The Worldwide Smart Airport Industry is Expected to Reach $66.7 Billion by 2028 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Smart Airport Market Forecast to 2028 - COVID-19 Impact and Global Analysis by Component and Application" report has been added to ResearchAndMarkets.com's offering.

The Smart Airport Market size is expected to grow from US$ 26,073.62 million in 2022 to US$ 66,763.46 million by 2028.

The emerging need for cost-effective and efficient systems across airports is one of the major trends in the smart airport market. According to International Air Transport Administration, the airport operational costs can be as high as US$ 9.95 per passenger aeronautical revenue, US$ 7.08 per passenger non-aeronautical revenues, or US$ 13.69 per passenger total cost. The systems deployed for performing airport operations are expensive and incur recurring costs to airports for servicing, upgrading, and maintenance.

The deployment of smart parking in smart airports is one of the major examples of cost-effective airport systems. These systems provide directions to passengers to find available parking spaces. Mobile smart parking apps can also be integrated with e-ticketing for parking to provide a seamless passenger experience and improve operational efficiency and reliability of parking areas, resulting in greater revenue generation at a lower cost for airport administrations.

Impact of COVID-19 Pandemic on Smart Airport Market

Following a decade of a constant and substantial increase in global passenger traffic, the COVID-19 pandemic effectively discontinued activities at airports globally in the second quarter of 2020. As a result, the overall number of passengers in 2020 declined dramatically compared to 2019. The Middle East will continue to be one of the most affected area in terms of relative decline in air passengers, as it registered a drop of 69.3% in 2021.

This is owing to the region's reliance on foreign travel and connectivity, which are rebounding at a considerably slower pace than domestic travel. South America, however, is predicted to recover faster than the other regions in 2021. While major challenges exist, the road to recovery is becoming clear.

For instance, Dubai Airports has worked with Huawei to create a smart airport that provides what consumers want: short lines, simple online services, and on-time flights. The UAE intends to expand Dubai International Airport to handle 120 million people annually by 2023, up from the existing capacity of 90 million. Free Wi-Fi, Smart gates, data gathering and sharing, airport apps, requirement projections, asset management and maintenance, and aircraft punctuality rate monitoring have all been emphasized in these smart airports.

The UK accounted for the second-largest market in the European smart airport market. The country has two fully operational smart airports i.e., London Heathrow Airport and Edinburgh International Airport. The UK airports are one of the busiest airports across the region as it handles a large volume of passengers annually. These airports are also trying to implement new smart airport technologies to develop an intelligent operational infrastructure in airports.

Asia Pacific (APAC) is expected to be the fastest-growing smart airport market globally during the forecast period. The Asia Pacific smart airport market analysis is conducted on the basis of countries such as Australia, China, India, Japan, South Korea, and the Rest of APAC. The second-largest smart airport market share in the APAC region is expected to be accounted for by the rest of APAC region in 2022.

Market Dynamics

Drivers

• Growing Investments from Airport Authorities for Deployment of Smart Connected Systems
• Focus of Vendors on Customer-Centric Offerings

Restraints

• Threat of Cyberattacks to Smart Airport Systems

Opportunities

• Airport Construction Initiatives Expected to Drive Future Demand

Future Trends

• Emerging Need for Cost-Effective Airport Systems

Companies Mentioned

• Honeywell International Inc
• Cisco Systems Inc
• Huawei Technologies Co., Ltd
• Indra Sistemas SA
• Amadeus IT Group SA
• SITA
• Collins Aerospace
• Daifuku Co. Ltd.
• Thales Group
• T-Systems International GmbH

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