Global Smart Airport Market By Technology Type (Security Systems, Communication Systems, and Others), By Location (Airside, Terminal Side, and Landside), By Application, By Region, and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global smart airport market was valued at USD 15.9 Bn, and is expected to be USD 36.2 Bn This market is estimated to register the highest CAGR of 8.8% during the forecast period from 2023 and 2032.

Smart airports use smart and intelligent systems such as sensors and devices for specific purposes in different areas to manage, plan, and control the administration. Due to deregulation and regulatory reforms, the air transport industry has seen massive growth in the last few decades. The airline sector is becoming more economical in emerging economies as airline options increase, causing an enormous increase in airline traffic.

Note: Actual Numbers Might Vary In The Final Report

As this sector is becoming highly competitive, airports are becoming receptive and responsive to the requirements and demands of passengers. It is giving rise to the need for innovative research focusing on cost reduction accompanied by increased choices and value. The rising passenger air traffic has given rise to innovative airport solutions by elevating the passenger experience through connected, intelligent, digitized, and personalized solutions.

Key Takeaways

• Market Growth: The global smart airport market is expected to reach USD 36.2 billion by 2032. This projected value can be explained by several factors including an increasing need to improve airport efficiency as well as greater acceptance of emerging technologies.
• Market Overview: The smart airport market is an international one with participants hailing from various continents worldwide. APAC region currently accounts for the majority of smart airports followed by North America and Europe respectively.
• Rising Demands: Demand for smart airports has steadily been on the increase due to factors including an increasing passenger count, improved security needs and improving customer experiences.
• Increasing Uses: Smart airport technologies are being applied across a range of applications, from passenger processing and security measures, through operations management, sustainability goals and sustainability reporting.
• Rising Popularity: Smart airports have experienced increasing popularity as media coverage expands on them and passengers experience them first-hand. Furthermore, travelers desire for a smoother travel experience as more passengers experience them every year.
• Drivers: The key drivers for smart airport market are increasing demand for air travel, the need to improve airport efficiency and the widespread adoption of innovative technologies.
• Restraints: The main restraining factors in this market include high costs associated with installing smart airport technologies, lack of standardization, and the requirement of skilled workers in order to operate and maintain these technologies.
• Opportunity: Opportunity in the smart airport market lies in its potential to improve efficiency, safety and sustainability of airports. Smart airport technologies enable airports to handle more passengers efficiently while improving security measures and decreasing environmental impact.
• Trends: In the smart airport market, key trends include increasing adoption of artificial intelligence and big data analysis tools as well as development of innovative new smart airport technologies.
• Regional Analysis: Although smart airport markets exist worldwide, certain regions are particularly dynamic in this space. The APAC region is the fastest-growing market for smart airports, followed by North America and Europe.
• Key Players: The key players in the smart airport market are technology companies, airport operators and government agencies. Key companies profiled in smart airport market are Amadeus IT Group SA, CISCO System Inc., Collins Aerospace, Daifuku Co. Ltd., Ascent Technologies, Honeywell International Inc., Huawei Technologies Co. Ltd. and More

Drivers

The Advent of Advanced Technologies

Technological advancements like introducing the Internet of Things (IoT) in aircraft components and manufacturing processes are key trends in the smart airport market. Companies worldwide are beginning to implement cloud-based platforms to develop new aircraft, engines, systems, or component designs.

Cloud platforms simplify the design process by bringing suppliers, system integrators, software developers, and other stakeholders within the structure and manufacturing ecosystem via a virtual platform. Vertical Aerospace leverages the 3DExpereince platform to improve coordination between design, engineering, test, and manufacturing disciplines, providing access to all necessary design documents in the cloud for effective telecommuting made it possible.

Growth in Green Initiatives in the Aviation Industry Driving Market Growth

Companies in the aviation industry around the world are focusing on green initiatives to protect the environment. Some airlines are trying to become more sustainable. According to the International Council on Clean Transport (ICCT), air travel generates about 3% of global carbon dioxide emissions and is one of the fastest sources of greenhouse gas emissions.

To reduce greenhouse gas emissions, companies in the aviation market are focusing on implementing green initiatives. As a result, the rising green initiatives of the aviation industry are contributing to the growth of the smart airport market.

Restraints

Necessary Huge Investments and High Client Requirements

Huge investments are necessary to construct smart airports and it is not always possible to bring in such investments. Sometimes, it is also difficult to understand and practically follow client preferences. Apart from this, the lack of skilled workers is also a factor that is restraining the global smart airport market growth.

Technology Type Analysis

The Passenger-Cargo Baggage Control Segment Dominating

Based on technology type, the market is segmented into security systems, communication systems, passenger-cargo baggage control, and others. The passenger-cargo baggage control segment accounts for the majority share of 34.6% and is expected to register the highest growth over the forecast period, followed by the security systems segment.

Air security is a challenging task, with millions of travelers and staff navigating through many air terminals consistently. Automatic baggage handling systems that correctly track and process baggage flows are vital for well-organized handling. Baggage and cargo handling systems provide the easy handling and transport of passenger baggage and cargo shipments at airport.

The smart security system is at the forefront of driving security innovations in passenger and baggage screening. Its goal is to enhance security while providing seamless passenger journeys, increased efficiency, and reduced operating costs. A smart airport communication system relies on the use of connected technologies such as sensors, GPS, Internet of Things (IoT) to perform digital planning and operations tasks. It also supports operators, optimizing passenger flow and airport staff operations throughout the airport.

Location Analysis

Air Side Segment is the Dominant

Based on the Solution, the market is classified into the terminal side, landside, and airside. The airside segment is dominant with a 44.3% market share, as airside is primarily utilized to manage ground employees better and reduce aircraft turnaround time. As a result, the need for airside operations like aircraft parking is expected to grow during the forecast period.

Airside facilities provide overall security for airplanes’ safe operations, including camera monitor systems, radar obstacle detection, and warning alarms for passengers’ safety. Landside facilities are passenger and cargo terminals and access systems, including parking, loading and unloading, and road areas. But the terminal side segment also constitutes a significant portion of the global smart airport market.

Note: Actual Numbers Might Vary In The Final Report

Application Analysis

Non-Aeronautical Segment is Dominant

Based on application, the smart airport market is divided into aeronautical and non-aeronautical applications. The non-aeronautical segment is dominant in the smart airport market. This is because airport are spending vigorously to boost non-aeronautical activities like giving parking facilities, obligation-free shops, lounges, boarding offices, gathering rooms, and lodging facilities.

They are presently focusing on passenger fulfillment and have begun providing different facilities, for example, shopping outlets and customized data in retail showrooms. The aeronautical segment also shows significant growth during the forecast period due to the increased tendency of individuals to travel.

Key Market Segments

Based on Technology Type

• Security Systems
• Communication Systems
• Passenger Cargo Baggage Control
• Air/Ground Traffic control
• Others

Based on Solution

• Airside
• Terminal side
• Landside

Based Application

• Aeronautical
• Non-aeronautical

Opportunities

Growing Air Passenger Travelling boosts the Smart Airport Market

The development of advanced devices, which include unique client identification through heartbeat patterns or biometric signatures, coupled with the implementation of A.I. technology in airport, has facilitated the management of extensive airport databases.

Furthermore, air travel has become an increasingly popular option for tourists, resulting in significant growth in the tourism sector. To accommodate the rising number of travelers, conventional airport must be upgraded to smart airport. This trend is driving the growth of the smart airport market in developed and developing countries alike.

Trends

Introduction to Cloud Computing Fulfil Passengers’ Requirements

In recent years, AI-powered machines have surpassed humans in recognizing sounds, images, and faces. AI is being used in smart airport to improve critical areas of the customer experience to reduce costs, improve efficiency and increase customer satisfaction. Customer service has been replaced by AI catboats that can respond to queries and requests in a highly efficient and timely manner.

Cloud computing is rapidly adapting to how airport serve passengers. They are adapting airport services to new requirements, ensuring a safer, contactless, and socially distanced airport experience. Therefore, the rapid development of high-performance and affordable cloud computing infrastructure during the forecast period is also expected to significantly impact the growth potential of the global smart airport market.

Regional Analysis

North America Holds the Largest Market

North America is estimated to be the most lucrative market in the global smart airport market, with the largest market share of 35.9%. The rapid growth of Smart airport across North America is supported by many factors, such as the introduction of tracking systems, the growing demand for real-time information, and immigration systems. The market in North America is also improving due to facilities provided like real-time CCTV monitoring, on-demand self-service requirements, user-specific preferences, and system-generated alerts.

The Asia-Pacific region is expected to become the fastest-growing Region in the next years. The area features increased adoption of artificial intelligence, robotics, and biometric baggage storage facilities, typically in Japan and China. Southeast Asia is anticipated to grow in security, technology, infrastructure, and services. They can achieve it by providing innovative new airport solutions to passengers, such as automated baggage and self-service check-in.

Note: Actual Numbers Might Vary In The Final Report

The Middle East & Africa (MEA) region is expected to experience substantial growth during the forecast period, mainly due to increased passenger traffic and the expansion of airport modernization programs. Smart airport in the UAE have begun to adopt voice-based artificial intelligence tools and digital assistants to provide real-time information to passengers.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Emerging key players are focused on various strategic policies to develop their respective businesses in foreign markets. Several Smart airport market companies are concentrating on expanding their existing operations and R&D facilities.

Furthermore, Smart airport businesses are developing new products and portfolio expansion strategies through investments, mergers, and acquisitions. In addition, several key players are now focusing on different marketing strategies, such as improving facilities and security and boosting market growth.

Listed below are some of the most prominent key industry players in the Smart airport industry.

• Amadeus IT Group SA
• CISCO System Inc
• Collins Aerospace
• Daifuku Co. Ltd.
• Ascent Technologies
• Honeywell International Inc.
• Huawei Technologies Co. Ltd
• IBM Corporation
• Indra Sistemas S.A.
• ITA
• L3Harris Technologies Inc.
• Raytheon Company
• RESA, Rockwell Collins Inc.
• Lufthansa Systems GmbH & Co. KG.
• Sabre Corporation
• Siemens AG
• SITA
• Thales Group
• T-Systems
• Vision-Box
• Wipro Limited
• Ascent Technology Inc.
• Amadeus IT Group
• Huawei Investment & Holding Co. Ltd.
• Ascent technology, inc.
• Other Key Players

Recent Developments

• In May 2019, Hamad International airport (HIA) launched the second phase of its innovative Smart airport program. The program will generally focus on the digital transformation of passengers’ journeys through facial recognition and biometrics.
• In June 2022, Italy’s Fiumicino Airport announced the development of a superior baggage handling system, including a Baggage Sorting System and a Baggage Storage System.

Report Scope