Airport Non-Aeronautical Revenue Market, 29% of Growth to Originate from APAC, Technavio
NEW YORK, April 10, 2024 /PRNewswire/ -- The global airport non-aeronautical revenue market size is estimated to grow by USD 35045.11 million from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 7.88% during the forecast period. APAC held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 29%.
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APAC is expected to play a pivotal role in propelling the global airport non-aeronautical revenue market
Geographic Landscape:
In the Asia-Pacific region, the aviation industry's growth is driven by increasing passenger traffic and air cargo demand. Airports are responding by expanding infrastructure and offering more non-aeronautical services. These include food services, car rental agencies, cargo handling systems, and car parking facilities. Other commercial activities, such as banking, advertising, retail, and ground handling systems, are also being developed. Stringent regulations ensure the implementation of cargo screening systems and security measures. Passengers can enjoy various amenities, including duty-free shops, luxury goods, electronics, souvenirs, cafes, and advertising spaces. Marketing campaigns, promotions, and conference centers add to the revenue generated from passenger experience. Airport cities with hotels, office complexes, and other facilities further enhance the region's aviation industry growth.
Research Analysis
The Airport Non-Aeronautical Revenue Market encompasses a range of commercial activities that cater to travelers both before and after their flights. Key components include food services, duty-free shops selling luxury goods, electronics, souvenirs, and cafes. Advertising spaces and marketing campaigns are also significant sources of revenue, with digital advertising technologies playing an increasingly important role. Car rental services, passenger experience offerings such as high-quality amenities and entertainment options, and car parking facilities are additional revenue streams. Airports in the Asia-Pacific region, as airport cities and major transportation hubs, generate substantial non-aeronautical revenue through these various channels, contributing to the overall infrastructure and economic development of the region.
Market Drivers
In today's airport landscape, non-aeronautical revenues are a significant contributor to the aviation industry's success. Airport operators offer pre-ordering meals, shopping, and memorable experiences to enhance passengers' convenient journeys. High-quality retail, integrated with online shopping platforms, caters to changing and evolving consumer preferences. Economic downturns, global uncertainties, and reduced consumer spending due to currency fluctuations, geopolitical tensions, and tourism declines have necessitated innovative technologies and premium passenger experiences. Airport operators provide diverse services such as banking, advertising, retail, car rental, cargo handling, car parking, and ground handling. Stringent regulations ensure secure cargo screening and ground handling systems. Asia-Pacific airlines and Airports generate substantial non-aeronautical revenues from food services, air cargo, and non-aeronautical services. The strong economy and consumer spending habits contribute to advertising revenue.
Market Overview
The Airport Non-Aeronautical Revenue Market encompasses various sources of income for airports beyond the core business of handling aircraft and passengers. These sources include retail, food and beverage, advertising, car parking, and other services. For instance, airports offer duty-free shopping, luxury brands, and local crafts to travelers. Food and beverage outlets cater to diverse tastes and dietary requirements. Advertising opportunities are available on billboards, digital screens, and other prominent locations. Car parking revenue is generated through short-term and long-term parking facilities. Additionally, airports offer conference and event spaces, lounges, and other services to enhance the travel experience. These non-aeronautical revenues contribute significantly to the overall income of airports and help them remain competitive in the industry.
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About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/
SOURCE Technavio
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