Advanced Airport Technologies Market Size

Advanced Airport Technologies Market Size

Advanced Airport Technologies Market was valued at USD 33.5 billion in 2022 and is estimated to register a CAGR of over 4% between 2023 and 2032, attributed to a significant rise in air traffic worldwide. The global air travel industry has been experiencing a steady increase in passenger numbers.

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According to IATA, in August 2023, global air travel rebounded significantly, with a 28.4% increase in total traffic measured in revenue passenger kilometers (RPKs) compared to August 2022. The international sector experienced a robust 30.4% growth, achieving 88.5% of pre-COVID August 2019 levels. Notably, domestic traffic surged by 25.4%, surpassing August 2019 results by 9.2%, primarily fueled by robust demand in the Chinese market. Overall, global air traffic has now reached 95.7% of pre-pandemic levels. To cope with this growing passenger traffic, airports are investing in advanced technologies to streamline operations, enhance passenger experience, and ensure efficient handling of larger volumes of flights and passengers, further contributing to market growth.
 

An increased emphasis on improving operational efficiency and cost reduction will help carve a healthy growth trajectory for the advanced airport technologies industry. Airports are under constant pressure to improve operational efficiency and reduce costs. Advanced technologies such as smart baggage handling systems, automated check-in processes, and the use of Internet of Things (IoT) devices contribute to streamlined operations, quicker turnaround times, and cost savings in the long run.
 

For an instance, in November 2023, Sydney Airport elevated operational efficiency with the implementation of Veovo's Intelligent Airport Platform. This strategic move addresses the heightened demand as air traffic returns to pre-pandemic levels. The platform is tailored to enhance efficiency, reliability, and collaboration throughout the airport by seamlessly aggregating and validating data from diverse sources, including air traffic, baggage handling, and airlines, into a centralized Airport Operational Database (AODB). This initiative is pivotal for minimizing delays in aircraft turnaround and optimizing the utilization of terminal and airside capacities.
 

However, the aviation industry is subject to stringent regulations and standards to ensure safety and security. Implementing new technologies may require compliance with various regulatory frameworks, and gaining approval for innovative solutions can be a complex and time-consuming process. Adhering to industry standards while incorporating emerging technologies can pose challenges for airport authorities, potentially slowing down the adoption of advanced systems.