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

The Smart Airport Market is Segmented by Technology (Security Systems, Communication Systems, Air and Ground Traffic Control, Passenger, Cargo and Baggage, and Ground Handling), Airport Location (Landside, Airside, and Terminal Side), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Market Snapshot

Smart Airport Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 5.2 %

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Market Overview

The smart airport market is projected to register a value of 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 toward 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 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 airports for efficient management at a reduced cost, and the need to enhance the passenger experience in airports are expected to accelerate the growth of the smart airport market during the forecast period.

The increasing investments in the construction of new greenfield airports and the expansion of existing airports around the world to cater to the growing passenger traffic are expected to majorly drive the smart airports market in the coming years.

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

Scope of the Report

Smart airport or intelligent infrastructure is a concept that 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 landside, airside, and 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).

Technology
Security Systems
Communication Systems
Air and Ground Traffic Control
Passenger, Cargo and Baggage, and Ground Handling
Airport Location
Landside
Advanced Vehicle Parking Solutions
Smart Marketing Techniques
Security
Airside
Air Traffic Management
Aircraft Maintenance
Aircraft Parking
Terminal Side
Baggage Handling
Check-in Systems
Other Operations
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Russia
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Nigeria
Rest of Middle-East and Africa

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Key Market Trends

The 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 it is expected to continue its dominance during the forecast period. The rapid growth of passenger traffic has increased the pressure on 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 the 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, airports are also installing automated baggage handling systems to ease the pressure on airport ground support personnel, helping airports, airlines, and ground handlers achieve passenger satisfaction. The majority of the airports in Europe and Asia have already installed 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.

Smart Airport Market Latest Trends

The Asia-Pacific Region is Expected to Witness the Highest Growth During the Forecast Period

The Asia-Pacific region will experience significant growth due to robust investments toward the construction of new airports and the expansion of existing airports. Over the past few years, there has been a rapid increase in passenger traffic handled by airports in countries like China, India, Japan, and South Korea, among others. Due to this, the government and airport authorities in the region have announced significant investments in the construction and expansion of airports. For instance, in 2019, the Ministry of Land, Infrastructure, and Transport of South Korea announced its plan to invest approximately USD 4.2 billion over a period of five years to expand the airport’s passenger handling capacity to 106 million passengers by 2024. Under the expansion plan, Incheon International Airport Corp., the operator of Incheon International Airport, will construct a fourth runway and expand the second passenger terminal and other facilities at the airport. Furthermore, to efficiently operate the airports and provide uninterrupted services to the passengers, the airports in the region have also integrated smart airport solutions. In this regard, in February 2021, Changi Airport Group selected Genetec Inc. to upgrade and enhance its security systems. Under the contract, the company will install Genetec Security Center, an integrated security platform that blends IP security systems in a single intuitive interface, with a specific focus on the video surveillance system across its terminals. The contract is expected to be completed by the end of 2023. Such modernization of airport infrastructure with smart airport solutions is expected to accelerate the growth of the market in this region during the forecast period.

Smart Airport Market Growth Rate By Region

Competitive Landscape

The market for smart airports is highly fragmented with many players in the market that provide advanced smart technology solutions. Some of the major players in the smart airport market are Raytheon Technologies Corporation, SITA, Honeywell International Inc., Siemens AG, and Cisco Systems Inc. Due to the COVID-19 pandemic, the companies have partnered with various airlines, governments, and airport authorities around the world to provide advanced technology solutions. For instance, in November 2020, Lufthansa Group announced that the airline began the use of Star Alliance Biometrics for selected flights at Frankfurt and Munich airports. The Star Alliance Biometrics developed an interoperable biometric identity and identification platform based on NEC Corporation’s NEC I: Delight biometric and identity management platform software. In addition to this, the companies have also invested in the development of advanced products to increase their shares in the market. The development of such products that promote contactless processing of the airports is expected to help the companies increase their geographic presence in the coming years.

Recent Developments

In January 2021, SITA, in collaboration with Etihad Airways, developed a new entry and exit system based on biometrics for the Crew Briefing Center (CBC) at Abu Dhabi Airport, which is expected to reduce the time taken for the check-in process for crew with a low-touch process powered by facial recognition technology, to mitigate the risk of COVID-19 virus spread.

In June 2020, United Airlines announced that the company had installed additional 219 touchless check-in kiosks across various airports in the United States. The new kiosks were added as a part of its CleanPlus strategy, which was formed to cater to the requirements of travel during the pandemic. The kiosks will directly provide the luggage tags and boarding passes to passengers after they scan their phone or a printed pass.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD billion)

    1. 5.1 Technology

      1. 5.1.1 Security Systems

      2. 5.1.2 Communication Systems

      3. 5.1.3 Air and Ground Traffic Control

      4. 5.1.4 Passenger, Cargo and Baggage, and Ground Handling

    2. 5.2 Airport Location

      1. 5.2.1 Landside

        1. 5.2.1.1 Advanced Vehicle Parking Solutions

        2. 5.2.1.2 Smart Marketing Techniques

        3. 5.2.1.3 Security

      2. 5.2.2 Airside

        1. 5.2.2.1 Air Traffic Management

        2. 5.2.2.2 Aircraft Maintenance

        3. 5.2.2.3 Aircraft Parking

      3. 5.2.3 Terminal Side

        1. 5.2.3.1 Baggage Handling

        2. 5.2.3.2 Check-in Systems

        3. 5.2.3.3 Other Operations

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 France

        3. 5.3.2.3 Germany

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 Japan

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Rest of Latin America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 United Arab Emirates

        3. 5.3.5.3 Nigeria

        4. 5.3.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Honeywell International Inc.

      2. 6.2.2 Cisco Systems Inc.

      3. 6.2.3 Amadeus It Group SA

      4. 6.2.4 Siemens AG

      5. 6.2.5 T-Systems International GmbH

      6. 6.2.6 Thales Group

      7. 6.2.7 SITA

      8. 6.2.8 Raytheon Technologies Corporation

      9. 6.2.9 NATS Limited

      10. 6.2.10 Sabre Corp.

      11. 6.2.11 IBM Corporation

      12. 6.2.12 L3Harris Technologies Inc.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Smart Airport Market market is studied from 2018 - 2026.

The Smart Airport Market is growing at a CAGR of 5.2% over the next 5 years.

The Smart Airport Market is valued at 14 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Siemens AG, SITA, Honeywell International Inc., Raytheon Technologies Corporation, Cisco Systems Inc. are the major companies operating in Smart Airport Market.

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