Smart Airport - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The Smart Airport Market size is estimated at USD 6.94 billion in 2025, and is expected to reach USD 11.76 billion by 2030, at a CAGR of 11.14% during the forecast period (2025-2030).

Several factors are driving the growth of the smart airport market, including the rebound in passenger traffic, the adoption of advanced technologies (ranging from IT and electronics to robotics and data analytics) for cost-effective management, and a heightened focus on enhancing the passenger experience. As airports digitize operations and pivot toward self-service solutions, there is also a rising demand for advanced kiosks.

Now integrating biometrics for swifter processing, these kiosks are set to further bolster the smart airport market. With global investments pouring into new greenfield airports and expanding existing ones, the stage is set for a surge in smart airport technology demand. However, it is worth noting that technological challenges and the escalating frequency of power outages at airports worldwide pose potential risks to airport kiosk systems.

Smart Airport Market Trends

The Passenger, Cargo, and Baggage Ground Handling Segment to Dominate the Market

• Rising passenger traffic presses airport operators to boost their handling capacities and adopt digital solutions for smoother operations. Across Europe and Asia, airports are swiftly adopting automated baggage handling systems. These systems alleviate the burden on ground support staff and enhance passenger satisfaction for airports, airlines, and ground handlers.
• For example, in July 2023, Melbourne Airport unveiled a major enhancement to its international baggage system, aligning with its strategic growth plans. The airport is also injecting a substantial USD 500 million into its baggage infrastructure, responding to escalating demands from the commercial aviation sector. In a similar move, in February 2023, Edmonton International Airport (YEG) in Canada collaborated with Alstef Group to revamp its baggage system. The overhaul includes upgrading control equipment, introducing new bag-tag readers, and bolstering existing systems. This comprehensive project also involves modernizing the airport's legacy baggage infrastructure and operational support. Such strategic investments in passenger and baggage handling systems are set to drive further growth in this segment.

Asia-Pacific Expected to Witness the Highest Growth

The Asia-Pacific region is poised for substantial growth, driven by hefty investments in new airport constructions and the expansion of existing ones. Countries like China, India, Japan, and South Korea have witnessed a sharp uptick in airport passenger traffic in recent years, prompting significant investment announcements from governmental bodies and airport authorities.

In June 2023, the Indian Ministry of Civil Aviation set an ambitious target of establishing 200-220 airports and heliports within 2-3 years. With a hefty USD 12 billion investment from public and private sources, India is keen on fortifying its airport infrastructure. These funds are earmarked for expanding current airports, constructing new terminals, and implementing advanced security measures to handle the burgeoning passenger influx.

Moreover, regional airports are turning to smart solutions to enhance operational efficiency and ensure seamless passenger services. In a notable move in March 2023, Siemens Logistics clinched a deal to install an advanced baggage handling system at China's Hefei Xinqiao Airport. The contract involves outfitting the airport with Siemens' cutting-edge baggage handling and sorting technologies, gearing up to serve an estimated 30 million passengers annually. The Siemens suite includes the VarioTray technology, VarioStore early bag store, and intelligent BagIQ software. This strategic modernization with smart airport solutions is poised to propel the growth of the market studied in the region in the coming years.

Smart Airport Industry Overview

The market for smart airports is highly fragmented, with many players providing advanced smart technology solutions. Some major players in the market are RTX Corporation, SITA, Honeywell International Inc., Siemens AG, and Cisco Systems, Inc. After the COVID-19 pandemic, companies have forged global partnerships with airlines, governments, and airport authorities, focusing on advanced technology solutions.

In a notable move, in June 2022, Air Liquide and Groupe ADP unveiled an ambitious collaboration, marking the inception of the first-ever joint venture to spearhead the development of smart hydrogen infrastructure at airports. This strategic alliance is set to offer engineering services to French airports, aiding in their transition to smart and sustainable hydrogen systems, slated for commercialization by 2035. The new systems, slated for installation and operational testing within airport terminals, are designed for operational efficiency and to enhance the overall customer experience. These innovative, contactless processing solutions are expected to bolster the global footprint of market players in the coming years.

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• The market estimate (ME) sheet in Excel format
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