Airport Information System Market Size, Status, Scope and Growth Prospects 2024-2030

Machine Learning and AI to Redefine Airport Information Systems

Technological advancements have played an imperative role in the overall growth of the aviation sector worldwide, thus driving the airport information system market. At present, the advent of novel technologies, including artificial intelligence, machine learning, 4G, 5G, WiFi, Blockchain, IoT, and cloud computing is set to revolutionize the airports around the world and enable the development of ‘smart airports’. Within the aviation sector, real-time management of airport activities remains critical for optimum operational efficiency and enhancing passenger service. Over the past decade, investments toward the development of smart airports have increased at a steady pace and the trend is likely to continue over the forecast period. As airports around the world scramble toward enhancing the passenger experience and customer service, airport information systems have continually come under the radar.

Airport technology continues to evolve at a rapid pace due to exponential rise in the number of passengers and soaring consumer demand for efficient airport management. Airport information systems around the world are expected to get a makeover in the upcoming years, due to advancements in technology and growing interest in the deployment of prefabricated modular data centers and several other innovative concepts in the pipeline. At the back of these factors, the global airport information system market is expected to reach ~US$ 70 Bn by the end of 2020.

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Entry of Robots & Autonomous Vehicles– A Step toward Seamless Passenger Experience

The entry of robots and autonomous vehicles has played an imperative role in revolutionizing operations in the industrial space. In addition, as Industry 4.0 continues to make inroads across the world, the adoption of robots in warehouses, factory floors, and different types of production units have increased at an impressive pace. While advancements in robotic technology continue to make inroads across the industrial sector, robots are increasingly being used in airport terminals around the world. Robots are a common sight across a number of airports in different regions of the world, including Asia Pacific, Europe, and North America to improve customer engagement and boost efficiency.

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The adoption of robots is significantly high at airports in the Asia Pacific region followed by Europe. Robotics is expected to play a pivotal role in redefining baggage handling due to which, autonomous baggage handling carts or baggage robots are currently being tested. Due to giant strides taken by novel technologies such as artificial intelligence and machine learning, modern-day robots are likely to offer accurate information to passengers– a major innovation in the airport information system market that is expected to boost market growth during the forecast period.

While robotics continue to make inroads in the airport information system market, innovations in voice technology have opened up new exciting avenues. Voice technology has gained considerable popularity in recent years. Several airports around the world are inclined toward using voice technology to empower passengers and enhance the overall passenger experience. For instance, in 2018, Heathrow Airport in London enabled passengers to interact with Alexa to gain information regarding their flight status, arrival-departure details, and gate updates. Analysts at Transparency Market Research are of the opinion that voice technology could have a strong impact on improving the overall relationship between passengers and businesses during the forecast period.

Air Travel Declines amid COVID-19 Pandemic

The travel, tourism & logistics sector is arguably one of the most affected industries amid the ongoing COVID-19 pandemic. As governments continue to impose restrictions on transportation and trade, domestic as well as international air travel is likely to take a major hit particularly in 2024. The demand for airport information systems is projected to decline during the COVID-19 pandemic, due to minimal activity in the commercial airline sphere. However, market participants are expected to focus on the development of new airport information system concepts that are likely to enhance passenger experience at airports in the COVID-19-free era. While the growth prospects of airport information system market look grim in the first half of 2024, the market is likely to gradually recover from the short-term slump in the second half of 2024.

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Airport Information System Market: Overview

  • The airport information system market is expected to register a CAGR of ~7% between 2020 and 2030. The market is projected to be driven by increasing investment within the airways industry.
  • The global airport information system market is expected to reach ~US$ 70 Bn by 2030 from ~US$ 30 Bn in 2020. Increasing adoption of digitized technology at airports and IoT connected devices by end users is expected to drive the growth of the market.
  • The airport information system market in Asia Pacific and Europe is anticipated to expand at a rapid pace during the forecast period, followed by Middle East & Africa and North America
  • North America remained the dominant leader in the global airport information system market in year 2019, primarily due to strong network infrastructure and technology adoption with regards to aviation industry, specifically in the U.S.
  • North America is projected to witness significant growth in the global airport information system market during the forecast period. Strong adoption of digital and virtual software at airports for a better passenger experience is expected to drive the consistent growth of the North America airport information system market.
  • The airport information system market report provides analysis of the global airport information system market for the period 2018 – 2030, wherein 2019 is the base year and 2020 to 2030 is the forecast period. Data for 2018 has been included as historical information.
  • The report studies the airport information system market from the perspective of different components and industry verticals

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Airport Information System Market: Snapshot

  • Asia Pacific is expected to witness the highest opportunity addition in the airport information system market globally, with Europe being the next closest region

Key Growth Drivers of Airport Information System Market

  • Rising IT spending on airports – The continuously growing IT spending on airports is identified as a key factor bolstering the airport information system market worldwide. Rising IT spending on airports can be construed as increasing investment by companies to lower their operating expenditure (OPEX) and deploy modern technologies such as wireless connectivity, automated solutions, and check-in kiosks. With rising investments in IT & telecommunications, airport authorities intend to provide various infrastructural services in order to deliver higher-control, connected, and convenient travel experiences to their passengers. This growth driver is predicted to have a high impact in the medium and long-term of the forecast period due to high IT & telecommunication spending in the airport sector.
  • Increasing number of air passengers leading to high airport traffic – The growing number of air passengers worldwide is acting as a major catalyst for rising investment in smart airports. Rising incomes with increasing competition and liberalization in emerging aviation markets is expected to boost the global airport traffic in the coming decades, which in turn is encouraging the deployment of various new technologies and solutions at airports to improve passenger experience. According to the International Civil Aviation Organization, in 2018, approximately 8,200 billion passenger kilometers were travelled at a YoY of 7.1% in comparison to the previous year. This growth driver is projected to have a high impact in the short and medium term of the forecast period.

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Key Challenges Faced by Airport Information System Market Players

  • In airport information systems, everyone needs to be able to access the data and applications from any location. This requires airports to have a reliable, secure, and robust IT and communications infrastructure. Creating this robust infrastructure requires high initial investment and also needs several critical airport processes to be optimized, so that the heavy workload requirements needed by airport users are met.
  • The mobile devices of airport passengers have to be connected to all the relevant airport systems most of the time to grab the benefits of various end-to-end self-services.  This is driving the need to deploy airport information systems with continuous high connectivity and robust infrastructure, which is gaining traction due to increasing demand for customer centricity, commercialization, and collaboration and to fulfil the requirements of all upcoming smart airports with all such facilities. This is identified as a challenge to the market due to high investment required.

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Airport Information System Market: Company Profile Snapshot

  • The research study includes profiles of leading companies operating in the global airport information system market. Key players profiled in the report include
    • Amadeus IT Group SA
    • Honeywell International, Inc.
    • INFORM Software
    • Intersystem Pty. Ltd.
    • Lockheed Martin Corporation
    • Lufthansa Systems GmbH & Co. KG
    • RESA, S.A.S.
    • Siemens Industry Inc.
    • SITA,
    • Velatia
    • S.L.
    • Vision-Box.
  • Companies are shifting toward advanced technology to gain competitive advantage in the airport information system market apart from maintaining their position in the market.

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