The debate about increasing the block space has been raised multiple times in the Bitcoin community but it has been rejected because it will lead to the centralization of miners which is completely against the idea of Bitcoin's existence. L2 layer can be seen as a solution too in such a way that we don't use on-chain for making every payment assuming Bitcoin is widely accepted as a form of payment in the next 20 years which will eliminate a lot of stress on the network while bigger payments can be made onchain.

Segwit increase the block size from 1MB to 4vMB that means we actually can able to fit more transaction than what we used to a decade ago but is this enough after a decade we never know.