Non-Aeronautical Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Global Non-Aeronautical Market is Segmented by Services (Food Services, Car Rentals, Baggage Handling Systems, and Other Services), and by Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The report offers market size and forecasts in value (USD Billion) for the above segments.

Non-Aeronautical Market Size

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Non-Aeronautical Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 7.00 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Low

Major Players

Non-Aeronautical Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Non-Aeronautical Market Analysis

The non-aeronautical market is expected to grow a CAGR of more than 7% during the forecast period.

The global aviation sector faced unprecedented challenges due to the COVID-19 pandemic. The pandemic significantly affected the aviation sector, which resulted in a drastic reduction in passenger traffic, which has negatively affected demand for airport operations. According to the International Air Transport Association (IATA) report 2020, the global demand for air cargo witnessed a significant decline in 2020. Asia-Pacific airlines witnessed cargo demand fall by 15.5% in February 2020 compared to January 2020. The aviation sector saw significant recovery post-COVID-19 due to reduced restrictions and increased air traffic, which resulted in the growing demand for non-aeronautical services.

The rapid expansion of the aviation sector and increasing investments in non-aeronautical services at airports for enhancing passenger comfort drive the market's growth. An increasing number of airports leads to the growing demand for food services, car rental services, cargo handling systems, and other non-aeronautical services boosting the market growth. The revenue for non-aeronautical services is generated through rents charged to concessionaires that offer a wide range of services to passengers. These services include car parking at the airports, banking, advertising, retail, and car rental facilities on the airport site.

Stringent regulations related to air cargo screening by the Transportation Security Agency (TSA) and other regulatory bodies in the European Union (EU) have forced several airports to enhance their existing cargo screening systems. Thus, the growing demand for non-aeronautical services at airports drives market growth.

Non-Aeronautical Market Trends

This section covers the major market trends shaping the Non-Aeronautical Market according to our research experts:

Ground Handling Systems Will Showcase Significant Growth During the Forecast Period

The ground handling systems segment is estimated to show remarkable growth during the forecast period. The aircraft ground handling systems consists of equipment used to offer services to an aircraft while it is on the ground and parked at a terminal gate. The ground support equipment includes power systems, baggage handling systems, security systems, water service vehicles, and others.

An increasing number of air travelers and growing spending on the aviation sector leads to rising demand for ground handling systems. According to the International Air Transport Association report, the aviation sector witnessed a strong recovery after the pandemic. The overall number of air passengers will reach 4 billion by 2024. The report stated that in 2021, the numbers were 47% of 2019 levels. The number of air travelers is expected to improve to 83% in 2022, 94% in 2023, 103% in 2024, and 111% in 2025. This leads to growing airports, creating demand for ground handling systems. In May 2022, G3 Global Bhd, an artificial intelligence company, signed a contract worth RM118.38 million from Malaysia Airports Holdings Bhd (MAHB) to design and develop an airport-integrated security and safety system (AIS3) for the KL International Airport (KLIA) and KLIA2. Thus, the rising procurement contract of ground handling systems propels market growth.

Non-Aeronautical Market - Investment in New Airport Infrastructure  (in USD Billion), By Region, 2021

Asia Pacific is Estimated to Show Highest Growth During the Forecast Period

Asia-Pacific is projected to show remarkable growth during the forecast period. The growth is due to rising cargo traffic, a growing number of airports, and increasing expenditure on the aviation sector from emerging economies such as China and India. In Asia-Pacific, major countries like China, India, Japan, and Singapore are planning to construct new airports and expand the existing airports. An increasing number of airports leads to rising demand for non-aeronautical services, thus driving the growth of the market.

In February 2020, the Indian government announced that 100 new airports would be built by 2024. This will create demand for food and beverage services, car rental services, baggage handling equipment, and other services. Furthermore, in June 2022, the Union Civil Aviation Minister of India announced that the country will have 33 additional cargo terminals by 2024-2025.

For instance, in November 2022, Tata Starbucks announced that it is planning to open eight airport stores across six cities in the country to expand its network. The cities are Bhubaneswar, Bengaluru, Goa, Jaipur Guwahati, and Lucknow. Furthermore, in October 2022, Smoor, the luxury chocolate brand opened a new café at the Bangalore International Airport (BAIL). Thus, rising investment in non-aeronautical services for improving passenger comfort at the airport drives market growth across the Asia Pacific.

Non-Aeronautical Market - Growth Rate By Region (2022 - 2027)

Non-Aeronautical Industry Overview

The market for non-aeronautical services is fragmented in nature and is characterized by several suppliers who provide various services at airports. However, some of the prominent players in the non-aeronautical market are Aena SME SA, GROUPE ADP, Airport Authority Hong Kong, Airports of Thailand Plc, Fraport Group, and Heathrow (SP) Ltd. With the growing competition in the industry, the service providers are highly focused on enhancing passenger experience at airports. In August 2022, Aena Desarrollo Internacional, a subsidiary of airport services operator Aena, won a concession contract for 11 airports in Brazil for 30 years, with the possibility of an additional five years. The contract is scheduled to be signed in February 2023. The value of the contract was USD 473 million.

Non-Aeronautical Market Leaders

  1. AENA SME

  2. GROUP ADP

  3. Airport Authority Hong Kong

  4. Airports of Thailand Plc

  5. London Heathrow Airports Limited

*Disclaimer: Major Players sorted in no particular order

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Non-Aeronautical Market News

August 2022: Oakland International Airport opened three new airport concession locations, including two Peet's Coffee locations (Terminals One and Two) and Oakland Draft House (Terminal Two). SSP America, a division of SSP Group, operates these restaurants.

April 2021: Siemens Logistics signed a contract to expand the baggage handling system in Terminal 2 of South Korea's Incheon Airport. The contract would help airport operators and customers of Incheon International Airport Corporation increase capacity.

Non-Aeronautical Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness / Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Services

      1. 5.1.1 Food Services

      2. 5.1.2 Car Rentals

      3. 5.1.3 Baggage Handling Systems

      4. 5.1.4 Other Services

    2. 5.2 By Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 Germany

        2. 5.2.2.2 United Kingdom

        3. 5.2.2.3 France

        4. 5.2.2.4 Russia

        5. 5.2.2.5 Rest of Europe

      3. 5.2.3 Asia Pacific

        1. 5.2.3.1 India

        2. 5.2.3.2 China

        3. 5.2.3.3 Japan

        4. 5.2.3.4 Rest of Asia Pacific

      4. 5.2.4 Latin America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Rest of Latin America

      5. 5.2.5 Middle East and Africa

        1. 5.2.5.1 United Arab Emirates

        2. 5.2.5.2 Saudi Arabia

        3. 5.2.5.3 South Africa

        4. 5.2.5.4 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 AENA SME SA

      2. 6.2.2 GROUPE ADP

      3. 6.2.3 Airport Authority Hong Kong

      4. 6.2.4 Airports of Thailand Plc

      5. 6.2.5 Fraport Group

      6. 6.2.6 London Heathrow Airports Limited

      7. 6.2.7 Japan Airport Terminal Co. Ltd

      8. 6.2.8 Vinci SA

      9. 6.2.9 Airports de Paris SA

      10. 6.2.10 Korea Airports Corp

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Non-Aeronautical Industry Segmentation

Non-aeronautical services consist of all the services at the airports except aviation services. It includes car rentals, restaurants, catering services, car parking, baggage handling systems, and other services. Growing air traffic leads to a rising number of airports, creating demand for these non-aeronautical services.

The non-aeronautical market is segmented based on services and geography. The market is segmented by service: food services, car rentals, baggage handling systems, etc. By geography, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The market sizing and forecasts have been provided in value (USD billion).

By Services
Food Services
Car Rentals
Baggage Handling Systems
Other Services
By Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Russia
Rest of Europe
Asia Pacific
India
China
Japan
Rest of Asia Pacific
Latin America
Brazil
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East and Africa
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Non-Aeronautical Market Research FAQs

The Global Non-Aeronautical Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)

AENA SME, GROUP ADP, Airport Authority Hong Kong, Airports of Thailand Plc and London Heathrow Airports Limited are the major companies operating in the Global Non-Aeronautical Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Global Non-Aeronautical Market.

The report covers the Global Non-Aeronautical Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Non-Aeronautical Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Non-Aeronautical Industry Report

Statistics for the 2024 Non-Aeronautical market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Non-Aeronautical analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Non-Aeronautical Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)