Smart Airport Market - Growth, Trends, and Forecast (2020 - 2025)
The smart airport market is estimated to register a CAGR of greater than 3.5% during the forecast period (2020 - 2025).
- Advanced technologies and innovations in the field of IT, electronics and control systems, mechanical systems, robotics, and analytics are the major driving factors of smart airports. Apart from the advanced technologies, an increase in air passenger traffic is strongly compelling airport authorities to opt for smart airport technologies. These factors may continue to drive the demand for smart airport. With end-to-end tracking of information during the journey, biometric technologies, digital passports, and immigration checks are some of the technologies that airports may adopt in the near future, which is, in turn, expected to drive the market.
- The introduction of new technology, like smart glass for blind passengers, and the introduction of biometrics for passengers, in general, may lead to enhanced customer experience in the coming years.
- The increasing adoption of biometric equipment is expected to provide growth opportunities for the market, during the forecast period.
Key Market Trends
The Noise Management Segment Projected to Grow at a Rapid Pace
Currently, the noise management segment has the highest share among all the segments. Landing and take-off of an aircraft generate noise, and even though new-generation aircraft are quieter, major airports run specialized noise management programs to reduce and offset the noise created by their routine operations. Several major airports are installing noise monitoring devices to monitor the noise levels due to the aircraft. For instance, at Toronto Pearson Airport, the Noise Management Action Plan is reviewed every five years, and corrective measures are adopted depending on the requirement. Earlier, in December 2017, the airport announced its Noise Management Action Plan for 2018-2022. Thus, the focus is currently on this segment, which is the reason for its expected high CAGR.
Asia-Pacific Expected to Register the Highest Growth
In the smart airport market, regionally, North America is generating the highest revenue at present. However, the Asia-Pacific region is expected to record higher growth during the forecast period. China has one of the fastest-growing air passenger traffic, with a 35% increment in the number of passengers, over the past five years, and comes second after the United States, in terms of the total number of passengers carried. Additionally, the Indian aviation industry is booming and has already witnessed various aircraft entering the market over the past decade. According to the International Air Transport Authority (IATA), India is the ninth-largest, in terms of aviation industry ranking.
Sydney Airport is preparing to try a facial recognition system designed to let travelers pass through check-in, baggage deposit, border and security screening, and boarding, after one initial passport presentation. As the airports in Asia-Pacific region try to adopt advanced technology systems, it will have a positive impact on the growth of the market.
The smart airport market is highly fragmented, with only a handful of players controlling the market. SITA is one of the leading players in the smart airport market, alongside Honeywell. Both the companies have been occupying leading positions in the market for a long time. IBM Corporation, Siemens AG, and Amadeus It Group SA are some of the other major players in the market. Mergers and acquisitions between the players, in the recent past, have helped the companies strengthen their market presence. For example, in 2016, Sabre Corporation announced the successful acquisition of Airpas Aviation, a leading provider of cost management and real-time route profitability solutions for the commercial airline industry.
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