Global Commercial Airport Lighting Systems Market - Growth, Trends and Forecast (2018 - 2023)
The Commercial Airport Lighting Market is expected to register a CAGR of 7.2% during the forecast period of 2018 - 2023. The Asia-Pacific countries are expected to record the highest growth rate for airport lighting systems in the coming years. Commercial airport lighting includes all types of lighting systems used to indicate directions to the aircraft, during landing, takeoff, and parking, in addition to providing support to other commercial aircraft operations.
These lights are installed in runways, taxiways, and indoors as well. The development of new airports, expansion of existing airports, rising demand for commercial aircraft, and the need for energy-efficient lighting are some of the major factors driving the global commercial airport lighting market. Economic crisis in some economies, and regulatory and administrative issues subjected to airports, are some of the restraints identified in the market. Due to continuous usage, terminal lighting accounts for about 40% of the energy consumption. These lighting systems are necessary for operations inside buildings, even during the day.
India is poised to become the third largest aviation market by 2020. By 2020, passenger traffic at Indian airports is expected to increase to 421 million, from 223.61 million in 2016. As a result, the development of new airports and the expansion of existing airports is expected to drive the demand for airport lighting. Rajiv Gandhi International Airport at Hyderabad has plans to become a 100% LED-lit airport, and about 75% of the work on the project has been completed. In 2017, GMR Hyderabad International Airport Ltd, which operates the airport, announced that it has converted the entire taxiway edge lights from halogen lamps to energy-efficient LEDs. The Indian government is also planning to invest USD 1.83 billion for the development of airport infrastructure, along with aviation navigation services, by 2026. Additionally, the growing private sector participation through the public-private partnership (PPP) route in various Greenfield and brownfield airport projects is expected to boost the market studied.
In the present scenario, the Government of India has allowed 100% FDI under automatic route for Greenfield projects, whereas, 74% FDI is allowed under automatic route for brownfield projects. There is a 100% tax exemption provided for airport projects, for a period of 10 years.
Key Developments in the Market
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