websites for booking accommodation and transportation.

Meanwhile, India being one of the leading countries in the count of internet users, it can be concluded that the vast majority of the population is tech-savvy. Thus, online travel agencies try various marketing tools to connect with travelers and encourage them to avail of their services.

The attractive advertisements, loyalty programs, and offers from leading online travel agencies have influenced the domestic market. Therefore, the known online agencies have gained the trust of domestic travelers of the country over the years.

What are the Factors Driving the Online Travel Agencies Industry in the United States of America?

As per the FMI analysis, the market for online travel agencies in the United States was predicted to garner a value share of 5.50% in 2022.

United States is one of the major markets of tourism with millions of travelers visiting every year. Domestic travelers in the United States of America use online travel agencies’ websites and applications extensively.

Apart from this, the airline service is availed by United States citizens majorly. Therefore, there is a high demand for travelers using online travel agencies’ websites for airline travel booking.

With the high standard of living and high disposable income due to the high value of currency travelers are ready to spend a high amount of money on traveling and exploring new adventures. Thus, there is a high demand from travelers for luxury tourism, adventure sports, and various type of outdoor activities.

Category-wise Insights

Which service type is more preferred by travelers in online travel agencies market.

According to the analysis, in terms of service type the transportation service is widely preferred by travelers with the sub-segment holding a 22.0% value share in 2022.

Transportation services generate a high demand for their services. Few the transport services such as car rentals or bus travel agencies are in heavy demand as they are the part of daily mode of transport for many travelers.

Apart from this the attractive offers and schemes from the transportation services attract travelers to use these online services more often. Lastly, the transportation services are having a wide coverage of travelers as compared to the tour/vacation packages or accommodations as they generate demand only when there is a need.

How is the Competitive Landscape in the Market for Online Travel Agencies?

Leading players operating globally in the market are focusing on the expansion of their business. Also working on their service and creating advanced technology to attract new customers.

The competitive landscape in the market for online travel agencies is intense and dynamic. Numerous players, ranging from established companies to emerging startups, compete for market share.

Key industry players strive to differentiate themselves by offering unique features, enhanced user experiences, and a wide range of travel services.

They invest in advanced technologies, such as artificial intelligence and machine learning, to provide personalized recommendations and streamline booking processes. Additionally, partnerships with airlines, hotels, and other travel service providers are crucial to expand their offerings and provide competitive pricing.

Continuous innovation, customer-centric strategies, and effective marketing campaigns are vital for online travel agencies to gain a competitive edge in this rapidly evolving market.

Key Players

• Expedia Group Inc.
• Booking Holding Inc.
• Trip Advisor Inc.
• MakeMyTrip Pvt. Limited
• Hostelworld Group PLC (HSW)
• Trivago N.V
• Thomas Cook India Ltd.
• Lastminute.com Group
• Orbitz Worldwide
• Walt Disney World

For instance:

• In the year 2018, Booking.com announced a new product version of the booking.com application and website at Vacation Rental Management Association (VRMA). The new product features allow users to select the product of a partner’s brand beyond booking.com own products. Also, they introduced group connect, guest management, and enhance connectivity features in their new application.
• Recently in 2022, Expedia Group announced an Open World Technology platform. The technology is developed for partner agencies. The platform has a complete e-commerce suit, with various blocks like payments, chatbot, services, and fraud detection, and is perfect for the agency planning to enter the newly in online travel business.

Segmentation Analysis

By service type:.

• Transportation
• Vacation Packages
• Accommodation

By Device Platform:

By payment modes:.

• Debit / Credit Card
• Others (Vouchers, Discount Codes)

By Booking Type:

• Online Travel Agents
• Direct Travel Agents

By Customer Segment:

• Corporate Traveller
• Individual Traveller

By Age Group:

• 15-25 Years
• 26-35 Years
• 36-45 Years
• 46-55 Years
• 66-75 Years
• North America
• Latin America

Frequently Asked Questions

How is the historical performance of the market.

During 2018 to 2022, the market grew at a 6.70% CAGR.

Who are the Key Market Players of this market?

Airbnb, Trip Advisor Inc., and Trivago N.V. are key market players.

What factors contribute to the attraction of this market in Europe?

Increasing online travel bookings raises the market.

How Big is this market?

This market is valued at US$ 465.1 million in 2023.

How Big will be this Market by 2033?

This market is estimated to reach US$ 1,694.2 million by 2033.

Table of Content

List of tables, list of charts.

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Global Online Travel Market Size is projected to be US$ 1,463.98 Billion by 2027, from US$ 800.72 Billion in 2021

Most industries have become fully digitized over the last decade. In particular, the travel industry has maintained to great lengths to cultivate its online presence.

The online travel industry primarily reviews sites and travel e-commerce sites. It offers the comfort of booking from home and often entices consumers with package deals and price-saving options. As a result, many travelers have shifted away from traditional brick-and-mortar travel agencies favoring online options to book their trips.

Furthermore, the increased spending power of the people, a governmental initiative to spread tourism, growing internet and credit card penetration, the emergence of new online segments are driving the primary global online travel market. Most of the global online travel market growth would come from the increasing penetration of international flight and hotel bookings offered by online portals such as Booking.com, TripAdvisor.com, Skyscanner.com, etc.

Worldwide online travel industry will grow with a CAGR of 10.58% from 2021-2027

Based on type, the global online travel industry is segmented into Package travel and Direct travel. The direct travel agencies enable customers to engage while researching, booking, or planning their travels. The online direct travel agency can be on a mobile app or website via which the booking can be made instantly with the online travel agency.

On the basis of Booking Type, the market is segmented into Online Travel Agencies and Direct Travel Suppliers. Online travel agencies are evolving as the most preferred medium for bookings in the world. Over the last 25 years, the advancement of online travel agencies has been one of the most melodramatic examples of the digital transformation of business and society.

OTAs have evolved into digital marketplaces that directly connect B2B and B2C customers with a full range of online travel outcomes. In fact, OTAs can be considered as a hybrid of an e-commerce platform and a travel agency. OTAs from giants such as Expedia, Booking.com, and Trip.com have captured the global online travel market (hotels, airlines, packaged tours, rail and cruises).

Furthermore, the Travel Accommodation segment is projected to maintain its lead in the online travel services market. As the world has integrated, businesses are expanding their business worldwide, and thus travel accommodation has become the most significant contributor to the Online Travel Market. Travelers can choose online from among the various travel accommodations available, including hotels, resorts, vacation rentals, and others.

The global online travel market was US$ 800.72 Billion in 2021

Based on the devices type, the market is bifurcated into mobile/ tablet and desktop. Online travel booking through mobile/tablet and desktop is the most favored booking vehicle for most youthful explorers because of usability, comfort, and every minute of everyday openness. Digital consumer trends continue to change.

Desktop use is continuously dropping, and mobile is continually growing vice versa. However, even these trends continue to move rapidly, so the online travel industry must adapt accordingly. 82% of all travel bookings around the world took place without human interaction in 2018, according to STRATOS.

In the past several years, online payment modes such as UPI, E-Wallets, Debit/Credit Card, and others have gained popularity in the online travel industry. UPI and E-Wallets are the most preferred method of payment. Across the globe, countries are moving towards cashless economies. Paypal, Alipay, Google pay, and Amazon pay make it easy to pay for travel on airlines, hotels, car rentals, and more.

Age group Baby Boomers drives the development of the online travel market

By age group, the online travel market includes Millennial, Generation X, Baby Boomers, and Silver Hair. The baby boomer travelers predominantly male and female occupy a significant portion of the market. Baby boomers have more money, time and the urge to travel.

During their travels, they seek new experiences; participate in active holidays, including sightseeing and discovering new cultures. Notwithstanding, the Millennial age group of 25-40 years comprises business travel and early starters in their professional careers. These corporate travelers are more inclined to spend on the trip and explore new destinations than travelers in the higher age-group category.

Asia-Pacific: Most Lucrative Online Travel Market

On the basis of geography, Asia-Pacific possesses the highest growth potential in the online travel market, with China and India being the most lucrative markets.

The growth is associated with the middle-class segment's rise, disposable income, and greater penetration of Internet facilities. While Ctrip online travel agency is the leading player in China's online travel market, Yatra and Cleartrip MakeMyTrip are India's foremost online travel agencies (OTA). Online travel agencies are becoming the most preferred tool for bookings in the region.

COVID-19 Impact on the Global Online Travel Industry:

With the emergence of the COVID-19, the global online travel industry has experienced a sharp decline in demand, especially in 2020. The widespread coronavirus outbreak worldwide has resulted in complete lockdown in numerous countries and the sealing of the borders.

Moreover, the shutdown of the airline industry and the increasing fear of catching coronavirus while travelling have encouraged people to stay at their homes. All these determinants have negatively impacted the global online travel market.

This report's key players profiled are

• Booking Holding
• Trip Advisor Inc.
• Trip.com Group Ltd.
• MakeMyTrip Limited
• Hostelworld Group PLC (HSW)
• Trivago N.V
• Despegar.com, Corp
• Lastminute.com Group

Key Topics Covered:

1. Introduction

2. Research & Methodology

3. Executive Summary

4. Market Dynamics

4.1 Growth Drivers

4.2 Challenges

4.3 Opportunities

5. Global Online Travel Market

6. Market Share - Global Online Travel

6.1 By Type

6.2 By Booking Type

6.3 By Service Type

6.4 By Payment Mode

6.5 By Age Group

6.6 By Gender

6.7 By Device

6.8 By Region

7. Type - Global Online Travel Market

7.1 Package

8. Booking Type - Global Online Travel Market

8.1 Online Travel Agencies

8.2 Direct Travel Suppliers

9. Service Type - Global Online Travel Market

9.1 Transportation

9.2 Vacation Packages

9.3 Travel Accommodation

10. Payment Mode - Global Online Travel Market

10.2 E-Wallets

10.3 Debit/Credit Card

11. Age Group - Global Online Travel Market

11.1 Millennial

11.2 Generation X

11.3 Baby Boomers

11.4 Silver Hair

12. Gender - Global Online Travel Market

12.2 Female

13. Devices Type - Global Online Travel Market

13.1 Mobile/Tablet

13.2 Desktop

14. Region - Global Online Travel Market

14.1 North America

14.2 Western Europe

14.3 Asia Pacific

14.4 Latin America

14.5 Middle East and Africa

14.6 Central and Eastern Europe

15. Porters Five Forces

15.1 Overview

15.2 Bargaining Power of Buyers

15.3 Bargaining Power of Suppliers

15.4 Degree of Competition

15.5 Threat of New Entrants

15.6 Threat of Substitutes

16. Company Analysis

16.1 Overview

16.2 Recent Development

16.3 Revenue

For more information about this report visit https://www.researchandmarkets.com/r/8i65mm

ResearchAndMarkets.com Laura Wood, Senior Press Manager [email protected] For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

Related Travel Research

U.s. online travel agency market report 2020-2024.

Free for Open Access Subscribers

Coming off a year of steady growth with rosy outlooks and big plans for 2020, U.S. online travel agency bookings plummeted as a pandemic brought the world to a standstill. OTAs suffered a steep 59% drop in gross bookings. Adapting quickly during volatile times, OTAs highlighted the power of being nimble and innovative to continue servicing both customers and partners. This report provides an overview of the U.S. online travel agency landscape, including market sizing and projections through 2024, analysis, key trends, major players and more.

For more on the U.S. travel marketplace, check out the following:

• U.S. Travel Market Report 2020-2024
• U.S. Airline Market Report 2020-2024
• U.S. Hotel & Lodging Market Report 2020-2024
• U.S. Car Rental Market Report 2020-2024
• U.S. Cruise Market Report 2020-2024
• U.S. Packaged Travel Market Report 2020-2024
• U.S. Travel Market Data Sheet 2020-2024 (subscriber only)

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Online Travel Agency Market

• Information Technology
• online travel agency market

Global Online Travel Agency Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Table of Content

Methodology, request a free sample copy.

Online Travel Agency Market is anticipated to reach USD 911.45 Million by 2031 up from USD 463.29 Million in 2022. The market is growing at a CAGR of 16.98% from 2023-2031.

The online travel agency market has huge potential to grow in the upcoming years with a substantial growth rate. The market growth is supported by various factors such as rising internet penetration in the tourism sector, availability of secure transactions by OTA’s, rising disposable income, increasing promotional activities for tourism. Over the past few years, online travel bookings have gone through several changes owing to technological advancement.

Rising internet usage in tourism and user-friendly applications for smartphones has made the booking process easier. This is estimated to drive the market at a considerable rate in the forecast period. Major online travel agencies are spending a huge amount to promote travel. For instance, Booking.com and Expedia Inc. spent around US$5 billion each in the year 2020 to promote tourism and to gain customer attraction. Rising promotional activities have influenced customers to travel more and thus propelling the market significantly. OTA is also providing customized plans according to customer interest in travel and accommodation for a better travel experience. 

Tourism is one of the major industries affected by COVID-19 due to global lockdown and home quarantine. The COVID-19 pandemic has put the tourism industry under tremendous pressure. However, government initiatives to promote the tourism sector after COVID -19 have played a major role to support the online travel agency market globally. For instance, In the 2020-2021 budget, the Government of India has allotted US$ 171 Million and US$ 30 Million under Swadesh Darshan Scheme and Prashad Scheme respectively to promote tourism in India. Europe commission has also adopted comprehensive packages in May 2020 to resume transportation and tourism safely. 

Segmentation Overview of Online Travel Agency Market (OTA)

The online travel agency market has been segmented based on the business model, platform, product type, customer segment, and region. These major segments are further categorized into sub-segments to study the market in detail.

• Mega Online Travel Retailers
• Digital Tour Operators
• Mobile Travel Retailers
• Travel Marketplaces
• Packages (End-to-end)
• Documentation
• Personal (Individuals, groups, families)
• Students/ Professionals
• North America
• Asia Pacific
• Middle East and Africa
• Rest of the world

Regional Analysis

Geographically, The online travel agency market has been divided into North America, Asia Pacific, Europe, Middle East and Africa, and the rest of the world. As per the studies, Europe is accounted for the highest market share owing to various reasons such as high disposable income and the growing tourism sector. Tourism is the major economic growth sector in Europe which is propelling the online travel agency market in Europe region significantly. North America is the second-largest market shareholder for the online travel agency (OTA) market. However, Asia Pacific region is expected to grow with the highest CAGR of 15.8% in the forecast period owing to the rising use of online travel service applications for mobiles/smartphones. 

Key Players

The major players in the market are Expedia Inc., Booking Holdings Inc., Ctrip.com International Ltd, Trivago, Tripadvisor, Makemytrip Pvt. Ltd, Thomas Cook Group PLC among others. To sustain the competitive environment, various online travel agencies are collaborating with hotel groups and transportation companies to provide affordable services to the customers. For instance, in 2018, Cleartrip acquired Flyin to gain a competitive edge and increase its customer base in the Middle East and Africa region. 

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Travel Agencies in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

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Industry statistics and trends.

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Travel Agencies in the US

Industry Revenue

Total value and annual change from . Includes 5-year outlook.

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Trends and Insights

Market size is projected to over the next five years.

Market share concentration for the Travel Agencies industry in the US is , which means the top four companies generate of industry revenue.

The average concentration in the sector in the United States is .

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Table of Contents

About this industry, industry definition, what's included in this industry, industry code, related industries, domestic industries, competitors, complementors, international industries, performance, key takeaways, revenue highlights, employment highlights, business highlights, profit highlights, current performance.

What's driving current industry performance in the Travel Agencies in the US industry?

What's driving the Travel Agencies in the US industry outlook?

What influences volatility in the Travel Agencies in the US industry?

• Industry Volatility vs. Revenue Growth Matrix

What determines the industry life cycle stage in the Travel Agencies in the US industry?

• Industry Life Cycle Matrix

Products and Markets

Products and services.

• Products and Services Segmentation

How are the Travel Agencies in the US industry's products and services performing?

What are innovations in the Travel Agencies in the US industry's products and services?

Major Markets

• Major Market Segmentation

What influences demand in the Travel Agencies in the US industry?

International Trade

• Industry Concentration of Imports by Country
• Industry Concentration of Exports by Country
• Industry Trade Balance by Country

What are the import trends in the Travel Agencies in the US industry?

What are the export trends in the Travel Agencies in the US industry?

Geographic Breakdown

Business locations.

• Share of Total Industry Establishments by Region ( )

Data Tables

• Number of Establishments by Region ( )
• Share of Establishments vs. Population of Each Region

What regions are businesses in the Travel Agencies in the US industry located?

Competitive Forces

Concentration.

• Combined Market Share of the Four Largest Companies in This Industry ( )
• Share of Total Enterprises by Employment Size

What impacts market share in the Travel Agencies in the US industry?

Barriers to Entry

What challenges do potential entrants in the Travel Agencies in the US industry?

Substitutes

What are substitutes in the Travel Agencies in the US industry?

Buyer and Supplier Power

• Upstream Buyers and Downstream Suppliers in the Travel Agencies in the US industry

What power do buyers and suppliers have over the Travel Agencies industry in the US?

Market Share

Top companies by market share:

• Market share
• Profit Margin

Company Snapshots

Company details, summary, charts and analysis available for

Company Details

• Total revenue
• Total operating income
• Total employees
• Industry market share

Company Summary

• Description
• Brands and trading names
• Other industries

What's influencing the company's performance?

External Environment

External drivers.

What demographic and macroeconomic factors impact the Travel Agencies in the US industry?

Regulation and Policy

What regulations impact the Travel Agencies in the US industry?

What assistance is available to the Travel Agencies in the US industry?

Financial Benchmarks

Cost structure.

• Share of Economy vs. Investment Matrix
• Depreciation

What trends impact cost in the Travel Agencies in the US industry?

Financial Ratios

• 3-4 Industry Multiples (2018-2023)
• 15-20 Income Statement Line Items (2018-2023)
• 20-30 Balance Sheet Line Items (2018-2023)
• 7-10 Liquidity Ratios (2018-2023)
• 1-5 Coverage Ratios (2018-2023)
• 3-4 Leverage Ratios (2018-2023)
• 3-5 Operating Ratios (2018-2023)
• 5 Cash Flow and Debt Service Ratios (2018-2023)
• 1 Tax Structure Ratio (2018-2023)

Data tables

• IVA/Revenue ( )
• Imports/Demand ( )
• Exports/Revenue ( )
• Revenue per Employee ( )
• Wages/Revenue ( )
• Employees per Establishment ( )
• Average Wage ( )

Key Statistics

Industry data.

Including values and annual change:

• Revenue ( )
• Establishments ( )
• Enterprises ( )
• Employment ( )
• Exports ( )
• Imports ( )

Frequently Asked Questions

What is the market size of the travel agencies industry in the us.

The market size of the Travel Agencies industry in the US is measured at in .

How fast is the Travel Agencies in the US market projected to grow in the future?

Over the next five years, the Travel Agencies in the US market is expected to . See purchase options to view the full report and get access to IBISWorld's forecast for the Travel Agencies in the US from up to .

What factors are influencing the Travel Agencies industry in the US market trends?

Key drivers of the Travel Agencies in the US market include .

What are the main product lines for the Travel Agencies in the US market?

The Travel Agencies in the US market offers products and services including .

Which companies are the largest players in the Travel Agencies industry in the US?

Top companies in the Travel Agencies industry in the US, based on the revenue generated within the industry, includes .

How many people are employed in the Travel Agencies industry in the US?

The Travel Agencies industry in the US has employees in United States in .

How concentrated is the Travel Agencies market in the United States?

Market share concentration is for the Travel Agencies industry in the US, with the top four companies generating of market revenue in United States in . The level of competition is overall, but is highest among smaller industry players.

Methodology

Where does ibisworld source its data.

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.

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India Online Travel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

India's Online Travel Market Report is Segmented by Service Type (transportation, Travel Accommodation, Vacation Packages, and Others), by Booking Type (online Travel Agencies, Direct Travel Suppliers), by Platform (desktop, Mobile) and by Tour Type (Independent Traveller, Tour Group, Package Traveller). the Market Size and Forecasts for the India Online Travel Market are Provided in Terms of Value (USD) for all the Above Segments.

• India Online Travel Market Size

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India Online Travel Market Analysis

The India Online Travel Market size is estimated at USD 17.24 billion in 2024, and is expected to reach USD 28.40 billion by 2029, growing at a CAGR of 10.5% during the forecast period (2024-2029).

India's online travel industry was hit hard by COVID-19. However, long-term growth fundamentals were intact. The pandemic was a major challenge, but it was also an acquisition opportunity for stronger players as the industry consolidated. Domestic tourism, on the other hand, is expected to pick up faster, with plenty of pent-up demand to support a relatively quick recovery. Indian travel firms have reportedly seen a 25%-30% increase in bookings, both for air travel and accommodations, for the Christmas and New Year holidays.

Mobile apps have become a significant channel for travel bookings. Many of the leading travel companies in India have developed user-friendly mobile apps, allowing travelers to book tickets and accommodations on the go.

The online travel industry in India is highly competitive and features several prominent players, including MakeMyTrip, Yatra, Cleartrip, Goibibo, and Booking.com, among others. These companies offer a variety of services, including flight and hotel bookings, holiday packages, car rentals, and more.

• India Online Travel Market Trends

Growth of the Tourism Industry in India is Driving the Market

The travel and tourism industry in India was the seventh-largest contributor to the country's GDP according to a new report by the World Travel and Tourism Council (WTTC). India's economic growth has been among the highest in the world in the past decade. Positive developments on the economic front should contribute to propelling the country's tourism industry as an increasing number of Indians with rising disposable incomes make a greater number of domestic and international trips.

Players looking to capitalize on growing inbound and outbound international trips from India include MakeMyTrip, which announced its plans to expand into the UAE, and EaseMyTrip, which is expanding its international footprint, particularly in international cities where Indians travel the most. With an expanded international presence, EaseMyTrip expects to provide better service to their customers as well as better rates on local hotels and restaurants that are reluctant to work with companies outside their home countries.

Increasing trend of YOLO and desire for education in international universities will boost the market.

Since March 2020, all of us have faced several losses and challenges. The COVID-19 epidemic left the entire world in a state of lockdown, affecting businesses and households in general. As the world looked forward to a new dawn in 2021, the effects looked slightly different than last time.

According to Ministry of External Affairs (MMEA) data, a significant drop in scholars studying overseas has been observed. Around 2.6 lakh scholars went abroad in 2020, compared to 5.9 lakh scholars in 2019. In 2021 (until February 28, 2021), an estimated 7,699 Indians studied abroad. According to another report, as the number of Indian scholars completing advanced education abroad increases year after year, their overseas spending is expected to increase from USD 28 billion to USD 80 billion by 2024.

India Online Travel Industry Overview

The report covers major international players operating in the Indian online travel market. In terms of market share, a few of the major players currently dominate the market. However, with technological advancement and product innovation, midsize to smaller companies are increasing their market presence by securing new contracts and tapping new markets.

India Online Travel Market Leaders

Booking.com

*Disclaimer: Major Players sorted in no particular order

India Online Travel Market News

• August 2023: Skyscanner launched its Hindi language experience across all its products and services to penetrate deeper into the Indian market. Skyscanner acts as a one-stop solution for travelers looking to compare ticket fares, hotel tariffs, and intra-city commutes by curating data from its partner Online Travel Agent (OTA) sites.
• August 2023: MakeMyTrip long with the Ministry of tourism has launched a unique Travellers' Map of India that showcases 600 plus destinations beyond the popular travel spots in the country.

India's Online Travel Market Report - Table of Contents

1. INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS AND DYNAMICS

4.1 Market Overview

4.2 Market Drivers

4.3 Market Restraints

4.4 Industry Value Chain Analysis

4.5 Porter's Five Forces Analysis

4.5.1 Threat of New Entrants

4.5.2 Bargaining Power of Buyers/Consumers

4.5.3 Bargaining Power of Suppliers

4.5.4 Threat of Substitute Products

4.5.5 Intensity of Competitive Rivalry

4.6 Impact of COVID-19 on the Market

5. MARKET SEGMENTATION

5.1 Service Type

5.1.1 Transportation

5.1.2 Travel Accommodation

5.1.3 Vacation Packages

5.1.4 Other Service Types

5.2 Booking Type

5.2.1 Online Travel Agencies

5.2.2 Direct Travel Suppliers

5.3 Platform

5.3.1 Desktop

5.3.2 Mobile

5.4 By Tour Type

5.4.1 Independent Traveller

5.4.2 Tour Group

5.4.3 Package Traveller

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration Overview

6.2 Company Profiles

6.2.1 Via.com

6.2.2 Booking.com

6.2.3 MakeMyTrip

6.2.4 Yatra

6.2.5 Cleartrip

6.2.6 EaseMyTrip

6.2.7 Expedia

6.2.8 Thomas Cook Ltd.

6.2.9 Cox & Kings Ltd.

6.2.10 Oyo Rooms

6.2.11 ixigo

• *List Not Exhaustive

7. FUTURE OF THE MARKET

8. DISCLAIMER

India Online Travel Industry Segmentation

The online travel market consists of sales of travel services through online channels. Online travel agents or agencies are individuals or companies with websites allowing consumers to book travel-related services via the Internet. A complete background analysis of the market, including the analysis of market size and forecast, market shares, industry trends, growth drivers, and vendors, is provided. Additionally, the report features qualitative and quantitative assessments by analyzing the data gathered from industry analysts and market participants across key points in the industry's value chain.

India's Online Travel Market Report is segmented by service type (transportation, travel accommodation, vacation packages, and others), by booking type (online travel agencies, direct travel suppliers), by platform (desktop, mobile) and By Tour Type (Independent Traveller, Tour Group, Package Traveller). The market size and forecasts for the India Online Travel Market are provided in terms of value (USD) for all the above segments.

India's Online Travel Market Research FAQs

How big is the india online travel market.

The India Online Travel Market size is expected to reach USD 17.24 billion in 2024 and grow at a CAGR of 10.5% to reach USD 28.40 billion by 2029.

What is the current India Online Travel Market size?

In 2024, the India Online Travel Market size is expected to reach USD 17.24 billion.

Who are the key players in India Online Travel Market?

Via.com, Booking.com, MakeMyTrip, Yatra and Expedia are the major companies operating in the India Online Travel Market.

What years does this India Online Travel Market cover, and what was the market size in 2023?

In 2023, the India Online Travel Market size was estimated at USD 15.60 billion. The report covers the India Online Travel Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Online Travel Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

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India's Online Travel Industry Report

Statistics for the 2024 India Online Travel market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Online Travel analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Online Travel Agent Market Size, Insights, Growth Rate, Trends Analysis And Forecast To 2033

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Trends in electric cars

• Executive summary

Electric car sales

Electric car availability and affordability.

• Electric two- and three-wheelers
• Electric light commercial vehicles
• Electric truck and bus sales
• Electric heavy-duty vehicle model availability
• Charging for electric light-duty vehicles
• Charging for electric heavy-duty vehicles
• Battery supply and demand
• Battery prices
• Electric vehicle company strategy and market competition
• Electric vehicle and battery start-ups
• Vehicle outlook by mode
• Vehicle outlook by region
• The industry outlook
• Light-duty vehicle charging
• Heavy-duty vehicle charging
• Battery demand
• Electricity demand
• Oil displacement
• Well-to-wheel greenhouse gas emissions
• Lifecycle impacts of electric cars

Cite report

IEA (2024), Global EV Outlook 2024 , IEA, Paris https://www.iea.org/reports/global-ev-outlook-2024, Licence: CC BY 4.0

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Nearly one in five cars sold in 2023 was electric.

Electric car sales neared 14 million in 2023, 95% of which were in China, Europe and the United States

Almost 14 million new electric cars 1 were registered globally in 2023, bringing their total number on the roads to 40 million, closely tracking the sales forecast from the 2023 edition of the Global EV Outlook (GEVO-2023). Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase. This is more than six times higher than in 2018, just 5 years earlier. In 2023, there were over 250 000 new registrations per week, which is more than the annual total in 2013, ten years earlier. Electric cars accounted for around 18% of all cars sold in 2023, up from 14% in 2022 and only 2% 5 years earlier, in 2018. These trends indicate that growth remains robust as electric car markets mature. Battery electric cars accounted for 70% of the electric car stock in 2023.

Global electric car stock, 2013-2023

While sales of electric cars are increasing globally, they remain significantly concentrated in just a few major markets. In 2023, just under 60% of new electric car registrations were in the People’s Republic of China (hereafter ‘China’), just under 25% in Europe, 2 and 10% in the United States – corresponding to nearly 95% of global electric car sales combined. In these countries, electric cars account for a large share of local car markets: more than one in three new car registrations in China was electric in 2023, over one in five in Europe, and one in ten in the United States. However, sales remain limited elsewhere, even in countries with developed car markets such as Japan and India. As a result of sales concentration, the global electric car stock is also increasingly concentrated. Nevertheless, China, Europe and the United States also represent around two-thirds of total car sales and stocks, meaning that the EV transition in these markets has major repercussions in terms of global trends.

In China, the number of new electric car registrations reached 8.1 million in 2023, increasing by 35% relative to 2022. Increasing electric car sales were the main reason for growth in the overall car market, which contracted by 8% for conventional (internal combustion engine) cars but grew by 5% in total, indicating that electric car sales are continuing to perform as the market matures. The year 2023 was the first in which China’s New Energy Vehicle (NEV) 3 industry ran without support from national subsidies for EV purchases, which have facilitated expansion of the market for more than a decade. Tax exemption for EV purchases and non-financial support remain in place, after an extension , as the automotive industry is seen as one of the key drivers of economic growth. Some province-led support and investment also remains in place and plays an important role in China’s EV landscape. As the market matures, the industry is entering a phase marked by increased price competition and consolidation. In addition, China exported over 4 million cars in 2023, making it the largest auto exporter in the world, among which 1.2 million were EVs. This is markedly more than the previous year – car exports were almost 65% higher than in 2022, and electric car exports were 80% higher. The main export markets for these vehicles were Europe and countries in the Asia Pacific region, such as Thailand and Australia.

In the United States, new electric car registrations totalled 1.4 million in 2023, increasing by more than 40% compared to 2022. While relative annual growth in 2023 was slower than in the preceding two years, demand for electric cars and absolute growth remained strong. The revised qualifications for the Clean Vehicle Tax Credit, alongside electric car price cuts, meant that some popular EV models became eligible for credit in 2023. Sales of the Tesla Model Y, for example, increased 50% compared to 2022 after it became eligible for the full USD 7 500 tax credit. Overall, the new criteria established by the Inflation Reduction Act (IRA) appear to have supported sales in 2023, despite earlier concerns that tighter domestic content requirements for EV and battery manufacturing could create immediate bottlenecks or delays, such as for the Ford F-150 Lightning . As of 2024, new guidance for the tax credits means the number of eligible models has fallen to less than 30 from about 45, 4 including several trim levels of the Tesla Model 3 becoming ineligible. However, in 2023 and 2024, leasing business models enable electric cars to qualify for the tax credits even if they do not fully meet the requirements, as leased cars can qualify for a less strict commercial vehicle tax credit and these tax credit savings can be passed to lease-holders. Such strategies have also contributed to sustained electric car roll-out.

In Europe, new electric car registrations reached nearly 3.2 million in 2023, increasing by almost 20% relative to 2022. In the European Union, sales amounted to 2.4 million, with similar growth rates. As in China, the high rates of electric car sales seen in Europe suggest that growth remains robust as markets mature, and several European countries reached important milestones in 2023. Germany, for example, became the third country after China and the United States to record half a million new battery electric car registrations in a single year, with 18% of car sales being battery electric (and another 6% plug-in hybrid).

However, the phase-out of several purchase subsidies in Germany slowed overall EV sales growth. At the start of 2023, PHEV subsidies were phased out, resulting in lower PHEV sales compared to 2022, and in December 2023, all EV subsidies ended after a ruling on the Climate and Transformation Fund. In Germany, the sales share for electric cars fell from 30% in 2022 to 25% in 2023. This had an impact on the overall electric car sales share in the region. In the rest of Europe, however, electric car sales and their sales share increased. Around 25% of all cars sold in France and the United Kingdom were electric, 30% in the Netherlands, and 60% in Sweden. In Norway, sales shares increased slightly despite the overall market contracting, and its sales share remains the highest in Europe, at almost 95%.

Electric car registrations and sales share in China, United States and Europe, 2018-2023

Sales in emerging markets are increasing, albeit from a low base, led by southeast asia and brazil.

Electric car sales continued to increase in emerging market and developing economies (EMDEs) outside China in 2023, but they remained low overall. In many cases, personal cars are not the most common means of passenger transport, especially compared with shared vans and minibuses, or two- and three-wheelers (2/3Ws), which are more prevalent and more often electrified, given their relative accessibility and affordability. The electrification of 2/3Ws and public or shared mobility will be key to achieve emissions reductions in such cases (see later sections in this report). While switching from internal combustion engine (ICE) to electric cars is important, the effect on overall emissions differs depending on the mode of transport that is displaced. Replacing 2/3Ws, public and shared mobility or more active forms of transport with personal cars may not be desirable in all cases.

In India, electric car registrations were up 70% year-on-year to 80 000, compared to a growth rate of under 10% for total car sales. Around 2% of all cars sold were electric. Purchase incentives under the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme, supply-side incentives under the Production Linked Incentive (PLI) scheme, tax benefits and the Go Electric campaign have all contributed to fostering demand in recent years. A number of new models also became popular in 2023, such as Mahindra’s XUV400, MG’s Comet, Citroën’s e-C3, BYD’s Yuan Plus, and Hyundai’s Ioniq 5, driving up growth compared to 2022. However, if the forthcoming FAME III scheme includes a subsidy reduction, as has been speculated in line with lower subsidy levels in the 2024 budget, future growth could be affected. Local carmakers have thus far maintained a strong foothold in the market, supported by advantageous import tariffs , and account for 80% of electric car sales in cumulative terms since 2010, led by Tata (70%) and Mahindra (10%).

In Thailand, electric car registrations more than quadrupled year-on-year to nearly 90 000, reaching a notable 10% sales share – comparable to the share in the United States. This is all the more impressive given that overall car sales in the country decreased from 2022 to 2023. New subsidies, including for domestic battery manufacturing, and lower import and excise taxes, combined with the growing presence of Chinese carmakers , have contributed to rapidly increasing sales. Chinese companies account for over half the sales to date, and they could become even more prominent given that BYD plans to start operating EV production facilities in Thailand in 2024, with an annual production capacity of 150 000 vehicles for an investment of just under USD 500 million . Thailand aims to become a major EV manufacturing hub for domestic and export markets, and is aiming to attract USD 28 billion in foreign investment within 4 years, backed by specific incentives to foster investment.

In Viet Nam, after an exceptional 2022 for the overall car market, car sales contracted by 25% in 2023, but electric car sales still recorded unprecedented growth: from under 100 in 2021, to 7 000 in 2022, and over 30 000 in 2023, reaching a 15% sales share. Domestic front-runner VinFast, established in 2017, accounted for nearly all domestic sales. VinFast also started selling electric sports utility vehicles (SUVs) in North America in 2023, as well as developing manufacturing facilities in order to unlock domestic content-linked subsidies under the US IRA. VinFast is investing around USD 2 billion and targets an annual production of 150 000 vehicles in the United States by 2025. The company went public in 2023, far exceeding expectations with a debut market valuation of around USD 85 billion, well beyond General Motors (GM) (USD 46 billion), Ford (USD 48 billion) or BMW (USD 68 billion), before it settled back down around USD 20 billion by the end of the year. VinFast also looks to enter regional markets, such as India and the Philippines .

In Malaysia, electric car registrations more than tripled to 10 000, supported by tax breaks and import duty exemptions, as well as an acceleration in charging infrastructure roll-out. In 2023, Mercedes-Benz marketed the first domestically assembled EV, and both BYD and Tesla also entered the market.

In Latin America, electric car sales reached almost 90 000 in 2023, with markets in Brazil, Colombia, Costa Rica and Mexico leading the region. In Brazil, electric car registrations nearly tripled year-on-year to more than 50 000, a market share of 3%. Growth in Brazil was underpinned by the entry of Chinese carmakers, such as BYD with its Song and Dolphin models, Great Wall with its H6, and Chery with its Tiggo 8, which immediately ranked among the best-selling models in 2023. Road transport electrification in Brazil could bring significant climate benefits given the largely low-emissions power mix, as well as reducing local air pollution. However, EV adoption has been slow thus far, given the national prioritisation of ethanol-based fuels since the late 1970s as a strategy to maintain energy security in the face of oil shocks. Today, biofuels are important alternative fuels available at competitive cost and aligned with the existing refuelling infrastructure. Brazil remains the world’s largest producer of sugar cane, and its agribusiness represents about one-fourth of GDP. At the end of 2023, Brazil launched the Green Mobility and Innovation Programme , which provides tax incentives for companies to develop and manufacture low-emissions road transport technology, aggregating to more than BRA 19 billion (Brazilian reals) (USD 3.8 billion) over the 2024-2028 period. Several major carmakers already in Brazil are developing hybrid ethanol-electric models as a result. China’s BYD and Great Wall are also planning to start domestic manufacturing, counting on local battery metal deposits, and plan to sell both fully electric and hybrid ethanol-electric models. BYD is investing over USD 600 million in its electric car plant in Brazil – its first outside Asia – for an annual capacity of 150 000 vehicles. BYD also partnered with Raízen to develop charging infrastructure in eight Brazilian cities starting in 2024. GM, on the other hand, plans to stop producing ICE (including ethanol) models and go fully electric, notably to produce for export markets. In 2024, Hyundai announced investments of USD 1.1 billion to 2032 to start local manufacturing of electric, hybrid and hydrogen cars.

In Mexico, electric car registrations were up 80% year-on-year to 15 000, a market share just above 1%. Given its proximity to the United States, Mexico’s automotive market is already well integrated with North American partners, and benefits from advantageous trade agreements, large existing manufacturing capacity, and eligibility for subsidies under the IRA. As a result, local EV supply chains are developing quickly, with expectations that this will spill over into domestic markets. Tesla, Ford, Stellantis, BMW, GM, Volkswagen (VW) and Audi have all either started manufacturing or announced plans to manufacture EVs in Mexico. Chinese carmakers such as BYD, Chery and SAIC are also considering expanding to Mexico. Elsewhere in the region, Colombia and Costa Rica are seeing increasing electric car sales, with around 6 000 and 5 000 in 2023, respectively, but sales remain limited in other Central and South American countries.

Throughout Africa, Eurasia and the Middle East, electric cars are still rare, accounting for less than 1% of total car sales. However, as Chinese carmakers look for opportunities abroad, new models – including those produced domestically – could boost EV sales. For example, in Uzbekistan , BYD set up a joint venture with UzAuto Motors in 2023 to produce 50 000 electric cars annually, and Chery International established a partnership with ADM Jizzakh. This partnership has already led to a steep increase in electric car sales in Uzbekistan, reaching around 10 000 in 2023. In the Middle East, Jordan boasts the highest electric car sales share, at more than 45%, supported by much lower import duties relative to ICE cars, followed by the United Arab Emirates, with 13%.

Strong electric car sales in the first quarter of 2024 surpass the annual total from just four years ago

Electric car sales remained strong in the first quarter of 2024, surpassing those of the same period in 2023 by around 25% to reach more than 3 million. This growth rate was similar to the increase observed for the same period in 2023 compared to 2022. The majority of the additional sales came from China, which sold about half a million more electric cars than over the same period in 2023. In relative terms, the most substantial growth was observed outside of the major EV markets, where sales increased by over 50%, suggesting that the transition to electromobility is picking up in an increasing number of countries worldwide.

Quarterly electric car sales by region, 2021-2024

From January to March of this year, nearly 1.9 million electric cars were sold in China, marking an almost 35% increase compared to sales in the first quarter of 2023. In March, NEV sales in China surpassed a share of 40% in overall car sales for the first time, according to retail sales reported by the China Passenger Car Association. As witnessed in 2023, sales of plug-in hybrid electric cars are growing faster than sales of pure battery electric cars. Plug-in hybrid electric car sales in the first quarter increased by around 75% year-on-year in China, compared to just 15% for battery electric car sales, though the former started from a lower base.

In Europe, the first quarter of 2024 saw year-on-year growth of over 5%, slightly above the growth in overall car sales and thereby stabilising the EV sales share at a similar level as last year. Electric car sales growth was particularly high in Belgium, where around 60 000 electric cars were sold, almost 35% more than the year before. However, Belgium represents less than 5% of total European car sales. In the major European markets – France, Germany, Italy and the United Kingdom (together representing about 60% of European car sales) – growth in electric car sales was lower. In France, overall EV sales in the first quarter grew by about 15%, with BEV sales growth being higher than for PHEVs. While this is less than half the rate as over the same period last year, total sales were nonetheless higher and led to a slight increase in the share of EVs in total car sales. The United Kingdom saw similar year-on-year growth (over 15%) in EV sales as France, about the same rate as over the same period last year. In Germany, where battery electric car subsidies ended in 2023, sales of electric cars fell by almost 5% in the first quarter of 2024, mainly as a result of a 20% year-on-year decrease in March. The share of EVs in total car sales was therefore slightly lower than last year. As in China, PHEV sales in both Germany and the United Kingdom were stronger than BEV sales. In Italy, sales of electric cars in the first three months of 2024 were more than 20% lower than over the same period in 2023, with the majority of the decrease taking place in the PHEV segment. However, this trend could be reversed based on the introduction of a new incentive scheme , and if Chinese automaker Chery succeeds in appealing to Italian consumers when it enters the market later this year.

In the United States, first-quarter sales reached around 350 000, almost 15% higher than over the same period the year before. As in other major markets, the sales growth of PHEVs was even higher, at 50%. While the BEV sales share in the United States appears to have fallen somewhat over the past few months, the sales share of PHEVs has grown.

In smaller EV markets, sales growth in the first months of 2024 was much higher, albeit from a low base. In January and February, electric car sales almost quadrupled in Brazil and increased more than sevenfold in Viet Nam. In India, sales increased more than 50% in the first quarter of 2024. These figures suggest that EVs are gaining momentum across diverse markets worldwide.

Since 2021, first-quarter electric car sales have typically accounted for 15-20% of the total global annual sales. Based on this observed trend, coupled with policy momentum and the seasonality that EV sales typically experience, we estimate that electric car sales could reach around 17 million in 2024. This indicates robust growth for a maturing market, with 2024 sales to surpass those of 2023 by more than 20% and EVs to reach a share in total car sales of more than one-fifth.

Electric car sales, 2012-2024

The majority of the additional 3 million electric car sales projected for 2024 relative to 2023 are from China. Despite the phase-out of NEV purchase subsidies last year, sales in China have remained robust, indicating that the market is maturing. With strong competition and relatively low-cost electric cars, sales are to grow by almost 25% in 2024 compared to last year, reaching around 10 million. If confirmed, this figure will come close to the total global electric car sales in 2022. As a result, electric car sales could represent around 45% of total car sales in China over 2024.

In 2024, electric car sales in the United States are projected to rise by 20% compared to the previous year, translating to almost half a million more sales, relative to 2023. Despite reporting of a rocky end to 2023 for electric cars in the United States, sales shares are projected to remain robust in 2024. Over the entire year, around one in nine cars sold are expected to be electric.

Based on recent trends, and considering that tightening CO 2 targets are due to come in only in 2025, the growth in electric car sales in Europe is expected to be the lowest of the three largest markets. Sales are projected to reach around 3.5 million units in 2024, reflecting modest growth of less than 10% compared to the previous year. In the context of a generally weak outlook for passenger car sales, electric cars would still represent about one in four cars sold in Europe.

Outside of the major EV markets, electric car sales are anticipated to reach the milestone of over 1 million units in 2024, marking a significant increase of over 40% compared to 2023. Recent trends showing the success of both homegrown and Chinese electric carmakers in Southeast Asia underscore that the region is set to make a strong contribution to the sales of emerging EV markets (see the section on Trends in the electric vehicle industry). Despite some uncertainty surrounding whether India’s forthcoming FAME III scheme will include subsidies for electric cars, we expect sales in India to remain robust, and to experience around 50% growth compared to 2023. Across all regions outside the three major EV markets, electric car sales are expected to represent around 5% of total car sales in 2024, which – considering the high growth rates seen in recent years – could indicate that a tipping point towards global mass adoption is getting closer.

There are of course downside risks to the 2024 outlook for electric car sales. Factors such as high interest rates and economic uncertainty could potentially reduce the growth of global electric car sales in 2024. Other challenges may come from the IRA restrictions on US electric car tax incentives, and the tightening of technical requirements for EVs to qualify for the purchase tax exemption in China. However, there are also upside potentials to consider. New markets may open up more rapidly than anticipated, as automakers expand their EV operations and new entrants compete for market share. This could lead to accelerated growth in electric car sales globally, surpassing the initial estimations.

More electric models are becoming available, but the trend is towards larger ones

The number of available electric car models nears 600, two-thirds of which are large vehicles and SUVs

In 2023, the number of available models for electric cars increased 15% year-on-year to nearly 590, as carmakers scaled up electrification plans, seeking to appeal to a growing consumer base. Meanwhile, the number of fully ICE models (i.e. excluding hybrids) declined for the fourth consecutive year, at an average of 2%. Based on recent original equipment manufacturer (OEM) announcements, the number of new electric car models could reach 1 000 by 2028. If all announced new electric models actually reach the market, and if the number of available ICE car models continues to decline by 2% annually, there could be as many electric as ICE car models before 2030.

As reported in GEVO-2023, the share of small and medium electric car models is decreasing among available electric models: in 2023, two-thirds of the battery-electric models on the market were SUVs, 5 pick-up trucks or large cars. Just 25% of battery electric car sales in the United States were for small and medium models, compared to 40% in Europe and 50% in China. Electric cars are following the same trend as conventional cars, and getting bigger on average. In 2023, SUVs, pick-up trucks and large models accounted for 65% of total ICE car sales worldwide, and more than 80% in the United States, 60% in China and 50% in Europe.

Several factors underpin the increase in the share of large models. Since the 2010s, conventional SUVs in the United States have benefited from less stringent tailpipe emissions rules than smaller models, creating an incentive for carmakers to market more vehicles in that segment. Similarly, in the European Union, CO 2 targets for passenger cars have included a compromise on weight, allowing CO 2 leeway for heavier vehicles in some cases. Larger vehicles also mean larger margins for carmakers. Given that incumbent carmakers are not yet making a profit on their EV offer in many cases, focusing on larger models enables them to increase their margins. Under the US IRA, electric SUVs can qualify for tax credits as long as they are priced under USD 80 000, whereas the limit stands at USD 55 000 for a sedan, creating an incentive to market SUVs if a greater margin can be gathered. On the demand side, there is now strong willingness to pay for SUVs or large models. Consumers are typically interested in longer-range and larger cars for their primary vehicles, even though small models are more suited to urban use. Higher marketing spend on SUVs compared to smaller models can also have an impact on consumer choices.

The progressive shift towards ICE SUVs has been dramatically limiting fuel savings. Over the 2010-2022 period, without the shift to SUVs, energy use per kilometre could have fallen at an average annual rate 30% higher than the actual rate. Switching to electric in the SUV and larger car segments can therefore achieve immediate and significant CO 2 emissions reductions, and electrification also brings considerable benefits in terms of reducing air pollution and non-tailpipe emissions, especially in urban settings. In 2023, if all ICE and HEV sales of SUVs had instead been BEV, around 770 Mt CO 2 could have been avoided globally over the cars’ lifetimes (see section 10 on lifecycle analysis). This is equivalent to the total road emissions of China in 2023.

Breakdown of battery electric car sales in selected countries and regions by segment, 2018-2023

Nevertheless, from a policy perspective, it is critical to mitigate the negative spillovers associated with an increase in larger electric cars in the fleet.

Larger electric car models have a significant impact on battery supply chains and critical mineral demand. In 2023, the sales-weighted average battery electric SUV in Europe had a battery almost twice as large as the one in the average small electric car, with a proportionate impact on critical mineral needs. Of course, the range of small cars is typically shorter than SUVs and large cars (see later section on ranges). However, when comparing electric SUVs and medium-sized electric cars, which in 2023 offered a similar range, the SUV battery was still 25% larger. This means that if all electric SUVs sold in 2023 had instead been medium-sized cars, around 60 GWh of battery equivalent could have been avoided globally, with limited impact on range. Accounting for the different chemistries used in China, Europe, and the United States, this would be equivalent to almost 6 000 tonnes of lithium, 30 000 tonnes of nickel, almost 7 000 tonnes of cobalt, and over 8 000 tonnes of manganese.

Larger batteries also require more power, or longer charging times. This can put pressure on electricity grids and charging infrastructure by increasing occupancy, which could create issues during peak utilisation, such as at highway charging points at high traffic times.

In addition, larger vehicles also require greater quantities of materials such as iron and steel, aluminium and plastics, with a higher environmental and carbon footprint for materials production, processing and assembly. Because they are heavier, larger models also have higher electricity consumption. The additional energy consumption resulting from the increased mass is mitigated by regenerative braking to some extent, but in 2022, the sales-weighted average electricity consumption of electric SUVs was 20% higher than that of other electric cars. 6

Major carmakers have announced launches of smaller and more affordable electric car models over the past few years. However, when all launch announcements are considered, far fewer smaller models are expected than SUVs, large models and pick-up trucks. Only 25% of the 400+ launches expected over the 2024-2028 period are small and medium models, which represents a smaller share of available models than in 2023. Even in China, where small and medium models have been popular, new launches are typically for larger cars.

Number of available car models in 2023 and expected new ones by powertrain, country or region and segment, 2024-2028

Several governments have responded by introducing policies to create incentives for smaller and lighter passenger cars. In Norway, for example, all cars are subject to a purchase tax based on weight, CO 2 and nitrogen oxides (NO x ) emissions, though electric cars were exempt from the weight-based tax prior to 2023. Any imported cars weighing more than 500 kg must also pay an entry fee for each additional kg. In France, a progressive weight-based tax applies to ICE and PHEV cars weighing above 1 600 kg, with a significant impact on price: weight tax for a Land Rover Defender 130 (2 550 kg) adds up to more than EUR 21 500, versus zero for a Renault Clio (1 100 kg). Battery electric cars have been exempted to date. In February 2024, a referendum held in Paris resulted in a tripling of city parking fees for visiting SUVs, applicable to ICE, hybrid and plug-in hybrid cars above 1 600 kg and battery electric ones above 2 000 kg, in an effort to limit the use of large and/or polluting vehicles. Other examples exist in Estonia, Finland, Switzerland and the Netherlands. A number of policy options may be used, such as caps and fleet averages for vehicle footprint, weight, and/or battery size; access to finance for smaller vehicles; and sustained support for public charging, enabling wider use of shorter-range cars.

Average range is increasing, but only moderately

Concerns about range compared to ICE vehicles, and about the availability of charging infrastructure for long-distance journeys, also contribute to increasing appetite for larger models with longer range.

With increasing battery size and improvements in battery technology and vehicle design, the sales-weighted average range of battery electric cars grew by nearly 75% between 2015 and 2023, although trends vary by segment. The average range of small cars in 2023 – around 150 km – is not much higher than it was in 2015, indicating that this range is already well suited for urban use (with the exception of taxis, which have much higher daily usage). Large, higher-end models already offered higher ranges than average in 2015, and their range has stagnated through 2023, averaging around 360-380 km. Meanwhile, significant improvements have been made for medium-sized cars and SUVs, the range of which now stands around 380 km, whereas it averaged around 150 km for medium cars and 270 km for SUVs in 2015. This is encouraging for consumers looking to purchase an electric car for longer journeys rather than urban use.

Since 2020, growth in the average range of vehicles has been slower than over the 2015-2020 period. This could result from a number of factors, including fluctuating battery prices, carmakers’ attempts to limit additional costs as competition intensifies, and technical constraints (e.g. energy density, battery size). It could also reflect that beyond a certain range at which most driving needs are met, consumers’ willingness to pay for a marginal increase in battery size and range is limited. Looking forward, however, the average range could start increasing again as novel battery technologies mature and prices fall.

More affordable electric cars are needed to reach a mass-market tipping point

An equitable and inclusive transition to electric mobility, both within countries and at the global level, hinges on the successful launch of affordable EVs (including but not limited to electric cars). In this section, we use historic sales and price data for electric and ICE models around the world to examine the total cost of owning an electric car, price trends over time, and the remaining electric premium, by country and vehicle size. 7 Specific models are used for illustration.

Total cost of ownership

Car purchase decisions typically involve consideration of retail price and available subsidies as well as lifetime operating costs, such as fuel costs, insurance, maintenance and depreciation, which together make up the total cost of ownership (TCO). Reaching TCO parity between electric and ICE cars creates important financial incentives to make the switch. This section examines the different components of the TCO, by region and car size.

In 2023, upfront retail prices for electric cars were generally higher than for their ICE equivalents, which increased their TCO in relative terms. On the upside, higher fuel efficiency and lower maintenance costs enable fuel cost savings for electric cars, lowering their TCO. This is especially true in periods when fuel prices are high, in places where electricity prices are not too closely correlated to fossil fuel prices. Depreciation is also a major factor in determining TCO: As a car ages, it loses value, and depreciation for electric cars tends to be faster than for ICE equivalents, further increasing their TCO. Accelerated depreciation could, however, prove beneficial for the development of second-hand markets.

However, the trend towards faster depreciation for electric vehicles might be reversed for multiple reasons. Firstly, consumers are gaining more confidence in electric battery lifetimes, thereby increasing the resale value of EVs. Secondly, strong demand and the positive brand image of some BEV models can mean they hold their value longer, as shown by Tesla models depreciating more slowly than the average petrol car in the United States. Finally, increasing fuel prices in some regions, the roll-out of low-emissions zones that restrict access for the most polluting vehicles, and taxes and parking fees specifically targeted at ICE vehicles could mean they experience faster depreciation rates than EVs in the future. In light of these two possible opposing depreciation trends, the same fixed annual depreciation rate for both BEVs and ICE vehicles has been applied in the following cost of ownership analysis.

Subsidies help lower the TCO of electric cars relative to ICE equivalents in multiple ways. A purchase subsidy lowers the original retail price, thereby lowering capital depreciation over time, and a lower retail price implies lower financing costs through cumulative interest. Subsidies can significantly reduce the number of years required to reach TCO parity between electric and ICE equivalents. As of 2022, we estimate that TCO parity could be reached in most cases in under 7 years in the three major EV markets, with significant variations across different car sizes. In comparison, for models purchased at 2018 prices, TCO parity was much harder to achieve.

In Germany, for example, we estimate that the sales-weighted average price of a medium-sized battery electric car in 2022 was 10-20% more expensive than its ICE equivalent, but 10-20% cheaper in cumulative costs of ownership after 5 years, thanks to fuel and maintenance costs savings. In the case of an electric SUV, we estimate that the average annual operating cost savings would amount to USD 1 800 when compared to the equivalent conventional SUV over a period of 10 years. In the United States, despite lower fuel prices with respect to electricity, the higher average annual mileage results in savings that are close to Germany at USD 1 600 per year. In China, lower annual distance driven reduces fuel cost savings potential, but the very low price of electricity enables savings of about USD 1 000 per year.

In EMDEs, some electric cars can also be cheaper than ICE equivalents over their lifetime. This is true in India , for example, although it depends on the financing instrument. Access to finance is typically much more challenging in EMDEs due to higher interest rates and the more limited availability of cheap capital. Passenger cars have also a significantly lower market penetration in the first place, and many car purchases are made in second-hand markets. Later sections of this report look at markets for used electric cars, as well as the TCO for electric and conventional 2/3Ws in EMDEs, where they are far more widespread than cars as a means of road transport.

Upfront retail price parity

Achieving price parity between electric and ICE cars will be an important tipping point. Even when the TCO for electric cars is advantageous, the upfront retail price plays a decisive role, and mass-market consumers are typically more sensitive to price premiums than wealthier buyers. This holds true not only in emerging and developing economies, which have comparatively high costs of capital and comparatively low household and business incomes, but also in advanced economies. In the United States, for example, surveys suggest affordability was the top concern for consumers considering EV adoption in 2023. Other estimates show that even among SUV and pick-up truck consumers, only 50% would be willing to purchase one above USD 50 000.

In this section, we examine historic price trends for electric and ICE cars over the 2018-2022 period, by country and car size, and for best-selling models in 2023.

Electric cars are generally getting cheaper as battery prices drop, competition intensifies, and carmakers achieve economies of scale. In most cases, however, they remain on average more expensive than ICE equivalents. In some cases, after adjusting for inflation, their price stagnated or even moderately increased between 2018 and 2022.

Larger batteries for longer ranges increase car prices, and so too do the additional options, equipment, digital technology and luxury features that are often marketed on top of the base model. A disproportionate focus on larger, premium models is pushing up the average price, which – added to the lack of available models in second-hand markets (see below) – limits potential to reach mass-market consumers. Importantly, geopolitical tension, trade and supply chain disruptions, increasing battery prices in 2022 relative to 2021, and rising inflation, have also significantly affected the potential for further cost declines.

Competition can also play an important role in bringing down electric car prices. Intensifying competition leads carmakers to cut prices to the minimum profit margin they can sustain, and – if needed – to do so more quickly than battery and production costs decline. For example, between mid-2022 and early-2024, Tesla cut the price of its Model Y from between USD 65 000 and USD 70 000 to between USD 45 000 and USD 55 000 in the United States. Battery prices for such a model dropped by only USD 3 000 over the same period in the United States, suggesting that a profit margin may still be made at a lower price. Similarly, in China, the price of the Base Model Y dropped from CNY 320 000 (Yuan renminbi) (USD 47 000) to CNY 250 000 (USD 38 000), while the corresponding battery price fell by only USD 1 000. Conversely, in cases where electric models remain niche or aimed at wealthier, less price-sensitive early adopters, their price may not fall as quickly as battery prices, if carmakers can sustain greater margins.

Price gap between the sales-weighted average price of conventional and electric cars in selected countries, before subsidy, by size, in 2018 and 2022

In China, where the sales share of electric cars has been high for several years, the sales-weighted average price of electric cars (before purchase subsidy) is already lower than that of ICE cars. This is true not only when looking at total sales, but also at the small cars segment, and is close for SUVs. After accounting for the EV exemption from the 10% vehicle purchase tax, electric SUVs were already on par with conventional ones in 2022, on average.

Electric car prices have dropped significantly since 2018. We estimate that around 55% of the electric cars sold in China in 2022 were cheaper than their average ICE equivalent, up from under 10% in 2018. Given the further price declines between 2022 and 2023, we estimate that this share increased to around 65% in 2023. These encouraging trends suggest that price parity between electric and ICE cars could also be reached in other countries in certain segments by 2030, if the sales share of electric cars continues to grow, and if supporting infrastructure – such as for charging – is sustained.

As reported in detail in GEVO-2023 , China remains a global exception in terms of available inexpensive electric models. Local carmakers already market nearly 50 small, affordable electric car models, many of which are priced under CNY 100 000 (USD 15 000). This is in the same range as best-selling small ICE cars in 2023, which cost from CNY 70 000 to CNY 100 000. In 2022, the best-selling electric car was SAIC’s small Wuling Hongguang Mini EV, which accounted for 10% of all BEV sales. It was priced around CNY 40 000, weighing under 700 kg for a 170-km range. In 2023, however, it was overtaken by Tesla models, among other larger models, as new consumers seek longer ranges and higher-end options and digital equipment.

United States

In the United States, the sales-weighted average price of electric cars decreased over the 2018-2022 period, primarily driven by a considerable drop in the price of Tesla cars, which account for a significant share of sales. The sales-weighted average retail price of electric SUVs fell slightly more quickly than the average SUV battery costs over the same period. The average price of small and medium models also decreased, albeit to a smaller extent.

Across all segments, electric models remained more expensive than conventional equivalents in 2022. However, the gap has since begun to close, as market size increases and competition leads carmakers to cut prices. For example, in 2023-2024, Tesla’s Model 3 could be found in the USD 39 000 to USD 42 000 range, which is comparable to the average price for new ICE cars, and a new Model Y priced under USD 50 000 was launched. Rivian is expecting to launch its R2 SUV in 2026 at USD 45 000, which is much less than previous vehicles. Average price parity between electric and conventional SUVs could be reached by 2030, but it may only be reached later for small and medium cars, given their lower availability and popularity.

Smaller, cheaper electric models have further to go to reach price parity in the United States. We estimate that in 2022, only about 5% of the electric cars sold in the United States were cheaper than their average ICE equivalent. In 2023, the cheapest electric cars were priced around USD 30 000 (e.g. Chevrolet Bolt, Nissan Leaf, Mini Cooper SE). To compare, best-selling small ICE options cost under USD 20 000 (e.g. Kia Rio, Mitsubishi Mirage), and many best-selling medium ICE options between USD 20 000 and USD 25 000 (e.g. Honda Civic, Toyota Corolla, Kia Forte, Hyundai Avante, Nissan Sentra).

Around 25 new all-electric car models are expected in 2024, but only 5 of them are expected below USD 50 000, and none under the USD 30 000 mark. Considering all the electric models expected to be available in 2024, about 75% are priced above USD 50 000, and fewer than 10 under USD 40 000, even after taking into account the USD 7 500 tax credit under the IRA for eligible cars as of February 2024. This means that despite the tax credit, few electric car models directly compete with small mass-market ICE models.

In December 2023, GM stopped production of its best-selling electric car, the Bolt, announcing it would introduce a new version in 2025. The Nissan Leaf (40 kWh) therefore remains the cheapest available electric car in 2024, at just under USD 30 000, but is not yet eligible for IRA tax credits. Ford announced in 2024 that it would move away from large and expensive electric cars as a way to convince more consumers to switch to electric, at the same time as increasing output of ICE models to help finance a transition to electric mobility. In 2024, Tesla announced it would start producing a next-generation, compact and affordable electric car in June 2025, but the company had already announced in 2020 that it would deliver a USD 25 000 model within 3 years. Some micro urban electric cars are already available between USD 5 000 and USD 20 000 (e.g. Arcimoto FUV, Nimbus One), but they are rare. In theory, such models could cover many use cases, since 80% of car journeys in the United States are under 10 miles .

Pricing trends differ across European countries, and typically vary by segment.

In Norway, after taking into account the EV sales tax exemption, electric cars are already cheaper than ICE equivalents across all segments. In 2022, we estimate that the electric premium stood around -15%, and even -30% for medium-sized cars. Five years earlier, in 2018, the overall electric premium was less advantageous, at around -5%. The progressive reintroduction of sales taxes on electric cars may change these estimates for 2023 onwards.

Germany’s electric premium ranks among the lowest in the European Union. Although the sales-weighted average electric premium increased slightly between 2018 and 2022, it stood at 15% in 2022. It is particularly low for medium-sized cars (10-15%) and SUVs (20%), but remains higher than 50% for small models. In the case of medium cars, the sales-weighted average electric premium was as low as EUR 5 000 in 2022. We estimate that in 2022, over 40% of the medium electric cars sold in Germany were cheaper than their average ICE equivalent. Looking at total sales, over 25% of the electric cars sold in 2022 were cheaper than their average ICE equivalent. In 2023, the cheapest models among the best-selling medium electric cars were priced between EUR 22 000 and EUR 35 000 (e.g. MG MG4, Dacia Spring, Renault Megane), far cheaper than the three front-runners priced above EUR 45 000 (VW ID.3, Cupra Born, and Tesla Model 3). To compare, best-selling ICE cars in the medium segment were also priced between EUR 30 000 and EUR 45 000 (e.g. VW Golf, VW Passat Santana, Skoda Octavia Laura, Audi A3, Audi A4). At the end of 2023, Germany phased out its subsidy for electric car purchases, but competition and falling model prices could compensate for this.

In France, the sales-weighted average electric premium stagnated between 2018 and 2022. The average price of ICE cars also increased over the same period, though more moderately than that of electric models. Despite a drop in the price of electric SUVs, which stood at a 30% premium over ICE equivalents in 2022, the former do not account for a high enough share of total electric car sales to drive down the overall average. The electric premium for small and medium cars remains around 40-50%.

These trends mirror those of some of the best-selling models. For example, when adjusting prices for inflation, the small Renault Zoe was sold at the same price on average in 2022-2023 as in 2018-2019, or EUR 30 000 (USD 32 000). It could be found for sale at as low as EUR 25 000 in 2015-2016. The earlier models, in 2015, had a battery size of around 20 kWh, which increased to around 40 kWh in 2018‑2019 and 50 kWh in newer models in 2022-2023. Yet European battery prices fell more quickly than the battery size increased over the same period, indicating that battery size alone does not explain car price dynamics.

In 2023, the cheapest electric cars in France were priced between EUR 22 000 and EUR 30 000 (e.g. Dacia Spring, Renault Twingo E-Tech, Smart EQ Fortwo), while best-selling small ICE models were available between EUR 10 000 and EUR 20 000 (e.g. Renault Clio, Peugeot 208, Citroën C3, Dacia Sandero, Opel Corsa, Skoda Fabia). Since mid-2024, subsidies of up to EUR 4 000 can be granted for electric cars priced under EUR 47 000, with an additional subsidy of up to EUR 3 000 for lower-income households.

In the United Kingdom, the sales-weighted average electric premium shrank between 2018 and 2022, thanks to a drop in prices for electric SUVs, as in the United States. Nonetheless, electric SUVs still stood at a 45% premium over ICE equivalents in 2022, which is similar to the premium for small models but far higher than for medium cars (20%).

In 2023, the cheapest electric cars in the United Kingdom were priced from GBP 27 000 to GBP 30 000 (USD 33 000 to 37 000) (e.g. MG MG4, Fiat 500, Nissan Leaf, Renault Zoe), with the exception of the Smart EQ Fortwo, priced at GBP 21 000. To compare, best-selling small ICE options could be found from GBP 10 000 to 17 000 (e.g. Peugeot 208, Fiat 500, Dacia Sandero) and medium options below GBP 25 000 (e.g. Ford Puma). Since July 2022, there has been no subsidy for the purchase of electric passenger cars.

Elsewhere in Europe, electric cars remain typically much more expensive than ICE equivalents. In Poland , for example, just a few electric car models could be found at prices competitive with ICE cars in 2023, under the PLN 150 000 (Polish zloty) (EUR 35 000) mark. Over 70% of electric car sales in 2023 were for SUVs, or large or more luxurious models, compared to less than 60% for ICE cars.

In 2023, there were several announcements by European OEMs for smaller models priced under EUR 25 000 in the near-term (e.g. Renault R5, Citroën e-C3, Fiat e-Panda, VW ID.2all). There is also some appetite for urban microcars (i.e. L6-L7 category), learning from the success of China’s Wuling. Miniature models bring important benefits if they displace conventional models, helping reduce battery and critical mineral demand. Their prices are often below USD 5 000 (e.g. Microlino, Fiat Topolino, Citroën Ami, Silence S04, Birò B2211).

In Europe and the United States, electric car prices are expected to come down as a result of falling battery prices, more efficient manufacturing, and competition. Independent analyses suggest that price parity between some electric and ICE car models in certain segments could be reached over the 2025-2028 period, for example for small electric cars in Europe in 2025 or soon after. However, many market variables could delay price parity, such as volatile commodity prices, supply chain bottlenecks, and the ability of carmakers to yield sufficient margins from cheaper electric models. The typical rule in which economies of scale bring down costs is being complicated by numerous other market forces. These include a dynamic regulatory context, geopolitical competition, domestic content incentives, and a continually evolving technology landscape, with competing battery chemistries that each have their own economies of scale and regional specificities.

Japan is a rare example of an advanced economy where small models – both for electric and ICE vehicles – appeal to a large consumer base, motivated by densely populated cities with limited parking space, and policy support. In 2023, about 60% of total ICE sales were for small models, and over half of total electric sales. Two electric cars from the smallest “Kei” category, the Nissan Sakura and Mitsubishi eK-X, accounted for nearly 50% of national electric car sales alone, and both are priced between JPY 2.3 million (Japanese yen) and JPY 3 million (USD 18 000 to USD 23 000). However, this is still more expensive than best-selling small ICE cars (e.g. Honda N Box, Daihatsu Hijet, Daihatsu Tanto, Suzuki Spacia, Daihatsu Move), priced between USD 13 000 and USD 18 000. In 2024, Nissan announced that it would aim to reach cost parity (of production, not retail price) between electric and ICE cars by 2030.

Emerging market and developing economies

In EMDEs, the absence of small and cheaper electric car models is a significant hindrance to wider market uptake. Many of the available car models are SUVs or large models, targeting consumers of high-end goods, and far too expensive for mass-market consumers, who often do not own a personal car in the first place (see later sections on second-hand car markets and 2/3Ws).

In India, while Tata’s small Tiago/Tigor models, which are priced between USD 10 000 and USD 15 000, accounted for about 20% of total electric car sales in 2023, the average best-selling small ICE car is priced around USD 7 000. Large models and SUVs accounted for over 65% of total electric car sales. While BYD announced in 2023 the goal of accounting for 40% of India’s EV market by 2030, all of its models available in India cost more than INR 3 million (Indian rupees) (USD 37 000), including the Seal, launched in 2024 for INR 4.1 million (USD 50 000).

Similarly, SUVs and large models accounted for the majority share of electric car sales in Thailand (60%), Indonesia (55%), Malaysia (over 85%) and Viet Nam (over 95%). In Indonesia, for example, Hyundai’s Ionic 5 was the most popular electric car in 2023, priced at around USD 50 000. Looking at launch announcements, most new models expected over the 2024-2028 period in EMDEs are SUVs or large models. However, more than 50 small and medium models could also be introduced, and the recent or forthcoming entry of Chinese carmakers suggests that cheaper models could hit the market in the coming years.

In 2022-2023, Chinese carmakers accounted for 40-75% of the electric car sales in Indonesia, Thailand and Brazil, with sales jumping as cheaper Chinese models were introduced. In Thailand, for example, Hozon launched its Neta V model in 2022 priced at THB 550 000 (Thai baht) (USD 15 600), which became a best-seller in 2023 given its relative affordability compared with the cheapest ICE equivalents at around USD 9 000. Similarly, in Indonesia, the market entry of Wuling’s Air EV in 2022-2023 was met with great success. In Colombia, the best-selling electric car in 2023 was the Chinese mini-car, Zhidou 2DS, which could be found at around USD 15 000, a competitive option relative to the country’s cheapest ICE car, the Kia Picanto, at USD 13 000.

Electric car sales in selected countries, by origin of carmaker, 2021-2023

Second-hand markets for electric cars are on the rise.

As electric vehicle markets mature, the second-hand market will become more important

In the same way as for other technology products, second-hand markets for used electric cars are now emerging as newer generations of vehicles progressively become available and earlier adopters switch or upgrade. Second-hand markets are critical to foster mass-market adoption, especially if new electric cars remain expensive, and used ones become cheaper. Just as for ICE vehicles – for which buying second-hand is often the primary method of acquiring a car in both emerging and advanced economies – a similar pattern will emerge with electric vehicles. It is estimated that eight out of ten EU citizens buy their car second-hand, and this share is even higher – around 90% – among low- and middle-income groups. Similarly, in the United States, about seven out of ten vehicles sold are second-hand, and only 17% of lower-income households buy a new car.

As major electric car markets reach maturity, more and more used electric cars are becoming available for resale. Our estimates suggest that in 2023, the market size for used electric cars amounted to nearly 800 000 in China , 400 000 in the United States and more than 450 000 for France, Germany, Italy, Spain, the Netherlands and the United Kingdom combined. Second-hand sales have not been included in the numbers presented in the previous section of this report, which focused on sales of new electric cars, but they are already significant. On aggregate, global second-hand electric car sales were roughly equal to new electric car sales in the United States in 2023. In the United States, used electric car sales are set to increase by 40% in 2024 relative to 2023. Of course, these volumes are dwarfed by second-hand ICE markets: 30 million in the European countries listed above combined, nearly 20 million in China, and 36 million in the United States . However, these markets have had decades to mature, indicating greater longer-term potential for used electric car markets.

Used car markets already provide more affordable electric options in China, Europe and the United States

Second-hand car markets are increasingly becoming a source of more affordable electric cars that can compete with used ICE equivalents. In the United States, for example, more than half of second-hand electric cars are already priced below USD 30 000. Moreover, the average price is expected to quickly fall towards USD 25 000, the price at which used electric cars become eligible for the federal used car rebate of USD 4 000, making them directly competitive with best-selling new and used ICE options. The price of a second-hand Tesla in the United States dropped from over USD 50 000 in early 2023 to just above USD 33 000 in early 2024, making it competitive with a second-hand SUV and many new models as well (either electric or conventional). In Europe , second-hand battery electric cars can be found between EUR 15 000 and EUR 25 000 (USD 16 000‑27 000), and second-hand plug-in hybrids around EUR 30 000 (USD 32 000). Some European countries also offer subsidies for second-hand electric cars, such as the Netherlands (EUR 2 000), where the subsidy for new cars has been steadily declining since 2020, while that for used cars remains constant, and France (EUR 1 000). In China , used electric cars were priced around CNY 75 000 on average in 2023 (USD 11 000).

In recent years, the resale value 8 of electric cars has been increasing. In Europe, the resale value of battery electric cars sold after 12 months has steadily increased over the 2017-2022 period, surpassing that of all other powertrains and standing at more than 70% in mid-2022. The resale value of battery electric cars sold after 36 months stood below 40% in 2017, but has since been closing the gap with other powertrains, reaching around 55% in mid-2022. This is the result of many factors, including higher prices of new electric cars, improving technology allowing vehicles and batteries to retain greater value over time, and increasing demand for second-hand electric cars. Similar trends have been observed in China.

High or low resale values have important implications for the development of second-hand electric car markets and their contributions to the transition to road transport electrification. High resale values primarily benefit consumers of new cars (who retain more of the value of their initial purchase), and carmakers, because many consumers are attracted by the possibility of reselling their car after a few years, thereby fostering demand for newer models. High resale values also benefit leasing companies, which seek to minimise depreciation and resell after a few years.

Leasing companies have a significant impact on second-hand markets because they own large volumes of vehicles for a shorter period (under three years, compared to 3 to 5 years for a private household). Their impact on markets for new cars can also be considerable: leasing companies accounted for over 20% of new cars sold in Europe in 2022.

Overall, a resale value for electric cars on par with or higher than that of ICE equivalents contributes to supporting demand for new electric cars. In the near term, however, a combination of high prices for new electric cars and high resale values could hinder widespread adoption of used EVs among mass-market consumers seeking affordable cars. In such cases, policy support can help bridge the gap with second-hand ICE prices.

International trade for used electric cars to emerging markets is expected to increase

As the EV stock ages in advanced markets, it is likely that more and more used EVs will be traded internationally, assuming that global standards enable technology compatibility (e.g. for charging infrastructure). Imported used vehicles present an opportunity for consumers in EMDEs, who may not have access to new models because they are either too expensive or not marketed in their countries.

Data on used car trade flows are scattered and often contradictory, but the history of ICE cars can be a useful guide to what may happen for electric cars. Many EMDEs have been importing used ICE vehicles for decades. UNEP estimates that Africa imports 40% of all used vehicles exported worldwide, with African countries typically becoming the ultimate destination for used imports. Typical trade flows include Western European Union member states to Eastern European Union member states and to African countries that drive on the right-hand side; Japan to Asia and to African countries that drive on the left-hand side; and the United States to the Middle East and Central America.

Used electric car exports from large EV markets have been growing in recent years. For China, this can be explained by the recent roll-back of a policy forbidding exports of used vehicles of any kind. Since 2019 , as part of a pilot project, the government has granted 27 cities and provinces the right to export second-hand cars. In 2022, China exported almost 70 000 used vehicles, a significant increase on 2021, when fewer than 20 000 vehicles were exported. About 70% of these were NEVs, of which over 45% were exported to the Middle East. In 2023, the Ministry of Commerce released a draft policy on second-hand vehicle export that, once approved, will allow the export of second-hand vehicles from all regions of China. Used car exports from China are expected to increase significantly as a result.

In the European Union, the number of used electric cars traded internationally is also increasing . In both 2021 and 2022, the market size grew by 70% year-on-year, reaching almost 120 000 electric cars in 2022. More than half of all trade takes place between EU member states, followed by trade with neighbouring countries such as Norway, the United Kingdom and Türkiye (accounting for 20% combined). The remainder of used EVs are exported to countries such as Mexico, Tunisia and the United States. As of 2023, the largest exporters are Belgium, Germany, the Netherlands, and Spain.

Last year, just over 1% of all used cars leaving Japan were electric. However these exports are growing and increased by 30% in 2023 relative to 2022, reaching 20 000 cars. The major second-hand electric car markets for Japanese vehicles are traditionally Russia and New Zealand (over 60% combined). After Russia’s invasion of Ukraine in 2022, second-hand trade of conventional cars from Japan to Russia jumped sharply following a halt in operations of local OEMs in Russia, but this trade was quickly restricted by the Japanese government, thereby bringing down the price of second-hand cars in Japan. New Zealand has very few local vehicle assembly or manufacturing facilities, and for this reason many cars entering New Zealand are used imports. In 2023, nearly 20% of all electric cars that entered New Zealand were used imports, compared to 50% for the overall car market.

In emerging economies, local policies play an important role in promoting or limiting trade flows for used cars. In the case of ICE vehicles, for example, some countries (e.g. Bolivia, Côte d’Ivoire, Peru) limit the maximum age of used car imports to prevent the dumping of highly polluting cars. Other countries (e.g. Brazil, Colombia, Egypt, India, South Africa) have banned used car imports entirely to protect their domestic manufacturing industries.

Just as for ICE vehicles, policy measures can either help or hinder the import of used electric cars, such as by setting emission standards for imported used cars. Importing countries will also need to simultaneously support roll-out of charging infrastructure to avoid problems with access like those reported in Sri Lanka after an incentive scheme significantly increased imports of used EVs in 2018.

The median age of vehicle imports tends to increase as the GDP per capita of a country decreases. In some African countries, the median age of imports is over 15 years. Beyond this timeframe, electric cars may require specific servicing to extend their lifetime. To support the availability of second-hand markets for electric cars, it will be important to develop strategies, technical capacity, and business models to swap very old batteries from used vehicles. Today, many countries that import ICE vehicles, including EMDEs, already have servicing capacity in place to extend the lifetimes of used ICE vehicles, but not used EVs. On the other hand, there are typically fewer parts in electric powertrains than in ICE ones, and these parts can even be more durable. Battery recycling capacity will also be needed, given that the importing country is likely to be where the imported EV eventually reaches end-of-life. Including end-of-life considerations in policy making today can help mitigate the risk of longer-term environmental harm that could result from the accumulation of obsolete EVs and associated waste in EMDEs.

Policy choices in more mature markets also have an impact on possible trade flows. For example, the current policy framework in the European Union for the circularity of EV batteries may prevent EVs and EV batteries from leaving the European Union, which brings energy security advantages but might limit reuse. In this regard, advanced economies and EMDEs should strengthen co-operation to facilitate second-hand trade while ensuring adequate end-of-life strategies. For example, there could be incentives or allowances associated with extended vehicle lifetimes via use in second-hand markets internationally before recycling, as long as recycling in the destination market is guaranteed, or the EV battery is returned at end of life.

Throughout this report, unless otherwise specified, “electric cars” refers to both battery electric and plug-in hybrid cars, and “electric vehicles” (EVs) refers to battery electric (BEV) and plug-in hybrid (PHEV) vehicles, excluding fuel cell electric vehicles (FCEV). Unless otherwise specified, EVs include all modes of road transport.

Throughout this report, unless otherwise specified, regional groupings refer to those described in the Annex.

In the Chinese context, the term New Energy Vehicles (NEVs) includes BEVs, PHEVs and FCEVs.

Based on model trim eligibility from the US government website as of 31 March 2024.

SUVs may be defined differently across regions, but broadly refer to vehicles that incorporate features commonly found in off-road vehicles (e.g. four-wheel drive, higher ground clearance, larger cargo area). In this report, small and large SUVs both count as SUVs. Crossovers are counted as SUVs if they feature an SUV body type; otherwise they are categorised as medium-sized vehicles.

Measured under the Worldwide Harmonised Light Vehicles Test Procedure using vehicle model sales data from IHS Markit.

Price data points collected from various data providers and ad-hoc sources cover 65-95% of both electric and ICE car sales globally. By “price”, we refer to the advertised price that the customer pays for the acquisition of the vehicle only, including legally required acquisition taxes (e.g. including Value-Added Tax and registration taxes but excluding consumer tax credits). Prices reflect not only the materials, components and manufacturing costs, but also the costs related to sales and marketing, administration, R&D and the profit margin. In the case of a small electric car in Europe, for example, these mark-up costs can account for around 40% of the final pre-tax price. They account for an even greater share of the final pre-tax price when consumers purchase additional options, or opt for larger models, for which margins can be higher. The price for the same model may differ across countries or regions (e.g. in 2023, a VW ID.3 could be purchased in China at half its price in Europe). Throughout the whole section, prices are adjusted for inflation and expressed in constant 2022 USD.

This metric of depreciation used in second-hand technology markets represents the value of the vehicle when being resold in relation to the value when originally purchased. A resale value of 70% means that a product purchased new will lose 30% of its original value, on average, and sell at such a discount relative to the original price.

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