US Airport Operations Market 2024–2033

Reports Description

As per the current market research conducted by CMI Market Research Team, the global US Airport Operations market is expected to record a CAGR of 6.3% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 8.70 billion. By 2032, the valuation is anticipated to reach US$ 15.08 billion.

The US airport operations market refers to the various activities and services involved in managing and maintaining airport infrastructure, facilities, and services to ensure safe and efficient operations. These activities include air traffic control, passenger and baggage handling, ground handling, maintenance and repair of airport infrastructure, and security services.

The market encompasses both greenfield and brownfield airport development projects, as well as the ongoing operations of existing airports. The US airport operations market is a significant sector of the aviation industry, as the country has one of the largest aviation markets in the world, with a large number of domestic and international airports serving millions of passengers each year.

US Airport Operations Market – Significant Growth Factors

The US Airport Operations market offers several significant growth opportunities in the coming years, including:

• Airport Expansion and Renovation: The need to accommodate increasing passenger traffic has led to the expansion and renovation of existing airports. This provides growth opportunities for companies that offer airport design, construction, and renovation services.
• Implementation of Automation and Self-Service Technologies: The adoption of automation and self-service technologies, such as self-check-in kiosks, biometric screening, and baggage tracking systems, can enhance operational efficiency and passenger experience. This provides growth opportunities for companies that offer these technologies.
• Increased Investment in Airport Infrastructure: Governments and airport authorities are investing heavily in airport infrastructure to enhance safety, security, and efficiency. This provides growth opportunities for companies that offer airport infrastructure services, such as runway maintenance, air traffic control, and security services.
• Rising Demand for Air Cargo Services: The growth of e-commerce and global trade has led to an increase in demand for air cargo services. This provides growth opportunities for companies that offer air cargo handling, logistics, and transportation services.
• The emergence of Smart Airports: Smart airports are those that leverage technologies such as IoT, big data analytics, and artificial intelligence to enhance operational efficiency, passenger experience, and sustainability. This provides growth opportunities for companies that offer these technologies and services.

US Airport Operations Market – Mergers and Acquisitions

There have been several mergers and acquisitions in the US airport operations market in recent years. Some notable examples include:

1. In 2017, Global Infrastructure Partners acquired the airport ground services company, Airworld Handling, which operates in several airports in the United States.
2. In 2018, John Menzies, a UK-based aviation services company, acquired ASIG, a US-based ground handling company with operations at over 80 airports in North America.
3. In 2019, American Airlines announced its intention to acquire the airport ground handling company, Air Wisconsin, which operates in several airports in the US.
4. In 2020, the airport ground handling company, Swissport, acquired the US-based ground handling company, Apron Inc., which operates in several airports in the US.

These mergers and acquisitions have allowed companies to expand their operations in the US airport operations market and offer a wider range of services to their customers.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Airport Operations Market – Significant Threats

The US airport operations market faces several threats that could hinder its growth and development. One of the significant threats is the uncertainty and volatility of the airline industry. The airline industry is highly susceptible to external factors such as economic conditions, fuel prices, and geopolitical events, which could impact airlines’ profitability and, in turn, their operations at airports.

Another threat is the increasing competition between airports. With the rise of low-cost carriers and the deregulation of the airline industry, airports have become more competitive, offering incentives and discounts to attract airlines and passengers. This competition could lead to a decrease in revenues for some airports, impacting their ability to invest in infrastructure and expand their operations.

Security threats are also a significant concern for airport operations. The need to ensure the safety and security of passengers, employees, and airport facilities has become increasingly critical in recent years, leading to additional costs and investments in security measures and technology.

Lastly, environmental concerns such as carbon emissions, noise pollution, and the impact on local communities could also pose a threat to the growth of the US airport operations market. These concerns have led to increased pressure on airports to adopt sustainable practices and reduce their environmental impact, which could require additional investments and resources.

Report Scope

Category-Wise Insights

By Airport Class:

Class A airports refer to airports with an annual enplanement of at least 10,000 passengers. These airports are typically large commercial airports that serve as hubs for major airlines and offer a wide range of facilities and services for passengers.

Class B airports refer to airports with an annual enplanement of at least 2,500 but fewer than 10,000 passengers. These airports are smaller than Class A airports and typically serve regional markets with limited airline service.

Class C airports refer to airports with an annual enplanement of at least 500 but fewer than 2,500 passengers. These airports are typically smaller than Class B airports and may serve smaller communities with limited airline service.

Class D airports refer to airports with an annual enplanement of fewer than 500 passengers. These airports are typically small general aviation airports that may serve recreational pilots, flight schools, or local businesses.

By Operation:

Airside Operations:

This segment involves the operations related to the movement of aircraft on the ground, such as aircraft parking, refuelling, baggage handling, and passenger boarding. It also includes air traffic control, ground support equipment, and runway maintenance.

Landside Operations:

This segment includes operations outside the airport terminal building, such as parking facilities, public transportation, and ground transportation services. It also includes terminal management, security, and ground handling services.

Financial Operation:

This segment includes financial management and planning services related to airport operations, such as budgeting, accounting, revenue management, and procurement.

Information Management:

This segment involves the management of information and communication technology systems, such as passenger information systems, baggage tracking systems, and airport management software. It also includes cybersecurity and data analytics to ensure safe and efficient airport operations.

By Platform:

Hardware:

This segment includes various hardware components used in airport operations, such as communication systems, baggage handling systems, security systems, and others. The hardware segment is expected to have significant growth opportunities due to the increasing demand for advanced technologies in airport operations. 

Software:

This segment includes various software solutions used in airport operations, such as airport operational databases, passenger processing systems, airport management software, and others. The software segment is expected to grow due to the increasing adoption of cloud-based software solutions and the need for efficient airport operations management. 

Service:

This segment includes various services offered in airport operations, such as consulting services, training and development services, maintenance and support services, and others. The service segment is expected to grow due to the increasing demand for outsourcing services and the need for specialized services in airport operations management.

By Airport Category:

Commercial Service Airports:

This segment includes airports that handle scheduled passenger flights and have an average of 2,500 or more passengers boarding per year. These airports are further classified into four categories:

Large hub airports:

Airports that handle more than 1% of the total annual passenger boardings in the country.

Medium hub airports:

Airports that handle between 0.25% to 1% of the total annual passenger boardings in the country.

Small hub airports:

Airports that handle between 0.05% to 0.25% of the total annual passenger boardings in the country.

Non-hub airports:

Airports that handle less than 0.05% of the total annual passenger boardings in the country.

Cargo Service Airports:

This segment includes airports that handle primarily cargo and mail operations, but may also provide limited passenger services.

Reliever Airports: These are general aviation airports that help to relieve congestion at commercial service airports and provide general aviation services.

General Aviation Airports:

These airports are privately owned and used for general aviation purposes, such as personal or business flights.

US Airport Operations Market – Regional Analysis

The US airport operations market is a highly dynamic and competitive industry with numerous players. The market is segmented by region, and each region has its own unique characteristics and challenges. Here is a brief overview of the regional analysis of the US airport operations market:

1. Northeast Region: The Northeast region is home to some of the busiest airports in the US, including JFK, LaGuardia, and Newark Liberty. This region is highly competitive, with many major airlines and airports vying for market share. The Northeast region is also home to a number of smaller regional airports, which cater to local passengers and businesses.
2. Midwest Region: The Midwest region is known for its major hub airports, including Chicago O’Hare and Detroit Metropolitan. This region is home to a large number of domestic airlines, as well as several international carriers. The Midwest region also has a number of smaller regional airports, which provide connectivity to smaller towns and cities.
3. Southeast Region: The Southeast region is home to some of the fastest-growing airports in the US, including Hartsfield-Jackson Atlanta International Airport and Orlando International Airport. This region is highly competitive, with many airlines and airports vying for market share. The Southeast region is also home to a number of smaller regional airports, which provide connectivity to smaller towns and cities.
4. Southwest Region: The Southwest region is known for its low-cost carriers, including Southwest Airlines and Frontier Airlines. This region is highly competitive, with many airlines and airports vying for market share. The Southwest region is also home to a number of smaller regional airports, which provide connectivity to smaller towns and cities.
5. West Region: The West region is home to some of the busiest airports in the US, including Los Angeles International Airport and San Francisco International Airport. This region is highly competitive, with many major airlines and airports vying for market share. The West region is also home to a number of smaller regional airports, which provide connectivity to smaller towns and cities.

Competitive Landscape – US Airport Operations Market

The competitive landscape of the US airport operations market is diverse, with a mix of publicly traded companies, private companies, and airport authorities. Here is an overview of some of the major players in the market:

• Delta Air Lines: Delta Air Lines is one of the largest airlines in the US and operates major hubs in Atlanta, Detroit, and Minneapolis-St. Paul, among other cities. The company also owns and operates its own airports, including the Delta Flight Museum in Atlanta.
• American Airlines: American Airlines is another major US airline with hubs in Dallas-Fort Worth, Charlotte, and other cities. The company also operates a number of smaller regional airports.
• United Airlines: United Airlines is the third-largest US airline and operates major hubs in Chicago, Denver, and Houston, among other cities. The company also owns and operates a number of smaller regional airports.
• Southwest Airlines: Southwest Airlines is one of the largest low-cost carriers in the US and operates out of several airports, including Dallas Love Field, Chicago Midway, and Denver.
• Hartsfield-Jackson Atlanta International Airport: Hartsfield-Jackson Atlanta International Airport is the busiest airport in the world and is owned and operated by the City of Atlanta. The airport serves as a major hub for Delta Air Lines and other airlines.
• Los Angeles World Airports: Los Angeles World Airports operates several airports in the Los Angeles area, including Los Angeles International Airport, the third-busiest airport in the US.
• Dallas/Fort Worth International Airport: Dallas/Fort Worth International Airport is one of the largest airports in the US and serves as a major hub for American Airlines.
• Port Authority of New York and New Jersey: The Port Authority of New York and New Jersey operates several airports in the New York metropolitan area, including JFK, LaGuardia, and Newark Liberty.
• Denver International Airport: Denver International Airport is one of the busiest airports in the US and serves as a major hub for United Airlines.
• Phoenix Sky Harbor International Airport: Phoenix Sky Harbor International Airport is one of the busiest airports in the US and serves as a hub for American Airlines and Southwest Airlines.

The US Airport Operations Market is segmented as follows:

By Platform

• Hardware
• Software
• Service

By Airport Category

• Commercial Service Airports
• Cargo Service Airports
• Reliever Airports
• General Aviation Airports

By Airport Class

• Class A
• Class B
• Class C
• Class D

By Operation

• Information Management
• Airside Operations
• Landside Operations
• Financial Operation

On the basis of Geography

• The U.S.