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The global airport information systems market size was USD 3.27 billion in 2019 and is projected to reach USD 4.01 billion by 2027, exhibiting a CAGR of 3.45% during the forecast period from 2020 – 2027.
Airport information systems (AIS) include different equipment from baggage handling and management systems to flight and passenger information display systems (FIDS). These systems are used to provide information and announcements to staff and passengers, flight departure times, advertising, and weather updates.
An ideal airport information system is produced from a combination of various sub-systems. Some of these systems include an airport security system, a flight information system, a system for terminal services, a passenger information system, and a system for emergency departments. Depending on the capacity of an airport, radar control, baggage, aircraft management systems, and air defense are also interconnected to the central system.
In 2018, SITA’s air transport IT insights showed that 34% of airports are planning blockchain research and development programs by 2021. The airport adopts blockchain technology that has potentially helped in improving passenger identification processes by reducing the need for multiple ID checks. Several airports and airlines have already started using AI-powered products, such as virtual assistants and chat-bots, that enhance the operational efficiency of airports.
As per the data released by the International Air Transport Association (IATA), the global airline passenger revenues decrease by USD 314 billion in 2020, which makes a decline of 55% compared to the previous year.
As per the IATA estimates, Asia-Pacific airlines will witness a record revenue decline of USD 113 billion compared to last year, which is the biggest drop out of all the regions. There will be a 50% decrease in passenger demand this year in the Asia Pacific compared to last year. The estimate in March stated that there would be a 37% decrease in passenger demand this year.
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Development of Smart Airport for Enhanced Airport Operations Will Aid Market Growth
The introduction of advanced technologies such as biometrics, artificial intelligence (AI), machine learning, and others improves the operational efficiency of airports. Passengers can use facial recognition technology at airport check-in, bag drop, and boarding gate. It saves time and is useful for security purposes as the face becomes the boarding pass for the passenger. Several international airports such as Changi, Hong Kong, and Heathrow, have launched biometric-projects, speeding up the boarding and check-in process.
Improved Cyber-security and Onboard Connectivity to Gain Popularity
The airport information systems are interconnected systems that are exposed to several security threats. A single cyber-attack can impact several layers of infrastructure, with critical consequences on global travel. Therefore, the airline industry is heavily investing in strengthening cyber-security to strengthen its information security system. Furthermore, more than 80 airlines around the world offer in-flight Wi-Fi.
Finnair Airlines is promoting food and beverage, travel retail, and upgrade sales, through its complimentary Wi-Fi portal. The onboard connectivity offered opportunities such as a partnership with streaming services such as Amazon Prime or Netflix.
Increase in Air Traffic and Need for Real-Time Data for Consumers is Propelling Market Growth
Growing air traffic and increasing need for real time data sharing among the consumers are the major factors driving the growth of the AIS market. Additionally, increasing airport expansion projects and modernization of airport programs will propel the growth of the AIS market. As per the data published by the International Air Transport Association (IATA), the number of passengers could double to 8.2 billion until 2037. From 2017 to 2037, the fastest-growing aviation markets are China, the U.S., India, and Indonesia.
China will have 1 billion new passengers while the U.S. has 481 million new passengers in the next 20 years. Thus, the increase in air travelers leads to an increasing number of airports, which in turn creates a huge demand for airport information systems.
Rising Expenditure on IT Spending for Operational Improvement by Airports Will Aid Growth
Increasing the adoption of advanced technologies on airports to achieve higher operational efficiency and to improve passenger's experience has resulted in increasing demand for information systems across domestic and international airports. The rise in expenditure on information technology (IT) from airlines drives the growth of this market across the globe.
In 2015, Bahrain’s Ministry of Transportation and Telecommunication had signed a contract with Thales Group and SITA to provide the airport security and operations management system airport’s modernization programs. The contract involved complete design and implementation of airport systems to continuous growth in traffic, forecast to reach 14 million passengers till 2020.
High Cost Associated with Airport Up-gradation Programs Hampers the Market Growth
High cost in the up-gradation process and information sharing regulations are the factors that are affecting the growth of the airport information systems (AIS) market over the forecast period. Furthermore, the facial recognition algorithms have error rates that vary depending on a person’s race or gender due to which some groups could face extra screening more often than others. The high cost associated with biometric devices and the interconnection of multiple IT systems hampers the airport information systems market growth.
Increasing Demand for Enhanced Airport Operations Drive the Growth of the Market
Based on the system, the market is segmented into the airport operational control center and departure control center. Among these, the airport operational control center segment holds the highest market share in the AIS market. Increasing demand for enhanced operational efficiency at airports is one of the key factors to drive the market. The departure control center will witness significant growth owing to the increasing need for traffic control due to a rising number of aircraft and airports across the globe.
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Growing Passenger Traffic Leads to Development of Class B Airport
Based on the airport, the market is classified into class A airport, class B airport, class C airport, and class D airport. The Class B airport segment is anticipated to witness the highest growth rate in the AIS market during the forecast period. The growth is attributed to the rise in air traffic from small cities and emerging economies such as China and India, which subsequently creates a huge demand for airport expansion and up-gradation programs. Other class segments will witness significant growth due to rising passenger traffic and airport modernization programs.
Rising Demand for Self-Check and Bag Drop Propelling the Market Growth
By end use, the market is segmented into passenger systems and non-passenger systems. The passenger systems segment is estimated to grow at a high rate in the airport information system market during the forecast period. The growth is attributed to the rise in demand for self-check-in and bag drop, which is driving the growth of this passenger systems segment. Non-passenger system segment shows moderate growth during the forecast period.
Rising Expenditure on the Installation of Airside Information Systems Drive the Growth of The Market
Based on the type, the market is divided into the airside and terminal side. The airside segment estimated to gain a larger share in 2019. The growth is attributed to the growing demand for airside infrastructure from numerous airports. Furthermore, the airside system is important for the aircraft and pilots to park aircraft without any mistakes or delays. The up-gradation and modernization of these systems from key airports are driving the growth of these systems market.
Growing Investment for Renovation & Modernization of Existing Airports to Boost The Market Growth
Based on investment type, the market is segmented into green-field and brown-field investment. The brownfield investment segment is expected to grow at a rapid pace due to a shift in trend for enhancing the existing airport infrastructure projects in developed countries. Also, the rise in importance in developing countries to modernize airport information systems for regional airports are likely to fuel market growth in the future years.
North America Airport Information Systems market size, 2019 (USD Million)
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The AIS market has been segmented into North America, Europe, Asia Pacific, the Middle East, and the Rest of the World. North America is anticipated to be the largest market in the global airport information systems market during the forecast period. The presence of a large number of airports and high expenditure from airlines for modernization of airports drive the growth of the market across the region. Furthermore, the presence of key system integrators such as Collins Aerospace, IBM, and others propels the growth of the market.
Asia-Pacific will witness significant growth in the market during the forecast period. The growth is attributed to the rise in the number of airlines and airports in emerging economies such as China and India. Europe is anticipated to witness a moderate growth owing to the rising number of up-gradation programs of airports across the region. Besides, the presence of key players such as Indra Sistemas S.A., Thales Group, Siemens, and others drive the growth of the market.
The Middle East will show significant growth during the forecast period due to the adoption of advanced technologies for efficient operations at the airport. The Rest of the World will witness moderate growth owing to the increase in the number of airports across the region.
Long term Agreements and Partnership with different Airport Operators are the major Strategies are Adopted OEMs
The competition landscape of the airport information market has a prominence of a few players such as Sita, Thales Group, Collins Aerospace, and Ikusi are among others. These players provide a diversified product portfolio for the airport information systems in various regions. The major companies are increasing investment in R&D to enhance solutions and services. Also, adopting strong investment approaches through strategic acquisition and partnership with other companies. These companies are adopting organic & inorganic growth strategies, a new product launched, a sustainable long term contract with airlines and airport operators to increase their customer base in several countries.
This research report offers qualitative and quantitative insights on the airport information systems market, and the detailed analysis of market size & growth rate for all possible segments in the market.
An Infographic Representation of Airport Information Systems market
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Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in this industry report are the adoption of trends in airport information systems by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.
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Value (USD Billion)
By End Use
Fortune Business Insights says that the global market was valued at USD 3.27 billion in 2019 and is projected to reach USD 4.01 billion by 2027.
Growing at a CAGR of 3.45%, the market will exhibit steady growth in the forecast period (2020-2027).
In 2019, the market value stood at USD 4.01 billion.
Airport operational control center, class A, airside, the non-passenger, the green-field segment is estimated to be the leading segment in this market during the forecast period.
An increase in operational cost and modernization of airports is propelling the growth of the market.
Thales, Sita, Indra systems, and Collins are among others, are some of the leading manufacturing companies in the market.
North America is projected to be the largest shareholder in the global market. An increasing number of air travelers and the expansion of new airport projects are anticipated to boost the market in North America.
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