Smart Airport Market Size, Share & COVID-19 Impact Analysis, By Application (AI/Machine Learning, Data Visualization, Anomaly Detection, Cyber Security, Asset/Resource Management, and Others), By Platform (Hardware, Software, Data Management, and Others), By Airport Model (Airport 1.0, Airport 2.0, Airport 3.0, and Airport 4.0), and Regional Forecast, 2023-2030

The global smart airport market size was valued at USD 2.29 billion in 2022 and is projected to grow from USD 4.05 billion in 2023 to USD 11.56 billion by 2030, exhibiting a CAGR of 16.1%. North America dominated the smart airport market with a market share of 32.75% in 2022.

The global market has grown considerably with the introduction of innovative technologies that have enhanced passenger experiences. The increase in demand for real-time data is driving market growth. It helps to ease the burden on airport infrastructure and the workforce. The key growth drivers comprise of modernization of previous airports, development in commercial aviation, the establishment of new airports, and an increase in the number of green initiatives by the airports. The key motive for building an intelligent airport is to create systems and processes digitally equipped and arranged in terms of process efficiency and connectivity for airport operations.

The introduction of various electronic devices with innovative options, such as passenger identification through a unique heartbeat pattern, the assistance of biometric signatures, and the preparation of artificial intelligence technology across airports, are assisting the management of huge airport databases.

COVID-19 IMPACT

COVID-19 Hindered Market Owing to Lockdowns and Decrease in Passenger Travel

The market was heavily impacted by COVID-19 in the years 2020 and 2021. Numerous airlines and other aircraft operators have discovered that the COVID-19 pandemic has decreased passenger traffic, a significant source of income. Passenger numbers fell, forcing operators to look for additional sources of income in order to continue. This was due to the fact that most worldwide borders were closed and people were more interested than ever in traveling internationally for vacation and business. Also, as of March 2020, the airline was losing money as a result of a steep fall in the number of passengers and aircraft hangars, as well as maintenance and insurance expenses as well as numerous other operating expenses. Airlines are being forced to focus on cargo as a result of strict rules, border closures, and a recent pandemic of travel phobias.

LATEST TRENDS

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Implementation of Biometrics at Airports to Augment Market Share

Worldwide, both local and international airports are utilizing facial recognition biometrics technology more and more. This technology improves boarding by getting rid of paper and traditional data recording procedures. Furthermore, biometric authentication is used in an airport for various reasons. Biometrics improve flight security to ensure a person is whom they say they are. Identification is made based on specific and real characteristics related to the passenger. Almost all usernames, passwords, and PINs can be compromised, and a data breach can leak sensitive information to hackers.

Furthermore, in April 2023, Idemia Identity & Security USA signed a USD 128 million indefinite supply Perpetual Quantity (IDIQ) contract with the Department of Homeland Security's Transportation Security Administration (TSA). Under this contract, the company will provide Next Generation Credential Authentication Technology (CAT2) systems to compare the face biometrics of the holder to the document and display authentication results.

DRIVING FACTORS

Growing Air Passenger Traveling in Developed Countries to Boost Growth

The market is anticipated to grow at a faster rate during the projected period due to the expanding commercial aviation industry and the increasing inclination for air travel around the world. In the next ten years, China and India are anticipated to account for an additional 44% of air passenger traffic, according to the International Air Transport Association (IATA). In addition, during the next ten years, air passenger traffic is anticipated to rise at the quickest rate in the Asia Pacific area. To lessen the negative effects on the environment, governments in industrialized nations are eager to invest in green airports and smart airport initiatives. Additionally, smart parking is a developing idea in airports. Therefore, over the study period, such factors will fuel the market growth.

Rising Focus on Customer-Centric Approaches to Propel Market Growth

Governments in developed countries are designing and developing smart/intelligent airports with the collaboration of key companies. The advanced technologies installed at airports will simplify the passenger traveling experience at the airports. Airports are upgrading their conventional systems with highly advanced and automatic systems to reduce the waiting time of passengers. The growing demand for eco-friendly systems and airports will also propel the demand for smart and green airports in the upcoming years. Thus, this factor will propel the market growth.

RESTRAINING FACTORS

High Costs of Advanced Smart Airports and Components to Hinder Growth

Airport boarding procedures are made easier by modern, computerized security technologies. The market growth would be hampered by the high costs associated with the design, development, and implementation of digitalized systems at airports. They need to work together with a variety of electronic parts and subsystems to give the airport authority real-time data. These digital systems are expensive to create, implement, and maintain. The airport authorities prefer to outsource the security services to companies like Securitas AB, G4S Plc, and others due to the high cost of these systems and services. Therefore, the setup, development, and implementation of digital technologies at airports would be expensive and time-consuming, which would restrain market expansion.

SEGMENTATION

By Application  Analysis

Increasing Demand for AI-based Systems to Drive Growth of Terminal Side Segment

Based on application, the market is divided into AI/machine learning, data visualization, anomaly detection, cyber security, asset/resource management, and others. The AI/machine learning segment is anticipated to dominate the market during the forecast period. The segment is also projected to grow with the highest CAGR during the study period. This growth is attributed to the increasing demand for the installation of artificial intelligence-based advanced systems and equipment on the terminal side of airports. In June 2021, omniQ Corp, a provider of artificial intelligence (AI) and IoT-based solutions, announced it had been awarded a contract to deploy an AI-based EZ Edge VRS deployment kit that enables vehicle entry and exit at Philadelphia International Airport.

By Platform Analysis

Rise in Demand for Advance Hardware Systems in Airports for Various Applications, Such as Security Checks, Anomaly Detection, to Propel the Segment

 On the basis of the platform, the market is classified into hardware systems, data management, software systems, and others. The hardware segment is anticipated to dominate the market growth during the forecast period. The growth in the segment is owing to the advancements in hardware solutions for developing digital airports.

The software systems segment is anticipated to show significant growth during the forecast period. Increasing demand for face detection and real-time information software at airports are the major factors behind the growth of the market

By Airport Model Analysis

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Airport 3.0 Segment Dominates the Market Owing to the Increase in Adoption in North America Region

By airport model, the market includes Airport 1.0, Airport 2.0, Airport 3.0, and Airport 4.0. Airport 3.0 is anticipated to dominate the market share during the forecast period. The growth in the region is owing to the wide adoption of this model in landside airside and terminal-side North American airports.

Airport 4.0 is projected to grow with the highest CAGR during the smart airport market forecast period. Airport 4.0 connects all stakeholders in a cohesive digital environment with a focus on connection and real-time information.

REGIONAL INSIGHTS

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In terms of geography, the market is divided into North America, Europe, Asia Pacific, and Rest of the World.

North America held the largest Smart Airport market share in 2022. The market in North America was valued at USD 0.75 Billion in 2022. The U.S. has recently dramatically increased investment in updating its airport systems. Additionally, the Transportation Security Administration (TSA) and other regulating bodies, as well as the presence of major manufacturers like Honeywell International Inc. and Raytheon Technologies Inc. Additionally, the presence of Hartsfield-Jackson Atlanta International Airport (ATL), the largest international airport, would promote the expansion of the business in this area.

Europe held the second-largest market share in 2022 owing to the high investment in the upgradation of conventional systems with technologically advanced systems and the rising demand for smart and green airports in the upcoming years. The European Union Agency for Cyber-Security (EUAC) is actively involved in designing, developing, and implementing cyber-security-based systems at digital airports. It will boost the growth of the market in this region.

Asia Pacific held the third-largest share in 2022 and is also expected to be the fastest-growing region during the forecast period. The region is expected to display strong growth in the market during the forecast period owing to a significant rise in air traffic in countries such as China, Singapore, and India. The region is anticipated to exhibit long-term growth in the market.

Furthermore, due to the existence of a sizable number of suppliers and distributors of digital systems in this area, it is predicted that the market in the Middle East and Africa will grow at a high CAGR. The market in the Middle East and Africa is anticipated to be driven by rising investments in local airports in the UAE and Saudi Arabia.  

KEY INDUSTRY PLAYERS

Collaboration between Government Agencies and Market Players to Create New Growth Opportunities

The market's competitive landscape shows that a few key players, including Thales Group, Honeywell International Inc., Raytheon Technologies Inc., Collins Aerospace, and Cisco Systems, dominate the industry. These businesses are concentrating on creating cutting-edge autonomous environmentally friendly solutions for airports. Additionally, they plan to soon broaden their geographic presence into Asian nations. Additionally, they are working with the relevant governments to develop smart airports in their nations. Additionally, the next 10 years will see the active involvement of European agencies in airport design.

LIST OF KEY COMPANIES PROFILED:

• SITA (Switzerland)


• Huawei Technologies Co., LTD. (China)


• Smart Airport Systems (SAS) (France)


• Infax, Inc. (U.S.)


• IBM Corporation (U.S.)


• Honeywell International Inc. (U.S.)


• Thales Group (France)


• Daifuku Co., LTD. (Japan)


• Siemens AG (Germany)


• Amadeus IT Group SA (Spain)

KEY INDUSTRY DEVELOPMENTS:

• January 2023 – Kazakhstan’s Izirolda Airport has commissioned the Alstef Group to develop the Baggage Handling System "BHS" in a new terminal. Under the terms of the contract, Alstef will be responsible for installing outbound and inbound systems.


• February 2023 – Smiths Detection, a global leader in threat detection and security inspection technology, has been awarded a contract to supply New Zealand's Aviation Security Service (AvSec) with advanced checkpoint security technology to five major international airports. Auckland, Christchurch, Dunedin, Queenstown, Wellington.


• April 2023 – CGI and Fraport AG, operator of Frankfurt Airport, are working together to accelerate the digitalization of the airport under a five-year basic contract. Fraport AG, one of the world's largest airport operators, operating in 29 airports on four continents, has chosen CGI as its digital partner to further improve the customer experience at Frankfurt Airport and to develop new digital businesses.


• July 2022 – Air Marakanda, the operator of the newly modernized Samarkand International Airport (“SKD”), has announced the completion of the first phase of its contractual work with TAV Technologies to fully digitalize airport operations. TAV Technologies is a subsidiary of TAV Airports Holding, a member of the international airport operator Group ADP.


• December 2022 – Scientific Applications International Corp. won a USD 150 million procurement contract from the Transportation Security Administration to continue testing and evaluating TSA's airport screening equipment and non-security screening systems. Under the contract, SAIC is responsible for the testing and implementation of passenger and baggage screening equipment, data analysis, and evaluation.

REPORT COVERAGE

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The global market report provides a detailed market analysis. It comprises all major aspects, such as R&D capabilities, supply chain management, competitive landscape, and optimization of the manufacturing capabilities and operating services. The research covers the analysis of the North America, Asia Pacific, and other regions. Moreover, the market report offers insights into the market trends analysis, market share analysis, porters five forces analysis, market analysis, market segmentation analysis, and market competitive landscape and primarily highlights key smart airport technologies developments. In addition to the above-mentioned factors, it mainly focuses on factors that have contributed to the global market industry's compound annual growth rate over recent years.

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