Airport Information System Market size is slated to witness a considerable upsurge between 2023 and 2032, given the rise in air traffic and the requirement for real-time passenger data. Global air traffic is observing clear signs of a strong recovery from the COVID-19 crisis, characterized by increased airline confidence, regional air connectivity, and travel facilitation improvements.
As per data from the International Civil Aviation Organization, from January to April 2022, the number of air passengers rose by 65% compared to a year earlier, while flight departures surged by 30%. This proliferating demand for air travel, alongside the emphasis on reducing airfares and enhancing travel experiences, will bolster the airport information system market.
Airport information systems refer to software that distributes, collects, and updates information, including public address systems, around the airport. These systems receive data from terminals and airlines regarding data, time, and arrival gates for passengers. Airport flight information systems include automatic terminal information service, airport announcement or public address systems, and flight information display systems.
The strong focus on airport infrastructure modernization and the deployment of geolocation and other advanced technologies are key trends influencing the business outlook. To cite an instance, by 2025, the Airports Authority of India and other airport operators targeted a capital outlay of around USD 11.9 billion. This initiative was intended to construct Greenfield Airports and terminals and modernize existing runways and terminals. In addition, the introduction of mandates, including the use and installation of the Security Identification Display Area, will create lucrative prospects for airport passenger information system developers.
The baggage processing solutions segment will account for a major share of the airport information system market by 2032, given the development of tech-powered solutions for automating passenger experiences. Moreover, continued efforts to address surging air travel demand will escalate the usage of security scanning and other baggage processing solutions in airports.
In terms of function, the Airport Operation Control Center (AOCC) segment is expected to amass considerable gains. This can be credited to its role in delivering real-time management of passenger baggage, movement, and cargo. Several airports, including Cologne Bonn Airport, are also continuing to equip with ultra-modern control centers to plan and monitor processes related to managing flights, cargo, and passengers from arrival to departure. Furthermore, the provision of e-tickets from devices including online check-in will augment the development of AOCC for airport information management.
Asia Pacific will emerge as a lucrative revenue pocket for the airport information system market over 2023-2032, driven by an increase in air passengers. In August 2022, the Association of Asia Pacific Airlines reported an upsurge in the number of passengers, reaching 13.1 million. In Southeast Asia, airport projects continue to recover as cargo and passenger flights rebound from the COVID-19 pandemic. The innovation of smartphone technology and the availability of flight ticket discounts will bolster the deployment of airport information technology in the region.
The strategic landscape of the airport information system market is inclusive of companies such as Ultra Electronics Holdings, Cisco Systems, NEC (Western Electric, AT&T Corporation), The Thales Group, Microsoft, Amadeus IT Group SA, Rockwell Collins Inc. (Raytheon Technologies), SITA, HCL Infosystems, Siemens, and IBM, among others. These companies are focusing on innovative product developments and other strategies to boost their presence in the global market.
For instance, in May 2022, Siemens Logistics introduced Baggage 360, a versatile airport operations software, featuring real-time forecasting of baggage flows. This software was developed to enable ground handlers to plan mobile, fixed, and personnel resources with high efficiency, thereby allowing the market to reinforce its footprint in the industry.
The impact of inflation has been witnessed across industry verticals including aviation. According to data from the Bureau of Labor Statistics, in 2022, the airfare cost rose around 4 times the inflation rate, asserting a negative impact on airport information tech developers. However, the gradual increase in air travelers despite surging airfare will likely create growth opportunities for the airport information system market.