Aviation Infrastructure Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Aviation Infrastructure Market Analysis

The aviation infrastructure market is anticipated to register a CAGR of over 5%, during the forecast period.

• Airports play a vital role in the economic development of a nation and facilitate the fast movement of people and cargo, thereby fostering trade and commerce. Air passenger traffic and the number of aircraft handled by airports across the world is increasing every year, which has resulted in terminals becoming remarkably crowded. Several airports are struggling with the current volume of passengers. As the number of air passengers is expected to almost double over the next two decades, there is an increasing need to expand the existing airport infrastructure to cater to future growth in air traffic.
• Additionally, as airlines look to expand their connectivity, demand is likely to grow for airport infrastructure in smaller cities that have plans to construct new airports. Today’s airports need longer runways, more gate capacity, and modernized air traffic control systems, which, in turn, is further expected to propel the growth of the aviation infrastructure market over the next decade.
• However, airports face a set of challenges related to longer lead times, intensive stakeholder discussion for years, land acquisition, political issues, and regulatory framework.
• In terms of growth, the Asia-Pacific region is expected to lead the market, followed by North America over the next 10 years, as several countries in these regions look to enhance their air connectivity and infrastructure.

Aviation Infrastructure Industry Segments

The study considers the planned investments for new airport construction, as well as the modernization of existing airports.

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Aviation Infrastructure Market Trends

This section covers the major market trends shaping the Aviation Infrastructure Market according to our research experts:

Construction of New Terminals to Increase Passenger Handling Capacity

The air passenger traffic is expected to increase by over 4%, annually, on average, during the forecast period. This will put an increasing pressure on existing airports to expand their passenger handling capacity through restructuring or by constructing new terminals. For instance, the Sri Lankan government announced its plan to construct a new terminal at the Bandaranaike International Airport to increase its passenger handling capacity. With the construction of the new terminal over the next three years, the government plans to increase the airport’s passenger handling capacity to 20 million passengers per year. Likewise, the construction of Terminal 3 at the Frankfurt Airport is underway and is expected to increase the passenger handling capacity of the airport by 21 million annually, by 2023. The approved budget amounts between EUR 3.5 and 4 billion and includes over 500 individual contracts to various companies. Similar constructions are ongoing in several countries across the world to cater to the growing air passenger demand.

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