Airport Information System Market size is predicted to observe substantial growth rate from 2019 to 2025 impelled by proliferating demand for commercial and regional aircraft owing to reduced air fares along with enhanced air travel experience. Upgradation of existing airport infrastructure, technical modernization to enhance operational efficiency and prioritization of passenger convenience are some of the key factors that are strengthening the industry share till 2025.
The aviation industry is adopting new and improved technologies such as near-field communications, video analytics, geolocation, thermal sensors and 3D face recognition for enhancing the overall airport efficiency. Moreover, industry players are rapidly investing in R&D for introducing advanced products and gain a competitive edge over the competition. For instance, Lufthansa Group offers an innovative BAGTAG device for attaching to the passenger bags for assisting with the baggage handling operations efficiently at the airport.
Stringent regulations associated with the aviation industry are positively impacting the airport information system market proliferation over the study timeframe. For instance, controlled access is mandated by the Federal Aviation Regulation (FAR) 1542. This regulation promotes the usage and installation of airport information systems such as Security Identification Display Area (SIDA) for preventing crimes and terrorism, positively influencing the industry share over the projected timeframe.
Factors such as advancements in software technology, rising competition, and need for faster response to requests from passengers are paving way for innovations in the airport information system market place. For instance, Thales group in partnership with ARINC, upgraded the existing Doha Airport with specially designed and integrated airport security systems, that enabled for efficient management of passengers and goods, providing a positive outlook for the industry expansion. Further, the system also serves as an alternative for conveying information on silent airports.
Increasing disposable income among emerging nations and reduced flight rates owing to economies of scale efficiency are supporting the airport information system market expansion over the projected timeframe. Further, rising globalization encourages increased passenger movement thereby positively contributing towards the business growth during the forecast period. However, stringent regulatory framework & certification processes, large energy requirements to source information displays and increasing threats from cyber security may act as a hindrance to the industry growth till 2025.
Based on solutions, the market is divided into resource management solutions, flight information display systems (FIDS), public address systems, passenger processing solutions, airport operational database (AODB) and baggage processing solutions. Baggage processing solutions accounts for a significant share in the airport information system market place. Prevention of baggage mishandling and quick baggage processing will enhance the capacity of the airport to cater new airlines. Passenger processing solutions such as biometric passenger recognition devices, passenger kiosks, and security scanning are expected to witness significant growth.
Based on operation, the airport information system market is categorized into airside and terminal side. The growth in the airside segment is attributed to the requirement for efficient management of airport gate and flight operations. Advancements in software development and technology such as Airport Surface Detection Equipment (ASDE), Radar Data Processing & Display System (RDPDS), and weather detection software are offering highly efficient and advanced information for passengers, assisting them in knowing the details of their flights, thereby expanding their market share over the forecast timeframe.
The airport information system market is segmented into Class A, Class B, Class C and Class D airport. Class B airport segment size is anticipated to witness a significant growth rate owing to the proliferating tourism sector and increasing passenger commute from smaller cities, thereby leading to increased penetration of airport information systems.
Based on function, the AIS market is classified into Airport Operation Control Center (AOCC) and departure control system. The increasing demand for AOCC is attributed to its assistance in providing real time management of passenger movement, baggage, and cargo. Aircraft. departure control systems have attained significant popularity due to provision for e-ticket management using interfaces from various devices such as mobile boarding cards, online check-in, and check-in kiosks. Damarel, Sita and Amadeus are some of the leading developers of departure control systems offering innovative solutions for managing passengers conveniently.
North America is expected to dominate the airport information system market place followed by Europe. This dominance is attributed to the increasing demand for aircrafts across the region. However, Asia Pacific is expected to showcase considerable growth in the airport information system market place. Increasing demand in air travel due to low fare price, rise in smartphone technology and discounts on flight tickets offered by multiple e-commerce platforms will positively contribute towards the airport information system market expansion till 2025.
The key players in the airport information system market place include IBM, Siemens, Inform, HCL infosystems, SITA, Rockwell Collins Inc., Amadeus IT Group SA, Microsoft, The Thales Group, NEC, Cisco Systems and Ultra Electronics Holdings. Industry players are engaged in partnerships and joint ventures for streamlining their business and gain significant market share. For instance, in January 2019, Collins Aerospace entered into a strategic collaboration with Inmarsat to offer JetConneX high-speed internet services to business jet operators through Level 1 Value Added Reseller Position. This system significantly improves data transfer speeds between the operations team in the ground and aircraft for offering customers with comprehensive and immediate support, thereby easing their flight experience.