Airport Construction Initiatives Expected to Provide Growth Opportunities for Smart Airport Market during 2022–2028
According to our latest market study on "Smart Airport Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Component and Application," the market is expected to grow from US$ 26.073 billion in 2022 to US$ 66.763 billion by 2028; it is anticipated to grow at a CAGR of 17.0% from 2022 to 2028.
A smart airport comprises connected technologies and sensor-based systems enabled by global positioning systems (GPS), Internet of Things (IoT) devices, and other sensors-based components that assist airport operations. These technologies are also integrated with airport hospitality, smart parking and transportation, smart retail and entertainment, smart terminals, airport workplace, and other processes such as passenger verification and airport security. Smart airports are characterized by automated gates, facial recognition systems for passengers' identification at various checkpoints and gates, health monitoring systems, smart cleaning, and automatic luggage scanning & weighing systems, etc. The implementation of AI-based biometrics at airports, rising awareness of low-cost airport operations, and supportive government initiatives for the development of smart airports while collaborating with leading smart airport pioneer companies are boosting the smart airport market growth. Increasing demand for artificial intelligence-based (AI-based) connected airport systems and rising demand for self-service and automated systems that aid in lowering operation time are supporting the market growth.
According to the market analysis, Asia Pacific accounted for the largest market share in the global smart airport market in 2021. It is expected to witness the highest CAGR during the forecast period. This is owing to the presence of many smart airport project initiatives across different countries of the region. A few major smart airports located in APAC countries are Hong Kong International Airport, Shenzhen Airport, Beijing Daxing International Airport, Tokyo Haneda Airport, Centrair Nagoya International Airport, New Delhi International Airport, Hyderabad International Airport, Seoul Incheon Airport, Jeju Airport, Singapore Changi Airport, Kuala Lumpur International Airport, and Indonesia Airport. These airports are equipped with many smart airport technologies, and they keep implementing new systems to increase the airport passenger handling capacity and increase the overall airport output. For instance, Singapore’s Changi Airport is one of the world's biggest airports that aims to produce a passenger handling capacity of 135 million passengers per annum. Singapore airport has been witnessing significant growth in air traffic, and air navigation service providers are responsible for safely and efficiently providing air traffic services. Heavy investment in state-of-the-art technologies and systems and continuous training and upskilling is critical in managing increasingly crowded and complex airspaces. Such instances are boosting the developments across the smart airport market size in Asia Pacific.
According to the market research study, the rising number of airport projects across different countries is another major factor that is making Asia Pacific the fastest-growing region in the global smart airport market. For instance, China has planned to construct 215 new airports by 2035, including installing new and IoT-based technologies across those airports in the Chinese Airport Industry. Similarly, India has plans to build 200 new airports by the end of 2025, which will also boost the adoption of smart airport systems deployment across those airports. Moreover, in 2019, the Singapore Changi Airport had planned to build a new terminal 5 to increase the airport capacity, but the construction was suspended temporarily due to the COVID-19 pandemic. However, in May 2022, the transport minister of Singapore announced that Singapore would resume building a fifth terminal at its Changi Airport after a two-year halt. Such developments are expected to boost the smart airport market growth across Asia Pacific.
The smart airport market size is bifurcated into component and application. Based on component, the market is divided into hardware and software. The hardware segment is further segmented into security systems, communication and network systems, endpoint devices, and data storage. Based on application, the smart airport market is segmented into terminal side, airside, and land side.
Smart Airport Market - by Geography, 2022
Smart Airport Market Share Analysis, Growth and Forecast-2028
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Smart Airport Market Forecast to 2028 - COVID-19 Impact and Global Analysis by Component (Hardware and Software) and Application (Terminal Side, Airside, and Land Side)
Smart Airport Market Share Analysis, Growth and Forecast-2028
Download Free SampleSmart Airport Market Forecast to 2028 - COVID-19 Impact and Global Analysis by Component (Hardware and Software) and Application (Terminal Side, Airside, and Land Side)
Collins Aerospace, Amadeus IT Group SA, Honeywell International, SITA Aero, and Indra Sistemas S.A. are a few key smart airport market players profiled in the study. Several other major market players were studied and analyzed during this market research study to get a holistic view of the market and its ecosystem. The report provides detailed market insights, which helps the key smart airport market players strategize their growth.
The COVID-19 pandemic has severely impacted the smart airport market due to the spread of SARS-CoV-2. The rapid outbreak of COVID-19 has led to strict lockdowns across different regions since March 2020. Lockdown severely impacted the commercial aviation sector, manufacturing of airport equipment, and the travel industry, thereby impacting the construction of new smart airport projects globally. Major domestic aviation providers have suffered considerable losses in the financial year 2020. This restricted their demand for commercial aircraft across the world. Further, the lockdown also led to travel bans, which hampered the operation of flights (except cargo aircraft). The airport closure for regular passengers has led the airports and smart airports to experience deflation in revenue.
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