The global airport services market size is anticipated to hit USD 290.23 billion by 2029 and exhibit a CAGR of 16.80% during the forecast period. The development of advanced airport infrastructure and services is predicted to augment the market’s expansion in the forthcoming years. Fortune Business Insights has published this information in its report titled, “Airport Services Market, 2022-2029”. The market size stood at USD 89.87 billion in 2021 and USD 97.87 billion in 2022.
Additionally, the incorporation of advanced technologies, such as machine learning and artificial intelligence, for modern airport services is predicted to boost the market’s expansion in the coming years.
Russia-Ukraine War Implication
The Russia-Ukraine war could change the market dynamics of Europe forever. The standoff has revived the predicament situation of the Cold War and pushed Europe to the brink of a major military conflict. The Russian aggression in Ukraine has redefined the global landscape in terms of business. As the global market was recuperating from the havoc wreaked by the COVID-19 pandemic, the Russia-Ukraine war has made several industry stakeholders skeptical.
List of Key Industry Players-
- Beijing Capital International Airport Co. Ltd. (China)
- Fraport AG Frankfurt Airport Services Worldwide (Germany)
- Air General Inc. (U.S.)
- dnata (UAE)
- Worldwide Flight Services (France)
- A.S. Services Group, Inc. (U.S.)
- LHR Airports Limited (U.K.)
- Acciona (Spain)
- Signature Aviation plc (U.K.)
- Tokyo International Air Terminal Corporation (Japan)
- Çelebi Aviation (Turkey)
- Airports de Paris SA (France)
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COVID-19 Pandemic Led to Drastic Decline in Passenger Air Traffic
The aviation industry took a major hit from the coronavirus pandemic. Many international and domestic flights were suspended due to strict restrictions implemented by the governments of various economies. The drop in air travel and passenger traffic affected the market growth. The ban on global air travel affected regional markets, and the layoffs in the aviation industry aggravated the situation. Nonetheless, the uplift of these restrictions and resuming air travel activities are helping the market recover and expand.
Rising Domestic Passenger Traffic to Propel Segmental Growth
On the basis of airport type, the market is bifurcated into domestic and international. The domestic segment is predicted to bestride due to rising domestic passenger traffic. Expanding tourism, business, and other industries are expected to fuel this segment’s growth.
Aeronautical Services Segment to Attain the Largest Market Share
On the basis of application, the market is divided into non-aeronautical services and aeronautical services. The growing demand for line maintenance services and MRO is predicted to propel the segment’s growth.
Greenfield Airport Segment to Experience Significant Growth
On the basis of infrastructure type, the market is segmented into brownfield airport and greenfield airport. With rising airline fleet and passenger traffic globally, the demand for sustainable infrastructure is growing and is likely to fuel the segment’s growth.
Geographically, the market is classified into Asia Pacific, North America, Europe, and the Rest of the World.
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- It assimilates the crucial drivers and restraints of the market’s expansion.
- It highlights the market’s growth analyzed and forecasted across various geographies.
- It includes a detailed description and analysis of various segments of the market.
- It highlights the latest key industry developments.
- It includes a detailed analysis of the coronavirus pandemic.
Drivers & Restraints-
Development of Advanced Airport Infrastructure and Services to Fuel Market Growth
The aviation industry is continuously expanding. The development of new airports and refurbishment/renovation activities of prevailing airport infrastructures are predicted to boost the global airport services market growth. The aviation industry is evolving and the adoption of advanced technologies such as ML and AI-powered devices and robots is anticipated to offer lucrative growth opportunities for the market.
The globally increasing number of low-cost airline operators, rising urbanization, growing passenger count, and improving income levels are a few other factors projected to complement the market’s development in the upcoming years.
However, strict government regulations may impede the market’s development during the forecast period.
Rising Air Passenger Traffic to Propel Market Growth in North America
North America is expected to bestride the global airport services market share during the forecast period. The gigantic numbers of passenger traffic, coupled with the key players, including S.A.S Services Group and Air General Inc. present in the region are expected to boost the region’s market growth.
Europe is projected to attain substantial growth in the coming years. The developing airport infrastructures across nations such as Germany, France, and the U.K. are likely to propel the market expansion in Europe.
The market in Asia Pacific is anticipated to radically expand due to the rising air passenger traffic and low-cost carriers across nations such as China and India. Additionally, the modernization programs of existing airport infrastructure, coupled with the development of new modern airports are predicted to amplify the market growth in Asia Pacific.
The Rest of the World is predicted to gain considerable growth due to increasing tourism and advancements in airport infrastructures.
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Key Players Adopt Contracts to Amplify Growth
The major players operating in the market emphasize upgrading current product portfolios by launching new offerings. They focus on incorporating advanced technologies to enhance their offerings. The major market players adopt ingenious strategies, including contracts, acquisitions, mergers, collaborations, and others to amplify their growth prospects. For instance, Worldwide Flight Services prolonged its cargo handling contract with Turkish Airlines in February 2022.
Key Industry Developments-
- March 2022- Hainan Airlines awarded a new ramp handling contract to Worldwide Flight Services at Seattle-Tacoma International Airport.
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