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The smart airports market size is estimated to grow by USD 6.66 billion at a CAGR of 12.73% between 2023 and 2028. The demand for smart security at airports, driven by the need for enhanced security measures and the growing threat of terrorism, is driving market growth by increasing the adoption of smart security technologies and systems. The increased passenger preference for smart technologies, driven by the desire for convenience and efficiency in travel, is also boosting market expansion by driving the adoption of smart airport solutions that enhance the passenger experience. Additionally, the increasing partnership and collaboration among service providers, driven by the need for integrated and comprehensive security solutions, are driving market growth by facilitating the development and deployment of innovative smart security solutions.
Market Forecast 2024-2028
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The report offers extensive research analysis on the market, with a categorization based on end-users, including non-aeronautical and aeronautical. It further segments the market by application, encompassing large, medium, and small. Additionally, the report provides geographical segmentation, covering APAC, Europe, North America, the Middle East and Africa, and South America.
The non-aeronautical segment is estimated to witness significant growth during the forecast period. Non-aeronautical services and revenue sources play a crucial role in the development of smart airports. These services are essential for generating income, improving passenger experiences, and optimizing airport operations. They incorporate duty-free shops, retail boutiques, and convenience stores.
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The non-aeronautical segment was the largest and was valued at USD 2.96 billion in 2018. They offer various advertising and sponsorship opportunities to brands looking to reach a captive audience. These may include digital displays, interactive kiosks, and promotional events. The demand for non-aeronautical services will be driven by the desire to create a seamless, enjoyable travel experience for passengers while also generating additional revenue streams for the airport authorities and their partners. These services are part of the broader vision to improve passenger satisfaction, efficiency, and profitability, which in turn will propel the growth of the global smart airports market during the forecast period.
Based on the application, the segment is classified into large, medium, and small. Large airports, which often handle millions of passengers annually, are increasingly investing in smart technologies such as AI and IoT to meet the demands of modern air travel. Smart technologies are in high demand at large airports as they offer numerous benefits that enhance passenger experiences, optimize operations, and improve overall efficiency and security. They utilize digital signage and mobile apps to provide passengers with real-time directions to gates, services, and amenities. They are committed to sustainability, with eco-friendly building designs, waste reduction programs, and emissions reduction efforts. Large airports continue to embrace smart technologies to enhance the passenger experience, improve operational efficiency, and ensure safety and security. Smart technologies are instrumental in managing the complexities of busy airports and meeting the evolving needs of travelers. Due to all this, the market is expected to witness growth during the forecast period.
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North America is estimated to contribute 38% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. North America has witnessed a robust demand due to the region's advanced technological infrastructure, high passenger traffic, and the need to enhance the travel experience while ensuring safety and security. North America is home to some of the world's busiest airports, such as Hartsfield-Jackson Atlanta International Airport, Los Angeles International Airport, and Chicago OHare International Airport. Managing the needs of millions of passengers requires advanced technologies to optimize operations. Airports in North America provide smart parking solutions, including real-time parking guidance, online booking, and digital payment options, making the airport experience more convenient for travelers.
In addition, as the demand for air travel in North America continues to grow, they are essential for accommodating increasing passenger numbers, optimizing operations, and providing a world-class airport experience. These airports are committed to ongoing innovation to meet evolving passenger expectations and ensure North America remains a global leader in air travel during the forecast period.
The Smart Airports Industry is rapidly evolving with advancements in self-service check-in kiosks and biometric kiosks, which offer touchless solutions for enhanced passenger convenience and safety. This growth is supported by innovations in electronics and endpoint devices, along with robust communication & connectivity infrastructure. The integration of aviation blockchain technology facilitates secure and transparent transactions across the industry, while software & solutions streamline operations and improve efficiency. This expansion is driving increased adoption of self-service installation of kiosks, optimizing passenger flow and reducing wait times. Overall, the convergence of these technologies not only enhances the passenger experience by providing directly consumable services but also benefits businesses through improved operational efficiencies and cost savings. As the industry continues to innovate, the focus remains on leveraging biometric and touchless technologies to meet evolving demands for seamless and secure airport experiences.
Smart security measures at airports are gaining popularity as the aviation industry strives to improve safety and security while enhancing the passenger experience. These measures incorporate advanced technologies and data-driven solutions to address evolving threats and streamline security processes. Airport operators are increasingly focused on integration, implementation, and efficient data storage, along with the deployment of software and solutions tailored to their needs. Self-service technologies such as automated check-in kiosks and baggage drop systems play a key role in enhancing the passenger experience and optimizing airport operations. They utilize cutting-edge screening equipment, such as automated security lanes and body scanners, to enhance security and reduce wait times. These systems prioritize secure, encrypted data transmission to protect sensitive information and ensure the security network's integrity. However, smart airport security aims to find a balance between security, passenger convenience, and operational efficiency. The adoption of IoT technologies highlights airports' commitment to ensuring passenger safety and maintaining high security standards, driving the growth of the market in the coming years.
Airports are undergoing digital transformations, implementing advanced technologies like the Internet of Things (IoT), data analytics, and artificial intelligence (AI) to optimize operations and enhance passenger services. Digital transformation at airports involves the integration of advanced technologies and digital solutions to enhance passenger experiences, optimize airport operations, and improve overall efficiency. This transformation is driven by the need to meet the evolving demands of modern air travel and provide a seamless, convenient, and secure environment for travelers. Airport-specific mobile apps offer passengers real-time information, such as flight status, gate changes, and baggage tracking. These apps may also include services like mobile check-in, digital boarding passes, and contactless payments.
Further, advanced security screening systems, including automated security lanes, body scanners, and explosives detection technology, enhance security while speeding up the screening process. Thus, the digital transformation of airports will boost the growth of the global market in focus during the forecast period.
Developing and integrating smart technologies at airports requires significant capital investment. Smaller airports may struggle to secure the necessary funding for such projects. In an industry with tight profit margins and economic uncertainties, airports may have limited budgets to allocate to technology upgrades. They must prioritize investments in safety, security, and infrastructure maintenance, which can sometimes take precedence over smart technologies. The integration of various smart technologies and systems into existing airport infrastructure can be complex and costly.
Additionally, the high initial investment in smart technologies can divert resources from other critical areas of airport operations, such as maintenance, staff training, and safety measures. Thus, the high initial investment may hamper the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alvest SAS - The company offers smart airports solution such as Smart Airport Systems with Lebrun pre-conditioned air, TractEasy autonomous baggage system, and TaxiBot semi-robotic, pilot controlled towing tractor.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Amadeus IT Group SA, Ascent Technology Inc., Cisco Systems Inc., Daifuku Co. Ltd., Deutsche Telekom AG, Honeywell International Inc., Huawei Technologies Co. Ltd., Indra Sistemas SA, Infax Inc., International Business Machines Corp., Kiewit Corp., L3Harris Technologies Inc., NEC Corp., Raytheon Technologies Corp., Sabre Corp., Siemens AG, SITA, Thales Group, and Wipro Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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The market is witnessing rapid growth, driven by the adoption of AI-powered technologies and AI-driven technology to modernize airport operations. Airports are leveraging automation and robotics for aeronautical and non-aeronautical operations, including automated baggage handling systems and autonomous vehicles. Contactless solutions such as biometrics and facial recognition are enhancing hygiene standards and passenger handling capacity. Smart boarding processes and efficient & convenient journey experiences are being enabled by smart airport operation optimization and seamless travel experiences. As airports strive to streamline processes and improve revenue diversification, the market continues to expand, benefiting airports of all sizes from small to large.
Moreover, the market is experiencing significant growth, driven by the adoption of advanced technologies to enhance operations and passenger experiences. Airports are increasingly implementing automated kiosks and contactless check-in systems to streamline processes and improve efficiency. Robotics and control systems are being utilized for tasks such as cleaning and baggage handling, leading to a more seamless and convenient travel experience. Financial considerations are also driving the adoption of smart airport solutions, especially among Small, Medium, and Large Airports looking to optimize their operations and improve passenger services. As the industry expands, airports are focusing on streamlining processes and providing information and support through self-service installations and initiatives like the Robotics Centre of Excellence (CoE).
Further, the airside segment of the aviation industry is experiencing significant growth, driven by advancements such as fingerprint scanning and the deployment of robots to enhance operational processes. This expansion is crucial as airports globally face rising passenger traffic levels and the need for streamlined efficiency. In response, there's a growing emphasis on software and solutions that optimize various aspects of airport management, from security and baggage handling to passenger flow and maintenance operations. This industry expansion underscores a shift towards integrated technologies that not only improve passenger experiences but also bolster the overall operational resilience of airports. As airports continue to modernize and scale their infrastructure, the integration of fingerprint scanning for enhanced security and the deployment of robots for tasks like cleaning and logistics highlight ongoing efforts to meet the demands of a dynamic aviation environment. These innovations are paving the way for more efficient and secure airside operations amidst increasing global travel.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.73% |
Market Growth 2024-2028 |
USD 6.66 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.25 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alvest SAS, Amadeus IT Group SA, Ascent Technology Inc., Cisco Systems Inc., Daifuku Co. Ltd., Deutsche Telekom AG, Honeywell International Inc., Huawei Technologies Co. Ltd., Indra Sistemas SA, Infax Inc., International Business Machines Corp., Kiewit Corp., L3Harris Technologies Inc., NEC Corp., Raytheon Technologies Corp., Sabre Corp., Siemens AG, SITA, Thales Group, and Wipro Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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