3 October 2024 The market for FBOs is set to witness a tremendous upswing in the coming years with the new projections showing a robust compound annual growth rate. Increasing numbers of business travelers and private jet owners and a growing focus on airport premium services are considered two key reasons why the market will be going high.
According to the latest market report by The Insight Partners, the market of FBO is witnessing demand from the private as well as business aviation markets in North America and European markets; however, Asia-Pacific regions have emerged as growth hubs for these services.
Industry Insights:
1. Growing Demand for Luxury and Convenience: Business aviation is becoming more accessible, considering the trend among travelers finding flexibility and exclusivity. Providers of such necessities include FBOs, ranging from fueling aircraft, hangars, and even concierge-like amenities.
2. Regional Growth: North America is still the highest market, mainly due to a high number of private aircraft owners and operators. Nonetheless, demand from Asia and the Middle East, which are relatively emerging economies, has been increasingly picked in recent years. There, airports invest fast in FBO facilities for wealthy high-net individuals as well as corporate clients.
3. Technological Advances: FBO operators are increasingly implementing more digital solutions to provide improved customer experience. From booking applications via mobile to real-time aircraft management tools, the adoption of technology is indeed a very visible trend that's churning the waters of this industry. Sustainability is a major growth trend that most FBOs have adopted in recent times and includes using sustainable aviation fuels (SAF).
4. Key Market Players: Signature Aviation, Jet Aviation, and Atlantic Aviation, some of the key players in the FBO business, are expanding their services, and forging new partnerships for the changing needs of their customers. Globally, their network has improved while delivering premium services on all front desks.
Road ahead:
· Infrastructure Investment: One of the current challenges is the lack of targeted infrastructure to support FBO services, especially in emerging markets in the Asia-Pacific region. Partnering at the local government level and with the private sector are solutions that will help fill this gap.
· Regulatory Barriers: The FBO market remains sensitive to rigid and tightening aviation regulations within jurisdictions, and compliance requirements between jurisdictions continue to hold back expansions in underdeveloped regions with weak aviation infrastructures.
Market Outlook:
With growing corporate preferences for private air travel, the FBO market is likely to increase manifold. Companies currently at the forefront of the FBO market are easily investing in making modern facilities, expanding into new markets, and enhancing sustainability to capture the interest in the growing demand.