Flying high: Federal funding is expected to taper, but rising air travel will lift up demand

The Airport Terminal Construction industry undertakes the necessary construction of airport terminals, including expansion, upgrades and renovation. Over the five years to 2017, rising demand for air travel has led to higher levels of capital investment in airport structures. Moreover, industry revenue is projected to grow at an even faster rate over the next five years. While federal funding for transportation is expected to remain flat in coming years, budget projections reveal that there will still be investments to modernize airport terminals and improve efficiency, safety and capacity. In addition, demand from domestic and international airports is anticipated to rise steadily, as consumer confidence and per capita disposable income continues to rise...purchase to read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 12-17
3.1%
Forecast Growth 17-22
Profit
Employment
111,768
Businesses
3,988
Market Share of Companies

Industry Threats & Opportunities

  • Strong demand and the tendering of large-scale projects will support revenue growth
  • The industry relies heavily on local, state and federal funding for transportation
  • Industry revenue will primarily be driven by the modernization of airports
  • Industry Report - Industry Products Chapter

    Terminal renewal and improvementThe Airport Terminal construction industry generates the bulk of its revenue, namely 59.9%, from the refurbishment of components and systems in terminal buildings. This wide segment also includes changing the original layout of interior spaces. While the refurbishment and maintenance of terminal facilities are typically less costly and smaller in scale, they vastly outnumber other service segments by volume. According to the FAA, many terminal buildings undergo several renewal cycles before airport developers are willing to consider a terminal renewal program or the construction of a new facility. As a result, IBISWorld expects the share of industry revenue generated from this segment to remain stable over the five years to 2022...purchase to read more.

    Additional Insights for the Airport Terminal Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Airport Terminal Construction Industry are

  • Ability to negotiate successfully with regulator
  • Ability to compete on tender
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Federal funding for transportation and Domestic trips by US residents in the Airport Terminal Construction industry impact industry performance..

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    What's in this report

    What is the Airport Terminal Construction Industry?

    Operators in this industry construct airport terminals, with contractors specifically engaging in new terminal construction, reconstruction and additions. This industry also includes construction management companies and special trade contractors that participate in the building of airport terminals.

    Industry Products
  • Terminal renewal and improvement
  • Terminal development
  • New terminal construction
  • Industry Activities
  • New airport terminal building construction
  • Redevelopment and improvement of existing airport terminals
  • gate temporary facilities
  • airport support facility
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for transportation
  • Domestic trips by US residents
  • International trips by US residents
  • Local and state government investment
  • Inbound trips by non-US residents

  • Current Performance
  • The industry depends on the broader airlines industry
  • Government funding is key
  • Project highlights
  • Increasing costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Public funding tapers
  • Increasing flights
  • Industry expansion
  • Table: Airport Terminal Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Airport Terminal Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Domestic Airlines
  • Airport Operations
  • Public Administration

  • Key Selling Industries
  • Construction
  • Heavy Equipment Rental
  • Ready-Mix Concrete Manufacturing
  • Utilities

  • Products & Services
  • Terminal renewal and improvement
  • Terminal development
  • New terminal construction
  • Chart: Airport Terminal Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Lifespan driven projects
  • Demand-driven construction
  • Government funding

  • Major Markets
  • Large hub airports
  • Medium hub airports
  • Small hub airports
  • Chart: Major Market Segmentation for the Airport Terminal Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Airport Terminal Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Airport Terminal Construction Industry

  • Industry Globalization
    Bechtel Group Inc.,
  • Table: Bechtel Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Airport Terminal Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Airport Terminal Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Federal funding for transportation (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Airport Terminal
  • A building that is designed to connect the aircraft and ground transportation facilities. The building provides services necessary for airline passengers.
  • Commercial Service Airport
  • A public airport that provides services for at least 2,500 annual passengers.
  • Tender
  • A written offer or bid for a particular airport terminal project at a specified rate.
  • Useful Life
  • Useful life is the expected number of years that a specific asset can be expected to efficiently function.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Airport Terminal Construction Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Airport Terminal Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Airport Terminal Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Airport Terminal Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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