Industry Trend Analysis - Airports Growth Lifted By Regional Demand And PPP Interest - FEB 2018
BMI View: Strong growth across many of Asia ' s airport infrastructure sectors will be supported by rapidly rising passenger traffic as well as the proliferation of private investment interest in both greenfield and brownfield assets. In particular, PPPs are becoming increasingly common in both developed and emerging airport infrastructure markets.
Rapid growth in air passenger traffic, supportive government-led investment initiatives and rising interest in public-private partnerships (PPPs) will all contribute to the expansion of Asia's airports infrastructure sector over the coming years. Many of Asia's aviation sectors are poised for strong growth over the next five years - the number of annual air passengers in India and China, for example, are set to double by 2022, placing immense strain on existing airport facilities and driving demand for the construction of new ones.
Governments in the region have responded by launching strong pipelines of new airport projects aimed at meeting that demand. Opportunities for foreign investors will come as emerging markets like India, Indonesia, the Philippines and Vietnam are increasing looking at using PPPs for such airport projects. Although the largest emerging markets of China, India and Indonesia are poised for the fastest growth rates over the 2018-2022, we highlight that positive demand dynamics in smaller markets will also generate investment and contract opportunities, especially as they seek to bring in international firms with relevant technical expertise.
|Airports Growth Taking Off|
|Emerging Asia - Airports Infrastructure Real Growth, % y-o-y|
|f=BMI forecast. Source: National Sources, BMI|