LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global aerotropolis market to grow at a CAGR of more than 9% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global aerotropolis market for 2017-2021. The report also lists greenfield airport and brownfield airport as the two major segments based on airport type, of which the greenfield airports accounted for more than 74% of the market share in 2016.
“Aerotropolis are mostly predominant in Asia, Europe, and the Middle East. In fact, Dubai hosts the world’s largest aerotropolis in the world. Governments in these regions are developing aerotropolis as a mode of promoting economic growth and trade activities within their respective countries,” says Avimanyu Basu, a lead analyst at Technavio for general aviation research.
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global aerotropolis market:
- Demand for smart cities
- Rise of airport-centered urban development
- Increasing investment in airport construction
Demand for smart cities
The rapid expansion of airport-linked smart cities that have enhanced connectivity with efficient, large, and well-networked airports is one of the major factors driving the global aerotropolis market. In addition, tourists and businesspeople have changed their accommodation preference toward places that are located close to transportation hubs, which gives airports a competitive advantage and boosts the conversion of aviation-related business to commercial zones.
“The changing dynamics of airport infrastructure in line with globalization, digitalization, and liberalization needs is significantly driving airport operators to develop smart cities around airports,” says Avimanyu.
Currently, most of the greenfield airports are initiating the development of smart cities, resulting in efficient connectivity and entertainment and reduction of travel stress for tourists and business persons. Likewise, brownfield airport operators are also refurbishing and innovating their existing airport infrastructure to enhance non-aeronautical revenue with lucrative rates of return.
Rise of airport-centered urban development
Airports are gradually becoming the new dynamic centers of various economic activities. They have incorporated several commercial services, both inside passenger terminals and on landside areas. With the growing demand for airport-centric operations, the urban economic region development is significantly driving the market to enhance globalization and digitalization in airports.
Aerotropolis facilitates businesses through rapid well-established connectivity to their customers, suppliers, and enterprise partners nationally and internationally, which allows market penetration in various regions. It also consists of divergent businesses, such as a wide range of logistics and commercial facilities, hotels, recreation, hospitals, entertainment areas, convention and exhibition complexes, conference halls and office buildings, retail areas, duty-free shops, lounges, leisure, and tourism venues.
Increasing investment in airport construction
The year 2016 witnessed significant investments in airport construction and refurbishment projects, primarily in the APAC and Middle East regions. The global passenger traffic has been growing across airports which has resulted in the considerable investment.
APAC, Middle East, and Africa reflect high-value construction projects, with an accumulated value of more than USD 396 billion, which accounts for almost 62% of the total global airport construction projects. These regions clearly outpace major economies, such as North America and Europe. More than 12% of the APAC and Middle East airport construction market is contributed by China due to high passenger traffic at Beijing Capital International Airport, which is the second busiest airport in the world.
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