Smart Airports Market Size, Share & Growth

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The Global Smart Airports Market Size was valued at USD 7.0 Billion in 2022 and is estimated to reach USD 8.3 Billion by 2027, growing at a CAGR of 3.5% during the forecast period. The increased usage of self-service technology, as well as the growing need for real-time information, are projected to fuel the expansion of the Smart Airports Industry. Furthermore, the use of the Internet of Things (IoT) at airports and manufacturing procedures is a significant breakthrough in the smart airports business. Companies all around the world are starting to employ cloud-based platforms to increase the operational efficiency. The cloud platform simplifies design by connecting suppliers, systems integrators, software developers, and other design and production ecosystem participants together on a virtual platform.

Smart airports Market Forecast to 2027

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Smart Airports Market Dynamics

Driver: Growing need for real-time information

There is an increasing need for passengers for real-time information to enable their travel experience convenient and comfortable. Smart airports are expected to be equipped with infrastructure that entails providing real-time information to passengers. They would require the establishment of customer touchpoints so that real-time updates about the progress of the journey of a customer can be easily obtained. These touchpoints can also be used to allow the rapid sharing of information within the entire value chain at an airports, thus allowing every entity of the system to work more effectively and efficiently.

According to SITA Air Transport IT Insights 2022, the use of mobile devices for booking, onboarding the airplane, and for bag collection have increased in Q1 2022 as compared to Q1 2020, while automated gates used for identity control, boarding, border control, and bag collection have all seen increase in technology adoption of 3% to 5% since 2020. Real-time information not only improves passenger experience but also process optimization. For instance, crew and staff can be tracked in real-time through their wearable devices. The tracking of passenger flow in real-time can help in queue management. Real-time data of environmental parameters, such as humidity, temperature, and pressure, can also be used by air traffic control to manage and plan traffic to and from the airport.

Restraint: Lack of standardized regulations for blockchain technology

Aviation is one of the highly regulated industries mainly due to the risks associated with its operations. A multitude of bilateral, national, and international regulations and standards bind the actions of aviation stakeholders, such as system manufacturers, service providers, and airports. For the integration of any new technology in aviation, a regulatory framework is a necessity. Aviation blockchain is yet to receive such frameworks or common standards to guide the integration and commercialization of the technology across various stakeholders. The issue will be to either come up with an entirely new framework that runs in line with the current framework or integrate blockchain into the existing set of regulations. Setting a regulatory framework takes years in the aviation industry. Thus, if a common standard or a regulatory framework is not set, it will directly restrain the commercial integration of blockchain globally. Along with this, the lack of common standards around the use of tokens in aviation for the tokenization of tickets and loyalty points could also lead to uncertainties around the commercial integration of blockchain.

Opportunity: Airport operation optimization through digitization

With digital technologies becoming more prevalent, airports are increasingly looking to external experts to help them with digital transformation. They are partnering with external managed service providers to both upgrade existing processes and install new smart systems. With flight delay causing airlines to incur heavy losses, a more efficient airport operation can result in fewer delays. Staff at airports can be better managed with the help of IoT by using tags and IoT wearables. The movement of ground staff can be tracked, and tasks assigned based on their location. Smart solutions are also used to better manage airport assets, such as luggage trolleys, aircraft, and ground staff. Tags are installed on the assets to track their real-time location, which can be further analyzed to optimize the process to be more efficient. This will reduce delays and cut down operational losses.

Terminal building operations, such as cleaning, heating & ventilating, and energy management, can be done through real-time parameter tracking through smart solutions. Smart solutions incorporated at the landside help ease parking processes and improve the travel experience for passengers. These solutions save time, reduce the manpower load, and provide efficient output resulting in optimized airport operations.

Challenge: Proper comprehension of passenger preferences

The concept of smart airports aims at improving efficiency, reducing operational costs, and providing ease to passengers. With increased competition, passenger satisfaction has become the main focus for airlines and airports. Emphasis is given on delivering personalized services to travelers at airports. To provide an enhanced experience to passengers, having information as to what they buy, why they buy it, and how they can be encouraged to buy more at airports is critical. A smart blend of leisure, dining, and retail offers to encourage passengers to spend more time at the airport before departure is an integral part of the smart airport concept. However, the biggest challenge is understanding the needs and preferences of passengers and offering personalized services in the absence of collaborated data.

In most cases, airlines have scattered data collected from different data points. For instance, the ticketing data is usually owned by travel agencies, agents, or airlines, and the marketing data is usually owned by retail or other information partners. In some cases, to use disparate data, airlines create multiple versions of passenger databases. However, they fail to use insights from various databases in a cohesive manner. In such cases, the challenge for airports and airlines is to provide an end-to-end smooth experience to passengers by collaborating the large databases of passenger preferences in a united format.

Smart Airports Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of aircraft hydraulic systems. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies include SITA (Switzerland), THALES (France), Siemens AG (Germany), Amadeus IT Group SA (Spain), IBM Corporation (US), Cisco Systems Inc. (US), Indra Sistemas S.A. (Spain), Honeywell International Inc. (US), L3Harris Technologies Inc (US). Airports, airlines, chartered operators, and airport management companies are some of the leading consumers of smart airport technologies.

Upgrades & Service segment to dominate market share during the forecast period

Based on end market, the smart airports market has been segmented into implementation and upgrades & services. Airports are adopting digital transformation in order to distinguish their passenger experiences. Existing systems and solutions are being upgraded with sophisticated technology and solutions to improve the passenger experience and operational efficiency. The market is being driven by the demand for better maintenance and services to ensure their continuing operation.

Endpoint Devices to lead the market for Smart Airports during the forecast period

Based on System, the Smart Airports market has been segmented into Communication & connectivity, endpoint devices, data storage, software & solution. Airports employ reliable endpoint devices like as biometrics, RFID, beacons, and so on to speed up the screening process. The use of end point devices has improved airport operations and the customer experience. Furthermore, advancements in endpoint devices have improved security standards and optimized the screening process at airports. Thus, driving the market for the segment.

Airside segment to witness higher demand during the forecast period

Based on Application, the Smart Airports market has been classified into landside, Terminal side, Airside. Rapid growth in worldwide passenger traffic is predicted to boost demand for the smart solution on the airside. Smart operations at the airside are primarily utilized to better manage ground employees and reduce aircraft turnaround time. As a result, the need for smart solutions for airside operations, such as sophisticated aircraft parking solutions, advanced maintenance, and health monitoring systems, has been expanding in recent years, thus driving the market.

Medium to acquire the largest market share during the forecast period

Based on Airport Size, the Smart Airports market has been classified into small, medium, and large. Medium airports mostly cater to the domestic passenger traffic and airlines. The increased in the domestic air passenger footprint has encouraged the demand for the smart solutions at the airports. The solution will enhance the passenger experience and airport operations.

Airport 3.0 to acquire the largest market share during the forecast period

Based on Airport Technology, the Smart Airports market has been classified into airport 2.0, airport 3.0 and airport 4.0. The ongoing modernization of existing airports and various medium size airport are upgrading their airport solutions with smart technologies, to enhance the airport operations.

Non-Aeronautical segment to hold major market share during the forecast period

Based on operation, the Smart Airports market has been classified into aeronautical and non-aeronautical. The increase in the air passenger travel will drive the aviation industry, that will proportionally enhance the market for the aviation industry. Airports are focused on particular digital advertising, among other things (intelligent transport services, inventory management) to respond to consumer demands and fuel the growth of the non-aeronautical segment.

Asia Pacific is projected to witness the highest market share during the forecast period

Asia Pacific leads the Smart Airports market. The key factor driving the increase in passenger traffic in the area include an increase in the region's middle-class population's disposable income, expansion in international tourism, and affordable airfares in rising countries like India. The growing number of passengers will increase the demand for automation of processes like as baggage handling and self-check-in services. This will help to the exceptional development of smart airports in the Asia-Pacific region, which will contribute to the overall growth of the market.

Smart airports Market by Region

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Key Market Players

Major players operating in the Smart Airports Companies include SITA (Switzerland), THALES (France), Siemens AG (Germany), Amadeus IT Group SA (Spain), IBM Corporation (US), Cisco Systems Inc. (US), Indra Sistemas S.A. (Spain), Honeywell International Inc. (US), L3Harris Technologies Inc (US).

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Scope of the Report

Smart airports Market Highlights

This research report categorizes the Smart Airports Market based on Component, Type, End User, Platform, Application and Region.

Recent Developments

• In June 2022, Raytheon Technologies Corporation-Collins Aerospace announced the invention of AirPlan allows airports to manage all of its resources, including gates, check-in counters, and luggage belts, via a single application on any computer or mobile device connected to their network. AirPlan can give airport operations with tools that allow them to see the status of each resource in one location and with an easy-to-use user interface. Airports can swiftly and easily relocate personnel, deploy ground employees, and check passengers in for flights, improving operations and giving a better customer experience.
• In June 2022, Thales Group introduces HELIXVIEW, a new innovative, stationary, compact, and lightweight Cabin Baggage Explosive Detection System (EDS CB) that eliminates the need for passengers to remove things from bags. HELIXVIEW is a C3-compliant scanner (next EDS CB standard) that blends electronic scanning based on X-ray nanotechnology with 3D image reconstruction. It also leverages on Thales' expertise in Artificial Intelligence (AI) and Cybersecurity to develop an intelligent and cost-effective airport solution. HELIXVIEW improves airport security while also providing travelers with more convenient travel options.
• In November 2021, Honeywell International Inc. Honeywell unveiled the next generation of its Honeywell NAVITAS software suite platform today, a System of Systems (SoS) solution that will assist airport operators and aviation navigation service providers in making more informed and accurate choices throughout airside operations, from approach to gate. The most recent modifications allow for the automation and digitalization of air traffic services, which aid in effective ground movement, situational awareness, control and monitoring of airside and Air Traffic Management (ATM) equipment, information management, and integration.
• In March 2021, Thales Group unveiled a digital secondary surveillance radar with increased performance and reliability for safer air traffic management – up to 2,000 flight tracks and 64 simultaneous data outputs to air traffic centers.

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