Market Trends of Airport Information Systems Industry
Growing Investments Toward Upgrading Airport Terminals
The pandemic had a significant impact on global passenger traffic; however, the number of scheduled passengers handled by the global airline industry has increased in the last decade. This has been the primary driving force for the airports to invest in new and advanced airport information systems. With a focus on enhancing the passenger experience, several airports across the world have invested in developing various new information and airport management technologies to aid the travel experience for passengers. Airports are also developing agile systems to predict capacity demand, provide an enhanced passenger travel experience, improve operational process efficiency, improve staff productivity, and ensure safety and security.
New technologies and various passenger check-in methods are being implemented across various airports around the world to increase the ease of usage and air travel for new passengers. For instance, in October 2022, Perth Airport installed new self-service kiosks and bag drop units and announced that it would start trialing biometric passenger processing, with a Singapore Airlines flight being the first to start the process. The expansion of existing airports also drives the market. On this note, in October 2022, the construction of a new terminal spanning 20,000 sqm. was initiated at the Gwalior airport in Madhya Pradesh at a potential investment of USD 54.15 million.
Asia-Pacific to Witness the Highest Growth During the Forecast Period
The rapid growth in the air passenger traffic in Asia-Pacific has driven the demand for a robust aviation infrastructure and services alike. Owing to this, the investments in developing, upgrading, and maintaining these airports are increasing. Though the pandemic has slowed down the growth rate of the aviation sector in the region, certain sophisticated systems are being added to the existing aviation infrastructure to promote the seamless movement of passenger traffic. Nevertheless, the expansion or modernization of several airports in the region is currently underway.
The Asia-Pacific region has the largest number of airport construction projects of all kinds (runways, terminals, etc.) known to be underway, with more than 220 projects in the region alone. Also, the region also has more than 110 greenfield projects in the planning stage, the highest in the world. Two major markets in the region, China and India, are driving the growth of airport investments.
As per IATA, China plans to construct 216 new airports by 2035, and the Indian government plans to develop 100 additional airports by 2024. This signifies a huge opportunity for airport information system integrators, as the adoption of smart airport concepts would foster the demand for sophisticated airport information systems during the forecast period. In July 2022, India's flagship airline, Air India has selected Amadeus Altea Passenger Service System Suite (PSS) as part of the carrier's revitalization, for its customers interfaces. The implementation includes revenue management, revenue accounting, retailing and merchandising, website.
