Airport Service industry expected to be valued worth USD 218.5 billion by 2026 projecting a CAGR of 5.1 percent in the forecast period
Published Date | 2020 January 27
The Global Airport Services industry is expected to be valued worth USD 218.5 billion by 2026 and is expected to grow at a CAGR of 5.1 percent in the forecast period 2020-2026. The growth of the market can be attributed to factors such as the opening of new airports, expansion of new domestic and regional routes in the aviation market, and air passenger traffic. Global airport service deals in providing support services ranging from passenger handling, ramp and loading, operations, and other services within its airport network provided at a certain distance from the airport’s facilities. The airport service market caters to industry segments such as businesses that operate internationally, operators that support airports, national or civil airports or public flying fields, air traffic control services, cargo handling services, baggage handling services, and other services.
Increasing operation and maintenance of airports and runways, rising need for air traffic control and aircraft refueling to drive the growth of the market
The emerging trends which have been hugely impacting the expansion of the global airport service market include the introduction of green gates to reduce emissions, increasing trends of artificial intelligence in the air transport industry, the introduction of virtual technology to support customer service and growing use of smartphone apps to help the passenger for schedule planning. Other key factors impacting the growth of the market include increasing operation and maintenance of airports and runways, rising need for air traffic control, aircraft refueling services and taxi and parking slots services at airports along with baggage and cargo handling services.
Over the forecasted period, the global airport service market is expected to show tremendous growth due to rising levels of airline passenger traffic, having enabled airports to earn significant revenue through passenger levied charges and support services provided directly to airlines. Additionally, ground-level transportation at the airport, increased global consumer spending has encouraged higher spending on non-aeronautical industry services such as duty-free retail stores, which in turn are boosting industry profit margins. Improvement in economic conditions has increased corporate profits and fueled global manufacturing activity, causing airlines to operate more flights to transport greater quantities of cargo, henceforth helping the overall market to grow at a robust margin.
Hospitality Event Services, Aircraft Handling and Cargo Handling accounted for the largest share to the Global Airport Service Market
As per service type, the Global Airport Service Market by Hospitality Event Services further divided as Special passenger care services, catering services, passenger parking field, training, security services, retail and duty-free and baggage handling segments, Cargo Handling Services further segmented as Cargo operations and baggage handling segments, aircraft handling and its related services including operation of fueling, Runway Maintenance, Ramp Services, Aircraft de-icing and Others. In 2019, Hospitality event services, aircraft handling, and cargo handling had been the major services segment contributing the largest share to the Global Airport Service Market and were expected to dominate the market in the forecasted period.
Europe contributed the largest share to the global airport service market in 2019
North America, Europe, Asia-Pacific, South America, and the Middle East and Africa are few of the key regions where the presence of the global airport service market can be witnessed. In 2019, Europe contributed the largest share to the global airport service market owing to factors such as open skies regulations, ensuring more flights in and out of Europe, removal of air-service limitations between the countries, helping to drive tourism and remove air-service limitations between countries. Asia-Pacific is expected to emerge as a key region in the global airport service market in the forecasted period due to factors such as rising passenger traffic, new international and domestic airport openings, and government regulations supporting the services at the airport.
The in-depth analysis of the report provides the growth potential, upcoming trends, and statistics of Airport Service market size & forecast. The report promises to provide state-of-the-art technology of Airport Service production and industry insights help decision-makers to take sound strategic decisions. Furthermore, the report also analyzes the market drivers and challenges and competitive analysis of the market.