Green Airport Market

Market Overview

The global green airport market size was valued at USD 10.73 billion in 2022. It is estimated to reach USD 11.01 billion by 2031, growing at a CAGR of 4.4% during the forecast period (2023–2031). The global green airport market is driven by the environmental regulations and compliances that airports are compelled to follow to curb the negative effects of rising carbon emissions, ultimately driving these airports to adopt green technologies. Moreover, constructing advanced airports with smart technologies to enhance their environmental sustainability further augments market growth.

Green airports are built from scratch on unused or undeveloped land or integrate environmental factors into their design and functioning. Green airports strive to minimize the ecological consequences of airport operations, including carbon emissions, noise pollution, garbage production, and water usage. Green airports aim to optimize aviation's social and economic advantages, including regional growth, connectivity, and job opportunities.

Green airports utilize sustainable energy sources, such as solar, wind, and biofuel, to fuel their facilities and activities. They employ strategies to enhance energy efficiency, promote water conservation, manage waste, and safeguard biodiversity. Green airports are anticipated to significantly impact the sustainable advancement of the aviation sector and the worldwide endeavors to mitigate climate change.

Market Dynamics

Global Market Drivers

Environmental Regulations and Compliance

As per Air Transport Action Group, in 2020, the aerospace industry contributed 2.0% of the global CO2 emissions. The aviation sector has attempted to decarbonize, according to the International Air Transport Association (IATA), due to a notable decrease in flight traffic brought on by COVID-19. The decarbonization of the transportation and aviation sectors is the primary goal of national hydrogen strategies developed by nations like France, Germany, the United Kingdom, and the United States. Thus, airports are compelled to embrace sustainable procedures due to stringent environmental rules and emissions objectives set by national and international organizations.

Due to the abovementioned reason, airports are compelled to decrease their carbon emissions by adhering to programs like the International Civil Aviation Organization's (ICAO) CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation). This program is a global market-based solution to counterbalance international aviation CO2 emissions to stabilize their levels. These regulations and compliances lead to the growing demand for green practices in the airport premises, thereby driving the global green airport market.

Development of Advanced Airports

Another factor contributing to the growth of the green airport market is the emergence of advanced airports that integrate cutting-edge technologies and solutions to improve their environmental sustainability. Advanced airports employ smart technology, including sensors, artificial intelligence, big data, and cloud computing, to oversee and enhance their energy efficiency, water utilization, waste production, and noise levels.

Advanced airports employ sustainable construction practices by utilizing eco-friendly materials like recycled concrete, biodegradable plastics, and bamboo for their buildings and infrastructure. Moreover, advanced airports implement environmentally friendly measures, such as carbon offsetting, sustainable sourcing, and engaging with stakeholders to enhance their sustainability. For instance, the Beijing Daxing International Airport in China is a very sophisticated airport that showcases a terminal in the shape of a starfish, a system for collecting and storing rainwater, a heating system that utilizes geothermal energy, and a system for generating electricity from solar energy.

Global Market Restraint

High Initial Cost

The substantial initial investment required for infrastructure deployment is a significant limitation of the green airport market. The establishment and upkeep of green airports necessitate substantial financial investments in environmentally sustainable materials, equipment, and infrastructure, including renewable energy systems, water-saving devices, and waste management facilities.

Green airports also face supplementary expenses in acquiring environmental certifications, such as LEED, BREEAM, and GRIHA, which evaluate the sustainability of airport structures and activities. Moreover, green airports encounter difficulties acquiring property, permissions, and authorizations for their establishment, particularly in regions with dense populations, rich biodiversity, or significant cultural heritage. These limitations impede the growth of the green airport industry since some airport developers and operators prefer conventional airports with lower startup expenditures and fewer regulatory impediments.

Global Market Opportunities

Construction of New Airports and Upgradation of Current Airports 

An important opportunity for the green airport market lies in the growing trend of upgrading current airports and advancements in commercial aviation. With the increasing demand for air travel, particularly in emerging countries like China, India, and Brazil, it is necessary to enhance and enlarge the current airport infrastructure and amenities to handle the growing number of passengers and cargo. The market for green airports will profit from existing airports utilizing green technology and solutions to increase their productivity, capacity, and competitiveness.

Furthermore, the emergence of novel commercial aviation sectors, including low-cost carriers, regional jets, and electric aircraft, could generate a need for new green airports capable of accommodating these sectors. For instance, the Hirasar Greenfield Airport in Gujarat, India, is a recently established green airport anticipated to cater to the low-cost carrier market and enhance the state's regional connections. Thus, constructing new airports and upgrading current airports is predicted to generate opportunities for market growth.

Regional Analysis

Based on region, the global green airport market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is a prominent location in the green airport market due to its advanced aviation sector and strong environmental consciousness. North America has rigorous environmental restrictions, including the Federal Aviation Administration's (FAA) NextGen initiative, which promotes sustainable technologies. The FAA reported a 23% decrease in aircraft emissions in 2022 due to sophisticated air traffic management technology. The region is home to multiple green airports that have obtained environmental certifications, including LEED, BREEAM, and GRIHA. Notable green airports in the region include the Denver International Airport, the San Francisco International Airport, and the Vancouver International Airport.

Furthermore, new green airports are being constructed in the region, including the Williston Basin International Airport in North Dakota and the Salt Lake City International Airport in Utah. In addition, several airports are adopting renewable energy practices to meet sustainability goals. For instance, Seattle-Tacoma International Airport and other large airports have invested significantly in solar energy systems on their premises. As a result, they have achieved a noteworthy 13% decrease in energy expenses and a 15% reduction in carbon emissions during the last three years. Consequently, the factors above stimulate market growth in the North American region.

The European market expansion can be ascribed to the robust regulatory framework and the constant commitment to sustainability in the region. European airports are actively participating in carbon offset initiatives. The region boasts the highest concentration of airports that have successfully obtained Airport Carbon Accreditation. This voluntary initiative evaluates and acknowledges airports' endeavors in carbon emission management and reduction. For instance, London Heathrow Airport has attained the Airport Carbon Accreditation Level 3+, which signifies carbon neutrality. This accomplishment was accomplished by the reduction of carbon emissions, the augmentation of renewable energy utilization, and the compensation of any remaining emissions.

Furthermore, Amsterdam Airport Schiphol has adopted cutting-edge sustainability measures, such as utilizing recycled rainwater for its cooling systems. Consequently, there has been a 30% decline in water usage and a significant reduction in the airport's ecological impact. New green airports, including Berlin Brandenburg Airport in Germany and Istanbul Airport in Turkey, are also being constructed in the region. All these factors foster market expansion in the region.

The Asia-Pacific expansion market can be attributed to the significant increase in air travel demand and the extensive construction of green airport projects in the region. This region boasts the highest air travel rate globally. According to IATA, in August 2023, there was a 98.5% rise in traffic for Asia Pacific airlines compared to August 2022. This growth continues the region's strong momentum that has been building in recent months after travel restrictions were lifted. The load factor experienced a 5.5 percentage point rise, reaching 84.2%, while capacity significantly increased by 85.5%. Due to a significant increase in air travel in the Asia-Pacific region, airports such as Changi Airport in Singapore are adopting sustainable measures. Changi's Terminal 4, which operates using solar energy, has successfully achieved a 30% decrease in energy usage compared to conventional terminals. These factors generate opportunities for the green airport market in the region.

Additionally, some of the notable green airports in the region are the Cochin International Airport in India, the Beijing Daxing International Airport in China, and the Singapore Changi Airport. The region is also witnessing the development of new green airports. For instance, in July 2023, the Indian government gave 'in-principle' clearance to 21 Greenfield Airports that would be built from scratch across the country. These airports will improve the ability to link and facilitate access to air travel. There has also been a surge in government support and regulations supporting green airport development. For instance, in response to the growing congestion and environmental issues urban airports face, the Indian government implemented the Greenfield Airports (GFA) Policy in 2008. This policy establishes guidelines for the development and operation of new airports. Such factors boost the green airport market in the region.

Segmental Analysis

The global green airport market is segmented by energy type, airport type, and airport class.

Based on energy type, the global market is bifurcated into wind energy, bioenergy, solar energy, and others. 

Solar energy is projected to have substantial growth throughout the projection period. Incorporating solar energy into the functioning of a green airport can yield various advantages, encompassing both environmental sustainability and financial savings. It assists airports in diminishing their reliance on fossil fuels, decreasing their emissions of greenhouse gases, and cutting expenses. It is extensively employed in airports to provide power for various amenities, including terminals, runways, parking lots, and ground support equipment. An instance of this is the Cochin International Airport in India, which is the first airport in the world to operate solely on solar electricity. It boasts a remarkable capacity of 40 MW.

Based on airport type, the global market is segmented into civil airports, military and government airports, and private airports. 

A civil airport is a publicly accessible airport primarily dedicated to facilitating civilian air travel, excluding military operations. These airports are specifically intended to cater to the needs of commercial airlines, general aviation, and private aircraft. Civil airports are essential for transporting passengers and goods between various destinations, both within a country and across borders. Civil airports commonly possess essential amenities such as runways, taxiways, terminals, control towers, and other infrastructure to facilitate the functioning of different airlines and aviation services. They are overseen and administered by civil aviation authorities or other appropriate government bodies.

Based on airport class, the global market is divided into class A, class B, class C, and others.

Class A airport primarily operates under IFR (Instrument flight rules), a set of laws pertaining to flying using instruments in the flight deck and navigation based on electronic signals. ATC clearance is mandatory for all aircraft in this category. It is a service offered by ground-based controllers who guide aircraft on the ground and in controlled airspace. They can also offer advice to aircraft in non-controlled airspace. The basic objective of air traffic control (ATC) on a global scale is to avert crashes, efficiently manage and facilitate the movement of air traffic, and furnish pilots with pertinent information and further assistance. Moreover, ATC ensures that all flights are kept at a safe distance from each other. Class A airports are globally recognized as the largest and most bustling airports, with the greatest capacity for embracing green technologies and solutions.

Recent Developments

• October 2023- Guangtai and TCR, both producers of ground support equipment (GSE), committed their collaboration to promote green innovation for airport buses. Based on client feedback regarding their decarbonization goals, TCR determined that affordable and competitive pricing, proven technology, trusted partnerships, and timely delivery were crucial considerations.
• November 2023- CLEAR, the company specializing in secure identity solutions, announced the introduction of its identity verification system at the main terminal of Rhode Island T.F. Green International Airport (PVD). This implementation aims to provide seamless and predictable travel experiences for individuals in Rhode Island.