Global airport construction projects globally have been valued at $737.3 billion, according to a new report by Global Data. Airport and Air travel growth is expected to follow growth in global regional economies, with Asia-Pacific and the Middle East performing strongly. The Middle East acts as an 'aviation bridge' for long haul flights north to south and east to west.
The need to expand and redevelop existing airports in Europe is driving growth in the region. Asia-Pacific is projected to lead growth globally, due to fast-growing emerging markets such as India and Vietnam.
Rising numbers in the affluent middle class in developing countries in Asia-Pacific and the Middle East and Africa (MEA) are driving demand for air travel, while increased competition among low-cost airlines is increasing the number of flights worldwide.
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Currently, it is projected that airport construction projects globally are valued at $737.3 billion. Of this, $212.0 billion is in the planning stage and Asia-Pacific accounts for the highest value with $241.4 billion, followed by the Middle East and Africa with projects valuing $196.4 billion.
The Americas follow with projects with a value of $153.7 billion and Europe has projects valued at $145.8 billion. By country, the US heads up airport project investment with $114.9 billion followed by China with projects valuing $67.1 billion.
The high capital investment involved in airport construction means that public funding is responsible for the highest proportion of investment, with 67%.This is followed by joint public/private investment, while private investment is responsible for just 7% of airport funding.
The Middle East and Africa has the highest proportion of public funding for projects, with 80% and Europe has the highest proportion of joint public/private funding for projects, with 34%.
Assuming all projects tracked go ahead as planned, annual spending will reach US$105.5 billion in 2019. The highest value of completions for projects will occur in 2020, with a value of $89.8 billion. The largest projects currently in the pipeline are the $37.1 billion Al Maktoum International Airport in the UAE followed by the $36.0 billion Istanbul New Airport in Turkey.