According to the new research report on "Smart Airport Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market size is expected to reach US$ 66,763.46 million by 2028 and register a CAGR of 17.0% from 2022 to 2028.
The US has the largest aerospace industry in the world. In 2020, the US had ~5,200 public airports across the country US such as Houston Airport, San Diego International Airport, John F Kennedy Airport, Miami International Airport, and Hartsfield-Jackson Atlanta International Airport, among which a few significant airports that handle large number of passengers and have installed IoT-based technologies and those airports are considered as smart airports. The US has a well-established airport infrastructure comprising many automation and IoT-based technologies. A few airports are investing heavily in the adoption of smart airport systems and contributing to the growth of smart airport market in the US. For instance, in March 2022, the Chicago Department of Aviation announced that it is installing ADB SAFEGATE’s Safedock Advanced Visual Docking Guidance Systems (A-VDGS) to ensure safe and precise aircraft parking on Terminal 5 gates at Chicago O’Hare International Airport (ORD). Moreover, the presence of many smart airport system manufacturers across the US, such as Collins Aerospace (Raytheon Technologies), Honeywell International, Cisco Systems, and IBM, is another major factor boosting the smart airport market size across the US.
Smart airports in Europe, such as Munich, Frankfurt, London Heathrow, Copenhagen, Zurich, and Amsterdam, are leading the way in adopting IoT and AI-based systems. These airports invest heavily in smart technologies to improve passenger experiences, increase operational efficiency, and reduce costs. Recently, Thales won a contract from the airport management group, SEA, to provide a digital platform solution that will enhance operational efficiency and contribute to the growth of the smart airport market.
The COVID-19 pandemic significantly impacted the global aviation industry, as reported by various organizations such as ICAO and IATA. In 2020, the passenger traffic fell by 69% compared to 2019, causing losses of up to US$ 400 billion. The passenger decline was estimated to be between 52% and 59%. As a result, two-thirds of passenger jets were grounded, leading to a decrease in air connectivity by over 50% in 2020. The pandemic also caused delays in developing new smart airport projects and shut down ongoing smart airport operations, leading to a revenue loss for market players. IATA estimated an average loss of US$ 71.7 per passenger in 2020, resulting in a total net loss of US$ 126.4 billion. Consequently, the smart airport market growth was hindered due to the revenue loss faced by companies and the inability to efficiently develop airport infrastructure in 2020.
The analysis of the smart airport market is categorized into two segments: component and application. The component segment comprises of hardware and software. The hardware segment is divided into security, communication, network, endpoint devices, and data storage. On the other hand, the application segment is categorized into the terminal side, airside, and landside.
Key Findings of Study:
In 2022, China dominated the APAC smart airport market, holding the largest market share. China boasts the highest number of fully smart airports globally, along with a significant presence of smart airport technology providers and integrators catering to local demand. China's plans to develop around 215 new airports by 2035 as part of its airport development plans are expected to further boost the smart airport market in the country. Hong Kong International Airport, Shenzhen Airport, and Beijing Daxing International Airport are major centers for smart airport technology deployment in terms of volume. For example, Beijing Daxing International Airport recently awarded a contract to Neonode Inc. to deploy their smart luggage carrier, featuring Neonode touch sensor modules across the airport, contributing to the growth of the smart airport market in the region. Additionally, according to market analysis, the increasing use of 5G technology in Beijing Daxing International Airport is a significant factor driving the growth of the smart airport market in China.
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