Home > Aerospace & Defense > Airport Operations > Airport Infrastructure > Smart Airport Market
Smart Airport Market Size
Smart Airport Market was valued at USD 2.9 billion in 2022 and is estimated to register a CAGR of over 13% between 2023 and 2032. The increasing adoption of self-service technologies, such as automated check-in kiosks, baggage drop systems, and smart boarding processes, is driving the growth of smart airports. These advancements enhance efficiency, reduce wait times, and provide passengers with a seamless & convenient travel experience, contributing to the industry expansion globally. For instance, in June 2023, Kuala Lumpur International Airport (KLIA) introduced a self-service installation to enhance the travel experience. This initiative allows passengers to independently check-in, drop off baggage, and obtain boarding passes through automated kiosks. The self-service system aims to streamline airport processes, reduce queues, and provide travelers with a more efficient & convenient journey at KLIA.
Artificial Intelligence (AI) is revolutionizing the smart airport market by optimizing operational processes and enhancing passenger experiences. AI-powered technologies facilitate efficient resource management, predictive maintenance, and personalized services. For instance, in September 2023, Devon-based company, Rezcomm launched AI-driven technology to transform airports. The vision is to seamlessly connect AI business solutions for lounges, parking & other services, offering travelers a streamlined journey. This approach aims to modernize airport operations, enhancing efficiency and transforming the passenger experience by redefining how individuals interact with airport & transportation services.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 2.9 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 13% |
| 2032 Value Projection: | USD 9.7 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 250 |
| Tables, Charts & Figures: | 395 |
| Segments covered: | Airport size, Technology, Airport model, Operation, Application |
| Growth Drivers: |
|
| Pitfalls & Challenges: |
|
High capital investments pose a significant challenge in the smart airport industry. The implementation of advanced technologies including AI, IoT, and automation requires substantial upfront financial commitments. From infrastructure upgrades to deploying smart systems, airports face considerable costs. Striking a balance between achieving technological advancements and managing capital expenditures is crucial for the successful adoption of smart solutions, making financial considerations a key challenge in the development of smart airports.
COVID-19 Impact
The COVID-19 pandemic had mixed impacts on the smart airport market. While it initially slowed down investment and implementation due to financial constraints & reduced air travel, it also accelerated the adoption of contactless technologies and automation to enhance safety measures. The focus on health protocols and passenger well-being prompted the integration of smart solutions, contributing to the resilience and adaptability of the smart airport industry amidst changing global circumstances.
Smart Airport Market Trends
The adoption of contactless solutions, such as biometrics and touchless kiosks, is a pivotal trend in smart airports. It addresses the need for heightened hygiene and safety standards, especially in the post-COVID-19 era. Biometric authentication including facial recognition and fingerprint scanning enables secure & touch-free identification, thereby enhancing passenger safety. Touchless kiosks further streamline processes, allowing travelers to check in, obtain boarding passes, and complete other tasks without physical contact, contributing to a more efficient and seamless airport experience.
The emergence of robotic assistance is transforming smart airports with autonomous vehicles and robots being deployed for various tasks. Robots play crucial roles in cleaning, ensuring enhanced hygiene standards and contributing to heightened security measures. They also assist passengers, providing information and support. The integration of robotic technologies not only improves operational efficiency but also enhances the overall passenger experience by offering innovative, automated solutions that optimize airport services and address evolving needs in areas such as cleanliness, security, and assistance. For instance, in April 2023, GMR Group, a part of GMR Innovex, launched the Robotics Centre of Excellence (CoE), a dedicated hub for robotic innovation, research & development. The CoE serves as a collaborative space, fostering breakthrough solutions for the airport and aviation ecosystem.
Smart Airport Market Analysis
Based on operation, the market is categorized into aeronautical and non-aeronautical. The non-aeronautical segment held a market share of around 69% in 2022 and will witness substantial growth over the projected period. This expansion is fueled by the increasing emphasis on revenue diversification beyond traditional aviation services. Smart solutions are being applied to enhance the efficiency of retail, dining, and other non-aeronautical services within airports. By leveraging technology for better passenger experiences and optimizing commercial opportunities, the non-aeronautical segment emerges as a key growth area, contributing to the overall development of smart airports.
Based on application, the market is divided into landside, airside, and terminal side. The terminal side segment accounted for around 60% market share in 2022 and is expected to witness significant growth in the coming years. This growth is driven by the increasing demand for advanced technologies in airport terminals including biometric authentication, contactless check-in kiosks, and smart security systems. The focus on enhancing passenger experiences, optimizing operational efficiency, and ensuring a seamless journey contributes to the growing adoption of smart solutions on the terminal side, making it a key driver for market expansion.
North America is experiencing growth in the market. The region accounted for a market share of around 36% in 2022 and is anticipated to experience significant growth over the forecast period. This expansion is attributed to the region's robust infrastructure, technological advancements, and a high level of awareness & adoption of smart technologies. Increased investments in airport modernization projects, a focus on enhancing passenger experiences, and the presence of key industry players contribute to North America's dominance in the global smart airport market. For instance, in July 2023, Xwell introduced an automated manicure service at Miami International Airport, bringing innovation to the travel experience. This automated system offers passengers the convenience of on-the-go manicures, aligning with the growing trend of integrating automated services to enhance customer satisfaction at airports.
Smart Airport Market Share
Major players operating in the smart airport industry are:
- Cisco Systems, Inc.
- Honeywell International, Inc.
- Huawei Technologies Co., Ltd.
- IBM Corporation
- Raytheon Technologies Corporation
- Siemens AG
- SITA
- Smart Airport Systems (SAS)
- Thales
- T-Systems International GmbH
These players in the smart airport business have established dominance through innovative technologies, robust infrastructures, and strategic collaborations. Leveraging cutting-edge solutions, these industry giants enhance operational efficiency, security, and passenger experience. Their extensive portfolios encompass a range of intelligent systems, from advanced communication networks to state-of-the-art security solutions. By continually pushing the boundaries of technological advancements, these key players collectively shape the future of smart airports, setting industry standards and ensuring seamless integration of smart technologies across the aviation landscape.
Smart Airport Industry News
- In June 2023, Pittsburgh International Airport (PIT) partnered with CleanRobotics to implement an AI recycling bin, TrashBot, to enhance waste management. TrashBot, with 96% accuracy, will assist in sorting passenger waste and recyclables, aligning with PIT's commitment to innovative aviation technologies & sustainable practices, contributing to improved waste sorting and recycling efficiency at the airport.
The smart airport market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:
Click here to Buy Section of this Report
Market, By Airport Size
- Small
- Medium
- Large
Market, By Technology
- Security Systems
- Communication Systems
- Security Systems
- Communication Systems
- Passenger, Cargo, & Baggage Ground Handling Control
- Air/Ground Traffic Control
- Others
Market, By Airport Model
- Airport 2.0
- Airport 3.0
- Airport 4.0
Market, By Operation
- Aeronautical
- Non-Aeronautical
Market, By Application
- Landside
- Airside
- Terminal Side
The above information is provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordics
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Singapore
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- Saudi Arabia
- UAE
- South Afric
Frequently Asked Questions (FAQ) :