The airport industry is developing at a rapid pace and is bolstered by the swift rise in air traffic. Increasing air traffic has paved the way for various challenges, including capacity issues and security problems, among others. The airport operators are adopting multiple digital solutions to mitigate such constraints. Smart airports leverage the network and data-driven capabilities to provide superior level security and travel experience to the passengers. Operators are implementing various smart components for a wide variety of services, including baggage & document check, automatic check-in, and security checks, among others.
Today, airports are considered as an important economic driving force that provides a view of a city or a country. They also act as a vital part of travel and tourism, further compelling the governments around the world to invest in the tourism sector. Similarly, airport operators are actively working to adopt new technologies to transform airport businesses and provide passenger satisfaction. Thus, the smart airport market is gaining traction across the globe.
Internet of Things (IoT) is considered a notable trend driving the market growth. IoT is used in airports for flight booking management, passenger traffic monitoring, automatic check-ins, facility management, and baggage systems. The technology also enhances the efficiency of airport security. Additionally, escalating the need for real-time information to reduce the workload of airport staff and operators drive the market growth.
The airport industry is also harnessing various technologies such as augmented reality, near-field communication, and quick response codes for efficient automation of the airport processes. Rising terrorist attacks have raised concerns about passenger safety, further driving the market growth. Smart airport technologies update the security personals with relevant information and assist them in identifying potential threats.
The introduction of innovative devices with novel features such as passenger identification via a unique heartbeat pattern drives the market growth. The devices employ biometric and biodynamic signatures and implement artificial intelligence for handling colossal airport databases. The incorporation of artificial intelligence in inquiry systems delivers automated answers to passengers and reduces the need for the human workforce.
Artificial intelligence assists in predictive maintenance of aircraft, real-time pricing, and increases airline efficiency. For instance, Beijing International Airport leverages the ‘Aviation Brain,’ a part of Alibaba Group’s AI program. Aviation Brain helps to reduce congestion in the airport, as Beijing International Airport is ranked as the second busiest airport across the globe, as per the Airports International Council. The technology supports various other airport handling functions, including route planning for airline carriers and ground-staff assignments. The below figure depicts the passenger traffic in various regions in 2018.
Increasing demand for renewable energy sources drives the incorporation of smart technologies in the airport sector. Airports consume a significant amount of electricity, which subsequently increases the pollution and carbon footprint. However, the application of smart technologies helps with pollution reduction by using sustainable energy sources. Moreover, the renovation of old airports, the development of new airports, and advancements in commercial aviation provide impetus to the market growth.
The rapidly spreading coronavirus is severely challenging the aviation sector. International and domestic flights are closed in the majority of countries, further hampering the market growth. Additionally, the air traffic is projected to decelerate in 2020 due to coronavirus. This is also affecting the implementation of new technologies, further impeding the market growth.
On the basis of technology, the smart airport market is categorized into security systems, communication systems, passenger, cargo, & baggage ground handling control, and air/ground traffic control. The communication system segment is projected to be the fastest-growing segment during the forecast period. Today, airports are collecting passenger data and generating databases to deliver various information, including nearest retail stores, live updates on flight status, taxi and bus services, and traffic updates.
By application, the market is bifurcated into aeronautical operations and non-aeronautical operations. The aeronautical operations segment is further segmented into gate management and noise management, while the non-aeronautical operations segment is divided into supply chain management and advanced transport services. The noise management segment is projected to hold the highest share of as most of the airports adopt noise management programs to lower the noise generated by aircraft during landing and take-offs. For instance, Toronto Pearson Airport introduced Noise Management Action Plan for 2018–2022 in December 2017, which will be reviewed every five years.
Based on location, the smart airport market is classified into landside, airside, and terminal side. The terminal side segment holds the largest share of the market as flight details and locations directing the passengers to various terminals are displayed on the kiosks positioned in different areas of the airport. The below figure depicts the share of each segment in XXXX.
North America is estimated to hold the lion’s share of the smart airport market owing to the technological advancements in the region, coupled with the early adoption of such technologies. In the U.S., the airports have introduced RFID/NFC-based luggage tracking, automated immigration systems, smart security gates, and mobile applications providing notifications, among others. For instance, the Miami International Airport (MIA) has developed a mobile application to offer personalized services to passengers. The application provides updates on flight timings, gate numbers, customized information regarding shops and cafeterias, and baggage carousel numbers, among others. MIA is considered as a leading player in terms of adopting mobile technologies, including broadly distributed Bluetooth beacons, which collects data to improve passenger satisfaction and efficiency of the airport operations.
The Middle East is anticipated to witness an amplified growth in the smart airport market. The escalating passenger traffic, coupled with the modernization programs of old airports drives the regional market growth. In the UAE, airports are adopting voice-based AI tools and assistants to provide real-time information to passengers.
|Market Size||USD in Billion By 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Technology (Security Systems, Communication Systems, Cargo, & Baggage Ground Handling Control), Application, Location|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||Amadeus IT Group SA (Spain), Cisco Systems, Inc(The U.S.), Collins Aerospace (The U.S.), Honeywell International Inc(The U.S.), Huawei Technologies Co., Ltd(China), IBM Corporation (The U.S.), Indra Sistemas, S.A(Spain), Sabre Corp(The U.S.), Siemens AG (Germany), SITA (Switzerland), Thales Group (France)|
|Key Market Opportunities||Increasing Prevalence Of The Technology Industry Enhances The Expansion Of The Smart Airport Market Share|