Market Trends of Asia-Pacific Smart Airport Industry
Passenger, Cargo and Baggage Control Segment Will Showcase Remarkable Growth During the Forecast Period
The passenger, cargo, and baggage control segment is anticipated to grow significantly in the Asia-Pacific smart airport market during the forecast period. The change is attributed to the increase in air passenger traffic at various airports in the Asia-Pacific region. Moreover, the increase in the number of baggage and cargo handled by multiple airports in the Asia-Pacific region will lead several airports to modernize themselves using smart technologies to ensure smoother airport operations, thereby driving market growth during the forecast period.
Furthermore, according to Asia-Pacific Airports Magazine published by ACI Asia-Pacific, in the long term, Asia-Pacific will be considered among the top nations in the civil aviation market, with China leading the market, followed by India, Indonesia, and Japan. Moreover, the re-opening of the Chinese civil aviation industry signifies the beginning of a strong traffic recovery across the Asia-Pacific region.
Furthermore, there has been significant growth in the Asia-Pacific region regarding passenger, cargo, and baggage control. The substantial increase in the air traffic passenger in the area has also led to immense growth in the number of passenger baggage that the airports are handling, and this has led to many airports within the site to undergo construction to expand airport capacity to cater to growing air traffic passengers or install several innovative technologies for faster baggage processing/handling.
For instance, in 2018, Siemens Postal, Parcel & Airport Logistics (SPPAL), a wholly-owned subsidiary of Siemens AG, announced that they had commissioned one of the most modern, high-performance baggage handling systems in the world at Incheon International Airport in South Korea. The new baggage handling system installed at the recently opened Terminal 2 combines innovative conveyor and sorting technology with intelligent software, enabling peak throughputs of almost 20,000 pieces of baggage per hour.
China Dominates the Market During the Forecast Period
China held the highest shares in the market and is expected to continue its domination during the forecast period. The growth can be attributed to the growing air traffic passenger in China in recent years coupled with the increase in the number of new airport construction operations which will ultimately drive market growth.
China handles the most significant passenger traffic in the Asia-Pacific region, and it is expected to become the largest aviation market in the world in the coming years. According to CEIC data, air passenger traffic in China was reported at 251.713 million passengers in 2022. The International Civil Aviation Organization (ICAO) expects that the number of transport airports in China will reach around 450 airports.
Moreover, to cater to the increasing passenger traffic in the country, the Chinese government plans to increase its construction of new airports significantly. The CAAC has been highly focused on developing safe, green, thoughtful, and passenger-friendly airports with little to no probability of causing operational delays and inefficiencies, costing time and valuable resources to the airlines and passengers.
Chinese airports have already started implementing intelligent technologies on a large scale that enable a highly satisfactory customer experience and reduce any delays. For instance, in October 2021, Shanghai Airport Authority unveiled its new pilot project to develop multiple urban terminals in neighbouring cities. The airport authority will set the Suzhou Urban Terminal project jointly with the management committee of Suzhou Industrial Park. This new terminal will enable urban travelers to smart check in their luggage at the Suzhou City terminal and move to the Shanghai International Terminal via buses to reduce check-in times at the Shanghai International Airport.
