airport hub network communication Market

The airport hub network communication market size is expected to grow from US$ 2,522.69 million in 2023 to US$ 3,466.17 million by 2028; it is estimated to register a CAGR of 6.6% from 2023 to 2028.

An airport hub is used by airlines to manage passenger traffic and airplane operations over a network communication. The communication is established over a network with the help of internet and multiprotocol label switching (MPLS) connectivity. In addition, many solutions and service communication network provider such as Cisco Systems, Inc; Honeywell International; and SITA provides reliable, secure network connectivity solutions to these airport hubs, which helps to improve the passenger experience and communication among the several authorities.

In addition, the rise in the construction of new airports across the globe is contributing to the increased demand for communication network solutions. Such communication improves the overall efficiency of flight and airport operations. Real-time data sharing simplifies the airport system, including traffic control, baggage system, and passenger information. In 2022, a few new airlines were launched, which include Akasa Air (India), Greater Bay Airlines (Hong Kong), among others. Such a rise in new airlines across the globe drives the airport hub network communication market growth.

Air transport is the fastest and most secure way of transporting goods and passengers. Also, with economic development and more personal income, passengers prefer traveling by air to reach their destination quickly and conveniently. According to Boeing, passenger traffic is also expected to grow by 3.8% during 2022–2041 period. In addition, the e-commerce market is displaying steady growth, contributing to increased transportation of goods. The global trade market prefers cargo transportation by air as it comes with speed and safety benefits while helping to fulfill consumer demand on time. According to Boeing, the air cargo is expected to grow by 4.1% annually between 2022 and 2024. Due to the rising demand for air travel, airlines are expanding their routes and including more aircraft to cope with large passenger numbers. Moreover, older airplanes are being replaced by new ones because of environmental concerns, particularly the high rate of carbon emissions. Boeing estimates that over 50% of old passenger airplanes operating in 2019 will be replaced by recent new models by the year 2031.

All the above factors have led to the increased demand for new aircraft. As per Boeing’s Commercial Market Outlook 2022–2041 report, about 41,170 aircraft and airplanes are expected to deliver to the various airlines. The new aircraft or airplanes can be integrated with the latest technologies, which are likely to drive the airport hub network communication market size during the forecast period.

Impact of COVID-19 Pandemic on Airport Hub Network Communication Market

Due to the COVID-19 outbreak, various European countries, including Italy, Spain, France, and Germany, imposed strict lockdowns and restrictions on air transportation. Many airlines canceled flights within Europe at the end of 2019. According to European Commission, in December 2021, the number of flights decreased by 55.2%, resulting in 6.1 million fewer flights than in 2019. However, the European airlines, which were severely affected by travel bans, restarted their airport and airline operations at the end of 2021. Passenger traffic in Europe has been recovering, as many aviation companies took various initiatives to recover from the pandemic. According to IATA, 38.5% of passenger traffic in Europe increased in March 2022. The aviation industry is growing, as many key European players are launching new aircraft and partnering with other companies. Therefore, the rising demand for airport hub network communication services is boosting the airport hub network communication market growth.

Honeywell International Inc, SITA Switzerland SaRl, Amazon Web Services Inc, Collins Aerospace, Amadeus IT Group SA, Embross Systems Pvt Ltd, Materna IPS GmbH, ADB Safegate BV, TAV Technologies Ltd, and Cisco Systems Inc. are among airport hub network communication market players and profiled in this study.

According to International Air Transport Association (IATA), air transport is one of the biggest contributors to North America’s economy. Airport transportation is responsible for creating new jobs, increasing the flow of trade, and encouraging tourism, which results in increased spending by airlines on the airports, thus contributing to the economy. In addition, US Federal Aviation Administration’s (FAA) Air Traffic Organization (ATO) provided its service to over 45,000 flights and served ~2.9 million passengers on an average daily basis in the FY22. On average, in a year, FAA manages ~16.40 million flights, schedules more than 10 million flights, and monitors more than 5,400 flights that remain operational simultaneously. Such a strong aviation sector requires efficient solutions to manage airport traffic. Therefore, the region focuses on maintaining and enhancing the operational efficiencies of the airport and airlines. In addition, the region is considered an early adopter of the technologies due to its strong economy, which contributes to the demand for the solutions and services implemented at the airport and airlines to improve the business processes, propelling the airport hub network communication market growth.