Smart Airport Market

Smart Airport Market Overviews:

The global smart airport market size reached US$ 33.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 77.0 Billion by 2032, exhibiting a growth rate (CAGR) of 9.3% during 2024-2032. There are various factors that are driving the market, which include the rising focus on providing seamless and personalized travel experiences to travelers, integration of various advanced technologies, and increasing demand for improved operational efficiency.

Smart Airport Market Analysis:

• Major Market Drivers: One of the key market drivers include rising air traffic. Moreover, there is an increase in the adoption of green technologies, which is acting as another growth-inducing factor. 
• Key Market Trends: The rising focus on enhanced travel experience and integration of advanced technologies are main trends in the market.
• Geographical Trends: North America exhibits a clear dominance, accounting for the biggest market share owing to the strong ecosystem of technology companies, research institutions, and startups.
• Competitive Landscape: Various market players in the smart airport industry report are Amadeus IT Group SA, Ascent Technology Inc., Cisco Systems Inc., Collins Aerospace (Raytheon Technologies Corporation), Honeywell International Inc., Huawei Technologies Co. Ltd., Indra Sistemas S.A., International Business Machines Corporation, Sabre Corp., Siemens AG, T-Systems International GmbH, Wipro Limited, among many others.
• Challenges and Opportunities: High initial investment costs represent a key market challenge. Nonetheless, the rising demand for advanced security solutions, along with partnerships and collaborations among companies, is anticipated to overcome these challenges and offer market opportunities to industry investors.
   

Smart Airport Market Trends:

Technological Advancements

The integration of the Internet of Things (IoT) makes it possible to gather massive amounts of data for monitoring passenger movement and equipment status. Artificial intelligence (AI) is used to handle large volumes of data, support decision-making in real time, and improve operational effectiveness. Additionally, the integration of data analytics systems assists in enabling predictive maintenance and offering insightful data on passenger behavior that helps airports customize their services for optimal impact, thereby supporting the smart airport market growth. As a result, these technologies create an integrated and intelligent system that enhances the capabilities of traditional airports into the realm of smart operations. On 15 September 2023, Devon-based company Rezcomm, creators of the ‘plug-and-play’ airport marketplace, harnessed artificial intelligence (AI) technology to optimize airports worldwide, which will transform how passengers travel through airports. Rezcomm’s focus is to create a world where AI business solutions provide travelers with a streamlined and efficient journey. Its AI-driven approach will modernize airport operations and how passengers interact with airports and transportation services.

Rising Passenger Expectations

The growing passenger expectations for a seamless and personalized travel experience are offering a favorable smart airport market outlook. These airports aid in meeting these expectations by employing various technologies to provide real time updates on flight status, reduce check-in times through automated kiosks, and assist in navigation via mobile apps. Furthermore, the adoption of facial recognition technology to expedite security processes and customize retail experiences based on individual passenger preferences is influencing the market positively. These technologies not only improve passenger satisfaction but also alleviate stress associated with air travel. In addition, key players are focusing on catering to passenger expectations for smart technologies, which are providing smart airport market insights. For instance, on 25 April 2023, CGI and Fraport AG partnered to accelerate the airport's digitization under a five-year framework agreement. Fraport AG, one of the world's largest airport operators with business activities at 29 airports on four continents, selected CGI as its digital partner with the aim of further enhancing Frankfurt Airport's user experience and increasing its overall competitiveness through new digital business models and technologies.

Growing Demand for Operational Efficiency

Airports have complex ecosystem with a multitude of operations occurring simultaneously such as luggage handling, flight scheduling, security checks, and retail management. Smart airports utilize data-driven insights to streamline these operations. Furthermore, they use real time monitoring to improve the efficiency of baggage systems, reduce aircraft turnaround time, and optimize resource allocation. In addition, smart airports use predictive maintenance tools to forecast equipment failures before they occur that allow for proactive measures. This improved operational efficiency not only decreases expenditure but also enhances safety, sustainability, and overall performance, thereby catalyzing the smart airport demand. As a result, top companies are concentrating on improving operational efficiency and sustainability in the aviation industry. For example, on 31 May 2023, Malaysia Airports Holdings Berhad (MAHB), the ground handler of Kuala Lumpur International Airport, commissioned the German provider Materna IPS to provide a state-of-the-art self-bag drop (SBD) solution. Materna IPS system Flex.Go kiosks are equipped with an integrated camera system for automatic conveyability checks and tub detection. With a high degree of accuracy, the shape and dimensions of baggage are measured and used for volume control and classification that assist in maintaining operational efficiency.

Smart Airport Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, size, system, operation, end market, and application.

Breakup by Type:

• Airport 2.0
• Airport 3.0
• Airport 4.0
   

Airport 3.0 accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes airport 2.0, airport 3.0, and airport 4.0. According to the report, airport 3.0 represented the largest segment.

A new era of technology innovation and integration within airports, marked by the IoT, AI, biometrics, and advanced data analytics, is symbolized by Airport 3.0. It prioritizes the passenger experience by utilizing technology to optimize workflows, minimize wait times, and provide customized services. Additionally, airport 3.0 streamlines operations by managing lineups, allocating resources efficiently, and improving overall airport management through the application of data-driven insights. Furthermore, it makes use of cutting-edge security tools like biometric screening, facial recognition, and real time threat detection systems to guarantee both passenger safety and legal compliance, which positively influences the smart airport market forecast.

Breakup by Size:

• Large
• Medium
• Small
   

Large holds the largest share of the industry

A detailed breakup and analysis of the market based on the size have also been provided in the report. This includes large, medium, and small. According to the report, large accounts for the largest market share.

Large airports have more budgets and resources compared to smaller airports, which allows them to implement advanced smart technologies and infrastructure. They handle a higher volume of passengers and flights, which necessitates efficient processes, automation, and technology to manage operations smoothly and enhance the passenger experience. Additionally, large airports offer a wide range of services and facilities including shopping, dining, lounges, and entertainment options. Smart technologies are widely used to optimize these services and provide passengers with personalized experiences, thereby showing a positive smart airport industry outlook.

Breakup by System:

• Wearables
• LPWAN and WLAN
• Tags and Sensors
• Platforms
• NFC, RFID and Bluetooth
• Wireless
• Others
   

The report has provided a detailed breakup and analysis of the market based on the system. This includes wearables, LPWAN and WLAN, tags and sensors, platforms, NFC, RFID and Bluetooth, wireless, and others.

Wearable devices like smartwatches and wristbands provide passengers with convenient access to real time flight information, boarding passes, and updates about their journey. This seamless experience eliminates the need for physical documents, reduces waiting times, and enhances overall passenger satisfaction. They allow airports to offer personalized services to passengers based on their preferences and travel history.

LPWAN and WLAN are two key networking technologies that play significant roles in the implementation and operation of smart airports. LPWAN is a type of wireless telecommunication network designed to allow long-range communications at a low bit rate among connected objects such as sensors and devices. On the other hand, WLAN is a wireless network that provides internet connectivity over a localized area using high-frequency radio waves.

Tags and sensors let real time tracking and monitoring of assets, baggage, equipment, and personnel throughout the airport, which aids in improving operational efficiency and minimizing delays. They provide data on passenger movement patterns that can be further used to optimize security procedures and staffing levels.

Breakup by Operation:

• Aeronautical
• Non-Aeronautical
   

Non-aeronautical exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the operation have also been provided in the report. This includes aeronautical and non-aeronautical. According to the report, non-aeronautical accounts for the largest market share.

Non-aeronautical operations involve activities like retail, dining, parking, advertising, and more. These operations provide airports with diversified revenue streams beyond traditional aeronautical activities including landing fees and passenger charges. Furthermore, they contribute significantly towards creating a positive and enjoyable experience for travelers and leading to enhanced passenger satisfaction. Manufacturers in the market are introducing technologies in non-aeronautical operations to increase their smart airport market revenue. For instance, on 30 May 2024, Munich Airport announced the successful completion of a four-month test using radar technology to monitor the Single Engine Taxi (SET) procedure, which aims to reduce carbon dioxide emissions and noise pollution on the ground.

Breakup by End Market:

• Implementation
• Upgrade and Services
   

Upgrade and services dominate the market

The report has provided a detailed breakup and analysis of the market based on the end market. This includes implementation and upgrade and services. According to the report, upgrade and services represents the largest segment.

Upgrade and services have established physical infrastructure in place, which make economic benefits to retrofit existing systems with new sensors, automation tools, and data analytics capabilities. Additionally, integrating smart technologies into existing infrastructure enhances efficiency and passenger experience without the high costs associated with constructing entirely new facilities. Moreover, upgrades and services allow airports to implement smart solutions in a phased manner, which minimizes disruption to airport operations. Apart from this, these services can be tailored to the specific needs of an airport, which is impelling the market growth.

Breakup by Application:

• Airside
• Air Traffic Maintenance
• Aircraft Maintenance
• Passenger Screening and Experience
• Digital Video Surveillance and Management
• Building Management
• Intelligent Advertising
• Others
   

Airside is the predominant market segment

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes airside, air traffic maintenance, aircraft maintenance, passenger screening and experience, digital video surveillance and management, building management, intelligent advertising, and others. According to the report, airside accounts for the largest market share.

Airside is critical for the timely departure and arrival of flights. Implementing smart technologies in the airside area aids in streamlining aircraft movement, gate assignment, and runway utilization. These technologies optimize aircraft turnaround times and reduce congestion, ultimately leading to more efficient flight schedules. Moreover, airside improves communication between air traffic controllers and pilots, leading to better coordination of departures and arrivals. Besides this, key players are introducing advanced airside solutions to provide an enhanced traveler experience. For example, on 10 May 2023, Honeywell launched an updated suite of airside solutions, displaying enhancements to its gate and turnaround and airfield lighting portfolios including the Honeywell NAVITAS™ smart visual docking system. The latest solutions optimize gate operations and improve situational awareness for pilots and airside operations teams. This helps key players in increasing their smart airport market share analysis.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest smart airport market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for smart airport.

North America has a strong ecosystem of technology companies, research institutions, and startups that contribute to the development and implementation of smart airport solutions. In addition, the escalating demand for smart airport technologies due to the presence of numerous international airports in the region, which handle significant air traffic, is supporting the market growth. Furthermore, governing agencies in the region are implementing several regulations and policies to improve aviation safety and security, which is increasing smart airport market value. On 6 June 2023, Pittsburgh International Airport (PIT) and CleanRobotics announced a partnership to implement AI recycling bin TrashBot to assist with the airport's waste management initiatives. As part of PIT's commitment to supporting innovative aviation technologies, TrashBot will join the facility to sort passenger waste and recyclables with 96% accuracy. TrashBot is a smart bin that sorts waste at the point of disposal while gathering data and delivering education to users. It identifies and sorts the item into its corresponding bin, reducing contamination and recovering more recyclables.

Competitive Landscape:

• The smart airport market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the smart airport industry include Amadeus IT Group SA, Ascent Technology Inc., Cisco Systems Inc., Collins Aerospace (Raytheon Technologies Corporation), Honeywell International Inc., Huawei Technologies Co. Ltd., Indra Sistemas S.A., International Business Machines Corporation, Sabre Corp., Siemens AG, T-Systems International GmbH, and Wipro Limited.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Top players in the market are investing in technologies to enhance the passenger journey. This includes implementing self-service kiosks, mobile apps, and digital signage to provide real time flight information, wayfinding, and personalized notifications to passengers. Additionally, they are focusing on collecting and analyzing data from various airport operations to gain insights into passenger behavior, flow patterns, and operational inefficiencies to make informed decisions and optimize processes. Apart from this, major companies are implementing advanced security solutions, including automated security checkpoints, explosive detection systems, and video analytics, to enhance security while minimizing passenger inconvenience. They are collaborating with airlines, technology providers, and other stakeholders to create integrated solutions that enhance the overall airport ecosystem and passenger experience. These initiatives by key players shows smart airport market dynamics. Furthermore, on 13 April 2023, GMR Group launched the Robotics Centre of Excellence (CoE) as part of the expansion of GMR Innovex. It will serve as a hub for innovation, research and development (R&D), and collaboration in the field of robotics. The Robotics COE will identify and incubate startups working in the field of robotics and co-develop innovative robotic products for the airport and aviation eco-system. It will drive innovation and provide the necessary infrastructure, a specially designed robotic lab for the robotic startups and drive thought leadership, and collaboration with industry partners.

Smart Airport Market News:

• 16 May 2023: Noida International Airport (NIA) signed an agreement with Amadeus for the provision of a world-class passenger processing system (PPS) including common use check-in, boarding, baggage reconciliation, and DigiYatra enabled biometric capabilities. Under the agreement, Amadeus will design, supply, commission, operate, and maintain the cloud-hosted end-to-end PPS for NIA.
• 7 February 2023: Smiths Detection, a global leader in threat detection and security inspection technologies, has been awarded a contract to supply New Zealand’s Aviation Security Service (AvSec) with advanced checkpoint security technology for its five major international airports, Auckland, Christchurch, Dunedin, Queenstown, and Wellington.
• On 30 January 2023: Kyzylorda Airport in Kazakhstan awarded a contract to Alstef Group to design and deploy the baggage handling system (BHS) at its new terminal. Under the contract, Alstef will be responsible for installing the outbound and inbound systems. The outbound system will feature seven-scale and induct check-in conveyors and a collector conveyor, including an outbound conveyor system with Automatic Tag Readers (ATR integration), X-ray screening integration, a new screening room, and a make-up lateral.

Smart Airport Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart airport industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.