The market for FBOs—the companies that handle services at airports like fueling, hangaring, and aircraft maintenance—is set to grow at a “healthy” rate over the next several years, according to a new report.
Market research firm The Insight Partners predicts the fixed base operator market will expand from $25.5 billion in 2024 to $41.4 billion by 2031. Analysts attributed the forecasted gains to a more dynamic business travel environment and demand from established and emerging regions, especially North America, Europe, and Asia.
The company expects North America to continue to lead the way in the FBO market, owing to strong consumer demand and modernization efforts aimed at accommodating more passengers at key airports, such as Hartsfield-Jackson Atlanta International Airport (KATL), Los Angeles International Airport (KLAX), and Dallas-Fort Worth International Airport (KDFW). The United States’ position as a center of international trade and commerce should also bolster the region’s FBOs through the decade.
Growth is slower in Asia, but The Insight Partners’ report anticipates an uptick in the number of Chinese companies buying and renting aircraft for use by executives and employees. With the price of pre-owned corporate aircraft coming down and business travel continuing to rebound from the years of the COVID-19 pandemic, the analysts said, the pieces are in place for a significant expansion in the East Asian and Southeast Asian markets. Aside from China, Indonesia, Singapore, and Macau were also singled out for their growth potential.
The Insight Partners also pointed to the growing number of greenfield airports, or airports built on previously undeveloped land with few design constraints. Notable greenfield airports opened in the last 15 years include Al Maktoum International Airport (OMDW) in Dubai, Beijing Daxing International Airport (ZBAD), Hamad International Airport (OTHH) in Qatar, and Istanbul Airport (LTFM). More greenfields are under development and expected to open in the coming years, such as Chennai Greenfield Airport in India, Techo International Airport in Cambodia (VDTI), and Western Sydney International Airport (YSWS) in Australia.
The Insight Partners identified the major players in the FBO market as Avemex, Deer Jet, Emirates Group’s Dnata Corp., General Dynamics-owned Jet Aviation, Jetex, Luxaviation, Signature Aviation, Swissport International AG, ExecuJet, Atlantic Aviation, Universal Aviation, and Abilene Aero Inc., among others.
