Airport Digitalization Market: Influential Factors Determining the Trajectory of the Market

The acceptance and presence of digital technologies at airports has successfully created ecosystems inside airports that can cater to any and all needs of the consumer, while also ensuring a smooth and safe functioning of the airport itself. From mobile boarding passes and text messages for flight schedules to sensor-based traffic control and even big data analytics, the global airport digitalization market is currently teeming with innovations aimed at making the entire process smoother, faster, safer, and cost effective.

Biometric technology is allowing airports to create user profiles that allows staff and even fliers to manage processes such as self-check in, guidance through the airport, and immediate updates on flight schedules. The global airport digitalization market also includes a number of digital experiments that can help resolve common traveler issues and improve the operational efficiency of the airport.

From the perspective of safety, the global airport digitalization market is at the top of its game, with numerous players providing state of the art security and safety based digital technologies and services. The growing rates of crime and terrorist activities across the world is creating a heightened need for airport security, giving rise to digital measures for safeguarding baggage transport and passengers alike.

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The most prominent factor driving the market for airport digitalization is the increase in crimes and terrorist activities in airports leading to human casualties as well as infrastructure damage. Companies across the globe are developing robust technologies for passenger screening, baggage screening, and security measures which helps in scrutinizing every passenger while entering the airport as well as their baggage.

This factor has increased interest among airport authorities to incorporate these security measures in order to secure the airport. Moreover, the development of software using Big Data that aids passengers during check in or ticketing using self-service kiosks is helping airport authorities to digitalize the airports. The influence of Big Data in the digitalization of airports has had a positive impact and is greatly helping the market for airport digitalization to expand in future.

The growth rate of the market for airport digitalization is however hampered by the increasing need for data privacy and protection. The world is facing a challenge from cyber-attacks, which is also negatively impacting digitalization in every sectors. Data regarding passengers, baggage, staff, as well as airport operations is growing rapidly on a daily basis. This data can be converted into important information with the objective of improving airport operations by increasing business flexibility and minimizing operational risks. The risk of losing this valuable information can lead to unavoidable situations at an airport. In developing nations, airport authorities are limiting the incorporation of such software in order to reduce the risk of cyber-attacks, which in turn is inhibiting the airport digitalization market to expand in the coming years.

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The airport digitalization market is poised to grow over the years due to certain factors extensively impacting market growth such as evolution of mobile based applications, introduction of facial recognition and retina recognition systems in airports, as well as baggage scanning software. Mobile based applications allow passengers to check-in before arriving at the airport, also help ticketing to get done easily. The facial or retina recognition systems helps law enforcement officers to scrutinize every passenger entering an airport. Baggage scanning software allows the crew and the police to scan the baggage or cargo before loading them on to the aircraft. Thus, these factors are expected to fuel the market for airport digitalization in the coming years.

The market for airport digitalization is segmented on basis of application and geography. Based on application, the market is categorized as passenger screening and security, baggage services, passenger assistance, and retail. The rapid escalation of terrorist activities and crimes in airports have led the introduction of various passenger screening and security measures such as retina scan, facial recognition, self-service kiosks, and biometric sensors. These safety measures have enabled the passenger screening and security segment (in the application segment) to dominate the market and the segment is anticipated to retain its dominance in the next few years.

The market for airport digitalization is segmented on the basis of five strategic regions globally, namely, North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The market is led by North America due to a number of companies developing different software in order to offer enhanced safety in airports and to the crew as well as provide easy passenger assistance. Moreover, airports authorities across North America are rapidly adopting these safety and easy measures, which is leading the region to dominate the market.

The major players operating in the airport digitalization market includes Microsoft Corporation (U.S), IBM (U.S), Cisco Systems Inc. (U.S), Siemens AG (Germany), Apple Inc. (U.S), Living PlanIT SA (Portugal), Scarabee (Netherlands), Wind River (U.S), Daifuku Co. Ltd. (JAPAN), and SITA (Belgium).

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