Smart Airport Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Smart Airport Market is projected to grow to about USD 14 billion by 2026, with a CAGR of 5.2% during the forecast period (2021 - 2026).

COVID-19 had a positive impact on the market as the investments towards integration of advanced technologies such as self-service check-in kiosks, biometric kiosks, and touchless solutions, among others, have increased compared to the previous year. Furthermore, due to the decrease in passenger traffic at the airports, the airports could easily integrate and implement the new advanced technologies.

The recovery in the passenger traffic in the coming years, the implementation of advanced technologies like IT, electronics and control systems, robotics, data analytics, etc., in the airport for efficient management of the airport at a reduced cost, as well as the need to enhance the passenger experience in the airports, is expected to accelerate the growth of the smart airport market during the forecast period.

The increasing investments into construction of new greenfield airports as well as expansion of existing airports around the world to cater to the growing passenger traffic is expected to majorly drive the growth of smart airports market in the coming years.

The introduction of new technology, like smart glass for blind passengers, and the introduction of biometrics for passengers, in general, may lead to enhanced customer experience in the future.

Scope of the Report

Smart airport or intelligent infrastructure is a concept, which has been developed based on the idea of the future smart city, smart building, and the factory. The infrastructure for smart airports includes communication systems, cargo and baggage handling, ground handling, security systems, vehicle parking solutions, air traffic management, aircraft hangars, aircraft parking, and the area falling within the airport. The other operations in the terminal side segment include passenger and staff notification system, information display system, lighting system, and announcement system. The market is segmented based on technology into security systems, communication systems, air and ground traffic control, and passenger, cargo and baggage, and ground handling. By airport location, the market is segmented into the landside, airside, terminal side. The report also covers the market size and forecasts for the market in major countries across different regions. The market sizing and forecasts have been provided in value (USD billion).

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Key Market Trends

Passenger, Cargo and Baggage, and Ground Handling Segment Dominated the Market in 2020

The passenger, cargo and baggage, and ground handling segment currently has the highest market share and is expected to continue its dominance during the forecast period. The rapid growth of the passenger traffic has increased the pressure on the airport operators to augment their passenger handling capacity and integrate digital solutions to regulate passenger flow, cargo and baggage handling capabilities at the airports. For instance, in September 2020, the Bangalore International Airport (BIAL), in collaboration with Xovis, installed Queue Management System (including Xovis PTS and Xovis 3D sensors) at the Kempegowda International Airport in Bengaluru, which is expected to reduce waiting times, enhance operational efficiency and better manage passenger flow during peak hours. Similarly, the airports are also installing automated baggage handling systems to ease the pressure on airport ground support personnel and are helping the airport, airlines, and ground handlers to achieve passenger satisfaction. The majority of the airports in Europe and Asia have already installed the automated baggage handling systems. Also, in January 2019, PCL Construction in a joint venture with BEUMER Group signed a master agreement with the Greater Toronto Airports Authority (GTAA) for Toronto Pearson International Airport’s Baggage 2025 initiative to upgrade the baggage handling operations at the airport with a fully automated system. Under the master service agreement, BEUMER Group will install CrisBag, an automated tote-based baggage transport and sortation system. The planned investments of passenger and baggage handling systems are expected to propel the growth of this segment in the coming years.

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