The global smart airport market is expected to witness a robust growth rate of more than 3.5% during the forecast period of 2023-2028 and is expected to reach US$ 8.4 billion by the end of 2028.
In addition, passengers’ needs are changing under the global connectivity boost within the travelers population. This over-connectivity, caused the traveler to change his attitude during his travel, to look for a seamless travel journey, and to ask but it is also linked to the quality of the in-terminal experience that the airport is able to provide.
Moreover, the passengers demand for a personalized experience, and an airport must adapt the passenger’s merchandizing strategy and propose the right service for the right passenger at the right moment. These three conditions should all meet in order to maximize the value created by a passenger and provide a holistic travel experience.
Growing need for real-time information coupled with the penetration of digitization is expected to contribute to the growth of the global smart airport market
Air travel demand has grown significantly in recent years and is expected to continue to grow in the future years. When addressing the optimization of passenger flows and operations, Smart Airports and “Smart” urban stations (such as train stations) utilize similar connected technologies and have some other similarities in their operations.
When integrated together, the connected technologies used at smart airports enable seamless, faster and accurate processing. This can improve the airport experience for passengers and airport and airline staff. In addition, the data collected concerning the current condition of airport facilities, such as cleanliness and amenity availability, can be used to notify staff of issues so that they can respond in a timely manner. All these features of smart airport are anticipated to increase the smart technologies are anticipated to increase its adoption in developed cities.
These technologies also help airport operators to better manage air traffic control and aircraft movements on the ground through GPS data as this data enables the efficient operation of newly integrated technologies such as autonomous robots sent to perform maintenance activities on aircraft.
Moreover, Internet of Things (IoT) devices and sensor technology can collect data on the current condition of planes. This can enable better accuracy in maintenance work as well as better managed maintenance and thus the safety of the plane is improved.
In addition, the long-term development of Smart Airports may include the use of more autonomous solutions, thus increasing and optimizing airport hours of operations and enhancing safety. Activities such as delivering baggage, fuelling planes, traffic control, immigration and security processes, and clearing debris will continue to be performed with increasing autonomy.
Asia Pacific acquires the majority market share, contributing to the growth of the global smart airport market
The Asia-Pacific region is anticipated to experience significant growth due to robust investments in constructing new airports and expanding existing airports across the region. Over the past few years, there has been a rapid increase in passenger traffic handled by airports in countries like China, India, Japan, and South Korea, among others. Due to this, the government and airport authorities in the region have announced significant investments in the construction and expansion of airports.
- For instance, in April 2022, the Ministry of Land, Infrastructure, and Transport of South Korea announced its plans to invest KRW 13.7 trillion (USD 10.97 billion) in constructing a new airport on Gadeok Island.
- Similarly, in February 2022, Adani Airport Holdings, a subsidiary of the Adani Group and the Airports Authority of India, started the construction of an airport in Navi Mumbai, Maharashtra, India, for US$ 2.3 billion.
- The new airport would be one of the world’s few “”greenfield”” international state-of-the-art airports, contributing world-class facilities. It will have the capacity to handle 60 million passengers a year by 2030 when it reaches full capacity.
Furthermore, to efficiently operate the airports and provide uninterrupted services to the passengers, the regional airports have also integrated smart airport solutions. The planned investments in passenger and baggage handling systems are expected to propel the growth of this segment in the future. Such modernization of airport infrastructure with smart airport solutions is expected to accelerate market growth in this region during the forecast period.
In other regions like North America, Europe, and Middle East & Africa, the smart airport market is expected to grow at a significant rate in the upcoming years. However, aviation is a highly regulated industry and many regions might face difficulties in inculcating the use of new technology in aviation.
Market Structure and Competitive Landscape
The global smart airport market is fragmented in nature with various players operating in the market, some of the prominent players that contribute significantly to the global smart airport market include Amadeus IT Group SA, Ascent Technology, Cisco Systems Inc., Honeywell International Inc., Huawei Technologies Co. Ltd., Siemens AG, WIPRO Ltd, Raytheon Technologies Corporation, Daifuku Co. Ltd., Sabre Corporation, IBM Corporation, Leidos Holdings, Inc, INDRA SISTEMAS S.A., INFAX Inc., Zensors, Emartech, TAV Technologies, T-Systems International GmbH, L3Harris Technologies, Inc, NATS Holdings Limited, SITA, and Smart Airport Systems (SAS) among others.
These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the smart airport market. Mergers and Acquisitions, Partnerships, and collaborations are some of the strategies followed by industry players. Some of the key developments in the global smart airports market include:
- In February 2023, the Aviation Security Service (AvSec) of New Zealand awarded a contract to Smiths Detection, a leader in threat detection and security inspection technologies, to provide cutting-edge checkpoint security technology for its five main international airports: Auckland, Christchurch, Dunedin, Queenstown, and Wellington.
- In June 2022, Fiumicino Airport in Italy announced the development of a virtuous baggage handling system that includes baggage sorting systems and hold baggage systems (HBS) for X-ray control of 100% of the baggage on departure.
- In June 2022, Société Internationale de Télécommunications Aéronautiques (SITA) announced its partnership with Alstef Group to launch Swift Drop, a new self-bag drop solution. This is expected to significantly reduce passengers’ time to check bags at the airports. Mexico City’s brand-new Felipe Ángeles International Airport opened in late March and has become the first airport globally to install 20 Swift Drop units.
Key Market Segmentation
RationalStat has segmented the global smart airport market on the basis of system, airport size, operation, airport technology, application, and region.
- By System
- By Airport Size
- By Operation
- Content Management
- Business Intelligence
- Real-Time Services
- Supply Chain Management
- Real-Time Services
- Business Intelligence
- Intelligent Transport Services
- Inventory Management
- Fee Management
- Resource Management
- By Airport Technology
- Airport 2.0
- Airport 3.0
- Airport 4.0
- By Application
- Intelligent Advertising
- Vehicle Parking
- Car Rental & Mass Transit
- Terminal Side
- Building Management
- Passenger Screening
- Passenger Experience
- Staff & Crew Management
- Behavioral Analytics
- Cargo & Baggage Handling
- Health Monitoring Systems
- Payment & Tokenization
- Air Side
- Ground Support Equipment Management
- Aircraft Maintenance
- Air Traffic Management
- Noise Monitoring
- Aircraft Turnaround Management
- Advanced Visual Docking Guidance System (A-VDGS)
- By Region
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific
- Middle East & Africa
To customize reports as per your needs, speak to our analyst
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for global smart airport market manufacturers and suppliers, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global smart airport market is expected to grow at a CAGR of approximately 16.2% during the forecast period 2022-2028.
The global smart airport market was estimated at a market value of US$ 2.1 Billion in 2022.
Rapid rise in the adoption of digitization is one of the key trends in the global smart airport market.
Asia Pacific is the leading region in the global smart airport market.
Major companies operating in the global smart airport market include Amadeus IT Group SA, Ascent Technology, Cisco Systems Inc., Honeywell International Inc., Huawei Technologies Co. Ltd., Siemens AG, WIPRO Ltd, Raytheon Technologies Corporation, Daifuku Co. Ltd., Sabre Corporation, IBM Corporation, Leidos Holdings, Inc, INDRA SISTEMAS S.A., INFAX Inc., Zensors, Emartech, TAV Technologies, T-Systems International GmbH, L3Harris Technologies, Inc, NATS Holdings Limited, SITA, and Smart Airport Systems (SAS), among others.