Commercial Airport Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The commercial airport lighting market is anticipated to register a CAGR of over 4% during the forecast period (2022 - 2027).

Due to the impact of the COVID-19 pandemic, the passenger traffic handled by the airports witnessed a decline of more than 60% in 2020 and about 50% in 2021. This has significantly affected the revenues of the airport operators, which is anticipated to slow down the investments towards the modernization of the airport lighting systems. This is anticipated to affect the market's growth in the short term.

Before the pandemic, the growth of the commercial airport lighting market is propelled by the construction of new airports and modernization of the existing airport infrastructure around the world to cater to the increasing passenger traffic. This factor is also expected to drive the market in the future once the effect of the pandemic subsides.

The increasing emphasis on decreasing energy consumption and reducing carbon emissions in airports is shifting the focus of the airport operators from the use of conventional incandescent lights to solar power LEDs in airports. This is expected to accelerate the growth of the commercial airport lighting market during the forecast period.

Key Market Trends

Construction of New Airports will Generate Demand for New Airport Lighting Systems

Before the pandemic, air passenger traffic was growing at a healthy rate, with several existing airports operating at their full capacity. The global air passenger traffic increased from about 3.57 billion in 2015 to about 4.5 billion in 2019. With future growth in view, several governments allocated funds for new airports to improve connectivity and reduce pressure on the major airports. For instance, as part of the Saudi Vision 2030, the country's aviation strategy includes expanding existing airports and focusing on two large airports in Riyadh and Jeddah. China plans to open over 30 new civil airports and is targeting a 43% increase in civil aviation capacity under the 14th Five-Year Plan (2021-25). CAAC also raised the subsidy standards by 40% to airports where ground traffic is poor. India is also rapidly growing its civil aviation with the construction of new small airports under the UDAN scheme. Since the start of UDAN, about 50 airports have started operations. The government also plans to develop 100 additional airports by 2024. Likewise, new airports are also constructed in Latin America, North America, and Europe. Such developments over the next decade are likely to generate demand for all types of airport lights and drive market growth.

Asia-Pacific to Experience the Fastest Growth in the Coming Years

Currently, Asia-Pacific has the largest market share, and it is expected to grow rapidly during the forecast period. The construction of new airports and the modernization of the existing airports are expected to generate demand for new and innovative lighting systems. In terms of passenger traffic, 7 of the world's 10 busiest airports in 2021 were in China. A surge in passenger traffic in various countries like India, Indonesia, and Australia is expected to increase the investments toward expanding their existing aircraft infrastructure and construction of new airports in the countries. This is expected to drive the growth of the commercial airport lighting market in the region during the forecast period. Also, the airports in the region are changing their existing lights with new lighting systems to conserve their energy and carbon emissions. As of July 2021, the Rajiv Gandhi International Airport at Hyderabad completed the conversion of 98% of its Airside lighting (Airfield signage, taxiway centerline lights, and runway lights) with energy-efficient LED lighting.

Similarly, Honeywell was selected to upgrade the airfield lighting control and monitoring systems, enhance passenger service, and streamline airport operations at the Incheon International Airport as part of the ongoing improvement project. The project is scheduled to be completed in October 2022. Such initiatives in this region may propel the market's growth during the forecast period.

Competitive Landscape

The commercial airport lighting market is fragmented, with the presence of many players. Some of the prominent players in the market are ADB Safegate, TKH Group NV (TKH Airport Solutions), OCEM Energy Technology, Eaton Corporation, and Astronics Corporation. With the increased implementation of efficient LED-based airfield lighting in place of incandescent lighting, companies are also exploring new wireless or contactless power concepts that minimize the installation and maintenance challenges. Also, there is a growth in investments in lighting with built-in intelligence, which enables the retrieval of data and performance prediction, allowing more preventive maintenance. It can give the market players a competitive advantage over their competitors. Such investments are expected to drive the growth of the players during the forecast period.

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