Global Smart Airport Market Report by Type, Size, System, Operation, End Market, Application, and Region 2023-2028

The global smart airport market size reached US$ 30.7 Billion in 2022. Looking forward, the market is expected to reach US$ 56.1 Billion by 2028, exhibiting a growth rate (CAGR) of 10.57% during 2022-2028. The rapid technological advancements, rising passenger expectations, growing demand for operational efficiency, escalating sensitivity towards security threats, rising adoption of smart technologies to gain competitive advantage, and imposition of government policies and regulations are some of the major factors propelling the market.

A smart airport refers to an integration of technology, the Internet of Things (IoT), and advanced analytics to improve overall airport operations and passenger experience. It comprises several components, including sensors, data analytics platforms, and mobile apps. Smart airport helps in real-time tracking of luggage, automated check-in processes, facial recognition for security, predictive maintenance for equipment, weather monitoring, crowd management, and digital boarding. It aids in enhancing operational efficiency, reducing operational expenditure, improving security, promoting sustainability, and saving time.

The escalating sensitivity towards security threats is facilitating the demand for smart airports, as they offer more robust and versatile security solutions, such as biometrics and advanced surveillance systems. Additionally, the widespread construction of smart airports to promote sustainability and provide eco-friendly solutions, such as waste management systems and energy-efficient lighting, is positively influencing the market growth. Furthermore, the rising adoption of smart technologies to gain competitive advantages and make airports more appealing to airlines and passengers is boosting the market growth. In addition, the imposition of government policies and regulations encouraging the integration of advanced technologies in the aviation industry is positively influencing the market growth. Moreover, the rising air traffic across the globe, which is pushing existing infrastructure to its limits, is acting as another growth-inducing factor.

Smart Airport Market Trends/Drivers

The rapid technological advancements

The swift pace of technological innovation is a significant driver in the smart airport market. In line with this, the integration of the Internet of Things (IoT), which enables the collection of massive amounts of data for monitoring passenger movement and equipment status, is acting as another growth-inducing factor. Along with this, the utilization of artificial intelligence (AI) to process vast amounts of data, which aids in making real-time decisions, enhancing operational efficiency, and increasing passenger convenience, is propelling the market growth. Furthermore, the integration of data analytics platforms to enable predictive maintenance and provide valuable insights into passenger behavior, enabling airports to tailor their services for maximum impact, is supporting the market growth. These technologies collectively create an integrated, intelligent system that propels the capabilities of traditional airports into the realm of smart operations.

The rising passenger expectations

The escalating passenger expectations for a seamless and personalized travel experience are driving the market growth. Smart airports aid in meeting these expectations by employing various technologies to provide real-time updates on flight status, reduce check-in times through automated kiosks, and assist in navigation via mobile apps. Furthermore, the adoption of facial recognition technology to expedite security processes and customize retail experiences based on individual passenger preferences is positively influencing the market growth. These technologies not only improve customer satisfaction but also alleviate some of the stress and complexity commonly associated with air travel. As a result, evolving passenger expectations are pushing airports to implement smart technologies not as a luxury but as a necessity to stay relevant and competitive.

The growing demand for operational efficiency

Airports are complex ecosystems with a multitude of operations occurring simultaneously, such as luggage handling, flight scheduling, security checks, and retail management. In line with this, smart airports utilize data-driven insights to streamline these operations. Furthermore, they use real-time monitoring to improve the efficiency of baggage systems, reduce aircraft turnaround time, and optimize resource allocation. In addition, smart airports use predictive maintenance tools to forecast equipment failures before they occur, allowing for proactive measures that reduce downtime and keep operations running smoothly. This improved operational efficiency not only decreases expenditure but also enhances safety, sustainability, and overall performance. As a result, achieving operational efficiency is becoming a vital factor for the sustainability and success of the aviation industry.

Smart Airport Industry Segmentation

This research provides an analysis of the key trends in each segment of the global smart airport market report, along with forecasts at the global, regional and country levels for 2023-2028. The report has categorized the market based on type, size, system, operation, end market, and application.

Breakup by Type:

• Airport 2.0
• Airport 3.0
• Airport 4.0
• Airport 3.0 dominates the market

The report has provided a detailed breakup and analysis of the market based on type. This includes airport 2.0, airport 3.0, and airport 4.0. According to the report, airport 3.0 represented the largest segment.

Airport 3.0 is dominating the market as it symbolizes a new era of technological advancement and integration within airports, such as the Internet of Things (IoT), artificial intelligence (AI), biometrics, and advanced data analytics. Furthermore, it emphasizes passenger experience by leveraging technology to streamline processes, reduce wait times, and offer personalized services. Additionally, airport 3.0 optimizes operations by using data-driven insights to allocate resources effectively, manage queues, and enhance overall airport management. Moreover, it employs advanced security technologies, such as facial recognition, biometric screening, and real-time threat detection systems, to ensure passenger safety and compliance with regulations.

Breakup by Size:

• Large
• Medium
• Small
• Large hold the largest share in the market

A detailed breakup and analysis of the market based on the size has also been provided in the report. This includes large, medium, and small. According to the report, large represented the largest segment.

Large airports are dominating the market as they have more substantial budgets and resources compared to smaller airports, which allows them to invest in and implement advanced smart technologies and infrastructure. Furthermore, they handle a significantly higher volume of passengers and flights, which necessitates efficient processes, automation, and technology to manage operations smoothly and enhance the passenger experience. Additionally, large airports offer a wide range of services and facilities, such as shopping, dining, lounges, and entertainment options. In line with this, smart technologies are widely used to optimize these services and provide passengers with personalized experiences.

Breakup by System:

• Wearables
• LPWAN and WLAN
• Tags and Sensors
• Platforms
• NFC, RFID and Bluetooth
• Wireless
• A detailed breakup and analysis of the market based on system has also been provided in the report. This includes wearables, LPWAN and WLAN, tags and sensors, platforms, NFC, RFID, and Bluetooth, wireless, and others.

Wearable devices, such as smartwatches and wristbands, provide passengers with convenient access to real-time flight information, boarding passes, and updates about their journey. This seamless experience eliminates the need for physical documents and reduces waiting times, enhancing overall passenger satisfaction. Furthermore, they allow airports to offer personalized services to passengers based on their preferences and travel history.

Tags and sensors enable real-time tracking and monitoring of assets, baggage, equipment, and personnel throughout the airport, which aids in improving operational efficiency and minimizing delays. Moreover, they provide data on passenger movement patterns, which can be used to optimize security procedures and staffing levels to ensure smoother passenger flow.

Breakup by Operation:

• Aeronautical
• Non-Aeronautical
• Non-aeronautical holds the largest share in the market

A detailed breakup and analysis of the market based on operation has also been provided in the report. This includes aeronautical and non-aeronautical. According to the report, non-aeronautical accounted for the largest market share.

Non-aeronautical operations are dominating the market as they encompass activities, such as retail, dining, parking, advertising, and more. These operations provide airports with diversified revenue streams beyond traditional aeronautical activities, including landing fees and passenger charges. Furthermore, they contribute significantly towards creating a positive and enjoyable experience for travelers, which leads to increased passenger satisfaction and potentially drives repeat business. Additionally, travelers often spend significant time at airports due to security checks, waiting for flights, and layovers.

Breakup by End Market:

• Implementation
• Upgrade and Services
• Upgrade and services hold the largest share in the market

A detailed breakup and analysis of the market based on end market has also been provided in the report. This includes implementation and upgrade and services. According to the report, upgrade and services accounted for the largest market share.

Upgrade and services are dominating the market as many airports already have established physical infrastructure in place, which makes economic sense to retrofit existing systems with new sensors, automation tools, and data analytics capabilities. Additionally, integrating smart technologies into existing infrastructure enhances efficiency and passenger experience without the high costs associated with constructing entirely new facilities. Moreover, upgrades and services allow airports to implement smart solutions in a phased manner, which minimizes disruption to airport operations. Apart from this, it can be tailored to the specific needs of an airport, which ensures that the smart solutions implemented align with the airport's unique requirements.

Breakup by Application:

• Airside
• Air Traffic Maintenance
• Aircraft Maintenance
• Passenger Screening and Experience
• Digital Video Surveillance and Management
• Building Management
• Intelligent Advertising
• Airside holds the largest share in the market

A detailed breakup and analysis of the market based on application has also been provided in the report. This includes airside, air traffic maintenance, aircraft maintenance, passenger screening and experience, digital video surveillance and management, building management, intelligent advertising, and others. According to the report, airside accounted for the largest market share.

Airside is dominating the market as it is critical for the timely departure and arrival of flights. Implementing smart technologies in the airside area aids in streamlining aircraft movement, gate assignment, and runway utilization. Furthermore, these technologies optimize aircraft turnaround times and reduce congestion, ultimately leading to more efficient flight schedules. Additionally, the integration of smart technologies on the airside to prevent accidents, runway incursions, and other safety incidents is supporting the market growth. Moreover, they improve communication between air traffic controllers and pilots, leading to better coordination of departures and arrivals. Along with this, airside areas use smart systems to effectively manage various resources such as fuel, ground vehicles, and personnel.

Breakup by Region:

• North America
• United States
• Canada
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Europe
• Germany
• France
• United Kingdom
• Italy
• Spain
• Russia
• Latin America
• Brazil
• Mexico
• Middle East and Africa
• North America exhibits a clear dominance, accounting for the largest smart airport market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America has a strong ecosystem of technology companies, research institutions, and startups that contribute to the development and implementation of smart airport solutions. In addition, the region has some of the world's largest and most developed economies, providing the financial resources necessary to invest in and deploy smart airport technologies. Apart from this, the escalating demand for smart airport technologies due to the presence of numerous international airports in North America, which handle significant air traffic, is boosting the market growth. Furthermore, the imposition of several regulations and policies by regional governments to encourage the adoption of advanced technologies to improve aviation safety and security is positively influencing the market growth. Besides this, the increasing expectations of regional passengers are facilitating the integration of smart technologies to streamline processes, reduce wait times, and enhance convenience.

Competitive Landscape

Leading market players are investing in technologies to enhance the passenger journey. This includes implementing self-service kiosks, mobile apps, and digital signage to provide real-time flight information, wayfinding, and personalized notifications to passengers. Additionally, they are focusing on collecting and analyzing data from various airport operations to gain insights into passenger behavior, flow patterns, and operational inefficiencies to make informed decisions and optimize processes. Apart from this, major companies are implementing advanced security solutions, including automated security checkpoints, explosive detection systems, and video analytics, to enhance security while minimizing passenger inconvenience. They are collaborating with airlines, technology providers, and other stakeholders to create integrated solutions that enhance the overall airport ecosystem and passenger experience.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Amadeus IT Group SA
• Ascent Technology Inc.
• Cisco Systems Inc.
• Collins Aerospace (Raytheon Technologies Corporation)
• Honeywell International Inc.
• Huawei Technologies Co. Ltd.
• Indra Sistemas S.A.
• International Business Machines Corporation
• Sabre Corp.
• Siemens AG
• T-Systems International GmbH
• Wipro Limited

Recent Developments

In May 2023, Amadeus IT Group SA signed an agreement with Noida International Airport (NIA) to provide a world-class passenger processing system (PPS).

In June 2022, Collins Aerospace announced the invention of AirPlan, which allows airports to manage all their resources via a single application.

In November 2021, Honeywell International Inc. unveiled its next-generation NAVITAS software suite, a system of systems (SoS) that assists airport operators in making accurate and informed decisions.

Key Questions Answered in This Report

1. What was the size of the global smart airport market in 2022?
2. What is the expected growth rate of the global smart airport market during 2023-2028?
3. What has been the impact of COVID-19 on the global smart airport market?
4. What are the key factors driving the global smart airport market?
5. What is the breakup of the global smart airport market based on the type?
6. What is the breakup of the global smart airport market based on the size?
7. What is the breakup of the global smart airport market based on the operation?
8. What is the breakup of the global smart airport market based on end market?
9. What is the breakup of the global smart airport market based on the application?
10. What are the key regions in the global smart airport market?
11. Who are the key players/companies in the global smart airport market?