(USGovernment-News.Com, September 16, 2020 ) The COVID-19 Impact on Airport Operations Market is estimated to grow from USD 8.5 billion in 2020 and projected to reach USD 14.5 billion by 2025, at a CAGR of 11.0%. The projection for 2025 is estimated to be lower than pre-COVID-19 estimates. The rise in demand for air cargo activity is resulting in airline operators converting their passenger aircraft into cargo aircraft with an aim to get new revenue sources and ensure company sustainability. This is expected to help airport operators generate revenue from aeronautical charges, leading to an increase in cash liquidity. A major factor that is driving the growth of the airport operation market is the increasing demand for smart passenger screening and management systems across the globe.
FLIR Systems (US), Honeywell (US), SITA (Switzerland), Collins Aerospace (US), Siemens AG (Germany), Fluke Corporation (US), Thales Group (France) Daifuku Co., Ltd. (Japan), Amadeus IT Group (Spain), among others are some of the leading players operating in the airport operations market.
“The ongoing COVID-19 pandemic has led to the suspension of passenger flights, which has caused a setback for the ground support equipment sub-segment of the technology segment of this market”
Ground support equipment on the ramp side of airports is responsible for the smooth and efficient loading and unloading of baggage and cargo from the aircraft as well as the disembarkation and boarding of passengers and crew. As per the IATA, more than 100 countries have implemented travel restrictions because of the COVID-19 crisis. As a result, the ground handlers say that they have lost 95% of their revenues in the Q1 of 2020. Orders for ground support equipment that were scheduled to be delivered in 2020 have also been canceled.
“Travel bans leading to a loss in air traffic have had a substantially negative impact on the Asia Pacific region”
Airports Council International (ACI) Asia-Pacific warns that the prolonged duration of the COVID-19 outbreak will prevent the region’s airports from achieving previously-forecasted growth prospects. The airport association urges regulators and governments to implement well-defined adjustments and relief measures tailored to suit local-level contexts. According to ACI World estimates, Asia Pacific is impacted the worst, with passenger traffic volumes down 24% for the first quarter of 2020 compared to forecasted traffic levels without COVID-19. Within the Asia Pacific region, mainland China, Hong Kong SAR, and the Republic of Korea remain widely affected by sizeable losses in traffic volumes. Meanwhile, there is a sharp spike in the number of COVID-19 cases in several countries in West Asia, which is expected to negatively impact traffic by -4.2% as travelers and airlines adjust their aircraft and seat offerings.
“Passenger screening to hold a significant market share in 2020.”
The passenger screening segment is expected to hold a significant share in the airport operation market in 2020. The passenger screening segment is expected to grow at a slow pace from Q2 2020 to Q1 2021. It is likely to increase from Q2 2020, post-COVID-19, due to a rise in the adoption of thermal scanners at airports.
Thermal imaging equipment manufacturers are witnessing a spike in demand for scanners from airports, railway stations, and public areas looking for fever screening systems. This demand can be attributed to the effectiveness of thermal scanner devices during the SARS and H1N1 crises. Not only airports but also airlines are procuring thermal imaging scanners to screen their passenger, pilots, and staff.
MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.
MarketsandMarkets’s flagship competitive intelligence and market research platform, "Knowledgestore" connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.
We are pleased to offer you this exciting, new, and entirely free professional resource. Visit our Free Industry resource center today to browse our selection of 600+ complimentary Industry magazines, white papers, webinars, podcasts, and more. Get popular titles including: