Airport Information Systems Market Size, Share & Industry Analysis, By System (Airport Operation Control Center, and Departure Control System) By Airport (Class A, Class B, Class C, and Class D) By Type (Airside, and Terminal Side), By End-Use (Passenger Systems, and Non-Passenger Systems), By Investment (Brownfield, and Greenfield), and Regional Forecast, 2024 - 2032

The global airport information systems market size was USD 3.41 billion in 2023. The market is projected to grow from USD 3.54 billion in 2024 to USD 4.78 billion by 2032 at a CAGR of 3.82% over 2024-2032. North America dominated the airport information systems market with a market share of 30.5% in 2023.

Airport Information Systems (AIS) include various equipment from passenger information display systems (PIDS) and baggage handling and management systems to aircraft. These systems provide information and announcements to staff and passengers, advertising, flight departure times, and weather updates. An AIS is produced from a combination of different subsystems. These systems consist of a flight information system, an airport security system, a system for terminal services, emergency departments, and passenger information systems.

In 2019, SITA’s air transport IT insights showed that 88% of both airports and airlines plan major research and development programs with artificial intelligence by 2022. The heavy investment in aviation technologies meets the demands of passengers, with 64% of people wanting a digital travel concierge.

The effects of the COVID-19 pandemic also affected the aviation industry. The market is seeing a decline in the demand for airport information systems due to airport closures, weakened economy, and supply chain.

• According to a report published by the International Civil Aviation Organization (ICAO), international air passenger traffic decreased by 60% and airlines lost approximately USD 371 billion in revenue.

• According to a report by the International Air Transport Association (IATA),  economic activity and load losses per year stood at 30% in April 2020 and 12% in August 2020.

Airport Information Systems Market Trends

Development of Smart Airport for Improved Airport Operations is a Prominent Trend

An introduction of advanced technologies such as biometrics, artificial intelligence (AI), machine learning, and others improves the operational efficiency of airports. Passengers use facial recognition technology at airport check-in, bag drop, and boarding gate. It saves time and is helpful for security purposes as the face becomes the boarding pass for the passenger. Several international airports, such as Hong Kong, Changi, and Heathrow, have launched biometric projects that help in speeding up the boarding and check-in process. Furthermore, Incheon Airport in South Korea uses AI robots that provide passengers with a pleasant experience and information.

Airport Information Systems Market Growth Factors

Increase in Air Traffic and Need for Real-Time Data for Passengers to Fuel Market Growth

Rising air traffic and the growing need for real-time data sharing among passengers are the major factors propelling the market's growth. In addition to that, increasing airport expansion projects and modernization of airport infrastructure drive the market growth. According to the International Air Transport Association (IATA), the number of passengers could double to 8.2 billion by 2037. The IATA report states that China will have 1 billion new passengers while the U.S. will have 481 million new passengers in the next 20 years. Thus, the rising number of air travelers leads to a growing number of airports, which creates demand for Airport Information Systems.

Growing Expenditure on IT Spending for Operational Improvement by Airports to Aid Growth

The growing adoption of next-generation technologies on airports to achieve higher operational efficiency and improve passengers' experience has resulted in rising demand for AIS at airports. An increase in spending on information technology (IT) from airlines drives the market growth. According to the report published by SITA, airports and airlines have invested a record USD 50 billion in information technology (IT) in 2018 to enhance the passenger experience.

RESTRAINING FACTORS

High Cost Involved in Airport Up-gradation and Modernization Programs to Hinder Market Growth

The high costs associated with modernization and data sharing regulations are the major factors restraining the market growth. In addition, facial recognition algorithms have error rates that vary depending on a person's race or gender. Therefore, some groups may be subject to additional screening more often than others.

The high costs associated with biometric devices and integration of multiple IT systems could hinder the market growth.

Airport Information Systems Market Segmentation Analysis

By System Analysis

Airport Operational Control Center Segment Dominated in 2023 Due to Rising Demand for Enhanced Operational Efficiency

Based on the system, the market is divided into the departure control center and airport operational control center.

The airport operational control center segment held the highest shares in 2023. The growing demand for improved operational efficiency at airports is driving the Airport Information Systems market growth. The center controls and monitors all the airport management functions. The departure control center will showcase remarkable growth due to the rising need for traffic control due to the increasing number of aircraft and airports worldwide.

By Airport Analysis

Class B Segment Witness Fastest Growth Owing to Increasing Air Traffic

Based on the airport, the market is segmented into class A airport, class B airport, class C airport, and class D airport.

The class B airport segment is estimated to show significant growth during the forecast period. The growth is due to increased air travelers from small cities and rapid expansion of the aviation sector in emerging economies such as India and China, which creates a huge demand for up-gradation programs and airport expansion.

Other class segments will showcase significant growth due to increasing air traffic and airport up-gradation programs. Class C airports have operational Terminal Radar Approach Controls (TRACON) and Air Traffic Control Tower (ATCT).

By End-Use Analysis

An Increasing Demand for Self-Check and Bag Drop Driving the Market Growth

By end-use, the market is classified into non-passenger systems and passenger systems.

The passenger systems segment will witness remarkable growth in the AIS market during 2024-2032. The growth is due to the growing demand for self-check-in and bag drop. In November 2018, Bangalore International Airport in India deployed 16 fully automated self-bag drop machines. It helps in accelerating the baggage transaction and saves time in check-in queues.

The non-passenger system segment shows moderate growth during the forecast period. The growth is due to rising spending on airport development and the rapidly growing aviation industry, especially in the Asia Pacific.

By Type Analysis

Growing Spending on the Installation of Airside Information Systems Boost Market Growth

Based on the type, the market is segmented into the airside and terminal side. The airside segment will witness the highest growth in this market during the forecast period. The dominance of the segment is due to the increasing demand for airside infrastructure from numerous airports. Furthermore, the airside system is vital for the aircraft and pilots to park aircraft without any mistakes or delays. The Terminal side segment will showcase significant growth due to increasing airports as it includes operations such as baggage handling and check-in systems.

By Investment Analysis

Rising Investment for Modernization and Renovation of Existing Airports Propels the Market Growth

Based on investment type, the market is divided into greenfield and brownfield investment. The brownfield investment segment is anticipated to grow with the highest CAGR due to a shift in trend for enhancing the existing airport infrastructure projects in developed countries. Furthermore, the growing importance in developing countries to modernize Airport Information Systems for regional airports are likely to fuel market growth.

The Greenfield segment will witness remarkable growth owing to rising investment in the development of greenfield airports. In October 2020, The Airports Authority of India (AAI) started developing a new greenfield airport in Arunachal Pradesh.

REGIONAL INSIGHTS

The market is segmented into North America, Europe, Asia Pacific, the Middle East, and the rest of the world.

North America stood at USD 1.04 billion in 2023. The region's dominance is due to the presence of the highest aircraft fleet and a large number of airlines across the United States. A large number of airports and high spending from airlines for the modernization of airports drive the growth of the market across North America. Additionally, key system integrators such as IBM, Collins Aerospace, and others boost the market growth.

Asia Pacific will witness remarkable growth in the AIS market during 2024-2032. The growth is attributed to the growing urbanization and disposable income, and increasing air traffic that leads to the rapid expansion of the aviation sector across China and India. In 2020, the Indian Finance Ministry announced that 100 new airports would be developed by 2024. In the union budget of the year 2020-2021, the Indian government allocated USD 23.7 billion to support the country’s transport infrastructure.

Europe is projected to show significant growth owing to the increasing spending on the aviation sector from the U.K., Germany, France, Russia, and others. Furthermore, key market players such as Indra Sistemas S.A., Siemens, Thales Group, and others drive the market growth.

The Middle East will witness moderate growth during the forecast period owing to the adoption of advanced technologies for efficient operations at the airport. According to IATA, the air transport industry includes supply chains and airlines estimated to support USD 20.2 billion of GDP in Saudi Arabia in 2018. Thus, the rising number of airports and growing tourism across the Middle East drive the market growth across the region.

The rest of the world is projected to show moderate growth due to the increasing number of air travelers and growing expenditure in the aviation sector from Brazil, South Africa, and others.

List of Key Companies in Airport Information Systems Market

Key OEMs Focus On Business Expansion Through Long Term Contracts and Partnership with Major Airport Operators

The market competitive landscape has a prominence of a few players such as Thales Group, SITA, Collins Aerospace, and IBM. These OEMs provide a diversified product portfolio for the Airport Information Systems in various regions.

The key players are increasing investment in R&D to enhance solutions and services. Furthermore, adopting substantial investment approaches through strategic acquisition and partnership with other companies. In July 2021, Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport, entered into a 10-year partnership with IBM. Under the agreement, IBM and Kyndryl will create a new “Airport in a Box” platform that will support transforming the end-to-end travel experience for passengers at BLR Airport.

LIST OF KEY COMPANIES PROFILED:

• ADB SAFEGATE (U.S.)


• Amadeus IT Group SA (Spain)


• Collins Aerospace (U.S.)


• Damarel Systems International Ltd. (U.K.)


• IBM (U.S.)


• IndraSistemas S.A. (Spain)


• INFORM Software (Germany)


• Northrop Grumman Corporation (U.S.)


• Siemens (Germany)


• SITA (Switzerland)


• Thales Group (France)

KEY INDUSTRY DEVELOPMENTS:

• September 2020 – The Federal Aviation Administration (FAA) Airport Technology Research and Development Branch signed a contract worth USD 2.4 million with Enterprise Engineering Services LLC (EES). The agreement includes software development, system engineering, programming, maintenance and support of databases, and administration of the research efforts of the ARTD Branch.


• June 2019 – Geneva Airport signed a contract with Thales Group to deliver a centralized supervision system. The system is designed to collect and analyze operational data and detect any irregularities in real-time.

REPORT COVERAGE

The airport information systems market research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, key service providers, AIS types, and applications. Moreover, the report offers insights into Airport Information Systems trends, SWOT analysis and highlights key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation