Global Non-Aeronautical Market Size (2024 - 2029)

The non-aeronautical market is poised for significant growth, driven by the expansion of the aviation sector and increased investments in services that enhance passenger comfort. The recovery of air traffic post-COVID-19 has spurred demand for non-aeronautical services, such as food and car rental services, which are essential for airport operations. Revenue generation from these services, through rents charged to concessionaires, contributes to the market's expansion. Additionally, regulatory requirements for air cargo screening have prompted airports to upgrade their systems, further fueling the demand for non-aeronautical services and impacting the market size positively.

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Market Size of Global Non-Aeronautical Industry

Non-Aeronautical Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 7.00 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Low

Major Players

Non-Aeronautical Market Major Players

*Disclaimer: Major Players sorted in no particular order

Non-Aeronautical Market Analysis

The non-aeronautical market is expected to grow a CAGR of more than 7% during the forecast period.

The global aviation sector faced unprecedented challenges due to the COVID-19 pandemic. The pandemic significantly affected the aviation sector, which resulted in a drastic reduction in passenger traffic, which has negatively affected demand for airport operations. According to the International Air Transport Association (IATA) report 2020, the global demand for air cargo witnessed a significant decline in 2020. Asia-Pacific airlines witnessed cargo demand fall by 15.5% in February 2020 compared to January 2020. The aviation sector saw significant recovery post-COVID-19 due to reduced restrictions and increased air traffic, which resulted in the growing demand for non-aeronautical services.

The rapid expansion of the aviation sector and increasing investments in non-aeronautical services at airports for enhancing passenger comfort drive the market's growth. An increasing number of airports leads to the growing demand for food services, car rental services, cargo handling systems, and other non-aeronautical services boosting the market growth. The revenue for non-aeronautical services is generated through rents charged to concessionaires that offer a wide range of services to passengers. These services include car parking at the airports, banking, advertising, retail, and car rental facilities on the airport site.

Stringent regulations related to air cargo screening by the Transportation Security Agency (TSA) and other regulatory bodies in the European Union (EU) have forced several airports to enhance their existing cargo screening systems. Thus, the growing demand for non-aeronautical services at airports drives market growth.

Non-Aeronautical Industry Segmentation

Non-aeronautical services consist of all the services at the airports except aviation services. It includes car rentals, restaurants, catering services, car parking, baggage handling systems, and other services. Growing air traffic leads to a rising number of airports, creating demand for these non-aeronautical services.

The non-aeronautical market is segmented based on services and geography. The market is segmented by service: food services, car rentals, baggage handling systems, etc. By geography, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The market sizing and forecasts have been provided in value (USD billion).

By Services
Food Services
Car Rentals
Baggage Handling Systems
Other Services
By Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Russia
Rest of Europe
Asia Pacific
India
China
Japan
Rest of Asia Pacific
Latin America
Brazil
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East and Africa
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Global Non-Aeronautical Market Size Summary

The non-aeronautical market within the aviation sector is poised for significant growth, driven by the recovery from the COVID-19 pandemic and the increasing demand for enhanced passenger services at airports. As air travel restrictions eased, there was a notable resurgence in passenger traffic, which in turn spurred the demand for non-aeronautical services such as food and beverage offerings, retail, and car rental services. The expansion of airports globally, particularly in the Asia-Pacific region, is further propelling this market. Countries like China and India are investing heavily in new airport constructions and expansions, leading to a heightened need for various non-aeronautical services. This growth is supported by the revenue generated through rents from concessionaires providing these services, which include parking, banking, advertising, and more.

The market is characterized by a fragmented landscape with numerous suppliers offering a wide range of services to enhance the passenger experience. Prominent players such as Aena SME SA, GROUPE ADP, and Airport Authority Hong Kong are actively expanding their operations to capture a larger market share. The ground handling systems segment, which includes essential equipment for aircraft services on the ground, is expected to see remarkable growth due to the increasing number of air travelers and the rising investments in airport infrastructure. Regulatory requirements, such as those from the Transportation Security Agency and European Union, are also driving the enhancement of cargo screening systems, further boosting the demand for non-aeronautical services. Overall, the market is set to experience robust growth, supported by strategic investments and the ongoing recovery of the global aviation sector.

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Global Non-Aeronautical Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness / Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Services

      1. 2.1.1 Food Services

      2. 2.1.2 Car Rentals

      3. 2.1.3 Baggage Handling Systems

      4. 2.1.4 Other Services

    2. 2.2 By Geography

      1. 2.2.1 North America

        1. 2.2.1.1 United States

        2. 2.2.1.2 Canada

      2. 2.2.2 Europe

        1. 2.2.2.1 Germany

        2. 2.2.2.2 United Kingdom

        3. 2.2.2.3 France

        4. 2.2.2.4 Russia

        5. 2.2.2.5 Rest of Europe

      3. 2.2.3 Asia Pacific

        1. 2.2.3.1 India

        2. 2.2.3.2 China

        3. 2.2.3.3 Japan

        4. 2.2.3.4 Rest of Asia Pacific

      4. 2.2.4 Latin America

        1. 2.2.4.1 Brazil

        2. 2.2.4.2 Rest of Latin America

      5. 2.2.5 Middle East and Africa

        1. 2.2.5.1 United Arab Emirates

        2. 2.2.5.2 Saudi Arabia

        3. 2.2.5.3 South Africa

        4. 2.2.5.4 Rest of Middle East and Africa

Global Non-Aeronautical Market Size FAQs

The Global Non-Aeronautical Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)

AENA SME, GROUP ADP, Airport Authority Hong Kong, Airports of Thailand Plc and London Heathrow Airports Limited are the major companies operating in the Global Non-Aeronautical Market.

Non-Aeronautical Market Report Snapshots

Non-Aeronautical Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)