Market Research Report
|Published by||Global Industry Analysts, Inc.||Product code||897349|
|Published||Content info||467 Pages
Delivery time: 1-2 business days
|Published: April 1, 2021||Content info: 467 Pages||
The global Airport Construction market is projected to reach US$1.4 trillion by 2025, driven by growing government focus on building infrastructure which is key to economic growth and societal evolution. While governments in developed countries are investing predominantly for infrastructure replacement and upgrades, in developing countries investments are directed towards the creation of new infrastructure. The new budgetary focus on infrastructure comes at a time when infrastructure around the world is collapsing as a result of chronic underfunding of critical infrastructure. Posed to benefit in this regard is airport infrastructure. The global aviation industry has evolved considerably over the years and is currently regarded as a key barometer of the economic health of a nation. Airports and airlines link countries and cities across the globe facilitating worldwide trade, business trips, and tourism, all of which are of great importance to the economic prosperity of a given nation or a region. Globalization of economies has increased cross-border trade and commerce turning airlines into a key carrier of export and import freight.
Countries worldwide are increasing their budgetary outlay for airport infrastructure development in order to meet the growth in demand for air travel services. Policy led focus on infrastructure expansion as essential to ensure growth is creating a global investment pool of over US$1 trillion for airport construction. Few of the factors driving the growth in travel include lower fuel prices induced air fares and the ensuing increase in passenger traffic; increase in fleet size and frequency of air trips, number of air routes; lower cost of capital and the resulting airliners decision to replace aging fleets. Income elasticity of air travel is especially high in developing countries where increase in income results in increased spending on air travel. Global air traffic is expected to increase from 4.45 billion air passengers in 2019 to over 5.88 billion by 2025. Global aircraft fleet is also expanding in response to this growth from 25,760 aircraft in 2018 to over 50,460 aircraft by 2038. The growing base of affluent middle class population has and will continue to drive gains in passenger traffic in the coming years. The factors fueling growth of commercial aviation sector in each geographic market varies extensively, with, for example, the North American market benefitting from increasing domestic travel. Asia is slated to become the worlds largest travel market, and China is expected to emerge as the largest global domestic market for air travel.
Developing countries, which have traditionally suffered from inadequate and underdeveloped aviation infrastructure are investing heavily in the construction of new airports. Characterized by huge population, increasing urbanization and vast expanse of land that necessitates extensive travelling within the nation, India and China especially present robust opportunities for the aviation industry. China continues to remain hub of commercial, business and trading activity, which makes aviation, airlines and airport infrastructure in the nation a critical investment area. China, for instance, is on course to develop over 100 new airports, while upgrading and expanding other airports throughout the country. With the Beijing Capital International Airport becoming increasingly crowded, the country is currently planning the construction of a second airport for Beijing called Beijing Daxing International Airport slated for completion by the year 2025. Hong Kong and Vietnam also represent other major countries with mega airport projects under construction. India, on the other hand, has several ambitious new green field airport projects up its sleeve supported by steady economy, increasing employment and business opportunities, and growing propensity to spend on air travel, booming airline operations in these nations. Asia-Pacific excluding China represents the largest market worldwide with a share of 28.1%. China ranks as the fastest growing market with a 5.8% CAGR over the analysis period.
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