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The airport IT spending market size is projected to increase by USD 1.82 billion, at a CAGR of 5.41% between 2023 and 2028. Airports prioritize customer experience enhancements, while IT integration underscores the significance of loyalty programs. The market thrives with rising demand for airport IT security. However, challenges emerge from high initial investments and escalating IT complexity. Organizing vast data volumes poses logistical hurdles, while evolving regulatory standards on data security and privacy present ongoing challenges. Despite obstacles, focusing on innovative solutions can mitigate challenges, fostering sustained growth. Adapting to technological advancements and regulatory changes is paramount, ensuring robust IT infrastructure and compliance. Airports must invest in scalable and adaptable systems to navigate complexities efficiently. By prioritizing customer-centric approaches and addressing security concerns, airports can strengthen their position in the competitive landscape, enriching traveler experiences while safeguarding data integrity and privacy.
The growth rate of the market depends on several factors, including the efforts by airports to enhance customer experience, the growing importance of loyalty programs due to IT integration, and the increasing demand for IT security at airports. Airport IT spending refers to the financial investment made by airports in Information Technology (IT) systems and solutions to enhance and optimize various operational aspects within the airport environment. This expenditure encompasses the procurement, implementation, maintenance, and upgrading of technology-driven solutions tailored specifically to meet the needs of airports and the aviation industry.
The market report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by End-user, which comprises operational system, administrative system, and passenger processing system. Additionally, it categorizes Component into hardware, software, and services, and covers Regions, including. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Our segment comprises two primary segments, each with its respective sub-segments for further detailed analysis within specific national markets. Furthermore, our market coverage extends across geographic regions including North America, Europe, APAC, South America, and the Middle East and Africa, with comprehensive breakdowns to provide in-depth insights.
The market share growth by the operational system segment will be significant during the forecast period. Operational systems are the leading segment and are expected to have the highest spending during the forecast period when compared with the other segments. An operational system is a powerful software system that helps airports lower service costs and enhances operational efficiency through collaborative decision-making and the discovery of opportunities that provide a world-class traveler experience and boost revenue.
The operational system segment showed a gradual increase in the market share of USD 2.58 billion in 2018. With the integration of an operational system, the software enhances the productivity and efficiency of the airport operation and streamlines the movement of information to the correct channel. The three primary modules of operating systems include resource management system, airport operational database, and flight information display systems. Thus, such factors will boost the growth of the global market during the forecast period.
In the global market, hardware components include servers, data storage systems, networking equipment (routers and switches), computing devices (workstations and mobile devices), peripheral devices (printers and scanners), and security and surveillance equipment (CCTV and access control). These components form the foundational infrastructure supporting critical airport operations, such as passenger processing, baggage handling, security, and administrative tasks. Investment in these hardware components ensures reliable connectivity, efficient data management, passenger facilitation, and stringent security measures, optimizing overall airport functionality and enhancing the passenger experience. Hence, from the abovementioned factors, hardware segment growth will tend to boost the growth of the global market during the forecast period.
APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC has several rapidly growing economies coupled with an increasing demand for air travel. The market is expected to see high growth due to the faster adoption rate of technologies inside airports, hence increasing the demand in the market. However, the adoption of technology and the overall maturity of the industrial sector in APAC is lower than in the countries in North America and Europe.
Furthermore, emerging economies such as China, India, Thailand, Singapore, and other ASEAN countries are expected to dominate the market in APAC. In addition, the key players in APAC are China, followed by Japan and India. In China and India, the need to improve the consumer experience, as well as the growing demand for higher efficiency and the need for automation to improve productivity and competitiveness to improve airport infrastructure, are driving the regional market during the forecast period.
In the dynamic landscape of airport operations, Airport IT spending plays a pivotal role in shaping modern travel experiences. Investments in digital platforms and cutting-edge technologies like Artificial intelligence (AI) and machine learning enhance safety protocols and operational efficiency. From Passenger Information Display Systems to Baggage handling and management, automation streamlines airport operations and handling processes. Technologies such as Flight information systems and Airport security systems ensure seamless passenger processing and security across departure control systems and air traffic control. With a focus on processing automation and safety protocols, Airport IT spending drives innovation in terminal services and emergency departments, elevating the air travel industry through advanced airport information systems and technological appliances.
The growing importance of loyalty programs due to IT integration is the key factor driving market growth. Regular flyers have started to frequently use loyalty programs, thus improving engagement with the airlines and getting exclusive discounted offers. This interaction has brought about a change from the traditional model of earning points, such as early seat booking, to more advanced and evolved platforms. Customers can now provide the airline with their preferences and engage with them for a range of benefits that go beyond early seat redemption, for instance, lifestyle memberships and rewards from daily shopping through brand partner loyalty programs.
Furthermore, loyalty programs are beneficial as more customers prefer loyalty programs to reduce costs; besides, they are a way of rewarding employees or redeeming non-travel expenses. This trend has increased the use of CRM systems to monitor consumer behavior and analytics to identify loyal and potential customers. This is expected to increase the growth of the global market during the forecast period.
Focus on establishing high-end cybersecurity at airports is the primary trend shaping market growth. Business enterprises and government organizations are continuously relying on cloud and interconnected computer systems to manage a variety of public service departments efficiently. The increase in connectivity is beneficial for both the private and public sectors, but these systems are vulnerable to cyber-attacks. Furthermore, to meet the growing cybersecurity threats, high-tech technology is being developed every day; for instance, walk-through security is an advanced concept that reduces passenger wait time.
Furthermore, biometrics scanners can be used to automate the verification procedure and reduce staffing. It is expected that more than USD 35 billion will be spent on cybersecurity in 2018. Suppliers are rapid in incorporating cyber-security services into their IT solutions to remain ahead of their competitors and increase their market penetration, which will help boost the growth of the global market during the forecast period.
Difficulties in organizing large amounts of data is a challenge that affects market growth. The rapid digitalization of the airport IT system has resulted in problems such as multiple data sources, including the airport itself, airlines, and numerous service providers. With the growing demand for interconnectivity, the stakeholders must share the data with airport operators, which is increasing data handling significantly, thus making it difficult to analyze the data in real-time. The increase in data handling complexity will lead to the need for appropriate IT infrastructure and computing power, which, in turn, may need higher capital investments.
Moreover, airports, airlines, service providers, duty-free shops, and so on use different devices and channels, for example, websites, smartphones, and digital screens, which pose a huge challenge for data handling and segregation. Another area that poses a challenge is data security and privacy. Cybersecurity has become a new battlefield where hackers try to gain access to the system through unauthorized means. Therefore, factors such as data proliferation and security are expected to impede the global market during the forecast period.
The Market forecasts include the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth analysis and information about 20 market companies, including:
The market is witnessing significant growth driven by the increasing adoption of airport management software and digital platforms to streamline operations. Investments in technologies like baggage tagging and arrival/departure operations enhance efficiency, while departure control systems and air traffic control systems ensure smooth flight operations. With a focus on commercial aviation services and training, airports leverage artificial intelligence and machine learning for improved decision-making. Innovations such as facial recognition technology and real-time data sharing bolster security and passenger experience. From class a airport, class b airport, class c airport, class d airport, investments in greenfield and brownfield projects drive modernization. With smart airport initiatives and advanced IT technologies, airports aim to minimize waiting times and establish themselves as hubs of safety and efficiency in the air travel industry.
Moreover, the market experiences robust growth, driven by the need for digital platforms to enhance operations in aircraft, transporting mediums, and accommodate diverse people and cultures. Centralized infrastructure facilitates seamless information sharing and efficient airport management services across international borders and flights. From optimizing seats and airline industry operations to facilitating trade and mobility, IT investments catalyze economic and social activity. Modern ground handling activity and aircraft flight repositioning are streamlined through airport projects and technologies like Airport Information Systems (AIS). With a focus on security and customer service, airports leverage artificial intelligence and real-time data sharing to manage airport traffic and enhance passenger systems. Investments in greenfield and brownfield projects, alongside initiatives like paperless ticketing and smart airport solutions, shape the future of air travel, prioritizing efficiency and safety.
Airport IT Spending Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.41% |
Market Growth 2024-2028 |
USD 1.82 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.87 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 35% |
Key countries |
US, Canada, China, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amadeus IT Group SA, Atos SE, Capgemini Service SAS, China Civil Aviation Information Network Co. Ltd., Cobham Ltd., Damarel Systems International Ltd., Institut fur Operations Research und Management, International Business Machines Corp., Intersystems, Lockheed Martin Corp., NEC Corp., Northrop Grumman Corp., Passur Aerospace Inc., Raytheon Technologies Corp., RESA SAS, Saab AB, Siemens AG, SITA, Thales Group, and VELATIA S.L |
Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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