Airport Services Market By Airport Type (International, and Domestic), By Infrastructure Type, By Application- Global Industry Outlook, Key Companies (Swissport International Ltd., dnata, Menzies Aviation and Others), Trends and Forecast 2024-2033

Airport services are a wide range of facilities and functions that support airport operations and enhance the travel experience for passengers & airlines. These services include passenger assistance, like check-in, ticketing, baggage handling, and security screening, ensuring a smooth journey from arrival to boarding. Ground handling services play an important role in managing aircraft parking, refueling, and cargo loading and unloading. The growth of the aviation industry has significantly impacted the airport services market, creating numerous business opportunities in areas like floor management and passenger handling.

The US Airport Services Market

The US Airport Services Market is projected to reach USD 72.8 billion by the end of 2024 and grow substantially to an expected USD 232.8 billion market by 2033 at an anticipated CAGR of 13.8%.

The US Airport Services Market is driven by rising air travel demand, increasing passenger traffic, and a focus on enhanced customer experiences. Technological advancements, including automation and digital services, further propel growth, while government investments in airport infrastructure and modernization boost overall operational efficiency and capacity.

Digital transformation is reshaping airport services in this region, with an emphasis on contactless technology and mobile apps. The rise of airport lounges and premium services is also gaining popularity among travelers seeking comfort and convenience.

Key Takeaways

• Market Growth: The global Airport Services market is anticipated to expand by USD 280.8 billion, achieving a CAGR of 14.7%.
• Market Definition: Airport Services are the facilities that include passenger handling, baggage processing, security screening, and customs clearance.
• Airport Type Analysis: Domestic airports are projected to hold the largest revenue share based on type in the market in 2024.
• Infrastructure Type Analysis: Greenfield airports are anticipated to dominate the market with the largest revenue share based on Infrastructure in the market in 2024.
• Application Analysis: Aeronautic services are forecasted to lead the global Airport Services market based on application with a revenue share, in 2024.
• Regional Analysis: North America is projected to dominate the global Airport Services market, holding a market share of 39.8% by 2024.

Use Cases

• Passenger Services: Airport services streamline the check-in process, including self-service kiosks and mobile check-in options. Staff assists passengers with boarding, ensuring a smooth transition from ground to air travel.
• Baggage Handling: This service involves the efficient handling of passenger baggage from check-in to loading onto the aircraft. Advanced tracking systems ensure that luggage is monitored throughout its journey, minimizing loss and damage.
• Security Screening: Airport services encompass thorough security screening processes, including baggage scans and passenger checks. These services are vital for maintaining safety standards and ensuring compliance with aviation regulations.
• Customs and Immigration: Airport services provide essential customs and immigration functions, including processing passports and visas. This ensures that international travelers can enter and exit the country smoothly and legally.

Market Dynamic

Drivers

Rising Demand for Amenities on Longer Routes
The global airport services market experienced growth due to the rising development of airport infrastructure in smaller cities, enhancing the overall customer experience nationwide. This has led to increased demand for amenities supporting longer routes, expansion of gates, and modernization of air traffic control systems, all contributing to market expansion.

Impact of Economic Growth on Air Travel
The rise in air travel, driven by factors such as economic growth, increased business activities, and higher disposable incomes, has led to a significant surge in the number of air passengers. This growing demand requires airports to offer comprehensive and efficient services to ensure smooth travel experiences.

Restraints

Lack of Adequate Infrastructure
Many airports struggle to accommodate the rising number of flights and travelers due to inadequate infrastructure. This shortfall can lead to congestion, delays, and reduced operational efficiency caused by insufficient runway and terminal capacity. Moreover, unreliable transportation connections, such as trains and roads, can hinder airport accessibility, making some airports less appealing to travelers.

Security Measures and Costs
Both domestic and international authorities impose strict security regulations at airports. These regulations encompass various procedures, including perimeter security, passenger identity verification, and baggage screening. Operating an airport involves ongoing expenses, including payroll, utilities, maintenance, and security personnel. Thus, it restrains the growth of the market.

Opportunities

Advancement in Technology
The use of electronic boarding passes, mobile check-in, and self-service kiosks enhances the travel experience by minimizing wait times and improving customer satisfaction. AI-powered systems can provide personalized recommendations for dining, shopping, and lounge access tailored to individual passenger profiles and preferences.

Development in Ground Handling Services
The global aviation industry has experienced steady growth in recent years, driven by factors such as urbanization, increased disposable incomes, and a rise in both business and leisure travel. As air travel expands, the demand for ground-handling services will continue to grow. These services are becoming increasingly crucial as airports work to enhance the overall passenger experience.

Trends

The Role of Robotics in Baggage Management
Automated baggage systems that incorporate robotics and RFID tracking reduce handling errors, enhance tracking accuracy, and improve security. Upgrading security measures through the implementation of fingerprint and facial recognition technology streamlines the process while maintaining high safety standards.

Digital Transformation and Enhanced Passenger Experience
The airport services market is increasingly embracing digital transformation to enhance the passenger experience. Innovations such as self-service kiosks, mobile check-in apps, biometric screening, and real-time flight information updates are becoming more prevalent. These technologies streamline operations, reduce wait times, and improve overall customer satisfaction.

Research Scope and Analysis

By Airport Type

Domestic airports are expected to lead the airport services market with the highest revenue share by 2024 due to rising domestic passenger traffic levels, especially among South Asian nations. Domestic travelers' increasing numbers are predicted to fuel market expansion. Domestic airports are seeing more regional flights and passenger volumes increase, creating a greater need for services like baggage handling, ground services, retail sales, and catering at domestic airports. 

Domestic airports' convenience and lower cost appeal to more travelers, fueling further growth of domestic air travel services. Furthermore, regional connectivity within large countries often necessitates more domestic than international flights. Flying domestically is often the fastest and most efficient means of travel over busses, trains, or cars; thus making flying an attractive alternative mode. On the other hand, international airports serve fewer flights relative to domestic ones but still play an essential part in market dynamics. 

International airports tend to generate higher revenue per passenger due to increased spending on duty-free shopping, higher service fees, and longer layovers. At these airports, focus is often put on accommodating global travelers while offering premium services as well as managing more complex operations such as customs clearance procedures or international security protocols.

By Infrastructure Type

Greenfield airports are predicted to dominate the airport services market with the largest revenue share in 2024, due to their ability to be built from scratch, incorporating the latest technologies and infrastructure. They are designed with advanced facilities, making them more efficient and capable of handling higher passenger volumes. Greenfield Airport refers to a new airport built from scratch at a new location. As air passenger traffic and airline fleets rapidly increase, airport operators face growing pressure to manage passenger volumes, leading to higher investment in infrastructure. 

Further, these airports are typically located in areas with significant growth potential, where existing airport infrastructure is either insufficient or absent. Governments and private entities invest heavily in Greenfield projects to meet the rising demand for air travel, particularly in emerging economies. These airports are designed to accommodate future growth, offering modern services, better connectivity, and streamlined operations, which attract airlines and passengers alike. 

On the other hand, brownfield airports are the existing airports that undergo expansion or modernization. They often face limitations due to space constraints, older infrastructure, & operational disruptions during construction. They contribute to the growth of the market by improving capacity and service quality in densely populated regions.

By Application

Aeronautic services are expected to lead the airport services market with the highest revenue share in 2024, due to the increasing demand for advanced services. It is subdivided into aircraft ground handling services, aircraft maintenance services, and passenger services. Maintenances are the airport services that involve routine inspections and repairs to ensure aircraft airworthiness. This segment's growth is fueled by the rising number of active aircraft fleets, as operators expand their operations.

Meanwhile, the aircraft ground handling services include activities like parking, ramp services, lavatory cleaning, and replenishment. Passenger services cover transit assistance, security, and others, which cater to passenger needs such as catering, buggies, help desks, and check-in. Airports, airlines, and passengers depend on these services to maintain seamless operations and minimize disruptions, making them the backbone of airport functionality. 

Moreover, technological advancements in the aviation industry, such as the integration of automated systems, improved communication networks, and advanced maintenance techniques, have further strengthened the role of aeronautic services. On the other hand, non-aeronautical services include car rentals, parking, food and beverage outlets, retail, and baggage handling. This segment is expected to witness the fastest growth, as non-aeronautical revenue serves as a valuable financial buffer for airport service providers during periods of economic downturns or crises like pandemics.

The Airport Services Market Report is segmented on the basis of the following

By Airport Type

• International
• Domestic

By Infrastructure Type

• Greenfield Airport
• Brownfield Airport

By Application

• Aeronautical Services
• Aircraft Ground Handling Services
• Aircraft Maintenance Service
• Passenger Service
• Non-Aeronautical Services
• Baggage Handling Services
• Car Rental Service
• Car Parking Service
• Food and Beverage Service
• Retail Service
• Others

Regional Analysis

North America is predicted to lead the Global Airport Services Market with a revenue share of 39.8% in 2024, due to the presence of major market players. This region is also dominating due to the rapid expansion of domestic and international airlines which are expected to drive investments aimed at enhancing airport services. 

Rising demand for smart airports among developed nations like the U.S. and Canada could bolster market expansion even more significantly. North America is well known for its sophisticated airport infrastructure, boasting modern terminals, efficient runways, and cutting-edge services such as automated check-in, baggage handling, and security systems. North America boasts a strong economic environment with significant business travel and international trade activity that spurs air travel. 

Major hubs like New York, Chicago, and Toronto spur this demand even further for airport services; their presence creates additional demand. Airports continue investing in modernization projects to accommodate their increasing passenger volumes as well as technological innovations; making this region one of the foremost global aviation centers.

Competitive Landscape

The airport services market is moderately concentrated and very competitive on the international level, and leading players often attempt to stabilize or strengthen their positions. They always use a variety of activities to hold their position in the market and expand their businesses, including innovations, acquisitions, joint ventures, and partnerships. Especially in research and development these companies can provide solutions, which are more efficient and less expensive which is helpful concerning the competition. 

Besides, major players have been also focusing on digitalization through the implementation of key activities such as automation, artificial intelligence, and IoT to increase operational efficiency and provide a better passenger experience. Another increasing trend is the focus on sustainability projects as many organizations – including airports – pay much attention to the environmental challenge and implement ambitious goals to decrease carbon footprint and enhance energy saving.

Some of the prominent players in the global airport services market are

• Swissport International Ltd.
• Worldwide Flight Services (WFS)
• dnata
• Menzies Aviation
• SATS Ltd.
• Aviapartner
• Airport Terminal Services, Inc.
• BBA Aviation plc
• Celebi Aviation Holding
• China National Aviation Corporation (Group) Ltd. (CNAC)
• Fraport AG Frankfurt Airport Services Worldwide
• Groupe ADP
• Japan Airport Terminal Co., Ltd.
• Other Key Players

Recent Development

• In September 2023: Edmonton International Airport (YEG) signed a memorandum of understanding (MOU) with Edmonton Destination Marketing Hotels Ltd. (EDMH). The collaboration will help in enhancing air service development by increasing seat capacity, attracting new airlines, and introducing fresh routes to Edmonton.
• In August 2023, A 5G Aviation Testbed was established at Singapore Changi Airport Terminal 3 by the Civil Aviation Authority of Singapore, also known as CAAS, and the telecommunications provider Singtel, which allows businesses to use 5G to test and adopt new solutions that could contribute to greater productivity for crucial airside functions such as aircraft operations on the ground, ground handling, and maintenance of line services.
• In June 2023, to improve the traveler knowledge at Kempegowda International Airport, the BLR Pulse app was introduced. With just one tap, users can order food, book a table at a restaurant, monitor flight status and timings, and get real-time information on airport lineups at multiple touchpoints.
• In April 2023, The Changi Airport Group (CAG) and Accenture unveiled ChangiVerse. This metaverse experience offers new audiences a digital platform to interact with Singapore Changi Airport while discovering its noteworthy landmarks.