Market Trends of India Aviation Infrastructure Industry
Terminal Segment Will Showcase Remarkable Growth During the Forecast Period
The terminal segment is anticipated to show significant growth in the Indian aviation infrastructure market. Noteworthy developments in the number of airport terminal construction projects to cater to the future aviation industry requirements in the country are expected to drive the growth of the market studied in the near future.
According to the Directorate General of Civil Aviation, airports in India catered to 37.5 million passengers traveling on domestic flights between January and March 2023. The Indian government also plans to spend USD 12 billion till 2025 as well as acquire a significant number of commercial aircraft to meet the resurgent travel demand within the country. These developments are expected to lead to increasing construction as well as expansion projects for new airport terminals in the near future. Furthermore, airport infrastructure companies in India are also investing in the development of new airport terminals within the country to meet the present as well as future aviation growth requirements. For instance, in October 2023, the Airport Authority of India announced that they had started issuing tenders for the construction of a new domestic terminal at Kadapa Airport in Andhra Pradesh under an estimated cost of USD 0.22 billion. Thus, the growth in terminal construction projects within the country is expected to generate significant growth in the market studied during the forecast period.
Greenfield Airport Segment is Projected to Show Significant Growth During the Forecast Period
The greenfield airport segment is expected to show significant growth in the market during the forecast period. Factors such as an increase in the number of greenfield airport developments within the country to cater to the growing aviation requirements are expected to lead to significant growth in the market studied in the coming years.
The growth in the number of disposable incomes, as well as rapid urbanization, has led to the Indian aviation industry witnessing major growth to be at par with other aviation leaders in the world. The Ministry of Civil Aviation recognizes the need to expand and modernize the industry by developing newer airports in Tier 2 cities. Greenfield airports typically consist of aviation facilities that are built from scratch or on previously undeveloped land. Thus, under the Indian greenfield airport policy, the central government, in July 2023, announced that they have granted ‘in-principle’ approval for the construction of twenty-one new greenfield airports across various states of India. On the other hand, out of the total twenty-one new greenfield airport construction projects, eleven airports, such as the ones located in Durgapur, Shirdi, and Itanagar, have already been operationalized. The Indian government has also issued first-stage clearance to construct three greenfield airports: Alwar in Rajasthan, Singrauli in Madhya Pradesh, and Mandi in Himachal Pradesh.
Furthermore, a greenfield airport acts as a key enabler toward the development of an industrial region. Some other notable developments have also been witnessed in this segment in recent years. For instance, in November 2023, the Indian government announced that a new greenfield airport would be developed near Parandur of Kanchipuram district in the Indian state of Tamil Nadu, and the airport would service the Chennai International Airport. Moreover, the new greenfield airport development is also expected to help ease the burden on the Chennai airport, which is expected to reach saturation by 2028. Thus, growing development in greenfield airport projects is expected to generate significant growth in the market studied during the forecast period.
