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The global airport information systems market size was USD 3.17 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with Airport Information Systems witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market will exhibit a decline of -3.45% in 2020. The market is projected to grow from USD 3.21 billion in 2021 to USD 4.20 billion in 2028 at a CAGR of 3.89% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Airport Information Systems (AIS) include various equipment from passenger information display systems (PIDS) and baggage handling and management systems to aircraft. These systems provide information and announcements to staff and passengers, advertising, flight departure times, and weather updates. An AIS is produced from a combination of different subsystems. These systems consist of a flight information system, an airport security system, a system for terminal services, emergency departments, and passenger information systems.
In 2019, SITA’s air transport IT insights showed that 88% of both airports and airlines plan major research and development programs with artificial intelligence by 2022. The heavy investment in aviation technologies meets the demands of passengers, with 64% of people wanting a digital travel concierge.
Aviation Sector Has Faced Unmatched Challenges Due to COVID-19 Pandemic
The aviation industry has been hit hard by the impact of the COVID-19 pandemic. The market is witnessing a decrease in demand for Airport Information Systems due to airport shutdown, reduced economy, and disruption in the supply chain across the regions.
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Development of Smart Airport for Improved Airport Operations is a Prominent Trend
An introduction of advanced technologies such as biometrics, artificial intelligence (AI), machine learning, and others improves the operational efficiency of airports. Passengers use facial recognition technology at airport check-in, bag drop, and boarding gate. It saves time and is helpful for security purposes as the face becomes the boarding pass for the passenger. Several international airports, such as Hong Kong, Changi, and Heathrow, have launched biometric projects that help in speeding up the boarding and check-in process. Furthermore, Incheon Airport in South Korea uses AI robots that provide passengers with a pleasant experience and information.
Increase in Air Traffic and Need for Real-Time Data for Passengers to Fuel Market Growth
Rising air traffic and the growing need for real-time data sharing among passengers are the major factors propelling the market's growth. In addition to that, increasing airport expansion projects and modernization of airport infrastructure drive the market growth. According to the International Air Transport Association (IATA), the number of passengers could double to 8.2 billion by 2037. The IATA report states that China will have 1 billion new passengers while the U.S. will have 481 million new passengers in the next 20 years. Thus, the rising number of air travelers leads to a growing number of airports, which creates demand for Airport Information Systems.
Growing Expenditure on IT Spending for Operational Improvement by Airports to Aid Growth
The growing adoption of next-generation technologies on airports to achieve higher operational efficiency and improve passengers' experience has resulted in rising demand for AIS at airports. An increase in spending on information technology (IT) from airlines drives the market growth. According to the report published by SITA, airports and airlines have invested a record USD 50 billion in information technology (IT) in 2018 to enhance the passenger experience.
High Cost Involved in Airport Up-gradation and Modernization Programs to Hinder Market Growth
High costs in modernization and information sharing regulations are the key factors that hamper market growth. In addition to that, 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 growth of the market.
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Airport Operational Control Center Segment Dominated in 2020 Due to Rising Demand for Enhanced Operational Efficiency
Based on the system, the market is divided into the departure control center and airport operational control center.
The airport operational control center segment held the highest shares in 2020. The growing demand for improved operational efficiency at airports is driving the Airport Information Systems market growth. The center controls and monitors all the airport management functions. The departure control center will showcase remarkable growth due to the rising need for traffic control due to the increasing number of aircraft and airports worldwide.
Class B Segment Witness Fastest Growth Owing to Increasing Air Traffic
Based on the airport, the market is segmented into class A airport, class B airport, class C airport, and class D airport.
The class B airport segment is estimated to show significant growth during the forecast period. The growth is due to increased air travelers from small cities and rapid expansion of the aviation sector in emerging economies such as India and China, which creates a huge demand for up-gradation programs and airport expansion.
Other class segments will showcase significant growth due to increasing air traffic and airport up-gradation programs. Class C airports have operational Terminal Radar Approach Controls (TRACON) and Air Traffic Control Tower (ATCT).
An Increasing Demand for Self-Check and Bag Drop Driving the Market Growth
By end-use, the market is classified into non-passenger systems and passenger systems.
The passenger systems segment will witness remarkable growth in the AIS market during 2021-2028. The growth is due to the growing demand for self-check-in and bag drop. In November 2018, Bangalore International Airport in India deployed 16 fully automated self-bag drop machines. It helps in accelerating the baggage transaction and saves time in check-in queues.
The non-passenger system segment shows moderate growth during the forecast period. The growth is due to rising spending on airport development and the rapidly growing aviation industry, especially in the Asia Pacific.
Growing Spending on the Installation of Airside Information Systems Boost Market Growth
Based on the type, the market is segmented into the airside and terminal side. The airside segment will witness the highest growth in this market during the forecast period. The dominance of the segment is due to the increasing demand for airside infrastructure from numerous airports. Furthermore, the airside system is vital for the aircraft and pilots to park aircraft without any mistakes or delays. The Terminal side segment will showcase significant growth due to increasing airports as it includes operations such as baggage handling and check-in systems.
Rising Investment for Modernization and Renovation of Existing Airports Propels the Market Growth
Based on investment type, the market is divided into greenfield and brownfield investment. The brownfield investment segment is anticipated to grow with the highest CAGR due to a shift in trend for enhancing the existing airport infrastructure projects in developed countries. Furthermore, the growing importance in developing countries to modernize Airport Information Systems for regional airports are likely to fuel market growth.
The Greenfield segment will witness remarkable growth owing to rising investment in the development of greenfield airports. In October 2020, The Airports Authority of India (AAI) started developing a new greenfield airport in Arunachal Pradesh.
North America Airport Information Systems Market Size, 2020 (USD Billion)
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The market is segmented into North America, Europe, Asia Pacific, the Middle East, and the rest of the world.
North America stood at USD 1.00 billion in 2020. The region's dominance is due to the presence of the highest aircraft fleet and a large number of airlines across the United States. A large number of airports and high spending from airlines for the modernization of airports drive the growth of the market across North America. Additionally, key system integrators such as IBM, Collins Aerospace, and others boost the market growth.
Asia-Pacific will witness remarkable growth in the AIS market during 2021-2028. The growth is attributed to the growing urbanization and disposable income, and increasing air traffic that leads to the rapid expansion of the aviation sector across China and India. In 2020, the Indian Finance Ministry announced that 100 new airports would be developed by 2024. In the union budget of the year 2020-2021, the Indian government allocated USD 23.7 billion to support the country’s transport infrastructure.
Europe is projected to show significant growth owing to the increasing spending on the aviation sector from the U.K., Germany, France, Russia, and others. Furthermore, key market players such as Indra Sistemas S.A., Siemens, Thales Group, and others drive the market growth.
The Middle East will witness moderate growth during the forecast period owing to the adoption of advanced technologies for efficient operations at the airport. According to IATA, the air transport industry includes supply chains and airlines estimated to support USD 20.2 billion of GDP in Saudi Arabia in 2018. Thus, the rising number of airports and growing tourism across the Middle East drive the market growth across the region.
The rest of the world is projected to show moderate growth due to the increasing number of air travelers and growing expenditure in the aviation sector from Brazil, South Africa, and others.
Key OEMs Focus On Business Expansion Through Long Term Contracts and Partnership with Major Airport Operators
The market competitive landscape has a prominence of a few players such as Thales Group, SITA, Collins Aerospace, and IBM. These OEMs provide a diversified product portfolio for the Airport Information Systems in various regions.
The key players are increasing investment in R&D to enhance solutions and services. Furthermore, adopting substantial investment approaches through strategic acquisition and partnership with other companies. In July 2021, Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport, entered into a 10-year partnership with IBM. Under the agreement, IBM and Kyndryl will create a new “Airport in a Box” platform that will support transforming the end-to-end travel experience for passengers at BLR Airport.
An Infographic Representation of Airport Information Systems market
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The Airport Information Systems market research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, key service providers, AIS types, and applications. Moreover, the report offers insights into Airport Information Systems trends, SWOT analysis and highlights key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the growth of the market over recent years.
Value (USD Billion)
System; Airport; Type; End Use; Investment, and Geography
Fortune Business Insights says that the global market size was USD 3.17 billion in 2020 and is projected to reach USD 4.20 billion by 2028.
Registering a CAGR of 3.89%, the market will exhibit steady growth during the forecast period (2021-2028).
The airport operation control center in the system segment is the leading segment in the market
Collins Aerospace, SITA, Amadeus IT Group SA, Siemens are the leading players in the global market.
North America dominated the market in terms of share in 2020.
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