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2022

Airport Operations Market

Airport Operations Market Size, Share, Competitive Landscape and Trend Analysis Report by Airport Class, by Operation, by Platform, by Airport Category : Global Opportunity Analysis and Industry Forecast, 2021-2031

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Author's: Dave Dhvanil Ashish | Lalit Janardhan Katare
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The global airport operations market was valued at $7.7 billion in 2021, and is projected to reach $13.8 billion by 2031, growing at a CAGR of 6.3% from 2022 to 2031.

Airport operations encompass range of processes, which ensure that an aircraft runs smoothly and effectively in range of different situations. The airport operations are mainly categorized into airside operations, landside operations, financial operations and information management. The airside operations include air traffic management, aircraft landing & navigation, runway management, and ground handling safety. The landside operations are inclined toward serving passengers and maintenance of airport terminals buildings. It includes operations such as passenger check in, baggage handling and tagging, parking facilities, vehicular traffic management, staff and resource allocation among others. The financial operations involves aeronautical and non-aeronautical billing and invoicing operations, staff pay rolls, and point of sales among others. The information management system relates to gather and distributing several information such as arrival and departure, daily flight information, important announcement and airline connections. The rise in air traffic across the globe and adoption of new operational technologies has increased the importance of airport operations over past decade.

Airport Operations Market, Airport Operations Industry

Airport Operations Market
By Platform
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Software is projected as the most lucrative segment

Factors such as increase in investment to support brown filed and green field airport operations, rise in passenger traffic across the globe, and adoption of new technologies supporting automation and self-services. The COVID-19 is having a notable impact on airport operations market and have shifted the business dynamics within the forecast timeframe. Currently majority of airports are focused toward reducing their operational cost, increase operational efficiency and reduce their carbon footprint. For instance, In June 2022, the Delhi International Airport Limited (DIAL) announced acquisition of 62 electric vehicles that is anticipated to optimize their airside operations. The electric vehicles is anticipated to be gradually induced within three to four months and reduce approximately 10,000 tons of greenhouse emissions per annum.

The airport operations market is segmented on the basis of airport class, operation, platform and airport category. By airport class, it is categorized into class A, class B, class C, and Class D airports. Depending on operation, the airport operations industry is fragmented into airside operation, landside operation, financial operation and information management. By platform, it is divided into hardware, software and service. The airport category segment is categorized into commercial service airports, cargo service airports, reliever airports, and general aviation airports. Region-wise, the airport operations industry is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Airport Operations Market
By Airport Category
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Reliever Airports is projected as the most lucrative segment

Companies have adopted product development and product launch as their key development strategies in the Airport operations industry. Moreover, collaborations and acquisitions are expected to enable leading players to enhance their product portfolios and expand into different regions. The key players operating in the airport operations market are Cisco Systems, Inc., Honeywell International Inc., IBM, Indra, QinetiQ, Raytheon Technologies Corporation, Siemens, SITA, Teledyne Technologies Incorporated, Thales, Daifuku Co., Ltd., Damarel Systems International Ltd., Amadeus IT Group, Inform GmbH, Aena, Huawei Technologies Co., Ltd., and ES_Mobility

Adoption of Total Airport Management (TAM)

The success of individual stakeholders is anticipated to determine the direction of airport management in the future. All agents, from landside to terminal & airside, are anticipated to be placed into a unified platform, enabling real-time analysis to assist decision-making. By connecting processes and systems across the airport, total airport management (TAM) promotes data-driven decision making, comprehensive KPI management, and the integration of operations. TAM includes performance-based airport operations that permit the development, adoption, and upkeep of the Airport Operational Plan (AOP) on the basis of performance. This ensures fairness and the resolution of potential conflicts of interest between stakeholders and makes sure that everyone is putting forth their best effort in the direction of a common objective.

Airport Operations Market
By Airport Class
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Class B is projected as the most lucrative segment

Rise in air traffic, surpassing pre-COVID levels

The rise in aviation traffic is attributed to a variety of factors. The primary reason is population and economic expansion, which is being fueled by the burgeoning middle class. By 2035, the global economy is projected to increase by 3% annually, while aviation traffic is projected to grow by an average of 6% annually. The second development element is introducing low-cost airlines with competitive rates on well-travelled routes. They play a significant role in the intensification of air traffic in Europe; at present, they account for more than 40% of Europe's and 25% of traffic globally. By encouraging international airlines to lower ticket rates, these businesses significantly influence airline prices.

As consumers attempt to make up for two years of missed travel possibilities, the aviation industry has witnessed the long-anticipated rise in reservations with the relaxation of numerous border restrictions. Except for China, where travel is still heavily restricted. International revenue passenger kilometer (RPKs) increased 331.9% compared to April 2021, accelerating the 289.9% increase from March 2022 to the previous month. International RPKs for April 2022 decreased 43.4% from the same month in 2019. Some route areas—including Europe to Central America, the Middle East to North America, and North America to Central America—are above pre-pandemic levels.

Airport Operations Market
By Operation
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Landside Operations is projected as the most lucrative segment

Change in consumer dynamics

The COVID-19 had a major impacting in changing consumer dynamics. Unlike pre-COVID phase where end users value human interaction, currently consumers prefer having human-machine interface or automated processes. In the future, all passenger operations from check-in to boarding the plane, are expected to be handled by the passengers. This is anticipated to increase non-aeronautical revenue, reduce operational costs, and improve resource utilization. Aligning with consumer demand, airports' degree of digitization is rising swiftly, supporting trends like increased automation and specialized passenger services. This is anticipated to result in a linked airport where the control center can better monitor and manage performance against key performance indicators and has insight across all activities (KPIs). Suppliers have created new, standardized products that support these services, such as e-boarding and self-service platforms. Passengers are anticipated to be able to control their trip plans, including keeping an eye on their luggage.

Threat of cybersecurity and data breach

The entire safe operation of the airport environment and passenger safety depend on airport security. Despite having multi-layered security systems for passport checks and luggage scans, many airports are becoming targets of cyber-attacks. Such assaults have occurred in the travel business, most especially in the airline industry. According to IATA, hacks cost the world economy $460 billion annually. In the next three years, cybersecurity is anticipated to account for a sizable chunk of the over $33 billion in IT spending anticipated for airlines and airports.

Airport Operations Market
By Region
2031
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific would exhibit the highest CAGR of 6.8% during 2022-203

The airport operations market is segmented into Platform, Airport Category, Airport Class and Operation.

KEY BENEFITS FOR STAKEHOLDERS

  • This study presents the analytical depiction of the global airport operations market analysis along with the current trends and future estimations to depict imminent investment pockets.
  • The overall airport operations market opportunity is determined by understanding profitable trends to gain a stronger foothold.
  • The report presents information related to the key drivers, restraints, and opportunities of the global airport operations market with a detailed impact analysis.
  • The current airport operations market is quantitatively analyzed from 2021 to 2031 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Airport Operations Market Report Highlights

Aspects Details
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By Platform
  • Hardware
  • Software
  • Service
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By Airport Category
  • Commercial Service Airports
  • Cargo Service Airports
  • Reliever Airports
  • General Aviation Airports
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By Airport Class
  • Class A
  • Class B
  • Class C
  • Class D
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By Operation
  • Information Management
  • Airside Operations
  • Landside Operations
  • Financial Operation
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (U.K., Germany, France, Russia, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Inform GmbH, Amadeus IT Group, Cisco Systems, Inc., Aena, Thales, Teledyne Technologies Incorporated, Siemens, Daifuku Co., Ltd., Huawei Technologies Co., Ltd. , IBM, Honeywell International Inc., SITA, Indra, Damarel Systems International Ltd. , ES_Mobility, Raytheon Technologies Corporation, QinetiQ

Analyst Review

The airport operations market is expected to undergo a major shift in the coming years. Adoption of total airport management (TAM), change in consumer dynamics, privatization of airports, arrival of electric vertical takeoff & landing vehicles (eVTOL), and air taxi are anticipated to support business potential within the airport operations market during the forecast period. Aggressive initiatives by federal organizations such as FAA and Euro control to standardize protocol to support global growth. As of June 2022, FAA 45,000 flights were handled by FAA per day, with 520 airport traffic control towers, 147 terminal radar approach control facilities, and more than 14,000 air traffic controllers.

Consumer centric approach is expected to enhance their travel experience, which is anticipated to remain primary goal of new age airports. These goals are anticipated to be achieved by integration of cutting edge technologies such as predictive analysis for disruption management & flight operations, personalized consumer attention, touch less onboarding system, and bagless airports. Several major airports from developed and developing nations such as U.S., China, Canada, UK, Germany, and India among others have already started investing in these technologies. The full scale implementation and establishment of a cohesive network is expected be established by 2025.

Industry leaders within the airport operations market are anticipated to be investing heavily in research and development to achieve carbon neutrality. Inclination of regional agencies such as IATA to achieve zero carbon emission by 2050 is enforcing business players to introduce eco-friendly solutions. In line with such initiatives, companies are developing airside and landside products that can reduce overall carbon emission of an airport by optimizing operations or reducing aircraft turnaround time. For instance, in May 2022, Honeywell announced to display NAVITAS in Dubai Airport show 2022. Once implemented, NAVITAS is capable of reducing aircraft turnaround time, optimize airside operations and decrease maintenance downtime by 25%. The company is anticipated to demonstrate FORGE, an enterprise performance management solution to support landside operation, ensuring double digit energy saving through predictive and reactive maintenance schedule.

Among the analyzed regions, Asia-Pacific is the highest revenue contributor, followed by North America, Europe, and LAMEA. Asia-Pacific is expected to witness the highest growth rate during the forecast period, owing to increasing efforts of the Indian and Chinese governments to develop indigenous airport operations’ infrastructure.

Author Name(s) : Dave Dhvanil Ashish | Lalit Janardhan Katare
Frequently Asked Questions?

Adoption of total airport management (TAM), change in consumer dynamics, privatization of airports, arrival of electric vertical takeoff & landing vehicles (eVTOL), and air taxi are anticipated to support business potential within the airport operations market during the forecast period.

Airside Operation, Landside Operation, Financial Operation, and Information Management are among the major scope of application within the airport operations market

Asia-Pacific is anticipated to exhibit the highest CAGR during the forecast period.

The global airport operations market was valued at $7,699.3 million in 2021, and is projected to reach $13,753.0 million by 2031, registering a CAGR of 6.3% from 2022 to 2031.

The key players operating in the airport operations market are Cisco Systems, Inc., Honeywell International Inc., IBM, Indra, QinetiQ, Raytheon Technologies Corporation, Siemens, SITA, Teledyne Technologies Incorporated, Thales, Daifuku Co., Ltd., Damarel Systems International Ltd., Amadeus IT Group, Inform GmbH, Aena, Huawei Technologies Co., Ltd., and ES_Mobility

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Airport Operations Market

Global Opportunity Analysis and Industry Forecast, 2021-2031