Smart Airport Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 6.24 Billion |
| Market Size (2029) | USD 10.59 Billion |
| CAGR (2024 - 2029) | 11.14 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Smart Airport Market Analysis
The Smart Airport Market size is estimated at USD 6.24 billion in 2024, and is expected to reach USD 10.59 billion by 2029, growing at a CAGR of 11.14% during the forecast period (2024-2029).
Several factors are driving the growth of the smart airport market, including the rebound in passenger traffic, the adoption of advanced technologies (ranging from IT and electronics to robotics and data analytics) for cost-effective management, and a heightened focus on enhancing the passenger experience. As airports digitize operations and pivot toward self-service solutions, there is also a rising demand for advanced kiosks.
Now integrating biometrics for swifter processing, these kiosks are set to further bolster the smart airport market. With global investments pouring into new greenfield airports and expanding existing ones, the stage is set for a surge in smart airport technology demand. However, it is worth noting that technological challenges and the escalating frequency of power outages at airports worldwide pose potential risks to airport kiosk systems.
Smart Airport Market Trends
The Passenger, Cargo, and Baggage Ground Handling Segment to Dominate the Market
- Rising passenger traffic presses airport operators to boost their handling capacities and adopt digital solutions for smoother operations. Across Europe and Asia, airports are swiftly adopting automated baggage handling systems. These systems alleviate the burden on ground support staff and enhance passenger satisfaction for airports, airlines, and ground handlers.
- For example, in July 2023, Melbourne Airport unveiled a major enhancement to its international baggage system, aligning with its strategic growth plans. The airport is also injecting a substantial USD 500 million into its baggage infrastructure, responding to escalating demands from the commercial aviation sector. In a similar move, in February 2023, Edmonton International Airport (YEG) in Canada collaborated with Alstef Group to revamp its baggage system. The overhaul includes upgrading control equipment, introducing new bag-tag readers, and bolstering existing systems. This comprehensive project also involves modernizing the airport's legacy baggage infrastructure and operational support. Such strategic investments in passenger and baggage handling systems are set to drive further growth in this segment.
Asia-Pacific Expected to Witness the Highest Growth
The Asia-Pacific region is poised for substantial growth, driven by hefty investments in new airport constructions and the expansion of existing ones. Countries like China, India, Japan, and South Korea have witnessed a sharp uptick in airport passenger traffic in recent years, prompting significant investment announcements from governmental bodies and airport authorities.
In June 2023, the Indian Ministry of Civil Aviation set an ambitious target of establishing 200-220 airports and heliports within 2-3 years. With a hefty USD 12 billion investment from public and private sources, India is keen on fortifying its airport infrastructure. These funds are earmarked for expanding current airports, constructing new terminals, and implementing advanced security measures to handle the burgeoning passenger influx.
Moreover, regional airports are turning to smart solutions to enhance operational efficiency and ensure seamless passenger services. In a notable move in March 2023, Siemens Logistics clinched a deal to install an advanced baggage handling system at China's Hefei Xinqiao Airport. The contract involves outfitting the airport with Siemens' cutting-edge baggage handling and sorting technologies, gearing up to serve an estimated 30 million passengers annually. The Siemens suite includes the VarioTray technology, VarioStore early bag store, and intelligent BagIQ software. This strategic modernization with smart airport solutions is poised to propel the growth of the market studied in the region in the coming years.
Smart Airport Industry Overview
The market for smart airports is highly fragmented, with many players providing advanced smart technology solutions. Some major players in the market are RTX Corporation, SITA, Honeywell International Inc., Siemens AG, and Cisco Systems, Inc. After the COVID-19 pandemic, companies have forged global partnerships with airlines, governments, and airport authorities, focusing on advanced technology solutions.
In a notable move, in June 2022, Air Liquide and Groupe ADP unveiled an ambitious collaboration, marking the inception of the first-ever joint venture to spearhead the development of smart hydrogen infrastructure at airports. This strategic alliance is set to offer engineering services to French airports, aiding in their transition to smart and sustainable hydrogen systems, slated for commercialization by 2035. The new systems, slated for installation and operational testing within airport terminals, are designed for operational efficiency and to enhance the overall customer experience. These innovative, contactless processing solutions are expected to bolster the global footprint of market players in the coming years.
Smart Airport Market Leaders
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Siemens AG
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SITA
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Honeywell International, Inc.
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Cisco Systems, Inc.
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RTX Corporation
*Disclaimer: Major Players sorted in no particular order
Smart Airport Market News
- March 2024: Vanderlande Industries BV secured two contracts to supply baggage handling systems (BHS) for airports in Ho Chi Minh City and the broader Vietnam region. The first agreement, inked with Construction Corporation No1 JSP (CC1) in Hanoi, entails supplying and installing a BHS for the new passenger terminal (T3) at Tan Son Nhat International Airport. The second contract, with ICTAS, focuses on implementing a BHS at Long Thanh International Airport (LTIA).
- February 2023: New Zealand's Aviation Security Service (AvSec) awarded a contract to Smiths Detection, a renowned expert in security inspection technologies. The deal aimed to equip its five primary international airports, Auckland, Christchurch, Dunedin, Queenstown, and Wellington, with state-of-the-art checkpoint security technology.
Smart Airport Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
-
4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Buyers/Consumers
- 4.4.2 Bargaining Power of Suppliers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 By Technology
- 5.1.1 Security Systems
- 5.1.2 Communication Systems
- 5.1.3 Air and Ground Traffic Control
- 5.1.4 Passenger, Cargo, and Baggage Ground Handling
-
5.2 By Airport Operation
- 5.2.1 Landside
- 5.2.2 Airside
- 5.2.3 Terminal Side
-
5.3 By Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.2 Europe
- 5.3.2.1 United Kingdom
- 5.3.2.2 France
- 5.3.2.3 Germany
- 5.3.2.4 Italy
- 5.3.2.5 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 India
- 5.3.3.3 Japan
- 5.3.3.4 South Korea
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 Latin America
- 5.3.4.1 Brazil
- 5.3.4.2 Rest of Latin America
- 5.3.5 Middle East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 United Arab Emirates
- 5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 Honeywell International Inc.
- 6.2.2 Cisco Systems Inc.
- 6.2.3 Amadeus IT Group SA
- 6.2.4 Siemens AG
- 6.2.5 T-Systems International GmbH
- 6.2.6 THALES
- 6.2.7 SITA
- 6.2.8 RTX Corporation
- 6.2.9 NATS Holdings Limited
- 6.2.10 Sabre GLBL Inc.
- 6.2.11 IBM Corporation
- 6.2.12 L3Harris Technologies Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Smart Airport Industry Segmentation
The concept of a smart airport, akin to smart cities, buildings, and factories, emphasizes advanced infrastructure. This infrastructure encompasses communication systems, cargo and baggage handling, security, ground handling, parking solutions, air traffic management, and facilities like aircraft hangars and parking. Terminal operations further involve passenger and staff notifications, information displays, lighting, and announcements.
The global smart airport market is segmented by technology, airport operations, and geography. By technology, the market is segmented into security systems, communication systems, air and ground traffic control, and passenger, cargo, and baggage ground handling. By airport operation, the market is segmented into the landside, airside, and terminal side. The report also covers the market sizes and forecasts for the smart airport market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| By Technology | Security Systems | |
| Communication Systems | ||
| Air and Ground Traffic Control | ||
| Passenger, Cargo, and Baggage Ground Handling | ||
| By Airport Operation | Landside | |
| Airside | ||
| Terminal Side | ||
| By Geography | North America | United States |
| Canada | ||
| By Geography | Europe | United Kingdom |
| France | ||
| Germany | ||
| Italy | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| By Geography | Latin America | Brazil |
| Rest of Latin America | ||
| By Geography | Middle East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| Rest of Middle East and Africa |
Smart Airport Market Research FAQs
How big is the Smart Airport Market?
The Smart Airport Market size is expected to reach USD 6.24 billion in 2024 and grow at a CAGR of 11.14% to reach USD 10.59 billion by 2029.
What is the current Smart Airport Market size?
In 2024, the Smart Airport Market size is expected to reach USD 6.24 billion.
Who are the key players in Smart Airport Market?
Siemens AG, SITA, Honeywell International, Inc., Cisco Systems, Inc. and RTX Corporation are the major companies operating in the Smart Airport Market.
Which is the fastest growing region in Smart Airport Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Smart Airport Market?
In 2024, the North America accounts for the largest market share in Smart Airport Market.
What years does this Smart Airport Market cover, and what was the market size in 2023?
In 2023, the Smart Airport Market size was estimated at USD 5.54 billion. The report covers the Smart Airport Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Smart Airport Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Smart Airport Industry Report
Statistics for the 2024 Smart Airport market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Smart Airport analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
