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 more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
What Our Customers Say

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 Key Buyers Chapter

    The Airport Terminal Construction industry has a low level of concentration as the top four largest companies account for 18.1% of total industry revenue. The majority of industry operators serve multiple construction markets with the airport terminal industry accounting only for a small percentage of total annual revenue. In addition, most businesses serve regional markets because contracts are more likely to be awarded to companies with a higher concentration of employees in a specific state. Moreover, a significant percentage of total construction work is subcontracted to smaller companies. The industry's low level of concentration is expected to continue in the five years to 2022. Mor...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 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
  • 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.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Airport Terminal Construction is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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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