Green Airport Market: Global Industry Analysis and Forecast (2024-2030)

Green Airport Market Overview

"Green Airport" refers to an airport that has implemented sustainable and environmentally friendly practices to minimize its impact on the environment. The global aviation industry is increasingly recognizing the importance of sustainability, leading to the emergence of green airports worldwide. The report provides a comprehensive analysis of the green airport market, including trends, growth drivers, challenges, and opportunities. Key findings reveal significant growth potential in the green airport sector, driven by increasing environmental awareness, regulatory mandates, and economic incentives.

 

Investing in renewable energy projects such as solar farms, wind turbines, and biomass facilities provides sustainable energy sources for airports. These investments not only reduce carbon emissions but also offer long-term returns through power generation and potential government incentives. Investing in the design and construction of green terminals offers opportunities to incorporate sustainable features such as efficient insulation, natural lighting, and green roofs. These investments contribute to reducing the carbon footprint of airport operations while enhancing passenger experience and attracting airlines.

 

As of 2020, over 200 airports worldwide have implemented solar power systems, with a combined capacity exceeding 700 MW.

LED lighting retrofits at airports have led to energy savings of up to 50% compared to traditional lighting systems.

Electric vehicle charging infrastructure deployment at airports has expanded rapidly, with over 1,000 charging stations installed at major airports globally.

More than 50 airports have achieved carbon neutrality under the Airport Carbon Accreditation program, offsetting over 3 million tons of CO2 emissions annually.

 

 

 

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Green Airport Market Dynamics

Corporate Social Responsibility (CSR)

Airports are increasingly incorporating corporate social responsibility (CSR) into their business strategies. By adopting green practices, airports enhance their brand image, attract eco-conscious travelers, and demonstrate their commitment to sustainability, which in turn drives the green airport market. Public awareness and pressure regarding environmental issues have grown significantly since 2018. Airports responding to this with CSR initiatives are likely investing in green technologies, driving market growth. SMR Report indicates a rise in travelers seeking sustainable travel options.

 

Airports with a strong CSR profile are more attractive to this segment, potentially increasing their business and indirectly impacting the green airport market. Plastics constitute the most harmful and persistent type of marine litter, accounting for at least 85% of all marine waste. 175 States endorsed a historic resolution at the UN Environment Assembly in March 2022 to end plastic pollution by 2024. Airports are increasingly implementing sustainable waste management policies to mitigate the environmental impact of waste and comply with regulatory requirements.

 

Examples of Successful Initiatives Covered in the SMR Report:

1. Chhatrapati Shivaji Maharaj International Airport - Achieved 100% SUP replacement with biodegradable materials, reduced waste by XX and XX tonnes in fiscal years 2019 and 2020, respectively, and saved US$XX annually in operating costs.
2. Mangaluru International Airport- Launched a "SUP free airport" campaign, including digital display videos and guidelines for vendors to avoid single-use plastic substitutes.
3. Chubu Centrair International Airport and Kempegowda International Airport- Implemented circular concepts such as "Bottle to Bottle" Sustainable Resource Circulation, avoiding the incineration of 80 tonnes of plastic bottles, and using 50 tonnes of waste plastic to build 70 km of roads within the airport campus.

Environmental and Geographic Challenges

The geographical location of an airport plays a critical role in determining the feasibility and effectiveness of certain green practices. For instance, solar power generation is heavily dependent on the availability of sunlight, making it less viable for airports located in regions with frequent cover or high latitudes with limited daylight hours. Similarly, airports situated in arid regions face significant challenges in implementing water conservation measures, which are essential for sustainable operations. Airports in regions with limited sunlight face challenges in relying on solar energy, a key green initiative.

 

The limitation necessitates seeking alternative renewable energy sources, which are less efficient or cost-effective. Additionally, airports in water-scarce areas struggle with implementing effective water recycling and conservation systems, impacting their ability to maintain green certifications and meet sustainability goals. These geographical limitations complicate the adoption of sustainable practices, requiring airports to find innovative solutions to balance environmental objectives with operational feasibility and cost-effectiveness.

 

• According to SMR Analysis, airports in regions such as the Caribbean and Southeast Asia experienced increased disruptions and damage due to more frequent and severe tropical storms, highlighting the need for climate-resilient infrastructure.
• Airports in Brazil and India faced significant delays and cost overruns in expansion projects due to the need to protect local wildlife and adhere to biodiversity regulations.

Green Airport Market Segment Analysis

By Energy Type, Solar energy connects sunlight using photovoltaic panels to generate electricity. Renewable energy sources are increasingly popular due to their abundance, sustainability, and decreasing installation costs. Solar panels are installed on rooftops, unused land, or other available spaces within airport premises, making it a versatile solution for clean energy production. Solar energy significantly impacts the green airport market by providing a clean, scalable, and low-maintenance power source. Its use reduces greenhouse gas emissions and dependency on fossil fuels, aligning with global sustainability goals. Airports adopting solar energy achieve substantial operational cost savings over time due to lower energy bills and potential incentives or tax benefits. Also, investing in solar energy enhances an airport’s environmental image and attracts eco-conscious travelers and airlines.

Green Airport Market Regional Insights

The Green Airport market in North America is experiencing significant growth thanks to the increasing environmental concerns, stringent regulations, and the push towards sustainable infrastructure. Airports are integrating green technologies to reduce carbon footprints, improve energy efficiency, and minimize environmental impacts. Collaborative efforts between major airlines and airports are driving the adoption of Sustainable Aviation Fuel (SAF). A noticeable example is Los Angeles International Airport (LAX), spearheading this movement with commitments from airlines like United Airlines to substantial SAF purchases, aimed at curbing carbon emissions. Meanwhile, Denver International Airport (DEN) is setting a precedent in energy efficiency through significant investments in solar power projects.

 

These initiatives not only cater to the airport's energy requirements but also diminish reliance on traditional energy sources, thus bolstering overall sustainability. Also, airports across the board are pursuing LEED certification, a hallmark of environmental responsibility. San Francisco International Airport (SFO) shines in this regard, boasting the highest level of LEED certification for its terminal infrastructure. Such endeavors underscore airports' dedication to green practices, signaling a pivotal shift towards more environmentally conscious aviation operations.

 

Implementing green initiatives at airports incurs varied costs, depending upon project scale and complexity. Energy-efficient lighting systems, crucial for reducing energy consumption, range from $100,000 to $1 million, influenced by the airport's size and requirements. Similarly, solar panel installations, integral to renewable energy generation, demand substantial investment, typically ranging from $3 million to $10 million. Raw material costs constitute a significant portion of green airport initiatives. Solar panels, essential components of renewable energy infrastructure, command prices ranging from $2.50 to $3.50 per watt installed. Also, sustainable construction materials, while promoting eco-friendliness, incur higher costs compared to traditional alternatives, typically ranging from 10% to 20% more. Balancing these expenses with long-term environmental and financial benefits underscores the intricate decision-making involved in pursuing sustainable practices within airport infrastructures.

 

• Over $2 billion has been invested in green technologies and infrastructure upgrades in major North American airports over the past five years.

 

Green Airport Market Competitive Landscape

Honeywell leads with advanced energy management systems for airports, optimizing energy use and reducing waste, yielding cost savings and environmental benefits. Siemens pioneers next-gen solar solutions, featuring flexible panels and integrated canopies, maximizing energy generation while minimizing space. Schneider Electric innovates smart grid integration solutions, bolstering airport energy infrastructure resilience and reliability. Leveraging advanced grid management, these solutions optimize energy distribution, enhance grid stability, and seamlessly integrate renewables like solar and wind power. Together, these advancements mark significant strides in greening airport operations, aligning with global sustainability goals while improving efficiency and reducing environmental impact.

 

1. Honeywell International, Inc. unveiled an updated suite of airside solutions in June 2023, aimed at enhancing its gate, turnaround, and airfield lighting offerings. Among the new offerings are the Honeywell Navitas Smart Visual Docking system, Turnaround Manager, Single Lamp Control and Monitoring System (ASDv5 SVL), and Loop Sensor.

 

2. SITA secured a contract from Hong Kong International Airport in March 2023 to deploy a carbon management platform. The platform will enable the airport to monitor and manage carbon emissions data effectively, aiding in tracking key performance indicators (KPIs) as part of its commitment to achieving net zero carbon emissions.

 

3. Siemens Logistics was awarded a contract by Aena, the Spanish airport operator, in August 2023, to oversee the operation and maintenance of the baggage handling system at Palma de Mallorca Airport (PMI) in Spain. The service contract encompasses the management of the airport's conveyor system, two tilt-tray sorters, 192 check-ins, and various baggage reclaim carousels.

 

4. Schneider Electric, in collaboration with its joint venture AlphaStruxure, agreed in January 2023 to develop, build, and manage an integrated microgrid infrastructure at the New Terminal One (NTO) of John F. Kennedy International Airport. The project involves the installation of a 13,000-panel solar array, covering all available and viable rooftop areas.

Green Airport Market Scope
Market Size in 2023	USD 5.3 Bn.
Market Size in 2030	USD 9.71 Bn.
CAGR (2024-2030)	9.04 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
	By  Energy Type Bioenergy Solar energy Wind power
	By Airport Type Civil Military
	By Airport Class Class A Class B Class C
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Key Player in the Green Airport Market

1. Siemens AG
2. Honeywell International Inc.
3. ABB Ltd.
4. General Electric Company (GE)
5. Schneider Electric SE
6. Johnson Controls International plc
7. IBM Corporation
8. Hitachi, Ltd.
9. SITA
10. Groupe ADP (Aéroports de Paris)
11. Munich Airport
12. Schiphol Group
13. Fraport AG
14. Dallas Fort Worth International Airport (DFW)
15. San Francisco International Airport (SFO)
16. Heathrow Airport Holdings
17. Changi Airport Group
18. Dubai Airports
19. Airports Council International (ACI)
20. International Air Transport Association (IATA)
21. XXX Inc.