Airports Operations Market Overview
The global aviation industry is struggling, impacting airport operations severely as the majority of nations across the globe have gone into lockdowns. And as the prime point of entry and exit in most countries, airports play a vital part in handling health emergencies. But, the pandemic could help in bringing investments in novel technologies and radically reshape the industry.
The International Air Transport Association (IATA), projected the 2020 global revenue losses for the passenger business between USD 63 billion (if COVID 19 is contained) and USD 113 billion (in a scenario if COVID 19 spreads even more)
Market Size and Forecast
The airport operations market is expected to attain a notable CAGR during the forecast period, i.e., 2020-2028. The market is segmented by technology and region. Among technologies, the smart biometric solutions segment is expected to grow at a significant rate owing to the current situation of a global pandemic which has risen the demand for smart screening systems, keeping health and safety measures in mind.
Installing safety and healthy measures
This pandemic can be an opportunity for the manufacturers and airport operation sectors post COVID 19. Installation of biometric solutions, thermal imaging, fever detection scanners, disinfecting cleaners, rapid testing for COVID 19, and others, can act as a great safety and health measure taken by airlines to support their growth and reassure travelers about their safety. At the same time, fingerprint scanners and human interface are expected to be phased out and replaced by artificial intelligence.CLICK TO DOWNLOAD SAMPLE REPORT
The halting of international travel due to COVID-19 outbreak
The virus led to extreme cutbacks in flights around the world and enforced some carriers into bankruptcy as countries levied travel bans and border curbs.
On March 11, 2020, the U.S. levied a 30-day travel ban on passengers from the Schengen Area, which is an open border zone, covering 26 countries in Europe. In the meantime, in Europe, Italy observed a 22% drop in flights corresponding to the announcement of a national lockdown on March 9, 2020.
According to the World Economic Forum, trip cancellations accompanied by country-specific restrictions on international flights cost the airline industry $880 billion. Nearly 40% of flights impacted by European travel bans are U.S. based, such as Delta and United Airlines, with billions in lost profits already expected for the year 2020.
Additionally, novel safety protocols at the airports might create airport logjams.
Our in-depth analysis of the airport operations market includes the following segments:
Geographically, the airport operations market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
North America is predicted to hold the largest market share in the global airport operations market. This rise in air tourism is attributable to growing disposable income and overall economic development in the region, producing a need for efficient management of airport operations. But the pandemic has affected the sector in the region. U.S. and Canada have levied travel bans for the health and safety of their citizens, which resulted in a nationwide slowdown in socio-economic situations.
As of March 16, 2020, Canada has imposed sweeping travel restrictions on visitors which further adversely impacted the global aviation industry. The US-Canada border is also sealed to non-essential traffic.
As stated by the US Transport Security Administration (TSA), American airports alone touched a record of 813.8 million travelers in 2018. Additionally, the TSA managed to go onboard with a more stringent form of carry-on screening techniques at airports across the US.
Europe is the second-largest airport operations market due to escalation in smart airport initiatives in countries, such as Germany, France, and Spain, and a great number of tourists and travelers onboarding on European airlines. Europe has also been struck with COVID 19 and as of May 28, 2020, there have been over 2 million confirmed cases of COVID-19 across the region, and the region still accounts for 38% of cases and 50% of deaths worldwide, which makes travel from or to Europe, riskier. This ultimately impacts the airport operations market very harshly.
Asia-Pacific region is projected to witness a sharp decline in the overall market share of airport operation market over the forecast period, owing to rising cases of COVID 19 in emerging economies such as India, China being the first to observe the ill-effects of the virus, and fear among travelers concerning heir safety and health issues. At the time when the tourism industry was flourishing in major economies of Asia-Pacific, COVID 19 is surely acting as a bane on various associated sectors.
As of March 16, 2020, Hong Kong flight capacity was down by a massive 81% compared to 2019. China, where the outbreak began, witnessed its sharpest year-over-year drop, recorded on February 17, 2020, with a 71% fall in flights compared to the same date in 2019.
The airport operations market is further classified based on region as follows:
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