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Smart Airport Market size was valued at USD 5.86 billion in 2023 and is expected to reach USD 23.29 billion by 2036, expanding at around 11.2% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of smart airport is assessed at USD 6.39 billion.
As commuters become more technologically sophisticated and connected, we have entered the “Airport 3.0” revolution where technology and data combined transform airport operations.
Digital technology such as cloud computing, big data and analytics, smart machines and robots, virtual modeling and simulation, and the internet of things (IoT) has been implemented in smart airport for the operations. Cloud computing can facilitate airports to be more responsive and created new solutions with better ease. Whereas, analytics and virtual modeling can help in monitoring passenger flows.
As the countries across the globe have gone into lockdowns, the aviation sector has suffered enormously. As the primary point of entry and exit in most countries, airports play a vital part in handling health emergencies.
Growth Drivers
The growing use of self-service technologies and budding need for real-time information
By efficiently employing IoT, AI, and big data, airports can prominently reduce the wait time for passengers and address some of the most frequently confronted problems, such as lost bags, flight delays, and customer service issues. The growing number of passengers at airports demand upgraded solutions that would ease and allow the automation of the processes at airports. With the growing digital advancements, airports are emphasizing on self-service results and adopting novel technologies such as robotics booth, facial recognition, automated passport control, and others to manage airport operations efficiently.
Intensified Security Threats to Fuel the Implementation of Intelligent Systems at Airports.
One of the most noticeable trends in smart airport market is the expanding degree of integration of the Internet of Things (IoT) at airports to cater to the increasing security concerns across the globe. IoT can help efficiently observe critical airport infrastructure and streamline security and check-in procedures for travelers. Thus, significantly augmenting the value of an airport, which will fuel the market revenue in the foreseeable future.
Restraints
The halting of international travel due to COVID-19 pandemic
Due to the worldwide outbreak of the COVID-19 pandemic, all the regions are facing stringent travel regulations or bans to curb the spread of the virus, which is adversely impacting the global aviation industry.
On March 11, 2020, the U.S. imposed a 30-day travel ban on passengers from the Schengen Area. In the meantime, in Europe, Italy witnessed a 22% drop in flights corresponding to the declaration of a national lockdown on March 9, 2020.
According to the World Economic Forum, an amalgamation of trip cancellations and country-specific constraints on international flights cost the airline industry $880 billion. Almost 40% of flights impacted by European travel bans are U.S. based, such as Delta and United Airlines, with billions in lost profits already projected for the year 2020.
Additionally, novel safety protocols at the airports might create airport logjams.
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
11.2% |
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Base Year Market Size (2023) |
USD 5.86 billion |
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Forecast Year Market Size (2036) |
USD 23.29 billion |
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Regional Scope |
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The market is segmented by technology, application, location, size, and region. Among application segmentation, the non-aeronautical application segment is anticipated to hold the leading market share during the forecast period owing to services such as retail outlets, advertising, smart parking, Wi-Fi, restaurants, lounges, conference rooms, lodging facilities, and personalized services that is expected to boost the growth in non-aeronautical operations.
Our in-depth analysis of the global market includes the following segments:
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By Technology |
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By Application |
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By Location |
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By Size |
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Geographically, the smart airport market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
North America industry is likely to dominate majority revenue share by 2036, as airports across urbanized regions, have automated parking facilities.to capture a greater profit share of the non-aeronautical operations segment. According to the US Transport Security Administration (TSA), American airports alone touched a record of 813.8 million travelers in 2018. Additionally, the TSA coped to embark on a more stringent form of carry-on screening techniques at airports across the US. This rise in air tourism is attributable to growing income and overall economic development in the region, producing a need for smart management of airport operations.
Europe is the second-largest smart airport market due to escalation in smart airport initiatives in the countries, such as Germany, France, and Spain.
Asia-Pacific region is projected to bolster as the fastest-growing region over the forecast period, owing to a sharp proliferation in traveler traffic, improvement and implementation of novel technologies in airport communication and security systems, and flourishing tourism industry in India and China.
Author Credits: Dhruv Bhatia
Copyright © 2024 Research Nester. All Rights Reserved
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