Commercial Airport Lighting Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Commercial Airport Lighting Market Forecast 2023-2027

The commercial airport lighting market size is estimated to increase by USD 159.57 million and grow at a CAGR of 4.26% between 2022 and 2027. Market growth hinges on various factors, notably the expansion of air traffic, coupled with the cost-effectiveness and energy efficiency of LED airport lighting. However, challenges such as heightened competition, elevated expenses, and regulatory obligations impede progress. This surge necessitates ongoing modernization efforts and substantial investments in airport infrastructure, including various systems, to maintain safe and efficient operations. Moreover, the construction of new airports and expansion projects at existing ones adds to the demand for advanced solutions to accommodate the growing influx of travelers. As airports strive to meet the demands of an expanding global travel market, the need for innovative technologies and upgraded infrastructure becomes increasingly paramount, driving the growth of the airport systems market.

What will be the size of the Commercial Airport Lighting Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by product type (LED lighting and non-LED lighting), application (landside, airside, and terminal side), and geography (APAC, Middle East and Africa, Europe, North America, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Product Type Segment Analysis:

The LED lighting segment will contribute a major share of the market. The adoption of LED technology is high worldwide due to its energy-efficient features. The segment showed a gradual increase in market share with USD 335.47 million in 2017 and continued to grow by 2021. The global market is transitioning from traditional lighting technologies to LED lighting technologies to bridge the emerging energy gap.

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Pilots have access to visual aids from LED lighting that help them quickly and confidently identify the runway. They give approaching pilots an added level of security. In comparison to incandescent lighting systems, LED airfield lighting systems use less energy and require less maintenance. Additionally, LED airfield lighting fixtures have low failure rates. Thus, airport aprons, taxiways, runways, terminals, and parking lots are increasingly using LED lighting. For instance, in 2018, Ontario International Airport (Canada) was upgraded with more than 300 SolarMax LED lights. By installing SolarMax LED lights, the airport could save 50% of its energy consumption. Hence, these factors are expected to augment the demand for LED lighting products, which, in turn, will drive the growth of the market during the forecast period.

Application Segment Analysis: 

The term landside applications refers to the use of lighting solutions in locations other than the airport terminal building, such as parking lots, access roads, and other outdoor areas. The landside application segment is anticipated to see significant growth in the upcoming years due to the increasing number of airports around the world and the need to provide safe and efficient lighting solutions in these locations. Because of their high energy efficiency, durability, and longevity, LED lighting options are expected to dominate the landside application segment. The adoption of smart lighting solutions, which can change lighting levels based on ambient lighting levels and can be controlled remotely, is also anticipated to fuel this market expansion. Hence, these factors are expected to augment the demand from the landside application segment, which, in turn, will drive the growth of the market during the forecast period. 

Regional Analysis:

APAC is estimated to contribute 46% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  

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In APAC, the market is expanding rapidly. In nations like China, India, Australia, Singapore, Vietnam, Japan, Indonesia, Taiwan, and Nepal, numerous new airports are being built.

In APAC, China is the market leader. Each year, China hosts about 720 million travelers. By 2020, the Chinese government intended to build 74 additional airports and construct 74 new ones. For example, the Beijing Daxing International Airport (China) was anticipated to open in September 2019. It has four runways, one navigation system, and six instrument landing systems. By 2021, the airport was projected to handle roughly 45 million passengers annually. Hence, such factors will fuel the market growth in APAC during the forecast period. 

Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies. 

Global Market Customer Landscape

Market Dynamics and Customer Landscape

The market is poised for significant growth driven by several key factors. Firstly, the continuous increase in passenger traffic worldwide is boosting the demand for efficient and reliable airport lighting systems to ensure safe operations and navigation. Additionally, rising investments in modernization projects and the construction of new airports are driving the adoption of advanced lighting technologies such as Solar power LEDs, which offer energy efficiency and environmental benefits, thus reducing energy consumption and carbon emissions. Moreover, the emphasis on preventive maintenance to ensure uninterrupted operations amid the pandemic and beyond is fueling the market's growth trajectory. 

Furthermore, with airports operating at full capacity and facing pressure to improve connectivity and streamline operations, there's a growing demand for innovative lighting solutions. This includes the adoption of LED-based airfield lighting, wireless power concepts, and contactless power concepts, which offer enhanced efficiency, flexibility, and reliability. The market is also witnessing a shift away from traditional incandescent lights towards LED lighting due to its superior performance, longer lifespan, and cost-effectiveness. These trends indicate a healthy growth rate for the commercial airport lighting market, driven by the need for modernization, efficiency, and safety in airport operations.

Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.    

Key Market Driver

The market is driven primarily by the surge in passenger traffic, which has been consistently increasing over the years. This growth necessitates modernization efforts and investments in airport infrastructure, including systems, to ensure safe and efficient operations. Additionally, the construction of new airports and expansion projects at existing ones further fuels the demand for advanced solutions.

Amidst challenges such as the pandemic and funding constraints, airport operators are under pressure to enhance connectivity and capacity while maintaining safety standards. This emphasis on aviation strategy and operational efficiency drives the adoption of innovative technologies and preventive maintenance practices. Overall, the market's healthy growth rate is sustained by the global increase in air passenger traffic and the strategic focus on expanding and modernizing existing airport infrastructure.

Significant Market Trends

The adoption of smart lighting solutions is an emerging trend in the market growth. Modern technologies like sensors and automation are becoming more integrated into commercial airport systems around the world. These technologies offer a number of benefits, including higher productivity, lower maintenance costs, and improved safety. Increased energy efficiency and reduced maintenance requirements are two examples of how sensors can be used to control lighting systems' brightness and color temperature in response to changing environmental factors.

Operations can become more reliable and safe by becoming more effective and error-prone through automation. The incorporation of these technologies is also anticipated to improve the passenger experience because systems can adapt to individual needs and preferences. As a result, it is anticipated that the trend toward the incorporation of cutting-edge technologies in the airport industry will persist, which will, in turn, fuel the expansion of the global market during the forecast period.

Major Market Challenge

The high cost and maintenance of airport systems are major challenges impeding the market growth. Airport lighting systems need to be affordable, energy-efficient, strong, dependable, and secure. Manufacturers and service providers must strike a balance between these requirements to meet the lighting needs of airport operators while keeping costs in check. To develop new, energy-efficient technologies and better maintenance procedures to reduce downtime and lengthen the lifespan of systems, significant R&D investments are required.

Due to the high cost of materials and labor, businesses must optimize their supply chains and operational processes to reduce costs. If they do not take the necessary steps, their costs will rise, their profitability will decline, and they will not be able to successfully compete in the global market. Hence, this challenge is expected to hinder the growth of the market during the forecast period.

Who are the Major Commercial Airport Lighting Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Abacus Lighting Ltd. - The company offers various lighting products and accessories under categories such as car park and amenity lighting, road lighting, architectural lighting, industrial lighting, high mast systems, and others. The key offerings of the company are commercial airport lighting for civilian airports and military air bases to maintain safe and efficient operations.

Airport Lighting Specialists - The company provides comprehensive service to owners of aerodromes where runway lighting is installed or considered. The key offerings of the company include commercial airport lighting which is designed to identify and mark taxiways to control the movement of aircraft and vehicles.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:

• ADB Safegate BV
• Amglo Kemlite Laboratories Inc.
• Astronics Corp.
• Atg airports Ltd.
• Carmanah Technologies Corp.
• Eaton Corp. Plc
• Halliday Lighting Ltd.
• Honeywell International Inc.
• OCEM Airfield technology
• OSRAM GmbH
• Sealite Pty Ltd.
• Siemens AG
• Signify NV
• SPX Corp.
• Tungsram Operations Kft

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

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Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Type Outlook 
  • LED lighting
  • Non-LED lighting

• Application Outlook 
  • Landside
  • Airside
  • Terminal side

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is witnessing significant growth driven by factors such as escalating passenger traffic, revenue generation, and the imperative for modernization. Amid construction endeavors for new airports and upgrades to existing infrastructure, there's a shift towards energy-efficient LED lighting, steering away from conventional incandescent lights. Initiatives like LED-based airfield lighting and wireless power concepts are reshaping the landscape, reducing carbon emissions and operational costs. However, challenges persist, including maintenance hurdles and regulatory pressures. The sector's evolution towards innovative lighting systems and wireless technologies underscores its commitment to enhancing passenger service and optimizing airport operations.

Additionally, the market is propelled by rising revenues and the ongoing construction of new airports globally. Existing airport infrastructure is being upgraded to accommodate the surge in air passenger traffic, with a notable shift towards solar power LEDs for sustainable illumination. Initiatives like preventive maintenance ensure short-term and long-term operational efficiency amid challenges posed by the pandemic. Emphasis on accelerating growth aligns with the healthy rate of expansion, driven by increased connectivity and evolving aviation strategies. Investments in expanding existing airports, especially large and civil airports, aim to meet the demands of rapid growth and optimize ground traffic management. Advanced technologies such as airfield lighting control systems streamline airport operations while contactless power concepts and built-in intelligence enhance installation and maintenance processes, facilitating data retrieval and performance prediction.

Short-term initiatives addressing increasing passenger traffic at large airports like Rajiv Gandhi International Airport require focused funds allocated to aircraft infrastructure. With global air passenger traffic continually rising, civil aviation capacity at major hubs necessitates subsidy standards to support smaller airports facing similar challenges. Airside lighting, particularly airfield lighting control and monitoring systems, plays a critical role in airport operations, yet maintenance challenges persist. Efficient retrieval of data related to airside lighting systems can enhance maintenance practices and ensure optimal functionality amidst growing passenger demands.

Market Scope
Report Coverage	Details
Page number	164
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.26%
Market growth 2023-2027	USD 159.57 million
Market structure	Fragmented
YoY growth 2022-2023(%)	3.41
Regional analysis	APAC, Middle East and Africa, Europe, North America, and South America
Performing market contribution	APAC at 46%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Abacus Lighting Ltd., ADB Safegate BV, Airport Lighting Specialists, Amglo Kemlite Laboratories Inc., Astronics Corp., Atg airports Ltd., Carmanah Technologies Corp., Eaton Corp. Plc, Halliday Lighting Ltd., Honeywell International Inc., OCEM Airfield technology, OSRAM GmbH, Sealite Pty Ltd., Siemens AG, Signify NV, SPX Corp., Tungsram Operations Kft, Velocity Airport Solutions, Vosla GmbH, and TKH Group NV
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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