Airport Information Systems Market

Airport Information Systems Market Size:

The global airport information systems market size reached US$ 3.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.0 Billion by 2032, exhibiting a growth rate (CAGR) of 3.8% during 2024-2032. The market is dynamically growing, driven by rapid technological advancements, increasing air traffic across the globe, heightened focus on passenger experience, the implementation of several stringent security regulations, and rising government investments in airport infrastructure to enhance operational efficiency, security, and passenger satisfaction.

Airport Information Systems Market Analysis:

• Market Growth and Size: The market is witnessing stable growth, driven by the increasing demand for advanced technology solutions in airport operations, the rising air traffic across the globe, and heightened focus on improving passenger experience and operational efficiency.
• Major Market Drivers: Key drivers influencing the market growth include rapid technological advancements like artificial intelligence (AI) and the Internet of Things (IoT), increasing global air traffic, strong focus on enhancing passenger experience, stringent security regulations, and substantial government investments in airport infrastructure.
• Key Market Trends: The key market trends involve the ongoing shift towards integrating sustainable and smart technologies to reduce the environmental impact of airport operations. Additionally, the increasing adoption of digital solutions, such as biometric security, mobile applications, and real-time analytics, is bolstering the market growth.
• Geographical Trends: The Asia-Pacific region is a hotspot for Airport Information Systems market growth, driven by the rapid expansion of air travel and increasing investments in airport infrastructure. Moreover, North America and Europe witness continuous upgrades of existing systems, with a strong emphasis on incorporating advanced technologies to improve airport operations.
• Competitive Landscape: The market is characterized by the active involvement of key players that are engaged in research and development (R&D), strategic partnerships, and mergers to enhance their offerings. Furthermore, companies are focusing on innovation and sustainability to meet the evolving demands of the airport industry.
• Challenges and Opportunities: The market faces various challenges, such as managing the high costs of advanced systems and adapting to evolving security threats. However, the increasing demand for efficient, passenger-friendly, and eco-friendly systems is creating new opportunities for the market growth.
   

Airport Information Systems Market Trends:

Rapid advancements in technology

The integration of cutting-edge technologies like artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) in airport operations is one of the major factors boosting the market growth. In line with this, the increasing utilization of data analytics and AI-powered systems to predict flight delays, manage airport traffic more efficiently, and offer personalized services to passengers is positively impacting the market growth. Additionally, the widespread adoption of IoT devices, such as sensors and smart tags, that help in tracking luggage, monitoring airport facilities, and improving overall operational efficiency is enhancing the market growth. In addition to this, the growing awareness about environmental sustainability, leading to the production of systems that are designed to reduce carbon footprints, is fostering the market growth. 

Increasing prevalence of air traffic

The surge in air traffic across the globe, boosting the need for efficient information systems, is a major factor contributing to the market growth. In line with this, the rising expansion of the tourism sector and international trade, necessitating the need for robust information systems to manage the increased volume of data and ensure smooth airport operations, is creating a positive outlook for the market growth. Airport information systems are crucial for managing flight schedules, passenger information, baggage handling, and other critical operations. Besides this, the heightened demand for efficient cargo handling and tracking to ensure timely and secure transportation of goods is also fostering the market growth. Airport information systems are equipped with radio frequency identification (RFID) technology and advanced tracking systems, which play a crucial role in managing the logistics of air cargo.

Enhanced focus on passenger experience

The rising focus on improving passenger experience is one of the major factors fueling the market growth. In line with this, the increasing adoption of passenger-centric information systems that provide real-time information, self-service kiosks, mobile applications, and interactive displays is anticipated to drive the market growth. They offer passengers up-to-date information on flight schedules, wait times, and airport services, contributing to a more seamless and stress-free travel experience. Along with this, the rising expectations among passengers regarding real-time communication and services, encouraging airports to leverage social media and mobile applications to provide information and offer engagement, is bolstering the market growth. It includes personalized marketing, tailored travel suggestions, and digital concierge services to elevate the passenger experience and create new revenue streams for airports. 

Implementation of stringent security regulations

The implementation of stringent security regulations set by aviation authorities across the globe is acting as a growth-inducing factor. In line with this, the heightened need for sophisticated information systems that can enhance security measures is positively impacting the market growth. Moreover, the rising adoption of information systems for monitoring, managing, and controlling access to sensitive areas, screening passengers, and ensuring compliance with international security standards is creating a positive outlook for the market growth. Along with this, the widespread integration of biometric systems, advanced surveillance, and data analytics that help in identifying potential threats and managing risks is supporting the market growth. Additionally, the increasing utilization of big data and artificial intelligence (AI) in security operations to enhance airport safety and ensure smoother passenger processing with reduced wait times is strengthening the market growth.

Rising government initiatives and investments

The escalating government initiatives and investments in airport infrastructure development are stimulating the market growth. Along with this, the increasing focus on airport modernization and expansion projects, which include upgrading information systems to enhance operational efficiency, security, and passenger experience, is fueling the market growth. Moreover, the implementation of several government policies that support the adoption of digital solutions in airports is also fostering the market growth. In addition to this, the rising government support in fostering innovation through research and development (R&D) initiatives is acting as a growth-inducing factor. Moreover, the increasing collaborations between governments and technology companies to develop cutting-edge solutions for airport operations that lead to the creation of smart airports equipped with the latest technologies are enhancing the market growth.

Airport Information Systems Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, system, airport, end-use, cost, and application.

Breakup by Type:

• Terminal Side
• Air Side
   

Terminal side accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes terminal side and air side. According to the report, terminal side represented the largest segment.

The terminal side focuses on systems that manage and streamline operations within the airport terminal. It includes check-in systems, baggage handling systems, passenger information display systems, and ticketing systems. Terminal side systems enhance passenger experience by providing real-time information, facilitating efficient check-ins, and ensuring smooth baggage management. Moreover, they include advanced security systems for passenger screening and surveillance, which are vital for maintaining airport safety.

The air side encompasses systems that are pivotal for airfield operations, including those related to air traffic control, ground handling services, and aircraft maintenance. It includes sophisticated radar systems, runway management tools, and aircraft docking guidance systems. Moreover, air side systems ensure the safety and efficiency of aircraft operations, such as takeoff, landing, aircraft parking, and ground services. They manage the complex logistics of air traffic, coordinating flight schedules, and maintaining communication between pilots and control towers. 

Breakup by System:

• Airport Operation Control Center
• Departure Control System
   

Airport operation control center holds the largest share in the industry

A detailed breakup and analysis of the market based on the system have also been provided in the report. This includes airport operation control center and departure control system. According to the report, airport operation control center accounted for the largest market share.

Airport operation control center (AOCC) refers to centralized systems that oversee and manage airport operations. It functions as the nerve center of an airport, coordinating various activities, such as flight operations, terminal and airfield maintenance, security, and emergency services. Moreover, it facilitates real-time decision-making and efficient resource management, ensuring smooth day-to-day operations.

Departure control systems (DCS) deal with systems specifically designed to manage airline and passenger processes at the airport. They are responsible for passenger check-in, boarding, seat allocation, and load control. Moreover, DCS systems are integral to ensuring a seamless and efficient passenger departure process. They are integrated with other systems, like baggage handling and passenger information systems, to provide a comprehensive solution for managing passenger flow.

Breakup by Airport:

• Class A Airports
• Class B Airports
• Class C Airports
• Others
   

Class B airports represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the airport. This includes class A airports, class B airports, class C airports, and others. According to the report, class B airports represented the largest segment.

Class B airports are medium-sized and serve domestic and international flights. They require systems that balance efficiency and cost-effectiveness. Moreover, the rising focus on modular and flexible systems that can efficiently manage moderate passenger and flight volumes is favoring the market growth. It includes efficient check-in and baggage handling systems, reliable security procedures, and effective flight information displays. 

Class A airports are large and handle a high volume of international traffic. They require sophisticated and integrated systems to manage their complex operations efficiently. Moreover, the increasing focus on advanced technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and biometric security systems to streamline passenger processing, enhance security, and manage air traffic effectively is fostering the market growth. Besides this, the scale and diversity of operations at Class A airports demand robust and scalable information systems capable of handling large data volumes and providing real-time operational insights.

Class C airports are smaller and handle mostly domestic traffic. They emphasize cost-effective and user-friendly systems that cater to lower passenger volumes without compromising on efficiency and safety. It includes basic check-in, baggage handling, and flight information systems. Besides this, the rising demand for scalable solutions that can adapt to gradual increases in traffic is supporting the market growth. 

Breakup by End-Use:

• Passenger Systems
• Non-Passenger Systems
   

Passenger systems exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the end-use have also been provided in the report. This includes passenger systems and non-passenger systems. According to the report, passenger systems accounted for the largest market share.

Passenger systems focus on technologies and systems that directly interact with and serve the passengers. They include check-in, self-service kiosks, baggage handling, passenger information displays, and mobile applications that provide flight and airport information. Moreover, passenger systems are designed to enhance the passenger experience, streamline the check-in and boarding processes, and provide timely information to travelers. Along with this, the increasing emphasis on improving customer service and ensuring passenger convenience is bolstering the market growth.

Non-passenger systems encompass the array of backend systems that are crucial for airport operations but do not directly interact with passengers. They include air traffic control systems, airport operation control centers, security surveillance systems, and aircraft management systems. Moreover, non-passenger systems ensure the smooth running of airport operations, manage flight schedules, maintain safety standards, and handle emergencies. Additionally, the growing focus on operational efficiency, safety, and compliance with regulatory standards is favoring the market growth.

Breakup by Cost:

• Operating Cost
• Procurement Cost
• Integration Cost
   

The report has provided a detailed breakup and analysis of the market based on the cost. This includes operating cost, procurement cost, and integration cost.

Operating cost encompasses ongoing expenses associated with the use and maintenance of airport information systems. It includes costs related to software updates, system maintenance, technical support, and manpower required for the continuous operation of these systems. In line with this, the increasing adoption of airport information systems that are more efficient and require less manual intervention, thereby reducing operating costs, is strengthening the market growth.

Procurement cost refers to the initial expense incurred in acquiring airport information systems. It includes the cost of purchasing hardware, software licenses, and any other equipment necessary for the setup. Procurement decisions are influenced by factors like system capabilities, scalability, compatibility with existing infrastructure, and expected lifespan.

Integration cost involves expenses related to the incorporation of new information systems into existing airport infrastructure. It includes costs for system customization, data migration, interfacing with other systems, and training staff to operate the new systems. In line with this, the increasing demand for airport information systems that focus on efficiency without operational disruptions and inefficiencies is boosting the market growth.

Breakup by Application:

• Finance & Operations
• Maintenance
• Ground Handling
• Security
• Others
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes finance & operations, maintenance, ground handling, security, and others.

Finance and operations involve systems that assist in managing the financial aspects and day-to-day operational activities of airports. They include revenue management systems, resource allocation software, and operational analytics tools. Systems in this category are essential for optimizing cost-efficiency, tracking operational performance, and making strategic decisions. Moreover, they provide critical data and insights for budgeting, forecasting, and managing airport resources. 

The maintenance sector focuses on systems that facilitate the upkeep and repair of airport infrastructure and equipment. They include asset management software, predictive maintenance tools, and work order management applications. Moreover, airport information systems in maintenance ensure the smooth functioning of airport facilities, minimize downtime, and extend the lifespan of critical assets. Furthermore, they help airports schedule regular maintenance activities, track the condition of assets, and respond promptly to repair needs.

Ground handling systems are designed to manage various services related to aircraft operations at airports, such as baggage handling, aircraft towing, and catering services. They ensure efficient coordination of ground support activities, timely processing of baggage, and swift turnaround of aircraft. Moreover, the rising demand for ground handling systems to enhance operational efficiency, reduce turnaround times, and improve the overall quality of ground services is favoring the market growth.

The security sector includes systems dedicated to ensuring the safety and security of airports. They encompass surveillance systems, access control technologies, and advanced screening equipment. Moreover, security systems are crucial for preventing unauthorized access, monitoring passenger and staff movements, and detecting potential threats. Additionally, the increasing security concerns across the globe, boosting the demand for sophisticated and integrated security systems in airports, is supporting the market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest airport information systems market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

In North America, the airport information systems market is marked by the presence of major aviation companies and a high volume of domestic and international flights. In addition to this, the increasing need for advanced security measures, efficient passenger processing, and the modernization of aging infrastructure is positively impacting the market growth.

The Asia Pacific region is experiencing rapid growth in the market, driven by increasing air traffic, rising middle class, and the expansion of low-cost carriers. Moreover, the growing investment in airport infrastructure development to cater to the growing demand is fostering the market growth. Besides this, the heightened focus on implementing advanced technologies to enhance efficiency and passenger experience is bolstering the market growth.

Europe's airport information systems market is characterized by high levels of technology adoption and stringent regulatory standards. Moreover, the well-established aviation industry, boosting the focus on upgrading existing systems to enhance efficiency and reduce environmental impact, is creating a positive outlook for the market growth. Furthermore, the increasing collaborative initiatives in the region for airspace management and safety enhancements are fueling the market growth.

The Latin American market is emerging, due to the rising investment in airport infrastructure modernization. Besides this, the increasing air traffic in the region, driven by economic growth and the expansion of regional and international airlines, is favoring the market growth. Moreover, the heightened focus on adopting cost-effective and scalable systems that can improve operational efficiency and passenger handling is favoring the market growth.

The Middle East and Africa region is witnessing significant growth in the market, driven by the region's focus on becoming a global aviation leader. Besides this, the increasing investment in state-of-the-art airport infrastructure is favoring the market growth. Moreover, the growing focus on efficiency and the highest standards of passenger experience, necessitating the need for advanced and innovative information systems, is bolstering the market growth.

Leading Key Players in the Airport Information Systems Industry:

The major players in the market are engaged in various strategic activities to strengthen their market position. They are investing in research and development (R&D) to innovate and integrate advanced technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and big data analytics into their systems, which is favoring the market growth. Besides this, major companies are forming strategic partnerships and collaborations with technology firms, airlines, and airport authorities to expand their market reach and tailor their offerings to specific regional and operational needs. Additionally, they are focusing on developing eco-friendly and energy-efficient systems to align with global environmental standards.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Advantech Co., Ltd.
• Airport Information Systems Limited
• Amadeus IT Group, S.A.
• CGI, Inc.
• Damarel Systems International Ltd.
• Harris Corporation
• International Business Machines (IBM) Corporation
• Ikusi Redes de Telecommunications, S.L.
• Indra Sistemas S.A.
• INFORM Institute fur Operations Research and Management GmbH
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• RESA, S.A.S.
• Collins Aerospace
• Siemens AG
• SITA
• TAV Technologies
• Thales Group
• Ultra Electronics Holdings plc
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• In November 2023, IBM signed a strategic agreement with Riyadh Air to support creating, building, and orchestrating the technology foundation that can help the digitally native airline offer exceptional and seamless travel experiences.
• In July 2023, French ground handler Onet Airport Services joined forces with Damarel Systems International Ltd. to revolutionize their operations and drive increased efficiency and profitability with FiNDnet Enterprise.
• In July 2021, Airport Information Systems (AIS) upgraded City of Derry Airport’s Airport Management System to the latest version of their Flight Information Display System (FIDSnet).

Airport Information Systems Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the airport information systems market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global airport information systems market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the airport information systems industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.