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Global smart airports market to hit $13.5bn by 2020

DUBAI, April 11, 2015

With technology enabling passengers to take more control of their travel experience, the global market for smart airports is set to reach $13.5 billion by 2020, up from $9.7 billion last year, said a report.   

The market is expected to see 5.61 per cent  compound annual growth rate (CAGR) to 2020, according to a Markets and Markets study.

According to industry experts, the airports are expected to offer an even faster, smoother and better-connected and therefore less-stressful journey through the airport to passengers whose number globally will double to 6.6 billion by 2020.

On a global scale, the airports in the Gulf region lead in embracing technology solutions with open arms to improve passenger experiences, reduce the burden on customer services, and most importantly, increase revenues, said the experts ahead of a key industry event.

The Airport Show is a major procurement platform for airport developments in the Middle East, Africa and Indian subcontinent, and will run fom May 10 to 12 at the Dubai International Convention and Exhibition Centre.

The 15th edition of the B2B event will be co-located with Global Airport Leaders’ Forum and Travel Catering Expo. It will showcase the latest technologies and innovations that will change the way people travel through airports now and in the future, said Reed Exhibitions Middle East, the organisers of the event.  

The experts pointed out that smart technologies were helping in the transformation of airports by increasing their processing and operational capabilities.

“Airports are now more open to new and smart technologies than ever before because they’ve seen the benefits that these bring to their operations, performance and passenger satisfaction,” remarked Daniyal Qureshi, the group exhibition director at Reed Exhibitions Middle East.

The International Air Transport Association (IATA), the global trade body for airlines, pointed out that the mushrooming mix of devices, applications, networks and services is set to open up a whole new world for  systems integration in the airports environment.

"Imagine driving to the airport, having chosen a car parking slot in advance and, on arrival, being told precisely where to drop the bag, being able to track your luggage throughout the entire journey, being informed where the shortest security queue is, where to go and when to start your journey to the boarding gate from where you are and being guided to the right carousel to collect the bag," it stated.

Airports are expected to offer an even faster, smoother and better-connected and therefore less-stressful journey through the airport to passengers whose number globally will double to 6.6 billion by 2020. Smart technologies are helping in the transformation of airports by increasing their processing and operational capabilities, he added.

According to experts, smart technology is putting more control of the travel experience into the hands of passengers.

"Smart airports are set to revolutionize the passenger experience as airports invest in Beacon, Near Field Technology (NFC), mobile and wearable technologies to ease the journey through the airport, which is known to be the most stressful part of any air domestic or international journey," they added.

Airports need to prepare themselves for the connected traveller, according to the 2014 SITA/ACI Global Airport Trend Survey.

The majority of total airport investments of $6.8 billon will be for IT, the survey stated. "About thirty-three per cent will implement beacon technology, 84 per cent in mobile applications,16 per cent in wearable technologies and 49 per cent in Near Field Technology (NFC) by 2020."

According to the survey, improving passenger experience remains the single most important driving force for IT investment for 68 per cent of the airports. Over half of airports have major programmess related to self-service and passenger mobile apps.

In addition, two-thirds of airports have major infrastructure programmes to deploy common-use systems for passengers, such as kiosks and implementation of Wi-Fi, which is focused towards enhancing passenger satisfaction, stated the survey..

"Airports need to turn smart to ensure that their facilities are able to cope with evolving needs and expectations of passengers," observed Qureshi.

"Having smart technologies in place is integral to delivering a hassle-free passenger experience that can put an airport ahead of its competitors. Changes in the ways we travel are coming at us faster each day. New technology promises to make travel even easier, more efficient and safer. Some changes are right around the corner and others are decades away," he added.

By 2017, SITA reports that 86 per cent of airports expect the majority of their passengers to use self-service check-in, and by 2020, 80 per cent of global passengers will have access to a complete suite of self-service options from arriving at the airport to clearing immigration at the final destination.

More investments are being made in check-in technologies, flight information displays and access control, stated the SITA report.  

As part of the initiatives to turn Dubai International Airport into a Next-Gen travel hub, smart gates equipped with technology such as automatic identification system, facial imprint and automatic iris scan have been deployed, said the industry experts.

UAE airports are going in for the phased implementation of Advance Passenger Information System (APIS).

Enhancing capacity and ensuring seamless operations is the primary driver for GCC airports, which are expected to handle 450 million passengers by 2020.

To that end, intelligent technologies like telematics, mobile apps, RFID and automation can enable airports to build a digital grid that will become their nervous system, allowing them to offer tailor-made services that will enhance passenger experience and at the same time maximizing their spending.-TradeArabia News Service




Tags: Dubai | Gulf | Iata |

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