The smart airport is based on the Internet of Things technology, mobile Internet technology, big data analysis technology, and improving consumer experience. The goal of the civil aviation passenger service process is to reset, achieve human-machine integration, and strive to bring passengers a new civil aviation service experience. It is an organic integration of airlines, passengers, aircraft, airports, and other units through an intelligent platform, and all units are connected and interacted. It enables all operating units to work together on the same platform, breaking the tradition of being independent, and each system exists independently. The mode allows passengers to travel more efficiently, safely, and conveniently, and truly achieves smart integration.
The global smart airports market size was estimated at USD 2.36 billion in 2019 and projected to reach USD 8.01 Billion by 2027, registering a CAGR of 14.61%, during the forecast period, 2020-2027. The major factors attributed to business optimization, cost savings, increased transparency, and improved passenger experience. Further, the augmented penetration of automated and connected airport processes, such as self-service check-ins, smart baggage drops, and smart luggage tracking, is positively impacting the market growth. Additionally, the growth in the tourism industry and the increased air travel by passengers worldwide will impact the growth of the global smart airport industry in the upcoming periods. The surge in the adoption of advanced technology by the airport to offer customers enhanced experiences also fueled the growth of smart airports worldwide.
Moreover, the increasing use of advanced technologies for end-to-end tracking of information during the journey, biometric technologies, digital passports, and immigration checks will accelerate the growth of the smart airport industry. The modernization of old airports, the establishment of new airports, commercial aviation development, and the growing focus on the green initiative are driving factors for market growth during the forecast period. Additionally, the implementation of intelligent technologies by airports and using renewable energy sources to reduce pollution and achieve sustainable goals are major drivers propelling the growth of the smart airport market across the world. The upsurge in demand for endlessly updating passengers with real-time travel services such as route switching, and valet parking is expected to foster the global market growth. The introduction of new technology by airports such as smart glass for blind passengers and the introduction of biometrics for passengers will bolster the robust growth of the global smart airports in the upcoming periods.
Modern technologies such as self-service, mobile devices, and business intelligence can improve the passenger experience. These technologies can help airports provide faster check-in and real-time update services, reduce queue waiting time, and speed up flight turnover. The growing number of passengers at airports and the upsurge in need for effectively managing airport operations. A majority of airports are focusing on self-service solutions and adopting new technologies such as aviation display, self-help guide, self-help inquiry, self-service baggage check-in, self-service boarding, etc. These self-services includes robotics kiosk, facial recognition, automated passport control, and others to manage airport operations effectively.
With the landing of the 5G concept, smart airports will provide passengers with more efficient and convenient services. The growth of a new generation of digital information technology optimizes the entire process of the airport, from planning and design to actual operation, with the core goals of safety, green, wisdom, and humanity. These technologies help the airport a warm harbor with more guarantees for safe operation, intelligent and efficient production management, precise personality for passenger services, comprehensive IoT of resources and equipment, and a green and harmonious environment inside and outside.
Based on the system, the global smart airport market classified into endpoint devices, communication systems, passenger, cargo and baggage handling, air traffic control systems, security systems, and others. The security systems are expected to be the largest market for smart airports during the forecast period. The growth of the segment primarily attributed to through CCTV, it predicates the waiting time in check-in areas, security checkpoints, taxi lanes, passport control, and mounting demand for biometric devices by airports for the identification and checking process.
The cargo and baggage handling will witness a lucrative growth rate in the estimated period as it provides information about guidance for check-in and baggage drop, directions for the immigration check, and live updates on bus and taxi transportation services.
Based on the application, the global smart airport market segregated into Landside, Terminal Side, and Airside. The airside segment held a lucrative share in 2019 and projected to dominate the global smart airport market by 2027. Due to the growing use of IoT, AI, and big data technology at airports to reduce the wait time for passengers, address significantly and help in lost bags, flight delays, and customer service issues.
The terminal side will be the fastest-growing segment in the forecast period. It is owing to the terminal side provide details of the flight on smartphones or at airport kiosks and help in location services and alerts for directing customers to their terminals and gates with personalized retail and hospitality offerings.
Based on type, the global smart airport market segregated into Airport 2.0, Airport 3.0, and Airport 4.0. The Airport 4.0 segment estimated to lead the market by 2027 due to its focus on digital transformation and help in proving the connectivity and real-time information by connecting all stakeholders in one fully integrated digital ecosystem.
The Airport 3.0 will grow at a significant rate during the forecast period due to airport 3.0 providing self-check-in and self-bag drop counters, and digital wayfinding through a mobile application.
Based on operation, the global smart airport market bifurcates into Aeronautical and Non-Aeronautical. The non-aeronautical segment held for a significant market share in 2019 and will witness to gain maximum market revenue by 2027. It is attributable to services that include retail outlets, restaurants, smart parking, Wi-Fi, advertising, lounge access, and personalized services.
The aeronautical segment is poised to witness significant growth over the forecast period due to the use of advanced technology to maintain and repair essential equipment of airports regularly used by the customer.
Based on the airport size, the global smart airport market categorized into Large, Medium, and Small. The medium segment held higher market potential in 2019. It is attributed to the growing air traffic; airports need to upgrade and implement smart systems to facilitate effective airport operations.
The large segment market exhibited a lucrative market share in 2019. It is expected to generate significant revenue during 2020-2027 due to the increasing number of passengers at airports and the need to manage airport operations effectively.
Based on the end market, the global smart airport market bifurcates into implementation, and upgrades & services. The upgrades & services segment will dominate the global smart airport market by 2027. Due to the surge in deploying smart applications on greenfield projects and, as a part of modernization, upgrades on brownfield airport projects along with the upsurge in passenger footfall, airports need to upgrade their systems to facilitate smooth airport operations without delay.
Based on geography, the global smart airports market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America estimated to occupy the lion’s share in the Smart Airports market by 2027. It is owing to the on-going implementation of IoT, AI, and AV& VR technologies to optimize in airport operations and bring transparency. North America has the highest number of airports globally.
The Asia Pacific will capture a prominent share of the smart airport market-dominant by 2027. Due to the growing adoption of artificial intelligence, robotics, and biometric-enabled bag drop facilities in the airports of China and Japan.
Companies such as Collins Aerospace, IBM Corporation, Huawei Technologies Co., Ltd., Cisco Systems, Inc., Sabre Corp., Amadeus IT Group SA, SITA, Honeywell International Inc., Siemens AG, Thales Group, and Indra Sistemas, SA, are the key players in the global smart airports market.
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Global Smart Airport Market
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