Airport Services Market Forecasts to 2030 – Global Analysis By Airport Type (Domestic and International), Infrastructure Type, Application and By Geography

Airport Services Market Forecasts to 2030 – Global Analysis By Airport Type (Domestic and International), Infrastructure Type, Application and By Geography

According to Stratistics MRC, the Global Airport Services Market is accounted for $188.2 billion in 2023 and is expected to reach $621.3 billion by 2030 growing at a CAGR of 18.6% during the forecast period. The Airport Services Market refers to the comprehensive range of facilities and assistance offered at airports to ensure smooth and efficient operations for both passengers and airlines. Airport services include retail and catering operations to meet the diverse needs of travelers. These services plays a pivotal role in enhancing the overall travel experience, ensuring safety, and supporting the operational efficiency of airports worldwide, contributing significantly to the global aviation industry.

According to the Federal Aviation Administration, in 2019, Air Traffic Organization (ATO) provided services to more than 45,000 flights and 2.9 million airline passengers.

Market Dynamics:

Driver:

Growing demand for air travel

Fueled by factors such as global economic growth, increased business activities, and rising disposable incomes, there has been a substantial surge in the number of air travelers worldwide. This heightened demand necessitates comprehensive and efficient airport services to manage the influx of passengers, ensuring seamless travel experiences. Airports, in response, are compelled to expand their infrastructure, enhance operational capabilities, and invest in advanced technologies to accommodate the growing frequency of flights and diverse passenger requirements.

Restraint:

High operational costs

The intricate web of services provided by airports, including ground handling, security, maintenance, and infrastructure development, requires substantial investment. Compliance with stringent safety and security standards, coupled with the need for continuous technological upgrades, contributes to escalating operational expenses. The burden of maintaining and improving airport facilities falls on operators, necessitating substantial financial commitments. However, these high costs can limit the ability of airports to adapt swiftly to market changes, invest in modernization efforts, and provide competitive pricing for services.

Opportunity:

Development of new air routes

As airlines seek to expand their networks and explore untapped markets, the establishment of fresh air routes becomes imperative. This expansion not only increases connectivity between regions but also triggers a domino effect on airport services. Airports along these newly established routes experience heightened activity, necessitating enhancements in infrastructure, ground handling, and security measures to meet the demands of increased flight operations and passenger volumes. Additionally, the creation of new air routes fosters economic development, tourism, and business opportunities, driving the demand for a diverse range of services at airports.

Threat:

Security concerns

The constant need for robust security measures, including advanced screening technologies, personnel training, and threat detection systems, imposes a considerable financial burden. Heightened security protocols not only lead to increased operational costs but can also result in longer processing times for passengers, potentially impacting the overall efficiency of airport services. However, the dynamic nature of security threats requires continuous adaptation and investment in cutting-edge technologies, further straining the financial resources of airport operators.

Covid-19 Impact:

Widespread travel restrictions, lockdowns, and a dramatic reduction in passenger demand led to a sharp decline in air travel, resulting in financial setbacks for airports. With decreased flights, airports faced revenue loss from aeronautical services and reduced footfall in non-aeronautical segments such as retail and dining. Heightened health and safety measures, including enhanced cleaning protocols and social distancing requirements, increased operational costs for airports.
The domestic segment is expected to be the largest during the forecast period

As countries witness economic growth, rising incomes, and enhanced connectivity, domestic segment commanded the largest share of the market throughout the projected period. This uptick in passenger numbers necessitates comprehensive airport services to accommodate the heightened activity. Airports are responding by expanding their infrastructure, improving ground handling capabilities, and investing in technologies to enhance the overall travel experience for domestic passengers. Moreover, market is experiencing a robust expansion, driven by the dynamic growth of the domestic aviation sector and the strategic adaptation of airport services to meet the evolving needs of domestic travelers.

The greenfield airport segment is expected to have the highest CAGR during the forecast period

As governments and private investors increasingly recognize the strategic importance of aviation infrastructure, greenfield airport segment is expected to hold profitable growth throughout the forecasted period. These projects, often located in emerging economic hubs or regions with limited aviation connectivity, stimulate the demand for a comprehensive range of airport services. Furthermore, greenfield airports, unencumbered by pre-existing structures, can integrate the latest technologies and sustainable practices from the outset, attracting airlines and passengers seeking modern, efficient facilities.

Region with largest share:

Asia Pacific region dominated the largest share of the market throughout the projected period. Governments and private investors are capitalizing on this momentum, investing heavily in the construction and expansion of airports. With a focus on enhancing connectivity, numerous Greenfield airport projects and the modernization of existing facilities are underway. The sheer volume of air passengers in the Asia Pacific region is driving demand for a comprehensive range of airport services, including ground handling, security, and passenger amenities.

Region with highest CAGR:

Due to a well-established network of airports, and the modernization and expansion of these facilities are ongoing to accommodate the increasing passenger traffic, North America region is expected to hold profitable growth over the extrapolated period. With a focus on advanced technologies, streamlined security measures, and efficient ground handling services, North American airports are setting benchmarks for global aviation standards. Moreover, the region's commitment to sustainability and customer-centric services further propels the demand for innovative airport solutions.

Key players in the market

Some of the key players in Airport Services market include Air General Inc, Airport Terminal Services, Inc, Airports de Paris SA, BBA Aviation plc, Beijing Capital International Airport Co. Ltd, Çelebi Aviation, China National Aviation Corporation (Group) Ltd, Fraport AG Frankfurt Airport Services Worldwide, Japan Airport Terminal Co., Ltd, LHR Airports Limited, Menzies Aviation, Mumbai International Airport Pvt Ltd, S.A.S. Services Group, Inc, Signature Aviation plc, Swissport International Ltd, TAV Airports Holding, Tokyo International Air Terminal Corporation and Worldwide Flight Services.

Key Developments:

In September 2023, Edmonton International Airport (YEG) signed a memorandum of understanding (MOU) with Edmonton Destination Marketing Hotels Ltd. The collaboration will helps in enhancing air service development by increasing seat capacity, attracting new airlines, and introducing fresh routes to Edmonton.

In July 2023, The Delhi International Airport (DIAL) announced that it has selected IDEMIA as the technology partner for DigiYatra. DigiYatra will use IDEMIA's facial recognition technology in Hyderabad, Delhi, and Goa to confirm the identity of domestic flyers.

In December 2022, Adani Group launched a consumer app for airport services. This app will help the consumer to book tickets, flight status, lounge access, duty-free products, & avail parking facilities. This strategic product launch is projected to enhance the market in Europe.

In November 2022, IndiGo launched commercial flights from the newly constructed Donyi Polo Airport, Arunachal Pradesh's first civil airport. This strategic product launch is anticipated to boost the company’s potential sales of airport services.

In September 2022, LAS Goldair Handling, an Indian services joint venture, launched its services at two of India's airports. The services have been established at Bagdogra International Airport and Udaipur Airport. The company is expected to manage the terminal, cargo, and ramp for chartered flight operators for all international and domestic flights departing and arriving at Bagdogra International Airport.

In May 2022, Celebi Aviation, an Indian ground cargo handling company, announced deploying emerging technologies such as Internet of Things (IoT) and blockchain in their operations. The company invested more than USD 220 million in India, investing in infrastructure to handle 7,000+ tonnes of cargo, increasing security initiatives, additional handling equipment, and a state-of-the-art transshipment center.

Airport Types Covered:
• Domestic
• International
Infrastructure Types Covered:
• Brownfield Airport
• Greenfield Airport

Applications Covered:
• Non-Aeronautical Services
• Aeronautical Services
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
JapanChinaIndiaAustralia
New Zealand
South Korea
Rest of Asia Pacific• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances