The Global Airport Services Market Size Was Valued At USD 89.87 Billion In 2021. The Market Is Projected To Grow From USD 97.87 Billion In 2022 To USD 290.23 Billion By 2029, Exhibiting A CAGR Of 16.80% During The Forecast Period.

Airport Services Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand is lower than expected in all regions compared to what it was before the pandemic. Based on what we found, the market dropped by 49.57 percent between 2019 and 2020.

The airports do business with both the airlines and the people who use them. Their main sources of income are aeronautical services and non-aeronautical services. Aviation management and logistics services are two areas that could benefit from this industry. The market has been deeply affected by changes in the aviation industry. Most of these business opportunities have to do with handling passengers (customer service functions) and managing the floor (cargo and cargo/delivery, flight control, and other areas). The market will be driven by the growth of infrastructure and the number of passengers in developing countries. The airport services market is expected to grow because there are going to be a lot more airports and the ones that are already there will be fixed up.

Most airports have paved runways and places to fix things. They also serve as passenger and cargo hubs. Airport service providers are currently looking for more business and trades related to things that are already happening, like the modernization of airport infrastructure. Because of new threats, airports all over the world have tightened security over the past 20 years. In the meantime, the expected rise in passengers has put pressure on major transportation hubs to speed up traffic, shorten lines, and make it so that passengers can move as smoothly as possible from door to door and exit to door. Also, the world's biggest countries are spending a lot to make their airport infrastructure more modern and easy to use.

Market Dynamics:

Latest Trends:

AI is used in many parts of the tourism and tourism industry, which makes travelling easier for people all over the world. Face recognition programs and airport security scanning devices are two AI tools that are used a lot in airports today. Due to the rise of robots and other devices at airports that are powered by AI technology, the aviation industry is going through a huge change. Because of new threats, airports all over the world have tightened security over the past 20 years. In the meantime, the expected rise in passengers has put pressure on major transportation hubs to speed up traffic, shorten lines, and make it so that passengers can move as smoothly as possible from door to door and exit to door.

AI and the Internet of Things (IoT) have made airports around the world easier to use. These airports are called "modern" airports. These modern airport facilities put ease of use and efficiency at the top of their list. Various airport service providers are hired to keep the airport running smoothly and to make the airport experience better for passengers. Airports are likely to put money into making them smarter by using advanced automated technologies. This will help them deal with the many operational problems they face. Many airports have started to use self-driving robots that are controlled by AI and machine learning.

Driving Factors:

Low-cost airlines have had a huge effect on the airline business. Compared to other airlines, these ones have cheap plane tickets. In the past few years, these low-cost airlines have attracted more travellers and grown quickly around the world because the economy has been doing well and more people are moving to cities. The market has also grown because people want to travel with less hassle and more ease. Because there is more demand for low-cost airlines, more cost-effective aviation services are being made. This is expected to help the market grow even more. The low-cost aviation industry has grown a lot in Asia and the Middle East over the past ten years, and there are no signs that growth will slow down in these places. So, during the forecast period, we can expect higher growth numbers.

There is a growing need to improve airport infrastructure in smaller cities. Because of this, airports are always working to improve their infrastructure and make things better for customers. Market growth is likely to be helped by the need for more gates, more amenities on longer routes, and more modern air traffic control. From tracking systems for parts to building information modelling, airports are using new technologies in a big way to make it easier to build bigger projects. New airport construction projects are moving forward at a rate that has never been seen before. A recent report from Business Wire says that there are USD 377.6 Billion worth of projects in the implementation phase and USD 215.8 Billion worth of projects in the planning phase.

Restraining Factors:

The government or the Ministry of Civil Aviation has a big part to play in the infrastructure and services of airports. There are times when the government helps airport service providers, but there are also times when the airport authority's strict rules slow the growth of the airport and aviation-related market. Airports all over the world have a wide range of different systems for running them. Different local conditions may allow for changes to the plans for running the national airport. Because of the current crisis, the aviation industry needs more cooperation to get back on its feet. Up until recently, the rapidly growing demand for air transportation services meant that a lot of new aviation infrastructure and capacity improvements at existing airports were needed. This, in turn, will lead to a new rule that might not be in the best interest of private airport operators. So, these things are likely to hurt the market.

Segmentation Analysis:

By Type:

The market can be broken down into two types: international and domestic. Due to the pandemic, there has been a rise in the number of people travelling on domestic flights. This means that the domestic airport segment is likely to lead the market. After the pandemic, when travel restrictions around the world are lifted, the international airport segment is expected to grow the fastest. Middle-class people in developing countries are spending more on travel, which is a big reason why the number of domestic passengers is going up. Business, tourism, and other industries are growing, which is making more people want to fly on domestic airlines. The growth of the market is likely to be helped by the rise in domestic air travellers in developing countries like China and India. India's domestic aviation market is the third largest in the world. In the near future, the segment is likely to grow because of the need to spend more on domestic airports and more people using them.

By Application:

Aeronautical services are further broken down into services for handling planes on the ground, for keeping planes in good shape, and for people who want to use planes. Aircraft maintenance services mostly include the repairs, inspections, replacements, faulty repairs, disclosure changes, compliance with airworthiness directives, and repairs that are needed to keep the plane or a part of the plane safe to fly. In the base year, the aircraft maintenance services segment was the biggest. This is likely to stay the case during the forecast period, as demand for MRO and line maintenance services grows around the world. Services for planes on the ground include cleaning and restocking the bathrooms, parking, ramp service, and more. Services for passengers include security service, transportation service, and others.

Most of the non-aeronautical services have to do with handling bags, renting cars, parking cars, serving food and drinks, selling things, and other things. The non-aeronautical service segment is expected to grow the fastest in the market. This is because non-aeronautical revenue helps airport service providers during pandemics or economic downturns.

By Infrastructure Type:

With a sudden rise in the number of air passengers and travellers, as well as an increase in the number of airline fleets, airport operators are spending more and are under a lot of pressure to handle passengers by 2050, there will be no emissions at all. Airport managers all over the world have chosen some plans that can help them build a good and long-lasting airport infrastructure. A greenfield airport is a new airport that was built from scratch in a different place. These airports are built to meet the needs that airport traffic is thought to have. Greenfield airport is likely to see a lot of growth in the market. It is likely to keep its position during the projection period because there is a growing need for airports that meet international standards. Because airports are being updated and built up, the brownfield airport market is expected to grow over the next few years.

Regional Insights:

In 2021, North America ruled the market. In 2021, the North American market was worth USD 25.11 billion. Major players like Air General Inc. and S.A.S. Services Group, Inc. are a big reason for the growth. Also, after the pandemic hit, the region had the most people travelling through it in the base year. So, higher growth numbers are expected over the next few years.

Europe's market is expected to grow a lot because airports are getting better and better in the UK, France, and Germany. Also, major airport service providers like Fraport AG Frankfurt Airport Services Worldwide, Worldwide Flight Services, and LHR airport have their main offices in Germany. These service providers are well-known in the area and have clients from all over the world.

Due to the sudden rise in air passenger traffic, it is expected that Asia-Pacific will be the largest emerging market in the world. The rise of low-cost airlines and the number of air travellers in countries like India and China are driving the development and modernization of airport infrastructure and the opening of more airports in the region. The International Air Transport Association (IATA) says that China will have more air passengers than the U.S. in 2024. India is also expected to become the third-largest aviation market during the forecast period. This is because the number of aircraft in India is growing and the number of low-cost carriers is growing as well.

The rest of the world should also see a lot of growth in the market because airports are getting better and more people are travelling and visiting from other countries. Also, the government is putting more money into improving public infrastructure to attract more tourists to the area, which is expected to drive the market in the area.

Scope Analysis

Recent Development:

• In March 2021 – dnata and Cebu Pacific Air (CEB) have expanded their long-term partnership in the Asia Pacific region. In addition to the past multi-year extension of an existing airport service contract at Sydney Airport (SYD), dnata has made an agreement to provide a range of ground handling services to the airline at Melbourne Airport and Singapore Changi Airport.
• In March 2022 – Eve UAM and Acciona announced that they will be working together in strategic partnership for the development of a sustainable Urban Air Mobility ecosystem. Under the terms of the agreement of Eve’s business combination with Zanite Acquisition Corp., Acciona will invest USD 30 million and will join the group of strategic investors that are currently supporting the development of Eve and its business plan.

Market Segmentation

By Type:

• International
• Domestic
• Others

By Application:

• Greenfield Airport
• Brownfield Airport
• Others

By Infrastructure Type:

• Aeronautical Services
• Non-Aeronautical Services
• Others

By Companies:

• 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)
• Others