Advanced Airport Technologies Market Size & Share 2023 to 2032
Market Size by Technology Type (Airport Communication Technologies, Airport Management Software, Biometrics and Identity Management, Baggage Handling Systems, Airport Security Technologies), by Airport & Forecast.
Report ID: GMI7563
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Published Date: December 2023
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Report Format: PDF
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Authors:
Suraj Gujar, Partha Paul
Advanced Airport Technologies Market Size
Advanced Airport Technologies Market was valued at USD 33.5 billion in 2022 and is estimated to register a CAGR of over 4% between 2023 and 2032, attributed to a significant rise in air traffic worldwide. The global air travel industry has been experiencing a steady increase in passenger numbers.
Advanced Airport Technologies Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
According to IATA, in August 2023, global air travel rebounded significantly, with a 28.4% increase in total traffic measured in revenue passenger kilometers (RPKs) compared to August 2022. The international sector experienced a robust 30.4% growth, achieving 88.5% of pre-COVID August 2019 levels. Notably, domestic traffic surged by 25.4%, surpassing August 2019 results by 9.2%, primarily fueled by robust demand in the Chinese market. Overall, global air traffic has now reached 95.7% of pre-pandemic levels. To cope with this growing passenger traffic, airports are investing in advanced technologies to streamline operations, enhance passenger experience, and ensure efficient handling of larger volumes of flights and passengers, further contributing to market growth.
An increased emphasis on improving operational efficiency and cost reduction will help carve a healthy growth trajectory for the advanced airport technologies industry. Airports are under constant pressure to improve operational efficiency and reduce costs. Advanced technologies such as smart baggage handling systems, automated check-in processes, and the use of Internet of Things (IoT) devices contribute to streamlined operations, quicker turnaround times, and cost savings in the long run.
For an instance, in November 2023, Sydney Airport elevated operational efficiency with the implementation of Veovo's Intelligent Airport Platform. This strategic move addresses the heightened demand as air traffic returns to pre-pandemic levels. The platform is tailored to enhance efficiency, reliability, and collaboration throughout the airport by seamlessly aggregating and validating data from diverse sources, including air traffic, baggage handling, and airlines, into a centralized Airport Operational Database (AODB). This initiative is pivotal for minimizing delays in aircraft turnaround and optimizing the utilization of terminal and airside capacities.
However, the aviation industry is subject to stringent regulations and standards to ensure safety and security. Implementing new technologies may require compliance with various regulatory frameworks, and gaining approval for innovative solutions can be a complex and time-consuming process. Adhering to industry standards while incorporating emerging technologies can pose challenges for airport authorities, potentially slowing down the adoption of advanced systems.
COVID-19 Impact
The COVID-19 pandemic significantly impacted the advanced airport technologies market as global air travel plummeted, leading to widespread financial constraints for airports. Budget cuts and reduced capital expenditures became prevalent, hindering the adoption of advanced technologies. The focus shifted to immediate operational and financial challenges, delaying investments in smart infrastructure, biometrics, and other innovations. As airports prioritize recovery, the pace of integrating advanced technologies has been slower, with many grappling with the need for cost-effective solutions amid the ongoing uncertainties.
Advanced Airport Technologies Market Trends
The aviation industry may see increased adoption of contactless biometric systems and touchless technologies to enhance passenger experience and improve hygiene. For instance, in November 2023, Abu Dhabi International Airport unveiled cutting-edge biometric systems at its newly inaugurated Terminal A, designed to provide passengers with a swifter and more seamless journey to their departure gates. Airport officials reported that passengers can now traverse from the curb outside the terminal to their gate within just 12 minutes, attributing the efficiency to advanced airport technologies and streamlined procedures.
Notably, self-service baggage drop-off kiosks take a mere 30 seconds, immigration procedures are cleared in 10 seconds, and the boarding process at the gate requires just three seconds, as highlighted by Andrew Murphy, Chief Information Officer at Abu Dhabi Airports, during a media tour of the expansive 742,000 square-meter terminals. Facial recognition, iris scanning, and other biometric methods may become more prevalent for tasks such as check-in, security clearance, and boarding, reducing physical contact points in airports, and thus stimulating product demand.
Advanced Airport Technologies Market Analysis
Based on the technology type, the market is divided into airport communication technologies, airport management software, biometrics and identity management, baggage handling systems, airport security technologies, air traffic management (ATM) systems. smart airport solutions, passenger experience technologies, airport collaborative decision making (A-CDM) and advanced runway and taxiway technologies. In 2022, The biometrics and identity management segment will generate a high market share for 2022. Biometrics and Identity Management technology is in high demand at airports due to its pivotal role in enhancing security, efficiency, and passenger experience. Biometric systems, including facial recognition and fingerprint scanning, offer robust identity verification, reducing the risk of unauthorized access and enhancing overall airport safety.
Moreover, these technologies streamline passenger processing, enabling quicker check-ins, security clearances, and boarding procedures. As airports worldwide seek innovative solutions to manage increasing passenger volumes, the demand for Biometrics and Identity Management technology continues to surge, driven by its effectiveness in fortifying security measures and optimizing operational processes.
Based on the airport, the market is categorized into international airports, domestic airports, cargo airports and military airports. In 2022, the domestic airport segment accounted for a market share of around 35% and is projected to grow significantly through 2032. The adoption of advanced airport technologies at domestic airports is propelled by the imperative to enhance operational efficiency, passenger experience, and overall safety. As domestic air travel continues to grow, airports invest in cutting-edge systems to accommodate increased traffic, streamline check-in and security processes, and optimize baggage handling. These technologies, including smart infrastructure, biometrics, and real-time data analytics, not only improve day-to-day operations but also contribute to cost savings and sustainability efforts. The competitive landscape in the aviation industry further drives domestic airports to embrace innovations, ensuring they remain at the forefront of modern, efficient, and secure air travel services.
North America led the global advanced airport technologies market with a major share of over 35% in 2022. The region's commitment to innovation, robust air travel infrastructure, and substantial investments in modernization drive the adoption of cutting-edge technologies. Stringent security regulations further incentivize the integration of advanced systems such as biometrics, smart surveillance, and automated processes. With a high volume of air traffic, North American airports prioritize efficiency and passenger experience, fostering a climate receptive to technological advancements. Moreover, the presence of leading technology firms and a proactive approach to embracing emerging trends position North America as a hub for the continuous evolution and growth of the advanced airport technologies sector.
Advanced Airport Technologies Market Share
Major players operating in the advanced airport technologies industry are:
Raytheon Technologies holds the largest market share, with a diverse portfolio and a strong focus on research and development, the company's expertise in defense and security technologies, coupled with its innovative solutions, has likely contributed to its prominence in the airport technologies sector. Also, global presence and strategic collaborations have played a role in securing contracts and partnerships for airport projects worldwide.
Advanced Airport Technologies Industry News
The advanced airport technologies market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:
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Market, By Technology Type
Market, By Airport
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
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