The growth potential for non-aeronautical businesses in airports, like advertising and restaurants, is high
San Francisco, CA (PRWEB) March 17, 2013
In the five years through 2013, revenue for the Airport industry in China has been growing at an annualized rate of 10.0%, driven by the rapid development of the Chinese economy and cultural exchange campaigns between China and other countries. However, growth is expected to slow in average in 2013, says IBISWorld, as the smog in large cities like Beijing is severely affecting the operations of airlines nationwide. Competition from high-speed rail is also suppressing demand for airlines, considering its lower price and convenience.
IBISWorld has identified significant growth potential for the industry, as flights per capita in China are much lower than in developed economies. In 2007, the Civil Aviation Administration of China (CAAC) began long-term developmental plans to increase the total number of airports to 244 by 2020. Under this plan, about eight new airports are put into operation each year across China. As many small and medium-sized cities in China are still inaccessible by air transport, the number of regional airports, in particular, is forecast to grow over the next five years.
The Airports industry in China has a medium concentration level with the four major players accounting for a combined market share of 40.6%. These players operate the five busiest airports in China, namely Beijing Capital International Airport, Guangzhou Baiyun International Airport, Shanghai Pudong International Airport, Shanghai Hongqiao International Airport, and Shenzhen Bao'an International Airport. Industry concentration levels are expected to remain relatively stable in the near future, says IBISWorld.
The industry's non-aeronautical businesses, such as advertising and property development, are becoming increasingly important to airport operators. This is particularly the case for large airports with high passenger numbers. Growth in passenger volumes in major airports in China has slowed since 2005, while the potential for further expansion of non-aeronautical businesses has increased. Additionally, charges on aeronautical businesses are closely regulated by government agencies while the non-aeronautical segment is more market-oriented.
For more information, visit IBISWorld’s Airports in China industry report page.
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IBISWorld Industry Report Key Topics
Airports in China provide aeronautical (e.g aircraft landings and takeoffs, ground support services and firefighting) and non-aeronautical (advertising space leasing , leasing properties within terminals, parking lot operations and ground handling facilities) services to airlines and passengers. Independent businesses, specialized freight airports, and airports for other uses are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.