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The global aircraft hangar market size was valued at USD 703.0 million in 2021. The market is projected to grow from USD 720.3 million in 2022 to USD 1,000.6 million by 2029, exhibiting a CAGR of 4.81% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with aircraft hangar experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 10.34% in 2020 as compared to 2019.
Aircraft hangars are used to store and protect aircraft from adverse weather conditions. Several other operations such as MRO, engine inspections and other fixtures also take place inside a hangar. Hangars are custom made and are designed taking into consideration the type of aircraft, the purpose of the hangar, and its location and costs. Hangars may be of fixed construction type or portable. The inflatable portable hangars are seeing rising popularity due to their ease of installation, shorter set up time, and lower costs.
Disruption in Aerospace Supply Chains Hindered Growth during the Pandemic
The pandemic resulted in sudden drop in air traffic due to travel restrictions and a reduced demand for air travel due to global measures to contain the virus. This has negatively affected the demand in the aviation sector and the market dynamics. The COVID-19 pandemic and associated limitations disrupted the aviation industry's supply chain and made it difficult to build new hangars in many locations due to these restrictions. Businesses felt the effects of the COVID-19 pandemic in the global economic slump and political unrest. Declining consumer confidence and customer spending had a detrimental impact on the market, affecting the stability of the credit and financial markets.
Due to disruptions in supply chains at different locations, major construction corporations, related to airport authorities and national governments and agencies remodified or canceled their programs due to the pandemic. This negatively affected the aviation industry and hampered airport development projects. To keep and grow their client base, many businesses, such as AECOM Corporation, concentrated on strategic alliances, mergers, and acquisitions. COVID-19 outbreak resulted in travel bans and a halt in constructions in several countries, resulting in reduction in opportunities for development of hangars.
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Increasing Demand for Inflatable, Portable Hangars is a Prominent Trend in the Market
The rising airport initiatives in developing countries are driving the demand for advanced Hangars that can be built in a shorter time compared to traditionally constructed hangars. Such hangars also result in lesser cost of installation.
With advancement in inflatable technology and the use of technical textiles, inflatable hangars have found their utilization for all kinds of aircraft from commercial, military, drones, private jets and general aviation aircraft. These hangars are sustainable and can resist adverse weather conditions.
The key players involved in the market and major airports around the world are focusing on innovative solutions, which have helped to foster a creative environment for the development of cost-effective initiatives to be rolled out across the global network.
Increasing Demand for Modernization of Airport Infrastructure across the World to Propel Market Growth
The recent reports and estimates of ICAO suggest that the global rise in demand for air transport will increase by an average of 4.3% per annum in the next 18-20 years. In light of the increase in air traffic, the infrastructure needs of airports will need innovation and upgradation. Hence, several nations have undertaken new airport construction projects while some have focused on modernization of existing infrastructure. As per IATA estimates, USD 1.2-1.5 trillion are expected to be spent on airport infrastructure development up to 2030.
With rise in funding for airports, many hangar construction contracts have been signed in emerging economies such as China and India.
According to data from the Center of Aviation (CAPA), there are about 633 airport modernization projects at existing airports globally and the approximate aggregate investment value of these projects is expected to be USD 565.7 Billion. These investments also include projects for terminal modernizations, creation of new hangars, and others. This investment will drive the demand for hangars globally.
Increasing Demand for Inflatable Hangars to Drive Growth of the Market
In recent years, there has been an increase in demand for portable hangars. Such hangars take less time in being set up and cost less than conventional hangars. The advent of technical textiles and high performance fabrics has led to the demand for use of inflatable hangars. Such hangars use fabrics that are strong enough to bear harsh conditions but are light in weight.
The problems associated with finding a hangar for unscheduled maintenance have led to increase the demand for inflatable hangars. These hangars reduce downtime to a minimum as compared to a conventional hangar building. Portable inflatable hangars have found their utility due to the fact that the construction of a conventional hangar takes more than 18 months, while inflatable hangars can be installed in a period of 3 to 4 months.
Large Capital Expenditure and Funding Required for Longer Time Periods to Hamper Growth
Hangar projects are mostly a part of airport modernization or construction projects. Several airport projects take approximately 6 to 9 years for completion. New buildings or modifications to existing buildings on airports require an approval from the FAA. Such hangars need to be in accordance with city building codes according to building permits. These airport projects also require high capital investment and get constructed and completed in phases. Delays in funding or regulatory approvals cause resulting delays in hangar projects due to its dependence on approvals and funding.
The COVID-19 pandemic has further delayed projects and caused funding bottlenecks in several projects.
As the hangar market is dependent on several factors such as government regulations, associated construction costs, and funding, a delay in any of these factors affects the market negatively.
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MRO Segment had the Largest Market Share Owing to a Rise in the Amount of MRO Hangars at Airports Worldwide in 2021
The market is divided into MRO, assembly, and storage as per type. In 2021, the MRO segment dominated the type segment as air safety and maintenance operations are becoming increasingly important. The MRO segment held the greatest aircraft hangar market share in 2021. It also has the fastest rate of expansion. The development of new greenfield airports, rising aviation sector spending, and the quickening pace of technological advancement in developing nations like China and India are all contributing to the market's progress.
Assembly segment is projected to grow at a high CAGR during the forecast period. The growth of the segment is attributed to the rising aircraft orders across the globe. A rise in aircraft orders is expected to create opportunities for assembly hangars to be constructed by manufacturers.
The storage segment will grow at a moderate CAGR in the forecast period. According to Boeing, the global fleet would consist of 47,080 planes by 2041. The rising air traffic and rise in expected aircraft deliveries will lead to a significant rise in storage hangars.
Rise in Demand for Inflatable Hangars Will Propel Market Growth
Based on construction, the market is classified into fixed and portable.
The fixed segment held the largest market share in 2021. Since most conventional hangars attached to airports are of fixed construction type, the segment held a larger market share in 2021. The increase in funding and capital expenditure for infrastructure from rising economies of Asia Pacific region will boost the growth of the segment.
The portable segment will grow at the fastest rate with a high CAGR due to its ability to be assembled and disassembled or moved in a shorter period of time compared to conventional constructed hangars. The increasing use of such hangars by commercial and military users alike has led to the high growth rate of the segment.
Rise in Orders for Narrow Body Aircraft from Asia Pacific Region to Propel the Growth of the Segment
Based on aircraft, the market is segmented into wide body, narrow body, helicopters, and general aviation.
The narrow body segment accounted for the highest market share in 2021. The segment is also expected to grow at a moderate CAGR during the forecast period. The growth has been attributed to the rising orders for new narrow body aircraft from the Asia Pacific region in the forecast period.
The wide body segment is predicted to grow owing to the increase in demand for air travel across the world. The wide body segment showed the highest CAGR over the forecast period. The renewed interest in wide body aircraft after the pandemic is expected to drive the demand for wide body aircraft in the forecast period.
The general aviation segment is expected to grow at a higher CAGR compared to the helicopter segment. The rise in business related travel and increase in the use of regional, business and general aviation aircraft in the Latin American region and Asia Pacific is expected to surge the demand for aircraft hangar.
The helicopter segment is expected to grow at a lower CAGR during the forecast period.
Based on platform, the market is segmented into commercial and military.
The commercial segment held the largest market share in 2021 under the platform segment. It is also the fastest growing segment with the highest CAGR. The growing spending on greenfield airports and modernization of brownfield airports by various countries of the world are driving the growth of the segment.
The military segment has been projected to grow at a moderate CAGR during the forecast period. The rising use of inflatable hangars among others are expected to fuel the market growth.
North America Aircraft Hangar Market Size, 2021 (USD Million)
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The market has been studied across Europe, North America, Asia Pacific, and the Rest of the World.
The North American market stood at USD 295.5 million in 2021 and is likely to grow at a moderate CAGR during the forecast period. North America dominated the market in 2021. The growth has been attributed to the presence of key players such as AECOM, Allied Steel Buildings, Rubb buildings, Clearspan fabric structures Inc., and others in the region. The U.S. has the highest number of airports in the world and hence held a higher share in the market in 2021
The market in Asia Pacific is projected to grow at the highest CAGR due to the increase in investment in new airport construction. The increase in demand for air travel and rise in the number of greenfield projects in the region are expected to drive the aircraft hangar market growth.
Europe region’s growth is attributed to the increasing expenditure in airport modernization programs along with new aircraft deliveries from OEMs in the region. The increase in MRO activities in this region will drive the growth of the market.
The rest of the world market will showcase growth due to rising passenger traffic and increase in business related travel, tourism and general aviation. Middle Eastern countries such as Saudi Arabia, Israel, Turkey, and others hold large fleets of aircraft and are popular MRO regions due to their strategic locations creating connectivity with all other regions of the world. This is expected to surge the demand for hangars from the region.
Key Players Focus on New Projects and Innovation to Reinforce their Market Position
The market is dominated by key manufacturers such as AECOM Technology Corporation, ClearSpan Fabric Structures Inc., Centrex Construction Inc. Rubb buildings Ltd, Build Air Ingineria, and Diuk Arches. These players majorly focus on developing partnerships with government and airport authorities for new projects.
An Infographic Representation of Aircraft Hangar Market
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The aircraft hangar market research report provides a detailed analysis of the market. The report focuses on key aspects such as leading companies, hangar types, and leading hangar providers. The report offers insights into the market trends and highlights key industry developments related to the market. In addition to the above, the report encompasses several factors that have contributed to the growth of the market in recent years.
Value (USD Million)
By Type, Construction, Aircraft, Platform, and Geography
Fortune Business Insights says that the global market size was USD 703.0 million in 2021 and is projected to reach USD 1,000.6 million by 2029.
The market will exhibit a CAGR of 4.81% during the forecast period.
MRO segment is the leading segment in the market.
AECOM Technology Corporation, Centrex Construction Inc., HTS Tentiq GmbH, Fulfab Inc., Buildair Ingenieria y Arquitectura S.A, Rubb Buildings Ltd, Allied Steel Buildings Inc., Strucsteel Ltd, and J B Roche Ltd are the leading players.
North America held the highest market share in 2021.
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