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Increasing investment in the development/augmentation of airports supports the growth of smart airport market across the world. Many airports across the globe require more capital investment to integrate smart technologies in the airport to accommodate growing passenger and cargo traffic. Also, the modern air passenger has much minimal tolerance for baggage mishandling, improperly maintained queues, and congestion in general, and demand a much higher level of service. Thus, many governments and several private companies are expanding the investment budgets for the development of airports with high-tech solutions. For instance, in January 2020, the Spanish airport authority Aena announced to invest around US$ 1.82 billion in renovating its Adolfo Suárez Madrid-Barajas facility as a part of its strategic plan 2022-2026. These investments project led to a rise in requirement for intelligent airport systems, as they are increasingly utilizing for mitigating security and surveillance concerns, which eventually strengthens the overall market growth around the world.
The global smart airport market is expected to grow at a CAGR of 10.9% during the forecast period 2021-2027; and to record a revenue of US$ 54,862.09 Mn by the end of the year 2027.
Moreover, the growth of the region’s aviation industry was also owing to the significant cost reduction in oil barrels and the boost from new market entrants. Additionally, as per the IATA, by 2035 the aviation industry was expected to provide jobs to over 70 million people with a contribution of $1.3 trillion to the region’s GDP.
Global Smart Airport Market by Infrastructure
The smart airport market is segmented into endpoint devices, communication systems, passenger, cargo and baggage ground handling control, air/ground traffic control, security systems, and others (navigational, landing aids, digital signage, airport management software).
The passenger, cargo, and baggage ground handling control segment are estimated to have the highest market share during the forecast period. The segment dominated the market with around 27.9% share in 2020, with market valued at around US$ 3,571.5 million in 2021. Factors such as advancements in baggage and cargo handling systems to facilitate user an improved experience and ease the pressure at airport, coupled with the rise in passenger traffic and growing passenger handling capacity at airports are strengthening the market share of such solutions in the global market. Further, rise in awareness of passenger and cargo safety on account of growing breaches at airport anticipates the security systems segment contributed the fastest CAGR in the global market.
Regional Analysis - Global Smart Airport Market
As per UNWTO, Middle East region has emerged as the fastest growing region in international tourism in 2019. According to ICAO’s long-term traffic forecasts, passenger traffic for the Africa region is expected to grow by around 4.3% annually by 2045.
As per the study of market, the North America smart airport market held the highest market share of around 35% in the global smart airport market in the year 2021. Increasing preference for improving personalized experience and higher concentration of the market players are expected to drive the market growth in the region and the large-scale investments for optimizing operations at airport coupled with the implementation of IoT, AI, and Big Data in airport operations has the feasibility to improve visibility and optimize business process.
Further, Asia-Pacific smart airport market is estimated to grow at the fastest CAGR of 14% during the forecast period, with a market share of 25% in the global marketplace in 2021. As countries like India and ASEAN holds the highest CAGR of 15.6% and 16.4% respectively.
Impact of Covid-19 - Global Smart Airport Market
The outbreak of COVID-19 since March 2020 is significantly affecting the aviation industry across the globe. According to the International Civil Aviation Organization (ICAO), in 2020, the aviation industry faced overall reduction of 50% seats offering by airlines and 2.69 million passengers (-60%) occurring approximately US$ 371 billion loss in passenger operating revenues of airlines when compared to 2019.
As per ICAO, the total number of flights in South America were around 1.2 million till May in 2019 that further declined to 792 thousand till May. In 2020, Brazil, Mexico, Argentina further recorded the decline of 38%, 36%, and 51.8% respectively in the domestic and international flights for passenger and cargo transport. Therefore, these decline in the flight during the COVID-19 outbreak impacted the overall aviation industry in the region.
Global Smart Airport Market Segmentation Overview
By Airport Model
By Airport Size
By Airport Operation
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