Market Size of Global Non-Aeronautical Industry
| 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
*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.
