Aerotropolis - Global Market Outlook (2021 - 2028)

According to Stratistics MRC, the Global Aerotropolis Market is accounted for $413.64 million in 2021 and is expected to reach $858.77 million by 2028 growing at a CAGR of 11.0% during the forecast period. An aerotropolis is a metropolitan area in which the layout, economy, and infrastructure are centered on an airport, which serves as the airport city. Aerotropolis is like metro cities, which contain a core commercial city and transport linked suburbs. An aerotropolis has all the major facilities of a metropolis, such as medical facility, offices and hotels, IT sectors, retail and wholesale merchandize marts along with an airport.

Market Dynamics:

Driver:

Passenger experience enhancement

The major driving factor of the aerotropolis market is passenger experience enhancement. Airport authorities are constantly focusing on enhancing passenger experience with reliable operations at airport terminals. The aerotropolis offers passengers various options to engage in during their travel wait time such as attending official meetings, hospital facilities, and shopping among others. These features of an aerotropolis that help passengers to meet their requirements during their travel wait time, will lead to rapid adoption of the aerotropolis across the globe. The significant evolution of airports during the last few years, from passenger transport hubs to sophisticated commercial operations, and the considerable increase in air travel and air freight are the main reasons behind the rising focus on aerotropolis.

Restraint:

High cost of infrastructure

The growth of the aerotropolis market is limited by the infrastructure cost. An aerotropolis is similar to a metropolitan city which has infrastructure such as airport, residential areas, hospitals, offices, and hotels. The cost involved in building this infrastructure is exorbitant, which is limiting construction companies as well as different airport authorities from opting for the new aerotropolis infrastructure. This in turn is inhibiting the aerotropolis market from expanding over the years.

Opportunity:

Development of smart cities

The development of smart cities around an airport is poised to bolster the aerotropolis market in the coming years. It has been noted that the development of airport centered smart cities which have increased connectivity with large, efficient, and well networked airports have gained interest among construction companies. This is leading to adoption of new technologies at a rapid rate in order to provide passengers with enhanced experiences as well as help business hubs to grow. Rapid adoption of aerotropolis systems is anticipated to expand the aerotropolis market in the coming years.

Threat:

Challenges with airport construction

An airport city is going to be major attractions to kick start an economy that would further expand opportunities for new & existing employment, tourism and infrastructure. Developing aerotropolis city has lot of challenges to face. High scale design and development is highly risky, as the plan could go wrong at some point. Airport construction also has major challenges such as the growth of hazards to keep pace with developments, noise pollution, height restriction & efficient connectivity. Nevertheless, today, the new technologies are focused on these issues that will help solve these problems in the coming future.

The greenfield airport aerotropolis segment is expected to be the largest during the forecast period

The greenfield airport aerotropolis segment is estimated to have a lucrative growth. The greenfield airport aerotropolis market accounted for maximum share due to the rapid increase in air traffic across the globe and surging demand for air travel. Owing to this, airport authorities are constantly focusing on enhancing non-aeronautical revenues by offering passengers with better value added services even during their wait. Owing to the fact that, the construction companies along with airport authorities opt to build their own airport infrastructure rather than purchasing or leasing an existing area, and construct it as per their requirements, the greenfield airport aerotropolis are the most demanding types in the recent years and is anticipated to witness substantial growth in the coming years.

The logistics segment is expected to have the highest CAGR during the forecast period

The logistics segment is anticipated to witness the fastest CAGR growth during the forecast period. An aerotropolis usually has a core airport area, which provides logistics and transportation services. The aerotropolis model has emphasized how a range of logistics-and aviation-related companies and businesses with high propensities to ship by air have increasingly tended to cluster around airports and airport corridors, presumably to take advantage of the elevated accessibility to these airport facilities and related cargo traffic. For instance, the ZAEZ is the first pilot of the comprehensive aviation hub, high-speed railway, inter-city railway, subway, and highway to realize the seamless connection of railway, road, and aviation in China. From the beginning, the mission of the ZAEZ has been to cultivate an aerotropolis and promote the integration of industries.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period. The growth can be credited to aggressive efforts by various countries, most notably China, to promote airport cities and aerotropolis. The region is witnessing ongoing work on several projects along with announcement of ambitious plans across countries. The decision of increasing number of airports to join the aerotropolis momentum is poised to further cement the position of Asia-Pacific region in airport-linked industrial and commercial development projects. China remains the frontrunner in the aerotropolis race in Asia-Pacific region and globally, with over 100 airports in the country embracing the aerotropolis model and principles.

Region with highest CAGR:

Middle East & Africa is projected to have the highest CAGR over the forecast period. Owing to the growing passenger traffic, airport operators in this region are focusing on the development of aerotropolis around airports to generate significant non-aeronautical revenue. Additionally, the governments in this region are also focusing on the development of channelized free zones and industrial and economic zones to enhance the value-added services provided to people of various demographics and generate higher revenue.

Key players in the market

Some of the key players profiled in the Aerotropolis Market include Austin Industries Inc, Balfour Beatty PLC, Clark Construction Group, LLC, HENSEL PHELPS, Manhattan Construction Company, McCarthy Building Companies, Inc., Skanska AB, The Walsh Group Ltd., Turner Construction Company, and The Whiting-Turner Contracting Company.

Key Developments:

In September 2021, Turner Construction Company announced that the company has signed a multi-year enterprise agreement with San Francisco-based construction technology provider Versatile to expand the use of its AI-powered CraneView® solution on Turner projects.

In October 2021, Austin Industrial announced the acquisition of the company's headquarters campus in La Porte, TX, which includes a 47,000 square foot office building and an adjacent 15,000 square foot fabrication shop. The facility has served as the company's base of operations since 2011.

Types Covered:

• Greenfield Airport Aerotropolis
• Brownfield Airport Aerotropolis

Applications Covered:

• Passenger Flow
• Logistics

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances