Market Trends of North America Smart Airport Industry
Air and Ground Traffic Control Segment is Estimated to Show Remarkable Growth During the Forecast Period
- The air and ground traffic control segment will showcase significant growth during the forecast period. The growth is attributed to the increasing expenditure on the modernization of airports and the growing use of advanced systems for airport operations in the United States and Canada.
- The rapid growth of air traffic has necessitated airports to become highly adaptive, entrepreneurial, and proactive in addressing the ever-changing dynamics of the aviation industry in North America. With the airports developing into multi-nodal transportation hubs for passengers, efforts are being divested towards developing systems and processes that are digitally aware, interconnected, infused with intelligence, and easily accessed by all stakeholders.
- For instance, the US Department of Transportation's Federal Aviation Administration (FAA) started investing the first USD 1 billion in funding to modernize the country's air traffic control system in April 2022. The funding is part of a total of USD 5 billion invested to maintain and replace air traffic control buildings and equipment nationwide. Thus, growing expenditure on the enhancement of airports and emerging adoption patterns are anticipated to drive the development of smart airports in North America during the forecast period.
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The United States is Projected to Dominate the Market During the Forecast Period
- The US held the highest shares in the North American smart airport market and is anticipated to continue its dominance in terms of market share during the forecast period. The growth is due to increased spending on the aviation sector and the presence of the highest number of airports across the United States. To efficiently handle increasing passenger traffic, ensure seamless operations, and enhance the customer satisfaction index, airports are revamping their operations to include several IoT-powered systems.
- For instance, in March 2023, The US Federal Aviation Administration (FAA) awarded USD 20 million from President Biden's Bipartisan Infrastructure Law to 29 airport-owned traffic control towers nationwide. The investment will be used to upgrade and build control towers in small towns and regional airports.
- Also, in May 2021, Raytheon Intelligence & Space signed a five-year contract worth USD 318 million with the Transportation Security Administration (TSA) to expand the deployment of checked baggage screening equipment to all federally managed airports nationwide. The construction of new airports and advancements in technology in the existing airports to enhance the experience of the passengers are expected to drive market growth across the US.
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