According to the Market Statsville Group (MSG), the global fixed-base operator (FBO) market size is expected to grow from USD 4.5 billion in 2022 to USD 8.3 billion by 2033, at a CAGR of 5.7% from 2023 to 2033. The major factors driving the growth of the fixed base operator market include growth in the global airport infrastructure and increased use of aircraft ground handling systems.

A fixed-base operator (FBO) is an organization that provides various services permitted by the airport authority to operate and provide aeronautical services, including aircraft maintenance, hangaring, tie-down and parking, aircraft rental, fueling, flight instruction, and others. The FBO is the primary support services provider to aviation operators at an airport.

FBO offers and operates differently; not all FBO service needs to provide the same and similar services; some offer ground transportation arrangement, restroom facilities, weather information areas, showers, aviation supplies, and concierge services for flight crews, pilots, and passengers. And others provide in-flight catering services to aircraft.

The FBO's place of business varies as per location, demand, and air traffic, as it can be a small hangar or shop with an adjoining office and perhaps a pilot's lounge. Or, it can be an elaborate series of hangars, shops, offices, classrooms, and showrooms. Also, various private jet chatters their jet at FBO and plans their trip accordingly. Thus, increasing dependency on luxurious lifestyles and rising demand for such FBO services worldwide have positively influenced the market's growth. Moreover, this advanced service has opened the door for fast-growing organizations of all sizes, making FBO available for big and small companies.

COVID-19 Impact on the Global Fixed-base Operator (FBO) Market

The COVID-19 pandemic has impacted virtually every aspect of everyday life, including the aviation industry. COVID-19 severely impacted the airline and FBO industry as the pandemic has weakened airline hubs in the short term, which resulted in the declining growth of the FBO market. However, traffic starts to come back with the announcement of vaccines. The airline operator companies who remain uptight in the tough era are assumed to be stronger and more profitable with some necessary short- and long-term adjustments to their model. The significance decline in the aviation industry due to the pandemic and containment measures is threatening the viability of fixed-base operators. However, various nations, including the USA, Australia, Singapore, China, France, and others are helping their airlines with supportive financial packages to keep airlines worthy and pay salaries to their staff.

Global Fixed-base Operator (FBO) Market Dynamics

Drivers: The growth in the global airport infrastructure

The quality and timely airport infrastructure keep pace with the level of projected growth and interest of the traveling public. Also, with accommodating the demand for better airport infrastructure, aviation's economic and social benefits can contribute to the community and national economic vitality. The growing air traffic will increase the need to innovate with new concepts that are required to optimize the use of emerging technologies, processes and design for the complete ground journey. Thus, major countries are focusing on airport infrastructure, which fosters the demand of FBO market over the forecast period. For instance: as per A-ICE, India’s aviation industry is anticipated to become one of the world's fastest-growing, with a growth rate of 6.8% expected, equating to more than 50 million passengers per year. This will further increase India’s airports and aviation infrastructure, thereby paving its way toward market growth.

Restraints: COVID-19 crisis coupled with huge capital investment

The huge capital investment is the major reason that hinders the growth of the market. Further, the significance decline in the aviation industry due to the pandemic and containment measures is threatening the viability of diversified industries. The countries had to make a choice between economy and health safety, where most countries have prioritized health safety and grounded their airline completely. The impact of restricted airline operations is visible on the income-expenditure table of airlines. As the grounded plane makes no money, however, they demand more in terms of extended maintenance and parking fees with fixed costs, with no revenue earnings.  

Opportunities: The rising dependency on a luxurious lifestyle

In today's busy lifestyle and advanced world, consumers prefer to spend more by getting better and more luxurious services. For offering upscale amenities, FBOs are focusing in severe measure with the growing trend of partnering with major hotels and retailers. Many FBOs are being re-novate with private meeting rooms, plush lounges, and also a spa area. When private plane charters at an FBO partner with a hotel, they can walk off the aircraft and stay at the hotel. Thus, the rising demand for luxurious services, coupled with the growing need for FBO services at airports, is creating a lucrative growth opportunity for the FBO market.

Scope of the Global Fixed-base Operator (FBO) Market

The study categorizes the fixed-base operator (FBO) market based on type and application area at the regional and global levels.

By Type Outlook (Sales, USD Billion, 2019-2033)

• Parking
• Line Services
• Repari and Maintenance
• Air Taxi and Air Charter Operations
• Passenger Services
• Customs
• Others

By Application Outlook (Sales, USD Billion, 2019-2033)

• General Aviation
• Private Aviation

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

General Aviation segment accounts for the largest market share by application

Based on the application, the market is bifurcated into general and private aviation. The general aviation segment accounts for a larger revenue share in 2022. People from various countries travel to foreign countries as tourists, which has become a new trend in recent years. In response to this demand, multi-brands are changing their services in both private and general aviation, which will be another driving force in this sector. The growing demand for advanced and productive safety while traveling with all luxury services is opening up a huge opportunity for fixed-base operators to provide these services to aircraft owners. Furthermore, the global expansion of business aviation is supporting the growth of the fixed-base operator market.

North America is projected to account for the highest market share by Region

Based on the regions, the global fixed-base operator (FBO) market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. North America is expected to witness the highest market share in 2022. North America's aviation industry is mature, with several aircraft OEMs present. The growing emphasis on improving the infrastructure of private airports, combined with favorable regulatory changes, may support the growth of the North American general aviation market during the forecast period.

Key Market Players in the Global Fixed-base Operator (FBO) Market

The fixed-base operator (FBO) market is extremely cutthroat, and significant competitors in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global fixed-base operator (FBO) market are:

• Qantas Airways Limited ABN
• Dassault Aviation
• Jetex
• TAG Farnborough
• Paragon Aviation Group
• Hawker Pacific
• Wira-FBO
• Signature Flight Support
• Airflite International
• AFM Aviasi
• Monadnock Aviation Inc.
• Atlantic Aviation Services, Inc.

Recent Developments

• In April 2021, Polaris Aero joined Strategic Partners, Paragon Aviation Group’s first-rate vendor program that offers exclusive pricing to their Paragon Preferred customers in various aviation-related services and products.
• In January 2021, Jet Aviation finalized its integration with FBO/MRO chain Hawker Pacific, which was acquired in 2018. As a broader part of this effort, the company has also introduced a new logo and revamped its website following a year of gathering feedback from customers and employees
• In April 2021, Chantilly Air Jet Center, a full-service fixed base operator (FBO) serving its huge offerings in the Washington, DC metro area, joined the Signature Select network

Key Issues Addressed

• What is the market size by various segmentation of the fixed-base operator (FBO) by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the fixed-base operator (FBO) market?
• What are the key opportunities and trends for manufacturers involved in the fixed-base operator (FBO) supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of fixed-base operator (FBO) in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.