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The airport IT spending market share is expected to increase by USD 1.48 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 4.89%.
This airport IT spending market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers airport IT spending market segmentations by type (operational system, administrative system, and passenger processing system) and geography (APAC, North America, Europe, Middle East and Africa, and South America). The airport IT spending market report also offers information on several market vendors, including Amadeus IT Group SA, Atos SE, Capgemini Service SAS, China Civil Aviation Information Network Co. Ltd., Collins Aerospace, Damarel Systems International Ltd., INFORM GmbH, International Business Machines Corp., Intersystems, Lockheed Martin Corp., NEC Corp., Northrop Grumman Corp., RESA SAS, Saab AB, Siemens AG, SITA, Thales Group, Ultra Electronics Holdings Plc, VELATIA Group, and Passur Aerospace Inc. among others.
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The efforts by airports to enhance the customer experience is notably driving the airport IT spending market growth, although factors such as high initial investment and increasing IT complexity may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the airport IT spending industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Airport IT Spending Market Driver
One of the key factors driving the global airport IT spending market growth is the efforts by airports to enhance the customer experience. Enhancing and maintaining the passenger experience during transit and travel are the most important factors for airports, which are expected to boost revenue by ensuring that satisfied passengers become repeat customers. The operational systems is the largest segment in the US airport IT spending market. Moreover, companies are increasingly adopting chatbots, smart help, and social media to make a personal connection with the customer and enhance customer experience. Airlines such as KLM have been early adopters in this field and offer their customers around-the-globe booking and check-in confirmation, boarding passes, and flight status updates via Facebook Messenger. The use of these new methods has increased customer engagement and has ensured more accessible storage of information in a single place, thus increasing its availability at the airport, on the flight, or at home. Such factors will drive the market growth in the forecast years.
Key Airport IT Spending Market Trend
Focus on establishing high-end cybersecurity at airports is one of the key airport IT spending market trends that is expected to impact the industry positively in the forecast period. 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. Also, 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. Such factors will further support the market growth in the coming years.
Key Airport IT Spending Market Challenge
One of the key challenges to the global airport IT spending market growth is the high initial investment and increasing IT complexity. The growing use of multiple technologies has resulted in complex systems, which has increased the dependence of stakeholders on sharing available IT resources and increasing the demand for IT professionals. In addition, the short product lifecycle of IT systems has added to its complexity. The price of IT spending includes the costs of licensing, system design, system integration, training, maintenance, and system upgrades. Besides the multiple sourcing of the software from different vendors, skilled staff is also needed. The primary challenge is the integration of these systems into the existing system, which is leading to an increase in complexity and technical issues. Such factors will limit the market growth in the forecast years.
This airport IT spending market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global airport IT spending market as a part of the global information technology (IT) spending market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the airport IT spending market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the airport IT spending market encompasses successful business strategies deployed by the key vendors. The airport IT spending market is fragmented and the vendors are deploying growth strategies such as strategic partnerships to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The airport IT spending market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the airport IT spending market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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35% of the market's growth will originate from APAC during the forecast period. China and Japan are the key markets for airport IT spending in APAC. Market growth in this region will be faster than the growth of the market in other regions.
The faster adoption rate of technologies inside airports and rapidly growing economies coupled with an increasing demand for air travel will facilitate the airport IT spending market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The COVID-19 pandemic had a negative impact on the regional airport IT spending in APAC in 2020. This was due to the nationwide lockdowns imposed by the governments of various countries such as China, India, South Korea, and Japan. The pandemic had reduced passenger traffic worldwide in 2020. However, in 2021, due to the availability of COVID-19 vaccines and the vaccination drives carried out by the governments of APAC countries, operational activities in the airport gradually resumed. This led to the reopening of airports, which will continue to increase airport IT spending in the region and result in market growth during the forecast period.
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The airport IT spending market share growth by the operational systems segment will be significant during the forecast period. An operational system 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. Such factors will boost its adoption and will support the market growth through this segment in the coming years.
This report provides an accurate prediction of the contribution of all the segments to the growth of the airport IT spending market size and actionable market insights on post COVID-19 impact on each segment.
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Airport IT Spending Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.89% |
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Market growth 2022-2026 |
$ 1.48 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
4.41 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 35% |
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Key consumer countries |
US, Canada, China, Japan, and UK |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Amadeus IT Group SA, Atos SE, Capgemini Service SAS, China Civil Aviation Information Network Co. Ltd., Collins Aerospace, Damarel Systems International Ltd., INFORM GmbH, International Business Machines Corp., Intersystems, Lockheed Martin Corp., NEC Corp., Northrop Grumman Corp., RESA SAS, Saab AB, Siemens AG, SITA, Thales Group, Ultra Electronics Holdings Plc, VELATIA Group, and Passur Aerospace Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our 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 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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