By applying innovative technologies, smart airports may enhance staff performance, optimize passenger flows, promote sustainability, and bolster security. Real-time data collection enables improvements in operational efficiency, cost reduction, and productivity enhancement. Smart airports deliver several benefits, such as improved operational efficiency, cost savings, increased productivity, and refined operations. They continually evolve to meet changing technological advancements and the evolving demands of airport users.
Smart airports have a primary objective of enhancing the entire travel experience, making it more seamless, convenient, and enjoyable for passengers. This encompasses the simplification of various processes such as check-in, security screenings, and baggage handling. Ultimately, passengers experience shorter waiting times, reduced stress, and an overall improvement in their travel journey. These advancements are made possible through the implementation of smart technologies, including self-check-in kiosks, mobile applications for real-time updates, and intelligent security systems, all of which contribute to a more efficient and pleasant travel experience.
The smart airport market has been segmented on the basis of application, airport size, type, and region. By application, the market is segmented into landside, airside, and terminal side. By airport size, the market is divided into small, medium, and large. By type, the market is segmented into airport 2.0, airport 3.0, and airport 4.0. Region-wise, the market is studied across North America, Europe, Asia-Pacific and LAMEA.
North America is the largest region in the smart airport market. The U.S. and Canada are major early adopters of integrating smart technologies in airports to handle increasing air passenger traffic efficiently. Moreover, The U.S. airlines experienced a significant increase in passenger numbers, carrying an additional 194 million passengers compared to the previous year, marking a 30% year-to-year growth in 2022.
In addition, smart airport system makers supplied innovative systems to the U.S. airports for document verification. For instance, in April 2021, SITA provided biometric solution to San Francisco International Airport (SFO), which offers a streamlined experience for domestic travelers flying with United Airlines. In this trial, passengers have the option to connect their driver's license with their facial biometrics during the check-in process. From there, they can seamlessly complete the check-in, baggage drops, and boarding procedures by scanning their face at each stage of the journey.
In addition, integration of AI in smart airports increased in various applications such as wayfinding and promotion. For instance, in July 2023, ARway.ai, a Canadian AI-powered Augmented Reality Experience platform, has been chosen by TM Forum to participate in its Smart Airport Initiative. ARway.ai is expected to collaborate with technology giants such as Intel, Amazon, Vodafone, and other partners. Their role in this initiative is to provide cutting-edge technologies for wayfinding, retail advertising, and promotion of traveler amenities at airports.
In addition, the Switzerland-based airport operators adopt advance security systems to detect any threats. For instance, in March 2023, The Royal Schiphol Group, a Dutch airport management company partnered with Pangiam, a security technology company, to create an innovative method for efficiently and safely screening hand baggage. This technology, powered by artificial intelligence, has the potential to accelerate the security screening process for travelers while maintaining high safety standards. The collaboration aims to investigate how advanced technology by Pangiam may enhance and expedite hand baggage screening procedures at Schiphol Airport and potentially other airports. This technology employs artificial intelligence and advanced algorithms to examine images of hand baggage, identifying prohibited items and security threats.
The key players profiled in the global smart airport market include Siemens AG, Wipro, Honeywell International Inc., Cisco Systems Inc., Huawei Technologies Co., Ltd., Thales, IBM Corporation, Smart Airport Systems (SAS), SITA, and T-Systems International GmbH.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the smart airport market analysis from 2022 to 2032 to identify the prevailing smart airport market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the smart airport market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global smart airport market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Application
- Landside
- Airside
- Terminal Side
By Airport Size
- Small
- Medium
- Large
By Type
- Airport 2.0
- Airport 3.0
- Airport 4.0
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Thales
- Huawei Technologies Co., Ltd.
- Honeywell International Inc.
- Cisco Systems Inc.
- T-Systems International GmbH
- Smart Airport Systems (SAS)
- Siemens AG
- SITA
- IBM Corporation
- Wipro Limited
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Table of Contents
Executive Summary
The smart airport market is expected to experience a significant growth rate of 13% from 2023 to 2032 owing to rise in environmental regulations and legislationThe goal of the smart airport is to integrate the entire passenger journey, allowing tourists to personalize their experience from booking to returning home. It provides travelers with more options, flexibility, and comfort to enhance their journey. Intelligent technologies, such as purpose-specific sensors and equipment, are widely used in smart airports, centralized control, management, and planning under a digital space.
Moreover, key players operating in the industry are continuously developing advanced quality semiconductors to be used in automobiles, which also creates a wider impact on the growth of the market across the globe. For instance, in February 2023, an air transport technology company, SITA awarded contract to deploy a comprehensive biometric facial recognition platform at Frankfurt Airport (FRA). The system, described as a"check-in-to-boarding" solution, is expected to eliminate the need for passengers to use touchscreens, as kiosks and gates will be equipped to recognize facial biometrics. In addition to the existing infrastructure, additional biometric kiosks and scanning stations will be integrated into the airport, streamlining the passenger experience, and boosting operational efficiency.
This innovation aligns with evolving passenger expectations for convenience and autonomy in air travel. From enrollment at a kiosk or counter, to pre-security automated gates and self-boarding gates, passengers can use biometric technology to seamlessly pass through each stage of the journey by simply scanning their face, as stated by SITA in a statement following the announcement of the project. Such developments carried out by major companies operating globally supplement the growth of the market.
Aspects such as increased air passenger traffic globally, increased use of artificial intelligence and tools for big data analysis, and increased attention on airport security fuel global market expansion. Furthermore, high initial investment costs and a shortage of qualified and experienced personnel operate as a barrier to industry growth. The airport industry is poised for growth, with opportunities arising from improved passenger experiences, increased retail revenue, and a growing focus on sustainability. This expansion is expected to continue in the forecast period.
Smart airports are focusing on the passenger, leveraging technologies such as smartphone apps for real-time flight information, self-service check-in kiosks, and personalized services suited to specific travelers. Huawei Technologies' smart airport 2.0 solution, for instance, integrates various technologies, including intelligent video surveillance, big data, artificial intelligence (AI), and the Internet of Things (IoT). This approach enhances airport operations by promoting intelligent and efficient processes, improving security responses, and ultimately providing passengers with a more convenient and comfortable experience.
Moreover, there is a growing trend among medium airports to adopt energy-efficient solutions. This includes the implementation of smart lighting systems, energy-efficient HVAC (heating, ventilation, and air conditioning) systems, and sustainable building practices. These initiatives not only reduce operational costs but also contribute to a more sustainable and eco-friendlier airport environment.
The smart airport market has been segmented on the basis of application, airport size, type, and region. By application, the market is segmented into landside, airside, and terminal side. By airport size, the market is divided into small, medium, and large. By type, the market is segmented into airport 2.0, airport 3.0, and airport 4.0. Region-wise, the market is studied across North America, Europe, Asia-Pacific and LAMEA.
Moreover, investment companies in Japan focused on smart airport projects to further expand presence in the market. For instance, in May 2021, the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), Japanese investment company and NTT officially announced a collaborative initiative to advance smart transportation projects. This venture involves implementation of a Smart Solutions pilot, designed to provide a digital on-demand bus service within the vicinity of EIA's Airport City. By harnessing data-driven methods, this pilot seeks to enhance the commuting experience and derive valuable insights to inform future solutions. These developments across the Asia-Pacific region are anticipated to support the growth of the smart airport market.
The key players profiled in the report include Siemens AG, Wipro, Honeywell International Inc., Cisco Systems Inc., Huawei Technologies Co., Ltd., Thales, IBM Corporation, Smart Airport Systems (SAS), SITA, and T-Systems International GmbH.
Key Market Insights
By application, the terminal side segment was the highest revenue contributor to the market, with $3.17 billion in 2022, and is estimated to reach $9.55 billion by 2032, with a CAGR of 11.5%.By airport size, the small segment was the highest revenue contributor to the market, with $4.59 billion in 2022, and is estimated to reach $15.22 billion by 2032, with a CAGR of 12.6%.
By type, the airport 3.0 segment dominated the global market, and is estimated to reach $4.26 billion by 2032, with a CAGR of 13.5%. However, the airport 4.0 segment is expected to be the fastest growing segment with a CAGR of 15.8% during the forecast period.
Based on region, North America was the highest revenue contributor, accounting for $2.62 billion in 2022, and is estimated to reach $7.91 billion by 2032, with a CAGR of 11.5%.
Companies Mentioned
- Thales
- Huawei Technologies Co., Ltd.
- Honeywell International Inc.
- Cisco Systems Inc.
- T-Systems International GmbH
- Smart Airport Systems (SAS)
- Siemens AG
- SITA
- IBM Corporation
- Wipro Limited
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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