Smart Airports Market Worth $6.4 Billion by 2025
The report “Smart Airports Market by Application: Global Forecast to 2025”, published by is MarketsandMarkets™, projected to reach USD 6.4 billion by 2025 from USD 2.2 billion in 2019, registering a CAGR of 19.8% from 2019 to 2025.
Improved passenger experience with the help of real-time information is a significant growth driver for the smart airports market. Optimization of airport operations and increased connectivity also drive this market.
By end market, the upgrades & services segment is projected to grow at a higher CAGR during the forecast period.
Increasing demand for self-service check-ins and baggage drop units around the world has given rise to this segment. The increasing demand has led to the implementation of smart applications on greenfield projects and, as a part of modernization, upgrades on brownfield airport projects. During the forecast period, the implementation segment is estimated to have a larger share due to the rapid modernization of airports. With an increase in passenger footfall, airports need to upgrade their systems to facilitate smooth airport operations without delay. They must also adopt efficient measures that improve their operational efficiency as well as save costs.
By application, the landside segment is projected to register the highest growth rate during the forecast period.
The landside application segment of the smart airports market is expected to grow at the highest rate during the forecast period. The focus of airports on increasing their ancillary revenues and the increasing demand from passengers for seamless and effortless travel are driving the growth of this segment. The growing installation of smart applications like intelligent advertising and smart car parking is expected to drive the landside segment’s growth. The airside segment currently has the largest market share due to the high adoption of smart applications in ground staff equipment management and installation of E-fence.
Market sizing for each of the applications is done by applying percentage splits to each sub-application. A matrix mapping was carried out for applications vs. airport types (2.0, 3.0, & 4.0). Through this matrix, the percentage for each sub-application across airport types was considered based on current use cases, industry trends, and developments by major players in this market space.
North America is projected to lead the smart airports market during the forecast period.
The US and Canada are the countries considered for the study of the smart airports market in North America. North America accounted for a share of 28.0% of the smart airports market in 2019, with the US leading the market in the region. The global need for optimizing operations at airports is fueling investments in the areas of smart applications. Implementation of IoT, AI, and big data in airport operations has the potential to bring greater visibility, besides optimizing the business process. Keeping in mind the current passenger growth rate as well as the increase in fleet size of airlines, airports are required to make data-driven decisions by leveraging new technologies, such as IoT, AI, and blockchain.
The presence of major airports in the US has resulted in high investments in the field of smart airports in North America. This makes North America one of the prime regions for the implementation of smart applications at airports. The leading smart solution providers in North America include Cisco Systems, Inc. (US), IBM Corporation (US), Collins Aerospace (US), Honeywell International Inc. (US), and Sabre Corp. (US).
