"Smart Market Solutions to Help Your Business Gain Edge over Competitors"
The global airport services market size was USD 172.19 billion in 2019 and is projected to reach USD 232.88 billion by 2027, exhibiting a CAGR of 16.66% during the forecast period.
Airports are engaged in a commercial relationship with both airlines and passengers. They receive their revenues from two primary sources: aeronautical services and non-aeronautical services. The airport service industry looks promising with opportunities in aircraft handling and cargo handling services. Developments in the aviation industry have had a vital impact on the market. The rise in passenger traffic in emerging economies and infrastructure development will drive the market. The constant rise in the number of airport terminals and the renovation of the existing airport infrastructure is also expected to fuel the airport services market growth.
Request a sample to learn more about this report.
Surging Use Of Artificial Intelligence (AI) In The Air Travel Industry
Over the last two decades, airports across the globe have ramped up security in response to emerging threats. Meanwhile, increasing passenger expectations have put pressure on major transport hubs to strengthen throughput, cut queues, and make the passenger journey from entrance to departure gate as continuous as possible.
In 2019, the UK Government invested 1.8 million Euros into the development of new AI systems to improve security and lessen the waiting times across some of the UK’s busiest airports.
The US Transportation Security Administration has newly introduced computed tomography (CT) scanners, which use AI to assist, identify threats, at L.A. International Airport, Phoenix Airports, and John F. Kennedy Airport.
Furthermore, AI can improve security in the landside area at airports. The Evolv Edge system is widely used at airports, with AI technology powered smart checkpoint system which utilizes a combination of camera, millimeter-wave technologies, and facial recognition to scan people walking through a portable security gate.
Rise in Demand For Low-Cost Airlines To Fuel The Growth Of The Market
The impact of low-cost airlines to the aviation industry has been tremendous. Low-cost airlines are passenger airlines, which provide low budget traveling service tickets compared to other airlines. Over the past few years, low-cost airlines have had rapid growth across the globe due to the rise in economic activity and urbanization. Moreover, the increase in demand for travel & tourism along with ease of travel has supported the growth of the market.
An increase in demand for Low-cost airlines has led to the increase in development of cost effective airport services which is anticipated to fuel the growth of the market. In Asia and the Middle East, the low cost airline sector has intensely grown in the last decade and there are no signs that the development would be reduced in these regions.
Rise In Domestic Flights Expected To Support The Growth Of The Market
A rise in affluence of the middle class in developing countries is the basic cause for rising air passenger traffic. The demand for domestic flights is increasing, owing to increase in developments in business, tourism and other sectors. As stated by World Airport Traffic Forecasts, the CAGR of domestic passenger traffic is predicted to be 3.4% during the forecast period. The growth of domestic passenger traffic is majorly in emerging and developing economies.
The increase in domestic passenger traffic in emerging economies such as China and India is expected to support the growth of the airport service market. India has the third largest domestic aviation market in the world. The need for increasing spending at domestic airprots, and rise in the passanger traffic are ainticipated to drive this market.
Increase In Expansion Project For Airports Anticipated To Boost The Market
Owing to the rise in passenger traffic, there is an increasing demand for expansion of airport infrastructure in smaller cities, thus airports are under constant upgradation to amplify their infrastructure and improve customer experience. The rise in demand for more gate capacity, longer runways, and modernized air traffic control is expected to propel the market growth. Airport expansion projects develop cost-efficient amenities that balance passenger capacity with demand while providing the levels of service, functionality, and operational efficiency. Hence, the rise in passenger traffic will lead to rise in airport expansion which will automatically augument the market for airport services
Drastic Impact of COVID-19 Outbreak On Aviation Industry
The current year is a challenging year for the air transport industry, the revenue figure marked a positive end in the year 2019. The effects of the COVID-19 outbreak started to appear in traffic results in 2020. The global airport industry has been challenged with multi-billion-dollar losses in the first quarter of 2020. Still, it is now anticipated that the impact of COVID-19 will encompass not only to the second quarter of 2020 but also the second half of the year. According to Airports Council International, recovery may take a year to 18 months to reach pre-COVID-19 air traffic levels, and the industry may not achieve pre-COVID-19 traffic volumes again before the end of 2021. Although airports have high fixed and unavoidable costs, they are reducing variable costs by terminating portions of infrastructure, delaying capital expenditure, and addressing employment costs.
Moreover, faster recovery is expected in domestic passenger traffic. The recovery will take longer for international passenger traffic owing to the imposed restrictions by the government of various countries. In corresponding with the ongoing crisis in Asia-Pacific, there is a rise in the number of COVID-19 cases in several countries in Europe, the Middle East, and North America. As such, these regions are also anticipated to be considerably impacted by traffic downfall.
International Segment Dominated the Global Market
Based on type, the market is divided into international and domestic airport segment.The international airport segment was expected to be the largest and dominating segment in the market, owing to the rise in international passenger traffic. The domestic airport segment is predicted to be the fastest-growing segment. The growth for international passenger traffic will be derived from the Asia Pacific, Europe, and the Middle East. In contrast, the growth for domestic passenger traffic will be derived from the Asia Pacific, North America, and Latin America.
The impact of the COVID-19 outbreak is severe on international passenger traffic owing to the restrictions in international air travel by the governments of various countries. It is foreseen that the relaxation of restrictions may occur within the countries; hence domestic passenger traffic may recover fast, but it will take longer for international passenger traffic to recover.
To know how our report can help streamline your business, Speak to Analyst
Aeronautical Services Segment Anticipated To Be The Largest Segment Of The Market
Based on the application, the market is classified into aeronautical services and non-aeronautical services. The aeronautical services are further divided into aircraft ground handling services, aircraft maintenance services, and passenger services. Aircraft ground handling services include landing service, parking service, ramp service, and others. The passenger services include security service, transit service, and others. The aeronautical service segment is predicted to be the largest segment of the market. North America is anticipated to account for the highest market share in the aircraft ground handling service segment.
The non-aeronautical services include baggage handling services, car rental service, car parking service, food, and beverage service, retail service, and others. The non-aeronautical service segment is expected to be the fastest-growing segment as the non-aeronautical revenue serves as an additional cushion during economic depressions.
With the COVID-19 impacting to a large range of Chinese passengers, it creates a broader effect for airports across the globe as passenger traffic from Eastern Asia tends to generate relatively high revenue for non-aeronautical services.
Greenfield Airport Segment To Dominate The Market
Based on Infrastructure Type, the market is bifurcated into greenfield and brownfield airports.
Owing to the sudden rise in the number of air travelers as well as the aircraft, the airport operators are undergoing immense pressure concerning passenger handling. This factor has led them to opt for some plans that can help them to create a suitable aviation infrastructure.
Greenfield airport is anticipated to be the most dominant segment of the market. It is expected to maintain its position over the forecasted period due to the growing need for internationally benchmarked airports. The brownfield airport market is expected to grow during the forecast period owing to the modernization and up-gradation of airports.
North America Airport Services Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a sample
The findings based on our research methodology indicate the Asia Pacific expected to dominate and will remain the largest region in the global market owing to the rise in air passenger traffic. Air passenger traffic in the Asia Pacific is encouraging the development of airport infrastructure and expansion of new airport numbers of airports in emerging economies such as China and India. China’s aviation sector is expected to exceed the aviation sector in the U.S. However, the recent outbreak of COVID-19 is projected to decrease China’s economy in the first quarter of 2020. India is predicted to become third largest aviation market through the forecast period owing to the rise in business travel and tourism in the country.
Advanced Economies in North America and Europe such as the U.S and the U.K. are anticipated to grow significantly throughout the forecast period. The U.S is anticipated to be the second largest market segment during the forecast period, owing to rise in investments for development of airport infrastrutures and ease of government regulations for airport services. The Middle East & Africa is also expected to reach at a significant growth in the market owing to the advancements in the airports and increase in tourism and frequency of foreign tourists.
Adoption of Constant Innovation and Acquisition & Collaborations Strategies, To Sustain In The Market
Fraport AG Frankfurt Airport Services Worldwide and Beijing Capital International Airport Co. Ltd. are the are some of the leading airorts in the world, these airports authorities provides different servicecs at their airports. The airport service providers have adopted the strategies such as geographic expansion and collaboration to compete with the competitors. Frankfurt Airport has most direct routes in the world as it serves more than 300 destinations in 5 continents. Moreover, the airports are adopting new strategic allinces, partnerships and entering into a long term contract with airlines, for building long term relationships with Aircraft Systems OEMs, Airlines and MROS to sustain in the market.
The airport services market report includes a detailed analysis of the market and focuses on key aspects such as product types, leading companies, and leading applications of the product. Besides this, the report offers key insights into the market trends and highlights key industry developments. In addition to the factors mentioned earlier, the report encompasses several factors, that have contributed to the growth of the market in recent years.
To gain extensive insights into the market, Request for Customization
Value (USD billion)
By Infrastructure Type
Fortune Business Insights says that the global market size was USD 172.19 billion in 2019 and is projected to reach USD 232.88 billion by 2027.
In 2019, the market value stood at USD 172.19 billion.
Growing at a CAGR of 16.66%, the market will decline in 2020 owing to the COVID-19 outbreak and is predicted to start recovering from the end of 2021.
Aeronautical Services segment is expected to be the leading segment in this market during the forecast period.
Fraport AG Frankfurt Airport Services Worldwide is the leading player in the global market.
North America dominated the market share in 2019.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry