The evolving modern warfare scenario has compelled governments of various countries across the globe to assign significant funds and financial aid toward respective defense and military forces, whcih is the major driving factor of the airport infrastructure market growth. The defense budget allocation supports army and military forces to purchase enhanced technologies and equipment from domestic or international developers. On the other hand, military and army vehicle upgrades are on the rise owing to growing defense budget allocation. Furthermore, the increasing governmental expenditure showcases the government’s focus on strengthening national security forces. For this, governments of various countries are taking several initiatives to deploy a huge number of military bases for ground, airborne, and naval operations. As per the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached US$ 2,148 billion in 2022, representing a 3.5% increase from 2021. The US, China, India, Russia, and Saudi Arabia were the top five military spending countries in 2022, which accounted for 63% of the global expenditure. This also indicates increased new military air base deployments across these countries. Such increasing military expenditure encourages investments in the construction of new military air bases, which comprise runways, control towers, hangars, and other military airport infrastructures. For instance, in October 2022, the Government of India announced the construction of a new military air base in Gujarat state of Western India that is expected to reduce the long-pending strategic gap of 355km between the Bhuj and Uttarlai air bases. Thus, the rising investment in new military base development drives the airport infrastructure market.
Airport Infrastructure Market Analysis: Range Overview
Based on airport type, the global airport infrastructure market size is segmented into commercial airport, military airport, and general aviation airport. The commercial airport segment is leading the market for airport infrastructure, followed by the general aviation airport and military airport segments. In addition, the demand for military airports and new air bases is increasing due to the rising global tensions among countries of different regions. Governments of many countries have been pushing their respective military investments for the procurement of mission-related technologies and building new bases across their respective target locations. Moreover, the expansion of existing military airports to cater to a larger number of military aircraft has been contributing to the growth of the airport infrastructure market share for the military airport segment worldwide. For instance, in September 2021, the Chinese government announced that 30 new airports had been constructed in Tibet and Xinjiang provinces to boost the civil and military airport infrastructure in the regions. Moreover, the earlier announced plans of the Indian military for the construction of 59 airports have also been in progress. By the end of November 2023, India had ~39 military airports for their respective operations. Such developments have been pushing the growth of the airport infrastructure market for the military airport segment.
The US airport infrastructure market is undergoing dynamic changes spurred by the escalating demand for air travel. Drivers of this growth include the increasing popularity of low-cost carriers, technological advancements, and a commitment to sustainability. The rise of budget-friendly airlines has democratized air travel, boosting passenger numbers and necessitating infrastructure expansions. In 2021, the US President announced that the government will invest US$25 billion for aviation industry infrastructure development. In addition, in 2023, the United States Federal Aviation Administration announced funding of US$1 billion to improve 99 airports’ infrastructure and provided this funding through President Biden’s Bipartisan Infrastructure Law. Such investment and initiatives toward the development of airport infrastructure in the country are expected to fuel the growth of the market in the coming years. Furthermore, technological innovations, such as biometrics and smart airport solutions, are enhancing operational efficiency and security measures. However, the industry faces challenges, including regulatory complexities and funding constraints. Hence, the fulfillment of the need for infrastructure development with environmental considerations presents an ongoing challenge.
Airport Infrastructure Market: Competitive Landscape and Key Developments
Hensel Phelps, AECOM, Turner Construction Company, Skanska, Austin Industries, PCL Constructors Inc, TAV Construction, BIC Contracting LLC, Hill International Inc., and Sundt Construction are among the key airport infrastructure market players profiled during this study. In addition, several other important airport infrastructure market players have been studied and analyzed during the study to get a holistic view of the airport infrastructure market and its ecosystem.
| Year | News | Region |
| March–2022 | AECOM announced that its joint venture, Airfield Management Partners, with H.J. Russell & Company, had been selected to provide civil airside program and construction management services at Dallas Fort Worth International Airport. | North America |
| November–2021 | AECOM was awarded a contract to provide program management services for the development of Denver International Airport’s seventh runway. The company handled the preliminary design effort and coordinated environmental assessment efforts. | North America |