Press Release

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. 

Market Dynamics

Drivers:

• The technical developments accelerate the digital transformation initiatives to recover lost time, reduce the cost of customer service, and de-risk traditional business models. It is further capable to predict when process inefficiencies will occur and translate them into predictive insights. This can then be implemented to discover the relevant events and predict their outcomes, which can improve the efficiency of smart airports and optimize airport operational activities.
• Passenger and cargo traffic is growing rapidly throughout the world, driven by factors such as low airfares, higher living standards of individuals, and an expected recovery in the world’s gross domestic product. Rising GDP, and consequently, disposable income and standards of living, result in an augmented demand for air travel for both leisure and business purposes. 

Restraints:

• Smart airport requires highly sophisticated technologies and components to simplify the process of boarding at airports. These sophisticated technologies and equipment are expensive, and its design, development, and implementation of digitalized systems involve high cost, which would be the major restraining factor for the growth of the global smart airport market.
• The rising usage of smart services exposes a broad range of vulnerabilities that can be manipulated by cybercriminals and other malicious activities, which may pose a major threat to the growth of the market during the forecast period.

Opportunity:

• Robotic technology is expected to gain immense popularity in the forecasting period, making it possible to see a faster and increasing adoption at terminals globally. As robotic automation often played an imperative role in preventing any unwanted incidents or security breaches in the last few decades. 
• As per the survey executed by Air Transport IT Insights in 2021, it was found that almost half of global airlines and nearly 32% of airports are recently looking for partners to further develop their robotic involvement in the upcoming three years.

Trends:

• Growing adoption for biometrics in smart airports, these biometric technologies can reduce the boarding time of passengers by lowering the security check, lounge access, and boarding, without having to touch any surfaces. Moreover, contactless biometrics authentication is also accessible that can help to improve productivity and provide added support, which driven the adoption of biometric technology in airports.
• In April 2021, Istanbul Airport has recently concluded a six-month biometric trial, which showed a 30% reduction in boarding times. The biometric-enabled Proof of Concept (PoC) was conducted by SITA with the aim to design a low-touch passenger experience and optimize passenger processing at the airport.

Global Smart Airport Market Segmentation Overview

By Component

• Infrastructures
• 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
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland 
  • Russia
• Asia Pacific
  • China
  • Taiwan
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Brazil
  • Argentina
  • Rest of South America

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