Airport Retailing Consumer Electronics Market

Airport Retailing Consumer Electronics Market Outlook (2024 to 2034)

The global airport retailing consumer electronics market size is expected to reach a size of US$ 2.08 billion in 2024 and further expand at a CAGR of 7.4% to end up at US$ 4.24 billion by 2034.

Online portals are making it easier to book hotels and transportation. Continuous advancements in the travel and tourism industry, as well as the integration of various segments such as hospitality and infrastructure with government initiatives to attract tourists, are benefitting market players.

Key Market Growth Drivers

• Rising number of air travelers is contributing to global airport retailing consumer electronics market growth. As more people fly for business and leisure, airports are becoming economic hubs, including retail.
• More travelers are seeking the latest gadgets and accessories, and therefore airports are ideal channels to sell these innovations.
• Modern consumers prioritize convenience and experience. Airport retailing allows consumers to browse and purchase electronics without the necessity to visit a traditional store or wait for home delivery.
• Airports are adopting the popular concept of travel retail shops. These shops sell a wide range of products, including wines and spirits, perfumes and cosmetics, tobacco products, electronics, food and beverages, and fashion and accessories. These airport retail shops, which are strategically located in high-traffic areas are attracting a large customer base.
• Some airport retailers have integrated their operations with online platforms, allowing passengers to pre-order or pick up online purchases, increasing convenience and accessibility.
• Airport retailing is making it easier for travelers who have forgotten their essential electronics or want to upgrade or replace them while on the go.
• Increasing air traffic, expansion of airport infrastructure, and rising consumer demand for luxurious products are contributing to the expansion of the airport retailing consumer electronics market size. Duty-free products in airport retail stores are exempt from national taxes, duties, and a variety of local taxes. When visiting another country, travelers frequently purchase duty-free products such as perfumes, liquors, electronics, and tobacco. Duty-free retail outlets appeal to consumers and play an important role in the global airport retailing market.

Report Attribute	Detail
Airport Retailing Consumer Electronics Market Size (2024E)	US$ 2.08 Billion
Projected Market Value (2034F)	US$ 4.24 Billion
Global Market Growth Rate (2024 to 2034)	7.4% CAGR
East Asia Market Share (2024E)	23.5%
North America Market Growth Rate (2024 to 2034)	6.9% CAGR
Revenue from Medium Airports (2024)	US$ 1.14 Billion
Electronics Devices Segment Value (2024E)	US$ 747.5 Million
Key Companies Profiled	Crystal Media; Royal Capi-Lux (‘Capi’); InMotion; Dubai Duty-Free; Lagardere Travel Retail; Bahrain Duty-Free Shop Complex; Regstaer Duty-Free; King Power International; Gebr. Heinemann SE & Co. KG; China Duty-Free Group Co. Ltd.; DFS Group Ltd.; Dufry AG.

What are the Key Factors Driving Sales of Airport Retailing Consumer Electronics?

“Expansion of Travel and Tourism Industry and Easy Access to Purchase Facilities”

Expansion of the travel and tourism industry is expected to benefit market players to a great extent. Business, leisure, medical, and other activities are classified as travel and tourism. Easy access to purchase facilities is one of the key airport retailing consumer electronics market trends. These factors are set to increase travelers' footprints at airports, thereby supporting global airport retailing market growth. Constantly developing the travel and tourism industry and incorporating various sectors such as hospitality with government initiatives to attract more tourists aids the growth of the travel and tourism industry around the world. This is likely to boost the airport retailing market during the forecast period.

What is Restraining Market Growth to Some Extent?

“Security Concerns and Carry-On Luggage Limits”

Long wait times at airports between flights are allowing retailers to attract consumers. However, carry-on luggage restrictions and security concerns can deter people from purchasing larger electronic devices. Online retailers and local stores offer more competitive prices than airport shops.

Browsing and shopping opportunities are limited by time constraints among air travelers. Travelers are increasingly researching and purchasing electronics before their trip, reducing impulse purchases in airports. Travelers also find airport electronics shopping less appealing due to duty-free restrictions.

Country-wise Insights

Market players are detecting high revenue-generating opportunities at large and busy airports in the aforementioned economies, reshaping the growth prospects of the airport retailing consumer electronics market in developing nations.

North America is poised to hold a market share of 33% in 2024, while East Asia is expected to account for 23.5% market share. Luxury brands are making significant gains in Asia Pacific's airport retailing segment. High-end fashion, accessory, and cosmetics brands are expanding their presence in airports. Airports in this region are implementing digital technologies to improve the overall shopping experience for passengers.

What is Expanding the Presence of Retail Stores at Airports in the United States?

“Implementation of Touchless Payment Options and Interactive Displays and Demo Areas”

Attribute	United States
Market Value (2024E)	US$ 304.9 Million
Growth Rate (2024 to 2034)	7.2% CAGR
Projected Value (2034F)	US$ 609 Million

The United States is expected to hold 44.5% share of the market in North America in 2024 as more airports in the country feature dedicated consumer electronics stores or kiosks, offering a wide range of gadgets and accessories to customers. There is also an increasing focus on compact, portable, and multi-functional electronics catering to the needs of travelers.

Some retailers are even offering interactive displays and demo areas for customers to test products before purchase. Many airports in the United States are implementing touchless payment options for a more streamlined shopping experience. There are also high-end electronics brands that are expanding their airport retail presence to target business and luxury travelers.

What is Driving Sales of Consumer Electronics at Airports in Japan?

“Tourists Purchasing Electronics as Souvenirs and Influence of Advanced Technology Culture”

Attribute	Japan
Market Value (2024E)	US$ 141 Million
Growth Rate (2024 to 2034)	8.7% CAGR
Projected Value (2034F)	US$ 324.1 Million

With a thriving tourism industry and increased air travel, airports in Japan have emerged as major retail hubs, offering a diverse range of products and services to meet the needs of both domestic and international travelers. Japan is also known for its advanced technology and gadget-loving population, and this naturally extends to airport retail, especially in electronic gadgets. Electronics are popular gifts, and tourists frequently purchase them as souvenirs or presents before departing the country.

Category-wise Insights

Electronic devices are poised to hold a market share of 36% in 2024. In terms of airport size, the market is segmented into large, medium, and small. Medium-size airports are set to account for more than half of the market share in 2024.

Direct retailers have more control over their operations at airport terminals. They can design their stores, choose merchandise based on market demand, and execute customized marketing strategies. With this level of control, they can create a one-of-a-kind shopping experience that caters to travelers' specific needs and preferences.

Why are Electronic Devices in Such High Demand at Airport Retail Stores?

“Airport Retail Stores Selling Premium Products to Enhance Shopping Experience”

Attribute	Electronics Devices
Segment Value (2024E)	US$ 747.5 Million
Growth Rate (2024 to 2034)	8% CAGR
Projected Value (2034F)	US$ 1.61 Billion

Electronic devices are expected to hold 36% airport retailing consumer electronics market share in 2024. Most of the airport retail is dominated by food & beverages and consumer electronics as this holds a significant share of the market. With the premium, consumer electronics airport is expanding their retail offerings and also enhancing shoppers’ experience.

Noise-canceling headphones and high-quality earphones are popular among travelers who want to block out ambient noise while listening to music, movies, or podcasts on flights. With an increasing reliance on smartphones, tablets, and laptop computers, travelers frequently purchase portable chargers and power banks to keep their devices charged throughout their trip.

Why Do Medium-Size Airports Account for Higher Sales of Consumer Electronics?

“Focus on Reducing Reliance on Airline Fees by Diversifying Revenue Streams”

Attribute	Medium Size Airports
Segment Value (2024E)	US$ 1.14 Billion
Growth Rate (2024 to 2034)	8.3% CAGR
Projected Value (2034F)	US$ 2.54 Billion

Medium-size airports are looking to diversify their revenue streams beyond aviation to reduce their reliance on airline fees. Such airports are also curating electronic selections to better suit their passengers' demographics and needs. They frequently collaborate with local electronics retailers to strengthen community ties and support regional businesses.

Controlling electronics retail allows medium-sized airports to differentiate themselves from larger hubs and smaller regional airports. By managing electronics retail directly, airports are making better use of their limited retail space. They are also incorporating electronics retail into larger strategies to improve the overall passenger experience and satisfaction.

Competitive Landscape

Key players in the airport retailing consumer electronics market are mainly opting for growth-oriented strategies. In addition, branding and continuous technical advancements in the technological sector are hitting the top position in their priority list. These strategies are helping global players expand their regional footprint and garner maximum market share, thus providing a technical advantage.

• Smartseller, a collaboration between Gebr. Heinemann and Casualfood, adapted its hybrid retail concept for small airports. It debuted at Ljubljana Airport in Slovenia in 2021, combining travel retail shopping with food and beverage options and focusing on small and medium-sized airports.
• In August 2021, Durfy extended its partnership by continuing the duty and tax-free rental contract at Cardiff Airport, Wales.

Fact.MR provides detailed information about the price points of key airport retailing consumer electronics companies positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Airport Retailing Consumer Electronics Market Research

• By Product Type :

  • Electronic Devices
  • Accessories
  • Others

• By Airport Size :

  • Large
  • Medium
  • Small

• By Store Location :

  • Pre-security (Landside)
  • Post-security (Airside)
  • Aero Cities

• By Sales Channel :

  • Hypermarkets/Supermarkets
  • Specialty Retail Stores

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • South Asia & Pacific
  • East Asia
  • Latin America
  • Middle East & Africa