Fixed-Base Operator Market Size & Share | Global Report 2028

The global fixed-base operator market is expected to grow from US$ 25,194.55 million in 2022 to US$ 37,177.46 million by 2028; it is estimated to grow at a CAGR of 6.7% from 2022 to 2028.

The overall fixed-base operator market size in APAC is witnessing slow growth as compared to other regions such as North America and Europe, which is mainly attributed to the presence of a smaller number of business as well as private jets across the region. The fixed-base operator market is observing slight growth in the Southeast countries such as Indonesia, Singapore, and Macau. The presence of huge middle-class population with a wide range of income levels, coupled with a surge in the spending power of this population, is influencing the private aviation industry, specifically in the Southeast Asia. The aviation industry is growing in dynamically in the region, especially in developing economies, however, the fixed-base operator market is witnessing slow growth in the region. The key reason behind slow growth rate of FBOs in the region is the lack of business aviation infrastructure in China, India, Japan, and Malaysia. However, in the recent years, these countries are observing steady rise in business aviation, owing to which the number of fixed-base operator market players are rising strongly in the region.

Irrespective of the slow overall growth in Asia, the fixed-base operator market is rising at a notable pace in the Southeast Asia, especially in Indonesia, Singapore, Macau, and Hong Kong, among others. The immaturity of business and presence of the private aviation sector are the two key factors limiting the fixed-base operator market growth in the region. Moreover, unlike North America and Europe, APAC has a smaller number of FBOs. In APAC, the highest number of FBOs are present in Australia, i.e., 23 facilities, with business aviation fleet of ~200 aircraft. Furthermore, the corporates have emerged as passionate users of business jets across the region; thus, the rising demand is likely to boost the business aviation industry growth in the coming years. Therefore, the fixed-base operator market players are introducing attractive membership schemes and are easily availing chartered services by using advanced technologies through online platforms, thereby making charter services more accessible to the people, which is driving the procurement of new business jets thereby catalyzing the fixed-base operator market size.

Strategic Insights

Impact of COVID-19 Pandemic on Fixed-Base Operator Market Growth

The COVID-19 outbreak has significantly affected the world and is continuing to shatter several countries. Until the outbreak, the aviation industry was experiencing substantial growth worldwide. However, the outbreak of the novel coronavirus has been reflecting notable decline in the adoption of aviation-based services, such as fixed-base operators. Containment measures such as lockdown, business shutdown, and travel restriction disrupted the supply chain of fixed-base operators, leading to the decline in revenues among the service providers. Moreover, the restriction on travel activities in many countries impaired the adoption of fixed-base operator from demand side in 2020, and so far, 2021. However, as trading activities picked pace from the last quarter of 2020, market players are experiencing decent growth in demand from end users of fixed-base operators.

Lucrative Regions for Fixed-Base Operator Providers

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Growth of Business Aviation Sector

The increasing number of individuals with ultrahigh net worth in developing regions is a one of the key factors boosting the business of the global aviation sector. With its large population and wealth, APAC region is in a good position to quickly tackle flexibility issues to empower efficient business travel. Organizations such as ASEAN and APEC are synergistically working with the International Business Aviation Council (IBAC), the International Civil Aviation Organization (ICAO), and the Asian Business Aviation Association (AsBAA) for improving transportation regulations to implement efficient solutions. Business jet deliveries in China witnessed a decline due to poor domestic growth and poor business confidence in business jets. Despite the low demand for domestic business jets, various companies in China are confident of having new aircraft deliveries since the country is one of the main markets for the business jet in the region.

Service Offered -Based Market Insights

Based on Service Offered, the fixed-base operator market can be segmented into hangaring, fuelling, flight instructions, aircraft maintenance, and aircraft rental. The substantial growth in ultra-high-net-worth individuals and high-net-worth individuals worldwide. Thus, boosting the demand for private travel, consequently driving the procurement of private jets with enhanced cabin interiors. Therefore, the fixed-base operators are focusing on providing the most efficient services both to the travelers as well as aircraft owners.

Application – Based Market Insights

Based on application, the fixed-base operator market is segmented into business aviation and leisure aviation. The rising demand of enhanced and efficient safety while traveling with all luxury services is creating huge opportunity for the fixed-base operator to offer these services to the aircraft owners. Moreover, the boosting business aviation globally is supporting the growth of fixed-base operator market worldwide.

Fixed-Base Operator Market, by Services Offered – 2022 and 2028

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The players operating in the fixed-base operator market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:

• In 2022, Jetex announced that it has signed an agreement with Avia Solutions Group to operate the FBO at Hangar 510 at Biggin Hill Airport (EGKB/BQH).
• In 2021, Atlantic Aviation FBO Inc. had constructed a new 25,000 square foot hangar at its fixed base operation at Chicago Executive Airport (PWK)
• In 2021, Jet Aviation, a part of General Dynamics Corp., has acquired ExecuJet’s Zurich FBO and Hangar operations and Luxaviation’s Swiss Aircraft Management and Charter Divisions. This acquisition adds second FBO terminal, two private ramps and two hangars to the company’s presence in Zurich, and 17 aircrafts to its European fleet.
• In 2021, Signature Aviation shifted to new Fixed Base Operator facility at Baton Rouge Metropolitan Airport. According to the company, the transition to Los Angeles would prove to be highly beneficial for the company in the coming years.