PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1587636
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1587636
According to Stratistics MRC, the Global Airport Information Systems Market is accounted for $3.6 billion in 2024 and is expected to reach $5.0 billion by 2030 growing at a CAGR of 5.8% during the forecast period. Airport Information Systems (AIS) are technological platforms that enhance operational efficiency and customer experience by centralizing real-time data, including aircraft itineraries, gate assignments, and baggage handling details. They comprise Passenger Information Systems, Resource Management Systems, and Flight Information Display Systems (FIDS), all of which optimize stakeholder communication and operations. Airport information systems creates a more orderly and seamless atmosphere by streamlining airport procedures, reducing delays, and facilitating better collaboration amongst airport operations.
According to a report published by the International Civil Aviation Organization (ICAO), international air passenger traffic decreased by 60% and airlines lost approximately USD 371 billion in revenue.
Rising number of passengers and flights globally
The rising number of passengers increases the need for sophisticated, expandable systems to oversee intricate airport operations. Reducing delays, improving safety, and preserving a seamless traveler experience depend on AIS solutions. For predictive resource management, airport information systems providers are concentrating on machine learning, artificial intelligence, and advanced data analytics and with airports investing in digital technologies to maximize resource allocation, enhance communication, and guarantee scalability, the airport information systems industry is expected to grow.
High initial investment
Financial constraints and integration expenses may discourage airports from upgrading their airport information systems, thereby reducing operational effectiveness and passenger satisfaction. These budgetary restrictions prioritize necessary upgrades over sophisticated airport information systems. Furthermore, recurring costs such as maintenance, employee training, and software and hardware purchases can mount up, deterring investment in advanced airport information systems, particularly for those with limited funds, hampering market growth.
Growing demand for Self-Service Technologies
Self-service technologies, including baggage drop and check-in kiosks, allow travelers to independently handle their travel procedures, cutting down on wait times and increasing customer satisfaction. By putting these technologies into practice, airports may improve their reputation and boost repeat business. Moreover mobile applications and biometric identification are examples of advanced systems that improve security and speed up processing times boosting the market growth.
Integration challenges
The numerous systems created by various manufacturers make it difficult and time-consuming to integrate new airport information systems with older systems that already exist. This calls for a high level of technical skill and may cause operational disruptions. Furthermore, irregular data storage and access across many systems can lead to fragmented information flow, which makes it challenging for airport operators to have a cohesive picture of operations affect overall effectiveness and passenger needs responsiveness.
The COVID-19 pandemic profoundly impacted the Airport Information Systems (AIS) market, leading to a significant decline in demand due to travel restrictions and reduced passenger confidence. Airports faced drastic drops in passenger numbers, resulting in budget cuts for technology investments and infrastructure upgrades. However, the crisis also accelerated the adoption of contactless technologies and health screening solutions as airports prioritized safety.
The passenger information systems (PIS) segment is expected to be the largest during the forecast period
The passenger information systems (PIS) segment is expected to be the largest during the forecast period owing to its data-driven strategy that assists airport management in making well-informed choices on service improvements, staffing, and resource allocation. The AIS market gains from this data-driven strategy since it makes effective use of the data and airports are investing more in technological solutions that combine PIS and AIS features as they realize how important passenger information systems is to enhancing passenger experiences.
The integration solutions segment is expected to have the highest CAGR during the forecast period
The integration solutions segment is expected to have the highest CAGR during the forecast period because these airport systems can communicate and share data more easily thanks to integration solutions, which streamline operations for resource management, baggage handling, and passenger processing. This makes it possible to respond to operational difficulties more quickly, have fewer delays, and provide better services. Thus as air travel continues to grow, airports can expand their systems without significant overhauls, ensuring they remain competitive in a dynamic market
North America is expected to have the largest market share over the projection period 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, North American airports are undergoing modernization to replace legacy systems with digital, automated solutions. These upgrades drive demand for AIS to improve operational efficiency, resource management, and passenger experience.
Asia Pacific is anticipated to witness the lucrative growth rate during the forecast period because advanced AIS solutions are required to manage operations effectively and improve travel experiences as a result of the Asia-Pacific region's increasing passenger volume, which as of December 2023 accounted for 34% of all air passenger traffic worldwide. This expansion is being accommodated by investments in airport modernization and development in nations like China, India, and Japan.
Key players in the market
Some of the key players in Airport Information Systems Market include ADB SAFEGATE, Airport Information Systems Limited, Amadeus IT Group SA, Honeywell International Inc., IBM Corporation, Indra Sistemas SA, INFORM Software, NEC Corporation, Northrop Grumman Corporation, RTXCorporation, Samsung Electronics Co., Ltd., Siemens AG, SITA, THALES and T-Systems
In October 2024, Honeywell and Google Cloud announced a unique collaboration connecting artificial intelligence (AI) agents with assets, people and processes to accelerate safer, autonomous operations for the industrial sector.
In October 2024, Honeywell and Qualcomm Technologies, Inc. announced an expanded collaboration to develop new artificial intelligence (AI)-enabled solutions for the energy sector. The design and development of these solutions with Qualcomm Technologies supports Honeywell's alignment of its portfolio to three compelling megatrends, including automation.
In October 2024, Siemens partnered with Alliander to accelerate flexible grid management in the Netherlands. It is estimated that this partnership could extend the grid usage in the Netherlands by 10 to 30 percent.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.