Smart Airport Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Market Scenario 

The global Smart Airport Market is poised to generate revenue of US$ 82,984.8 million by 2031, up from US$ 32,151 million in 2022, at a CAGR of 10.9% over the forecast period of 2023-2031.

The growth of the smart airport market continues to be driven by the increasing number of air passengers worldwide. In 2019, the International Air Transport Association (IATA) reported that airlines operated more than 22,000 unique city pairs globally, which represented an increase of almost 1,000 city-pair connections from 2018. The growth of air travel in recent years has also led to a decline in the cost of air travel, with the inflation-adjusted cost of air travel decreasing by 2.3% in 2019, according to the IATA. However, the COVID-19 pandemic has had a significant impact on the aviation industry, leading to a reduction in air travel demand and passenger traffic. 

In 2020, the number of air passengers fell to only 1.8 billion due to travel restrictions and border closures. As of 2021, the aviation industry is gradually recovering, with passenger traffic beginning to increase again in many regions. The IATA reported that global passenger traffic measured in revenue passenger kilometers (RPKs) was down 60.1% in June 2021 compared to June 2019, but this represented an improvement from the -67.2% decline recorded in May 2021. Despite the challenges posed by the pandemic, the smart airport market is expected to continue growing in the long term, driven by technological advancements and the increasing demand for air travel.

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Market Dynamics 

Drivers 

Increasing Demand for Advanced Airport Technologies 

The rising demand for advanced airport technologies such as IoT, AI, and Big Data is a key driver of the smart airport market. These technologies enable airports to optimize their operations, enhance passenger experience, and improve safety and security. For instance, IoT sensors can be used to monitor airport equipment and detect potential faults before they occur, while AI and Big Data analytics can be used to optimize airport operations and improve the efficiency of processes such as baggage handling and security screening.

Increasing demand for advanced airport technologies: The demand for advanced airport technologies is growing due to the need to optimize airport operations, enhance passenger experience, and improve safety and security. According to a report by the Airports Council International (ACI), airports are expected to invest $100 billion in technology over the next decade to meet the rising demand for air travel and improve operational efficiency. The report also highlights that the use of advanced technologies such as AI, biometrics, and robotics will become increasingly important for airports to stay competitive in the future.

Rising Air Passenger Traffic to Drive Demand for Smart Airports  

The increasing number of air passengers globally is another driver of the smart airport market. With the rising demand for air travel, airports are under pressure to enhance their capacity and efficiency. Smart airport solutions can help airports to optimize their operations and improve the passenger experience, which can lead to increased customer satisfaction and loyalty. For instance, smart technologies such as self-check-in kiosks and automated baggage handling systems can reduce wait times and improve the overall passenger experience.

The increasing number of air passengers globally is a significant driver of the smart airport market. According to the International Air Transport Association (IATA), the number of air passengers is expected to double by 2037, reaching a total of 8.2 billion passengers. As a result, airports are under pressure to enhance their capacity and efficiency to meet the rising demand for air travel.

Governments around the world are investing heavily in airport infrastructure to support the growth of air travel. For instance, the Indian government has launched the Regional Connectivity Scheme (UDAN) to improve regional air connectivity and enhance the efficiency of airport operations. The Chinese government has also invested heavily in airport infrastructure, with plans to build 216 new airports by 2035 to meet the growing demand for air travel.

Trend

Adoption of contactless and touchless technologies

The COVID-19 pandemic has accelerated the adoption of contactless and touchless technologies in the smart airport market. The need for social distancing and hygiene has led to the increased use of technologies such as biometric facial recognition, mobile check-in, and touchless baggage drop. These technologies not only reduce physical contact but also enhance the efficiency and speed of airport operations.

Governments and airports around the world are investing in these technologies to improve the safety and security of airport operations. For instance, the Dubai International Airport has implemented a smart tunnel that uses biometric facial recognition to expedite the security screening process while reducing physical contact. The San Francisco International Airport has also implemented touchless technology in the form of a mobile app that enables passengers to order food and beverages from airport vendors without physical contact.

This trend is expected to continue even after the pandemic, as passengers increasingly prefer contactless and touchless technologies due to the convenience and speed they offer. As a result, airports and governments will continue to invest in these technologies to enhance the passenger experience and improve the efficiency of airport operations.

Segmental Analysis 

By Infrastructure

The infrastructure segment is expected to generate more than 41% of the market revenue of the smart airport market by component. The infrastructure segment includes various components such as endpoint devices, communication systems, and data centers that form the backbone of smart airport operations. The growth of the infrastructure segment is driven by the increasing demand for advanced technologies in airport operations, such as IoT, AI, and Big Data.

Governments and airports are investing heavily in the development of airport infrastructure to support the growth of air travel and enhance the efficiency of airport operations. For instance, the expansion of airport runways, construction of new terminals, and installation of advanced communication systems are some of the initiatives that are being undertaken to enhance the capacity and efficiency of airports.

By Solution 

The terminal segment is expected to contribute the highest revenue to the global smart airport market by solutions. The terminal segment includes various solutions such as passenger, baggage, and security systems that enhance the efficiency and safety of airport operations. The growth of the terminal segment is driven by the increasing demand for advanced technologies in airport terminals, such as biometrics, robotics, and automation.

Moreover, the adoption of automation and robotics is expected to enhance the efficiency of baggage handling and security screening processes, leading to a better passenger experience. 

The terminal segment is expected to continue to grow in the coming years as airports and governments increasingly invest in advanced technologies to enhance airport terminals and improve the passenger experience. The increasing adoption of biometrics, automation, and robotics is expected to further drive the growth of the terminal segment, as these technologies offer improved efficiency, safety, and convenience for passengers.

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Regional Analysis

In 2022, North America held the highest market share in the global smart airport market, accounting for more than 35% of the revenue contribution. The United States alone is estimated to contribute 83% of the region's revenue, driven by large-scale investments in optimizing airport operations and the implementation of IoT, AI, and Big Data technologies in airport operations. This has enabled airports to improve visibility and optimize business processes, leading to a better personalized experience for passengers. In addition, the concentration of market players in the region is expected to drive market growth further.

The Asia-Pacific region is poised to witness significant growth in the smart airport market, driven by the rising demand for advanced airport technologies, increasing air passenger traffic, and the need to optimize airport operations. The smart transport and parking services segment contributed the major share of 36.5% to the region's smart airport market, driven by the growing adoption of smart transportation solutions such as ride-sharing services, electric vehicles, and automated parking systems.

Moreover, the adoption of smart technologies in airport processes such as check-in, security, and baggage handling is also expected to drive the growth of the smart airport processes segment, which is projected to grow at the fastest CAGR of 18.7% during the forecast period. The rising popularity of self-service options, such as self-check-in kiosks and automated baggage handling systems, is further fueling the demand for smart airport solutions in the region.

Several countries in the Asia-Pacific region are investing heavily in the development of smart airports. For instance, China is expected to invest $12.9 billion in smart airport construction by 2025, with a focus on adopting new technologies such as facial recognition, biometric identification, and 5G connectivity. Japan is also investing in smart airports, with the development of the Tokyo International Airport (Haneda) Smart Airport Project, which aims to enhance airport operations and improve passenger experience through the adoption of new technologies.

List of Key Companies Profiled:

• Adelte
• Ascent Technology Inc.
• Amadeus IT Group SA
• Ansul
• Cisco System
• Collins Aerospace
• Deerns Airport System Consultants
• Daifuku Co., Ltd.
• Sensec Solution AS (Initially DSG Systems)
• FB Technology
• Honeywell International, Inc.
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Indra
• SITA
• Lufthansa Systems GmbH & Co. KG.
• QinetiQ
• RESA
• S.A.S.
• Sabre Corporation
• Selex ES
• Siemens AG
• T-Systems
• Thales Group
• Vanderlande Industries
• Vision-Box
• Wipro Limited
• Zensors
• Other Prominent Players

Segmental Overview

By Component

• Infrastructure
• Solutions
• Applications
• Services

By Infrastructure

• Endpoint Devices
  • Sensors
  • Tags
  • IP Phone
  • Video Conferencing (Audio/ Video)
• Communication Systems
  • Wireless Airports
  • Smart Phones
  • Near Field Communication
  • Social Media
• Passenger, Cargo and Baggage Ground Handling Control
  • IoT Enabled Beacons
  • Robots for Passenger and Baggage Movement
  • Common-use Self-service (CUSS) Kiosks
  • RFID Baggage Reconciliation System
  • E-Gates
• Air/Ground Traffic Control
  • Smart Systems & Scalable Air Traffic Management Solutions (ATM)
  • Automated Passport Controls
• Security Systems
  • Biometrics
  • Alerts & Cyber Security
  • E-Fence & Ground Surveillance Radar
  • E-Tag System
• Others (Navigational, Landing Aids, Digital Signage, Airport Management Software)

By Solutions

• Terminal Side
  • HVAC
  • Lighting Control
  • Digital Video Surveillance and
  • Management (DVM)
  • Fire and Life Safety Solutions
  • Energy Management
  • Life Cycle Services
  • Building Management and Automation Systems
• Air Side
  • Advanced Visual Docking Guidance System (A-VDGS)
  • Airfield Ground Lighting (AGL)
  • Surface Movement Guidance
  • Runway Improvement and Apron Management
  • Digital and Radar Video Surveillance
• Landside
  • Parking
  • Access Roads
  • Perimeter Security
  • Car Rental
  • Mass Transit
  • Airport City

By Application

• Core Applications
  • Content Management
  • Business Intelligence
  • Next-Generation Web
  • Collaboration
  • Integration
• Business Applications
  • Noise Abatement
  • Fee Management
  • Performance Management
  • Gate Management

By Services

• Smart Transport & Parking Services
  • Real-time Travel Services
  • Intelligent Transport Services
  • Trip Concierge
• Smart Retail, Hospitality & Entertainment Services
  • Passenger-Specific Retail and Hospitality
  • Intelligent Advertising
  • Lean Retail Solutions
  • Telepresence Rooms
• Smart Workplace Services
  • Equipment Telematics Solutions
  • Mobile Worker and Expert Locator
• Smart Airport Processes
  • Location-Based Services
  • RFID Baggage Tagging
  • No-queue Check-in Solutions
• Smart Business to Business Services
  • Traffic and Facilities Management
  • Smart Supply-Chain and MRO Services

By Airport Model

• Airport 2.0
• Airport 3.0
• Airport 4.0

By Airport Size

• Small
• Medium
• Large

By Airport Operation

• Commercial Service Airports
• Cargo Service Airports
• General Aviation Airports

By Region

• North America
  • US
  • Canada
  • Mexico
• South America
  • Argentina
  • Brazil
  • Rest of South America
• Europe
  • The U.K.
  • Germany
  • France
  • Spain
  • Italy
  • Russia
  • Poland
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • U.A.E.
  • Saudi Arabia
  • South Africa
  • Rest of the Middle East & Africa