Market Analysis – 25191508 – Jetways

Executive Summary

The global market for jetways (Passenger Boarding Bridges) is valued at approximately $1.1 billion and is projected to grow steadily, driven by worldwide airport expansion and modernization. The market has seen a recent 3-year compound annual growth rate (CAGR) of est. 4.5%, reflecting recovery and new projects post-pandemic. The primary opportunity lies in adopting automated and all-electric PBBs to reduce long-term operational costs and meet sustainability goals, while the most significant threat remains the high price volatility of core raw materials like steel and aluminum.

Market Size & Growth

The global Total Addressable Market (TAM) for jetways was estimated at $1.12 billion in 2023. The market is projected to expand at a CAGR of est. 5.8% over the next five years, reaching approximately $1.48 billion by 2028. This growth is fueled by rising passenger traffic, new airport construction, and the replacement of aging infrastructure. The three largest geographic markets are: 1) Asia-Pacific (driven by China and India), 2) North America (driven by modernization), and 3) Europe.

Key Drivers & Constraints

1. Demand Driver: Airport Expansion & Modernization. Global passenger traffic is projected to double by 2040, necessitating significant investment in new terminals and upgrades to existing facilities, directly driving PBB demand. [Source - IATA, Oct 2023]
2. Demand Driver: Passenger Experience & Efficiency. Airports are competing on passenger experience and operational efficiency. Modern PBBs reduce turnaround times, improve safety, and offer amenities like pre-conditioned air (PCA) and ground power units (GPU), enhancing the value proposition.
3. Technology Driver: Automation & Sustainability. A push for operational autonomy and ESG goals is accelerating the adoption of automated docking systems and all-electric PBBs, which reduce the risk of aircraft damage and lower ground-level emissions.
4. Cost Constraint: Raw Material Volatility. PBB manufacturing is steel-intensive. Fluctuations in steel, aluminum, and copper prices directly impact unit cost and create budget uncertainty for long-term airport capital plans.
5. Market Constraint: High Capital & Long Replacement Cycles. Jetways represent a significant capital expenditure with a long operational lifespan of 20-25 years. This results in a slow replacement cycle, making the market heavily dependent on new construction projects.
6. Regulatory Constraint: Stringent Safety Standards. PBBs must comply with rigorous aviation safety and accessibility standards (e.g., FAA, EASA, IATA AHM 920), creating high barriers to entry and requiring significant R&D investment for incumbents.

Competitive Landscape

The jetway market is highly consolidated with significant barriers to entry, including high capital requirements for manufacturing, complex engineering expertise, and established relationships with airport authorities.

⮕ Tier 1 Leaders * JBT Corporation (AeroTech): Global leader with a strong presence in North America and Europe; differentiates through advanced automation and software integration (iOPS® suite). * CIMC-Tianda: A subsidiary of China International Marine Containers; dominates the Asia-Pacific market with highly competitive pricing and large-scale manufacturing capacity. * ADELTE Group: Spanish-based firm known for innovative and highly customized PBB solutions for challenging terminal environments, including cruise terminals. * TK Elevator (Airport Solutions): Formerly Thyssenkrupp, a major player in Europe with a large installed base and strong service network, now under private equity ownership.

⮕ Emerging/Niche Players * ShinMaywa Industries: Japanese manufacturer with a reputation for exceptional engineering quality and reliability, primarily focused on the Asian market. * FMT Aircraft Gate Support Systems: Swedish company specializing in apron management systems, offering integrated solutions including PBBs, GPUs, and PCA units. * Hubner Group: German firm specializing in gangway systems for transportation; a niche player in PBBs but a leader in the flexible corridor component. * Avicorp: A smaller, flexible player based in Spain, often competing on bespoke projects.

Pricing Mechanics

The price of a single passenger boarding bridge typically ranges from $400,000 to over $1 million, depending on specifications. The price build-up begins with the base structural and electro-mechanical system, which accounts for ~50-60% of the cost. The remaining 40-50% is driven by customization and add-ons, including the length and number of tunnels, cabin size, integration of Pre-Conditioned Air (PCA) and Ground Power Units (GPU), and advanced visual or automated docking systems. Installation, commissioning, and site-specific engineering add another 15-25% to the total project cost.

Long-term service and maintenance contracts are a critical and profitable secondary revenue stream for suppliers. The three most volatile cost elements are raw materials and labor: 1. Structural Steel (HRC): Price fluctuations are a primary risk. Recent 12-month change: est. +12%. 2. Aluminum (for cladding/components): Subject to global commodity market volatility. Recent 12-month change: est. +8%. 3. Skilled Technical Labor (Engineering, Installation): Wages have risen due to labor shortages and inflation. Recent 12-month change: est. +6%.

Recent Trends & Innovation

• Automated Docking Goes Mainstream (Ongoing since 2022): Major suppliers like JBT are actively deploying AI- and LiDAR-based automated docking systems. These systems reduce docking times by up to 40% and virtually eliminate accidental aircraft contact, lowering operational risk and insurance costs for airlines and airports.
• Focus on All-Electric Systems (2023-Present): In response to airport decarbonization goals, suppliers have shifted R&D to all-electric PBBs that eliminate the need for hydraulic fluids and reduce energy consumption by up to 30% compared to traditional electro-hydraulic models.
• Consolidation in Ground Support (June 2023): CIMC-Tianda acquired a controlling stake in Albert Ziegler GmbH, a German manufacturer of airport firefighting vehicles. This move signals a broader trend of PBB manufacturers expanding their portfolios to offer a "one-stop shop" for airport ground support equipment (GSE).

Supplier Landscape

Regional Focus: North Carolina (USA)

Demand in North Carolina is strong, driven by major hub expansion projects. Charlotte Douglas International Airport (CLT), an American Airlines hub, is undergoing its multi-billion dollar "Destination CLT" program, which includes terminal expansions and gate modernizations that will require new PBB procurement through 2026. Similarly, Raleigh-Durham International Airport (RDU) is advancing its "Vision 2040" master plan, with near-term projects focused on terminal and gate upgrades. No major PBB manufacturers are based in NC; supply is managed by national/global players with regional installation and service teams. The state's favorable business tax climate and availability of skilled construction labor support competitive installation costs, though all projects must strictly adhere to FAA regulations.

Risk Outlook

Actionable Sourcing Recommendations

1. Mitigate Commodity Volatility. For new PBBs, mandate fixed-price bids that include economic adjustment clauses tied to a specific steel index (e.g., CRU). For multi-year programs, engage suppliers 18 months in advance to explore hedging or forward-buying of raw materials, which can secure budgets and reduce total cost by 5-10% against market swings.

2. Prioritize TCO over CapEx. Mandate a Total Cost of Ownership (TCO) model in all RFPs to evaluate bids for automated and all-electric PBBs. While CapEx may be 15-20% higher, these units can deliver long-term OpEx savings via reduced energy use, lower maintenance, and fewer aircraft damage incidents, justifying the initial investment.